Needham has reduced its price objective for Gemini Space Station shares (NASDAQ:GEMI) to $10.00, down from the prior $23.00 target, while keeping a Buy rating on the stock. The shares are trading at $6.59, a level that represents a nearly 86% decline from the 52-week high of $45.89, according to InvestingPro data.
The brokerage's action follows the company’s announcement of preliminary fiscal year 2025 results on Tuesday, coupled with a sweeping management reshuffle. Gemini disclosed the departures of its chief financial officer, chief operating officer, and chief legal officer. The company also said it would reduce headcount by roughly 200 roles, about 25% of its workforce.
Those operational moves come against a backdrop of weak financial metrics. Gemini reported a financial health score of 1.2, categorized as "WEAK" by InvestingPro, and posted negative gross profit margins of -12.26%. Needham flagged a deteriorating trading environment for crypto, estimating that crypto activity will fall by 40% quarter-over-quarter in the first quarter of 2026. The firm noted that card revenue could partially mitigate declines in trading volumes.
In the fourth quarter of 2025, Gemini's revenues beat Street expectations, but expense pressures intensified. The company recorded losses on crypto assets it held, and net income materially missed consensus estimates. Investors should be aware that the company is set to report its next quarterly results on February 25, 2026.
Needham said it has trimmed top-line forecasts but anticipates an improvement in adjusted EBITDA in the latter half of 2026 driven by the expense reductions. Nonetheless, the firm cautioned that 2027 could present a tougher profitability landscape, with weaker crypto activity than previously assumed.
Gemini Space Station operates a cryptocurrency exchange and provides related financial services. The firm released preliminary revenue guidance for 2025, estimating total revenue in the range of $165 million to $175 million, up from $141 million in 2024. Despite the revenue increase, market participants highlighted widening losses and the impact of the executive departures on near-term outlooks.
Other analysts have also re-evaluated their views. Cantor Fitzgerald downgraded Gemini to Neutral from Overweight and cut its price target to $8.00 from $14.00. Evercore ISI moved its rating from Outperform to In Line and reduced its price target to $10.00 from $15.00. Those revisions followed Gemini’s strategic choice to exit operations in the UK, European Union, and Australia as part of cost-cutting and profitability-focused measures. The company said it would continue to operate in the United States and Singapore.
The combination of executive turnover, market exits, mounting losses on held crypto assets, and a weak revenue-to-profitability conversion has reshaped analysts’ recommendations and price expectations for the stock.
Next steps for investors
- Watch for the company’s formal earnings release on February 25, 2026, for confirmed results and management commentary.
- Monitor trading volumes and card revenue trends to assess whether non-trading revenues can offset declines in crypto activity.
- Track any further leadership changes or operational announcements as the company implements its restructuring plan.