Gemini Space Station, Inc.

Good day, and thank you for standing by. Welcome to Gemini's fourth quarter and full year 2025 earnings conference call. All listeners are currently in a listen-only mode. After today's prepared remarks, the company will moderate a question and answer session. Please be advised that today's conference is being recorded. I would like to hand the conference over to Ryan Todd, Head of Investor Relations. Please go ahead.

Thanks, Operator. And thank you everyone for joining this morning for Gemini's fourth quarter and full year 2025 earnings call. My name is Ryan Todd, head of investor relations at Gemini. Joining me on the call today are Gemini's founders, Cameron and Tyler Winklevoss, and interim CFO, Daniela Stylianovic. Yesterday, we released our fourth quarter and full year 2025 financial results. During today's call, we may make forward-looking statements, which may vary materially from actual results and are based on management's current expectations, forecasts, and assumptions. Information concerning the risks, uncertainties, and other factors that could cause these results to differ is included in our SEC filings. Our discussion today will also include certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures are provided in the shareholder letter, on our investor relations website, and on the SEC's website. Non-GAAP financial measures should be considered in addition to, not as a substitute for, GAAP measures. We'll start today's call with prepared remarks and then take questions. And with that, let me turn the call over to our founders, Cameron and Tyler. Thanks, Ryan. Cameron here.

2025 was a remarkable year for Gemini. We crossed the threshold into the public markets and became a public company on September 12th after being a private company for over a decade. On that day, the price of Bitcoin was $115,000. Since then, Bitcoin has traveled down to $60,000 and then back up to around $70,000 where it hovers today. A reminder that one of the biggest challenges for crypto builders and investors is its cyclical nature. And a reminder that in order to move beyond these cycles, you need to build beyond them. We started as a Bitcoin company. We became a crypto company. We are now becoming a markets company. If Gemini's first decade was building a bridge to the future of money, today we are building a bridge to the future of money and markets via a super app. Our first foray into people's daily financial lives beyond buy, sell, and store crypto began with the Gemini credit card which delivered strong growth last year. In 2025, card signups grew nearly 15 times and credit card revenue reached 33.1 million, up 185% year over year. Many of these Gemini credit card customers engage with Gemini multiple times a day to earn crypto rewards when they spend with the Gemini credit card. December marked a new era for Gemini with the launch of Gemini predictions. We believe prediction markets will be as big or bigger than today's capital markets. They offer a profound and boundless opportunity to leverage the wisdom of the crowds and the power of markets to provide unique insights into the future. Our investment in securing a designated contract market DCM license from the CFTC to launch our own prediction marketplace positions us as an early mover on this new and exciting frontier. We've been building and operating regulated marketplace infrastructure for over a decade. Sequencers, matching engines, order books, real-time settlement, post-trade reporting, custody infrastructure, and more. This is a big part of what we do best. Our prediction markets are new instruments running on infrastructure we already know how to build and operate. As a result, we chose not to partner with a third party or license someone else's technology and instead build it ourselves. And in doing so, this also means we have chosen to invest in developing the unique operational capabilities for creating and resolving thousands of contracts on a daily basis. A new and fascinating challenge with growing complexity as we expect the cardinality of these markets to continue to explode over time. In short, we built Gemini Predictions from the ground up because we want to own and operate our prediction markets end to end for the long term. We believe in the power of markets. Bitcoin is a store of value that is a product of market forces. The best economies are market-based. Markets are truth over the long term, and we believe that we are just figuring out how to apply them to the world around us. From politics to economic indicators, business, tech, culture, and sports, Prediction markets are forecasting the future more accurately and more quickly than traditional pollsters, experts, and the media. This is a profound change in the world's source of truth and an equally profound solution to the loss of trust in our institutions and resulting epistemological crisis. The printing press created the fourth estate, or the public press. The internet created the fifth estate or decentralized public press. Prediction markets are creating the sixth estate, decentralized information combined with the integrity and accountability of markets or spin in the game. Like money, markets are an innovation in technology that continue to evolve thousands of years after they were first invented. From the birth of the bond markets in the Italian city-states in the 12th century, to the launch of the first stock market in Amsterdam in the 17th century, to electronic trading replacing the open outcry of humans in trading pits on Wall Street in the 21st century, markets continue to grow and develop. Just when you thought the money experiment had reached its terminal steady state, Bitcoin emerged. Just when you thought markets were done maturing, prediction markets caught fire. Gemini was founded to help build and shape a new era of money. Today, we have a similar opportunity to help build and shape a new era of markets. Unfolding in parallel is the meteoric ascent of AI. Once these strains of technology, money, markets, and AI converge we believe they will supercharge each other in dramatic and novel ways that generate new economic activity that we are uniquely positioned to be at the center of and help build and shape to this cauldron of promethean fire could make progress in these fields up to this point appear rather quaint We have long felt that it is only a matter of time before we have more machines as customers than humans. Machines can't open a bank account, but they can easily plug into protocols and use crypto to become rational economic actors. Humans may have built crypto, but crypto is not so much money for humans as it is money for machines. We're just starting to see this take shape. Here's one example. For the first decade, we had three API protocols, REST, WebSocket, and FIX. We're now adding a fourth, Model Context Protocol, or MCP, an open source API interface designed specifically for AI agents like large language models, or LLMs. While we believe AI is going to change the composition of our customer base, it's already changing the composition of our workforce and how we work. Up until recently, the impact of software engineers could differ by an order of magnitude or 10x. Great engineers would have 10x more impact than good engineers. AI has completely changed the game, expanding this paradigm by another order of magnitude at a minimum, making a 10x-er now a 100x-er. Critically, we are seeing that this step change holds true for every engineer who adopts AI and their workflows. And it also holds true for non-engineering work as well. Doing more with less has never been more true or possible, and we believe this trend line is only just beginning. Notably, the force multiplier effect of AI for Gemini and our workforce is quite new. It wasn't until the end of last year that AI agents for coding and software development had a splitting of the atom moment. While different pockets of our technology organization had been experimenting with AI and their workflows for a while, AI was not core to them. For example, late last summer, when we were in the middle of our IPO roadshow, AI was used in only 8% of the code being written and shipped to production. In December, however, the future arrived. Models hit an inflection point, and in combination with the internal tools we built for change shed management, AI is now too powerful not to use at Gemini. Today, AI is used in more than 40% of our production code changes, and we expect that number to climb close to 100% in the not too distant future. Not using AI at Gemini will soon be the equivalent of showing up to work with a typewriter instead of a laptop. As a result, we have reduced the size of our workforce by roughly 30% since the start of 2026. We believe that a smaller organization leveraging the right tools isn't just more efficient, it's actually faster. Gemini started in America in 2015. Since then, we expanded our areas of operation to more than 60 countries. These foreign markets proved hard to win in for various reasons, and we found ourselves stretched thin with a level of organizational and operational complexity that drove our cost structure up and slowed us down. And we didn't have the demand in these regions to justify them. The reality is that America has the world's greatest capital markets and America has always been where it's at for Gemini. Furthermore, we are encouraged by the stated goals of the current SEC and CFTC and their efforts thus far to make the super app possible in America and usher in a new golden age of markets. So we decided it was time for us to focus and double down on America. This will allow us to build more meaningful and powerful relationships with new and existing customers. To that end, in addition to reducing the size of our workforce, we have reduced the areas in which we operate by exiting the UK, EU, and Australian markets. We expect this will help reduce our total expenses in line with our headcount reduction and meaningfully accelerate our path to profitability. even in the backdrop of the current crypto market. Simplify, consolidate, then accelerate. We love being a public company. Perhaps a somewhat surprising statement when looking at the performance of our share price over the past six months since we've been public. But rather than be dispirited, we are motivated. And while it's never fun to see your stock drop, we love the feedback loop. It forces us to confront what is working and what is not working, and it makes us sharper. It's challenging, but absolutely the right challenge. We view this feedback loop as one of the greatest benefits of being a public company. As rowers, losing a race provided invaluable feedback on the changes you needed to make in order to win. The path to the Olympics is paved in lost races and the invaluable learning that comes from them. So we welcome the feedback and love the challenge. 2025 marked the end of Gemini 1.0 and 2026 marks the beginning of Gemini 2.0. This starts with our shift into becoming a markets company with Gemini predictions and using the same infrastructure to power our perpetual futures contracts once these contracts are allowed in the US. And it continues with our plan to launch U.S. equities as the next phase of our platform, giving our customers access to the largest, most liquid markets in the world. Altogether, we have developed the foundation and building blocks for a super app where users will be able to fulfill their existing and future financial needs all in one place.