Gemini Space Station (NYSE: GSS) shares dropped about 12% on Tuesday following the release of the company’s preliminary financial outlook for 2025 and the disclosure that three senior officers - the chief financial officer, chief operating officer, and chief legal officer - are leaving the firm.
The exchange provided a revenue range for 2025 of $165 million to $175 million, up from $141 million recorded in 2024. That range implies year-over-year growth of roughly 17% to 24%. Despite the projected top-line increase, investors reacted negatively to the company’s anticipated cost structure and wider losses.
Gemini’s early figures show expected operating expenses of $520 million to $530 million for 2025, a notable rise from $308 million in 2024. The company attributed the bulk of the increase to personnel-related expenses, including stock-based compensation, in addition to planned investments in technology, higher administrative costs, and expanded marketing activity.
On profitability, the exchange forecasted Adjusted EBITDA between $(267) million and $(257) million for 2025. That outlook factors in estimated net realized and unrealized losses of $30 million to $35 million. Those projected losses, combined with the substantial operating-cost escalation, were key drivers behind the share-price decline.
Some operational metrics in the preliminary release were positive. Gemini said it served about 600,000 Monthly Transacting Users as of December 31, 2025, which it put at a 17% increase from the end of 2024. The company additionally provided a breakdown of expected revenue composition: transaction revenue is projected at $93 million to $99 million, while services revenue is forecast at $72 million to $76 million.
Management linked the revenue increase primarily to stronger services revenue, driven by higher credit card revenue. The company also cautioned that its financial closing procedures for 2025 are not complete and that final reported results could differ from these preliminary estimates.
Context for markets - The combination of faster customer growth and rapidly expanding operating costs highlights a tension between top-line traction and near-term profitability for a publicly listed crypto exchange. The market’s reaction indicates investor sensitivity to widening losses and management turnover.