Why is Gemini Space Station stock sliding today?

Shares of Gemini Space Station plummeted 5.8% in after-hours trading on Thursday as the company's Q2 2026 earnings report utterly disappointed investors. The company disclosed a staggering adjusted loss of $0.89 per share, vastly surpassing analyst expectations of a $0.57 loss. The major culprit behind the earnings shortfall was a $16.1 million provision for credit card fraud, which notably inflated expenses well beyond what the market anticipated.

Revenue figures offered a mixed storyline. While total revenue surged by 37% year-over-year to $45.5 million, with services revenue skyrocketing by an impressive 149%, exchange transaction revenue fell by a significant 38% to $12.5 million. This decline was largely attributed to a weakening crypto market. Moreover, the company's assets on the platform fell precipitously to $8.4 billion from $18.2 billion a year ago, reflecting lower crypto valuations and substantial institutional custody outflows.

Despite these gloomy financials, the earnings release came as the S&P 500 reached a new record high following a softer Personal Spending Trends (PPI) reading.