Gemini Space Station, Inc. (GEMI) Earnings Call Transcript

Good afternoon, everyone, and thanks for joining us for Gemini's Third Quarter 2025 Earnings Conference Call. My name is Kate Freedman, and I serve as Gemini's Secretary. With me today are Gemini's founders, Cameron and Tyler Winklevoss; our Chief Operating Officer, Marshall Beard; and our Chief Financial Officer, Dan Chen. Our third quarter financial results were announced today following the close of the market. I'd like to note that throughout this call, the Gemini team will be making forward-looking statements, including statements about Gemini's future performance, its business outlook, anticipated trends in our industry, and their expected impact on our business, all of which are based on management's current expectations, forecasts and assumptions. These forward-looking statements carry risks and uncertainties that could cause actual results to differ materially from what we expect. To identify and discuss these material assumptions, risks and uncertainties, please see our public filings with the SEC as well as the Investor Relations section on our website. We assume no obligation to update these forward-looking statements unless the law expressly requires us to do so. Additionally, on this call, the Gemini team will refer to certain non-GAAP financial measures during today's discussion. Important disclosures about this information, along with a reconciliation of the non-GAAP information to comparable GAAP information, are included in our Shareholder Letter and can be found on our Investor Relations website. With that, I'll hand the call over to Cameron and Tyler.

Good afternoon, everyone, and thanks for being here on the first earnings call we've held since becoming a public company. I'm Cameron Winklevoss, and I serve as President and Co-Founder of Gemini. Tyler and I feel both enormous excitement and real humility at arriving at this milestone in Gemini's journey. With Q3 behind us, we've now completed our initial quarter as a company whose shares trade publicly. That achievement matters a great deal, yet it is just the starting point of the journey ahead. When Tyler and I started Gemini more than 10 years ago, we set out to create a trusted bridge to the future of money — linking the world to the crypto frontier and helping that frontier expand into the crypto mainland. Before Tyler and I walk through our strategy for growth and the business overall, we'd like to pause and recognize the Gemini team. The effort, imagination and resolve of our people are what carried us here. We feel profound appreciation for the dedication and toughness you show toward our mission daily; during this quarter, our mission advanced in a major way. We expanded our ecosystem, extended our reach and kept proving how strong the model we're constructing is — one rooted in trust, engagement and liquidity. Throughout the business, we hit several of our biggest growth milestones of recent years. Trading volumes came in at $16.4 billion, the highest quarterly figure in multiple years, mainly powered by growing institutional activity and deeper engagement platform-wide. The Gemini Credit Card posted record results, exceeding 100,000 open accounts along with over $350 million in quarterly transaction volume — a quarter-over-quarter increase of more than 2x. Taken together, those results gave us our best quarter for user acquisition in more than 3 years and highlighted how our ecosystem's reach keeps expanding. We also generated momentum for the next phase of growth by rolling out new features for the Gemini credit card and bringing out the Gemini Wallet, a self-custody smart wallet built for crypto users and developers alike. In parallel, we extended our global presence by entering Australia and obtaining our MiCA license in Europe, which lets us provide staking, derivatives and tokenized stocks to customers throughout the European Union within a regulated framework. We see this performance as confirmation of our model's strength and of the foundation that will keep driving Gemini's growth over the long term.

Appreciate that, Cameron. At the time we started Gemini, the aim was straightforward: crypto needed to be simple, secure, and open to all. That mission is the bedrock of the trust, engagement, and liquidity engine driving our company. Right from day one, we took the path of regulation first — seeking permission rather than asking for forgiveness — and Gemini was constructed to satisfy the toughest benchmarks around security, licensing, and compliance. Our conviction then, which remains today, is that lasting value in crypto will accrue to firms that earn it properly. Because we zeroed in on trust, we've been able to establish a resilient framework we expect to compound as time passes. In our view, this bedrock of trust and transparency explains why Gemini users show up and why they stick around. Taking the regulation-first route has let us create a resilient, potent engine powered by trust, engagement, and liquidity that propels Gemini's business ahead. Everything begins with our exchange — a regulated, crypto-native venue blending the depth and sophistication institutions demand with the ease retail customers require; that bedrock of trust and transparency is what initially brings users to Gemini and what makes them stay. From that point, the Gemini Credit Card widens our footprint. Frequently it's the entry point for those just getting into crypto — a card with no annual fee that pays out in Bitcoin or any of the 50-plus tokens on our platform when you make everyday purchases. This draws them into the Gemini ecosystem through a straightforward, rewarding experience. As time goes on, that connection opens doors for customers to discover more of what Gemini provides, from trading and saving to interacting with on-chain products, as their comfort and familiarity increase. When overall activity grows, it pulls in institutional liquidity, market makers, asset managers, and corporate treasuries that appreciate Gemini's regulated framework. Their involvement improves pricing and execution for all participants, producing a healthier, more efficient marketplace. The last component — truly the spine of this whole structure — is regulatory trust. Running things in a sound, compliant, transparent manner does more than safeguard our users. It unlocks new markets and positions Gemini as the preferred partner for institutions and regulators equally. Every rotation of this engine strengthens the following one. Trust generates engagement, engagement generates liquidity, and liquidity reinforces trust. It's a unified model that compounds over time, widening our footprint, deepening relationships, and fortifying our business's resilience. That's what Gemini's flywheel can do, and it's why we think we're set up to lead as traditional finance and crypto keep converging. During Q3, we pushed our mission forward across 5 key areas showing this model's strength: one, growing our regulated global footprint; two, scaling crypto adoption via everyday spending; three, deepening trading activity and diversifying our revenue mix; four, enabling secure onchain access; and five, enhancing capital efficiency and balance sheet strength. Our Chief Operating Officer, Marshall Beard, will cover each of these areas in greater depth. Back to you, Cameron.

When we think about what's coming, the possibilities in front of us are massive. On-chain activity is where financial markets are headed, and the way we conduct transactions, hold wealth, and engage with money itself is being transformed by crypto. For this shift, Gemini was built deliberately — regulated, trusted, and committed to creating a super app that is integrated globally, linking conventional finance with crypto through a single, frictionless experience. From the very beginning, our mission has been worldwide in scope. Access to a stable currency, the ability to invest in excellent companies, or taking part in a modern financial system operating 24/7 — much like the Internet and your e-mail — should not depend on which single country you happen to reside in. Through stablecoins, we bring dollars on chain; we enable trading and secure custody of tokenized assets; and we make purchasing Bitcoin and other crypto straightforward — that is how we carry out this mission. Gemini is ready to assist in shaping this future and to guarantee that access to it is available to all, all while upholding the trust and security standards our customers now expect. Our first quarter as a public company has given us accomplishments we take pride in, and what comes next excites us even more. We appreciate your joining us on this journey. Having said that, I would now like to turn things over to Marshall Beard, our Chief Operating Officer, who will cover Gemini's Q3 operating performance.

Thank you, Cameron. This first quarter as a publicly traded company has certainly been thrilling, with a number of enhancements made to the business that push our mission forward and sharpen how we run things. What we posted for Q3 shows just how deeply our teams execute and how the platform keeps building momentum. I'll begin with the worldwide reach we're building out, an area where we achieved meaningful strides toward Gemini's ambition of serving as a dependable, regulated partner everywhere. Our licensing and registration efforts moved ahead in important markets when the Malta Financial Services Authority granted us our MiCA license, which lets us provide select secure and trustworthy crypto offerings throughout all 30 European nations and jurisdictions. Right after Q3 ended, we entered Australia having secured AUSTRAC registration in August, and we finished the crucial payments integrations that make onboarding smoother in that market. Over in Singapore, we remain in discussions with the Monetary Authority of Singapore about upgrading the in-principle approval we currently operate under into a full MPI license. Taken together, these achievements widen Gemini's licensed presence in major markets globally and bolster our capacity to function within transparent regulatory structures. They further show that staying dedicated to compliance keeps creating fresh possibilities for retail as well as institutional clients. While extending our international reach, we've also kept growing one of the biggest catalysts for customer involvement and expansion, the Gemini Credit Card. It has rapidly turned into our strongest driver of customer acquisition and everyday engagement; during Q3, we rolled out an XRP edition of the Gemini Credit Card. Then in October 2025, the Solana edition arrived, bringing auto-staking rewards to every card and tapping into the strength of each network's community to fuel growth. Thanks to these launches, we surpassed 100,000 card accounts in total, with 64,000 new sign-ups during the third quarter and more than $350 million in transaction volume on the cards, a jump of over 100% compared with the prior quarter. That surge produced our best quarterly card revenue ever, hitting $8.5 million for the quarter. In our view, the Gemini Credit Card remains a top-tier acquisition entry point for Gemini within the United States. Over 55% of U.S. transacting users newly brought in across our products during Q3 came first through card onboarding, and 75% of open card accounts remained active when the quarter closed. This consistent stream of engaged transacting customers helps push lifetime value higher, strengthens engagement and encourages adoption of multiple products throughout the platform. As more people take up the card, engagement across Gemini keeps getting deeper. Each cardholder simultaneously opens a Gemini exchange account within that same unified experience, so customers get one consolidated platform for spending, earning and trading. On the exchange side, trading gathered pace in Q3 as more customer segments took part, pointing to a sounder marketplace with greater liquidity. Spot volumes hit $16.4 billion, a rise of 45% from the previous quarter, which included $14.6 billion from institutional customers, up 49% quarter-over-quarter, and $1.8 billion from retail, up 20% quarter-over-quarter. Order execution got better across every type, and in our view that underscores just how solid our core exchange remains. On the OTC side, we brought in more clients and broadened what we offer, which added to market depth and our ability to scale. Meanwhile, the way we earn revenue shifted toward a more even and resilient mix — services, which takes in credit card, custody and staking, made up almost 40% of total revenue in Q3, compared with under 30% during the same period a year earlier. Assets in custody and staking got a lift from rising prices as well as fresh regional rollouts, with staking balances hitting $741 million when the quarter closed. What these figures show is that our card-led approach to acquiring customers and our growing exchange activity feed into one another, forming a compounding flywheel of engagement, liquidity and trust that can support lasting growth. As liquidity and engagement on our exchange keep rising, we likewise widened access to the broader onchain economy, rolling out new products and capabilities that let customers engage directly with onchain opportunities more easily, safely and smoothly; throughout the quarter we kept growing our onchain capabilities and putting money into our native staking infrastructure. August saw the debut of Gemini Wallet, a self-custody smart wallet built for crypto users and developers alike. With this wallet, customers can handle assets smoothly across onchain applications while keeping control and security, closing the distance between embedded and portable onchain experiences. We additionally rolled out Solana staking from custody aimed at institutions, plus our very own in-house Solana validator, giving clients a secure and compliant route to take part in network validation straight through Gemini. Alongside that, we broadened multi-network support spanning both EVM chains and emerging Layer-1 networks, opening up wider access to stablecoins on our platform. Through our MiFID license in Europe, we brought tokenized stocks to EU customers, giving them a regulated way to get exposure to traditional financial assets onchain. We're likewise still developing new offerings, among them an anticipated prediction markets product we expect to say more about down the road. Taken together, these efforts bolster Gemini's part as a trusted bridge to the onchain economy, underscoring our aim of making crypto accessible to everyone via one integrated experience. Last, as we keep scaling our platform and growing our product capabilities, we likewise shored up our balance sheet and boosted our capital efficiency. After our IPO, we retired debt and enhanced capital efficiency via new funding structures, among them setting up a $150 million credit facility to finance credit card receivables. Such moves bolster liquidity, and in our view this puts Gemini in position for scalable, sustainable growth. Going forward, our focus stays on keeping the balance sheet strong while preserving room to fund strategic initiatives that generate scale and growth. We also intend to keep prudently using share-based compensation as a way to align employee incentives with Gemini's long-term success. All together, these priorities underscore our dedication to disciplined capital management and to aligning our people and financial resources around sustainable value creation. All in all, our view is that the third quarter showed how broad and resilient Gemini's model is when it's working; we delivered on every piece of our platform, growing our presence worldwide, increasing card usage, building out trading volume, pushing our onchain approach forward and getting better at using capital efficiently. Every one of those efforts reinforces the trust, engagement and liquidity flywheel that we anticipate will keep driving our expansion. So with that, I'll hand things over to Dan Chen, our Chief Financial Officer, who will walk you through the quarter's financial results in greater depth. Dan?

Appreciate that, Marshall, and it's great to be speaking with all of you. Being here today is a pleasure as we walk through what we delivered in Q3 — the first quarter we've reported since becoming a public company. My plan is to start with a financial overview, then share some color on what we're observing in revenue and expense trends, and wrap up by covering adjusted EBITDA along with guidance. We posted net revenue of $49.8 million for the third quarter, up 52% from the prior quarter. For Gemini, that marks yet another meaningful step ahead as we continue expanding the scope and durability of our platform. This quarter's expansion touched every part of our business. It came from heavier trading and people spending more time with both our credit card offering and our exchange, plus we picked up momentum in staking and custody. Taken as a whole, these figures demonstrate that the Gemini ecosystem keeps becoming more useful, and that the ways we earn revenue keep diversifying. On transaction revenue, we booked $26.3 million, an increase of 26% versus the prior quarter. Spot trading volumes reached $16.4 billion, which is 45% higher than the previous quarter, driven by both stronger participation from users and better conditions in the market. Retail volumes rose 20%, landing at $1.8 billion, and institutional volumes jumped 49% to $14.6 billion. We saw more engagement from people already using the platform, along with fresh accounts joining. Keep in mind that we generate transaction revenue through charges applied to both individual and institutional participants; those charges differ based on order size, how much someone trades, and the kind of order placed, with immediate orders carrying the steepest cost; gains this quarter were partly counterbalanced by a reduced average fee percentage for retail, which happened because cheaper order categories made up a bigger share. On the whole, higher trading activity outweighed that shift in composition, which speaks to the fundamental strength of our marketplace and our exchange's ability to scale. Now let's discuss services revenue. For the quarter, we brought in $19.9 million altogether. That figure covers revenue from credit cards, staking, and custody, plus other exchange-related business activities. The credit card side generated $8.5 million — a $3.7 million gain versus the previous quarter — fueled by more users signing up and bigger spending from cardholders who actively use their cards. In Q3, we recorded 64,000 new card sign-ups, compared with 17,000 during Q2, which pushed receivable balances up to $150.6 million, a 61% rise from quarter to quarter. As a customer on-ramp, the Gemini Credit Card remains highly effective, drawing newcomers into the ecosystem while deepening engagement from those already in it. Staking revenue likewise turned in a solid result, climbing $3.2 million to reach $5.9 million. That number captures our first complete quarter offering Solana staking within the United States. Staked assets grew and prices rose, which gave an added lift. We also booked $2.1 million of advisory fee revenue tied to a one-time warrant arrangement, which shows what our advisory work is worth. Looking ahead, we think services will remain a key engine of growth, especially as the Gemini Card keeps gaining users and our staking offerings reach more markets around the world. These recurring revenue streams carry strong utility, and we see them as a way to make our business model more stable over time. Turning to expenses: total operating expenses for the quarter reached $171.4 million, up about $72.7 million from the prior quarter. The main drivers behind that increase were stock-based compensation connected to the IPO, more spending on marketing, and various other nonrecurring items, not any structural shift in what it costs us to operate, and apart from those items our underlying operating system expenses tracked recent quarterly patterns. If we break that figure apart, compensation and headcount expenses reached $82.5 million, which is $45.7 million more than Q2. Around $44 million of that gain was attributable to stock-based compensation linked to IPO equity awards, and that includes a $15.1 million bonus accrual that was recognized and settled in equity at the same time. Beyond those line items, personnel and payroll costs tracked the expansion of our workforce, which totaled 677 people as of the quarter's close. We continue to direct selective spending toward engineering and compliance, while staying disciplined about hiring broadly; given that stock-based compensation has become a regular part of our cost structure, we anticipate that compensation will settle at this elevated post-IPO baseline. Turning to sales and marketing: costs came in at $32.9 million, which is $16.8 million more than the prior quarter. Intentional investments explain the bulk of that increase. Roughly two-thirds of the rise stemmed from greater marketing and brand expenditures, while the remainder reflected increased rewards and promotions tied to heightened card activity. When it comes to bringing on new accounts and getting cardholders more engaged, our view is that the money we've put in has more than proven its worth. That said, we continue to view marketing spending as something we can dial up or down. The amount we allocate in upcoming quarters will be guided by the performance chances we spot in the marketplace. Costs tied to transactions likewise rose during Q3, driven by busier activity as well as a handful of one-off losses. We recorded $8.6 million in transaction processing expenses, an increase of $3.4 million from the previous quarter thanks to larger staking balances, while transaction losses reached $7.7 million, roughly $4 million more than the prior quarter. On the whole, those losses tracked with a business that keeps growing in scale. Within transaction losses, the card program's credit loss provision increased $1.5 million, reaching $2.8 million, which aligns with ongoing expansion in active accounts. Our perspective is that credit performance keeps getting better. Expenses for technology and infrastructure came to $20.3 million, roughly $2.5 million higher, due to increased software licensing plus continuing spending on security and scalability. G&A costs totaled $19.3 million, basically unchanged, although that figure does contain certain nonrecurring IPO-related costs. Moving now to debt and liquidity: during the third quarter, third-party corporate debt increased by $75 million, reflecting a new borrowing facility. To carry out that facility, we entered into a related party loan of 1,275 Bitcoin. At the close of the quarter, that loan came to $145 million. We additionally recorded growth in other related party crypto loans, which rose by about $13 million, driven partly by increases in the value of Bitcoin and Ethereum and partly counterbalanced by repayments consisting of 133 Bitcoin plus 13,070 Ether. As the quarter ended, the arrangements had delivered to us 5,824 Bitcoin and 26,629 Ether, which we still held. Once the quarter was over, we sent back $116.5 million in proceeds tied to the Galaxy loan, and all of the Bitcoin and Ethereum collateral came back to us. Per the terms of that agreement, the loan remains outstanding until the 90-day notice period runs its course. Finally, we established a warehouse financing facility designed to fund receivables generated by our Gemini Credit Card. When the quarter closed, debt outstanding stood at $49 million, alongside $68 million in pledged receivables — enough to back borrowings of $59 million. That's a significant move for the business. Rather than carrying the card portfolio entirely on the balance sheet, financing it via a warehouse structure should, in our view, make the program more scalable and more capital efficient. We see this approach as consistent with long-standing practices in traditional consumer finance, and it gives us room to expand the card program responsibly while keeping liquidity strong and risk management disciplined. Taken as a whole, we consider our balance sheet healthy, with plenty of liquidity and diversified funding to fuel growth across our key products. Going forward, we'll stay focused on disciplined growth, better capital efficiency and the flexibility to invest behind the opportunities we believe in most.

Regarding our medium-term framework, our expectation remains that monthly transacting users will increase at a compound rate of 20% to 25% across that period. We anticipate that expansion being driven by a combination of fresh retail customers acquired via our credit card on exchange, alongside deeper engagement from current customers in trading, staking and onchain activity. Looking at the top line, we anticipate services revenue and interest income—encompassing staking, custody and the Gemini Credit Card, plus interest income—to land between $60 million and $70 million in fiscal 2025. That growth, we expect, will mirror ongoing momentum within our credit card program and greater participation in non-trading activities, both of which should help foster deeper and more diversified customer relationships. Now to expenses. For fiscal 2025, we anticipate technology and G&A expenses combined to fall between $140 million and $155 million. This should reflect sustained investment in scalability, reliability and compliance infrastructure, offset by anticipated efficiency gains throughout our core operations as we keep scaling the platform. On marketing, we foresee a more significant step-up for full year 2025, with expenses ranging from $45 million to $60 million. That rise mirrors our choice to lean into growth after the IPO and build on momentum. Our plan is to keep evaluating performance data closely and steer spend toward the channels and products where we anticipate the strongest returns. Put differently, this isn't broad-based expansion. This is a deliberate step-up in speed meant to produce lasting growth among users and to bolster the strength of the brand. Looking ahead, stock-based compensation is going to remain a structural piece of what we spend, which reflects our move to an equity program based on the market and tied to creating shareholder value over the long term. So even though total operating expenses are going to remain higher than they were before the IPO, in our view that reflects the investment we are intentionally making in people as well as in growth. Zooming out, the main point is that we believe expense growth is strategic and disciplined; we think we are putting money to work from a position of strength. There is a clear path we can see toward revenue streams that scale, and we expect to continue producing operating leverage once those investments begin to mature. Gemini made additional headway during the third quarter. We posted robust growth on the top line. Engagement grew deeper among users in both retail and institutional segments, and we keep widening the revenue mix toward recurring streams of higher quality, such as card and staking. Our view is that we are working from a solid base, putting capital into growth, expanding in a responsible manner and preserving the discipline that supports our objectives for long-term margin expansion; the business we are constructing is bigger, more resilient and more evenly balanced than at any prior point, capable of scaling across market cycles and seizing the long-term opportunity in onchain finance. Having said that, we will now begin the analyst Q&A portion of the call. Thank you, all.

The results look genuinely strong. Congratulations on quarter one. Q3 makes it clear that Gemini keeps moving toward being a worldwide financial super app — engagement is climbing, card adoption is huge, and products such as Gemini Wallet are part of that — and then you bring up where prediction markets are headed, which is quite thrilling. So perhaps, Tyler and Cameron, could you give us some detail about the new product road map and the super app you have in mind? That would help a lot.

Appreciate the question. Cameron here. As for our product road map, we're genuinely enthusiastic about building toward the super app, which we've already begun. Our self-custodial smart wallet came out this summer. Our belief is that all markets are moving on chain. So before long, inside a single app, you'll be able to hold a tokenized dollar through stablecoins, tokenized equity, and digital commodities. In the past, that might have meant several apps or a fragmented experience, and we're striving to unite all of it inside one app, and our progress on that is quite good. Tokenized equities launched in Europe; we back numerous stablecoins, and we back digital commodities such as Bitcoin and similar assets. Another piece of our road map we're quite enthusiastic about is the credit card; we had a really exciting quarter, yet we believe it's still quite early. Considering how large the potential market is, we've barely begun; passing 100,000-plus cards makes us excited, but given the market's size, this is truly only the start. We think consumers are genuinely grasping how powerful it is to earn crypto each time they swipe, rather than points that expire and whose value is difficult to pin down. What we're seeing is that people arrive for the credit card and remain for everything else. They get curious, move around the app, and proceed to take other revenue-generating actions. We also have a small business card coming up that we intend to release soon. Beyond that, we're planning additional co-branded card opportunities alongside other major projects. And finally, we're developing prediction markets. These markets excite us greatly. We consider it very early days. It reminds us strongly of how Bitcoin felt in 2012, when we first came across it. This notion that you can essentially create a market around anything, around any kind of event, is captivating and truly an opportunity without bounds; so we have — we're working to bring those live across the globe. We have an application with the CFTC to build a DCM, Designated Contract Market; and once the government opens back up, we hope to keep pursuing that application and hopefully bring these products to market soon thereafter.

Congratulations on your debut quarter as a public company. I want to dig into the card business, since the account growth you're reporting is really striking. Could you unpack what you see as the drivers behind that momentum? I also recall that in October you launched the Solana version of the Gemini card. Could you share some early observations from that, and also touch on the XRP card — how is engagement trending in October and November compared with the 64,000 card sign-ups you posted in the third quarter?

Sure. Marshall Beard here. I can take a piece of that, and I appreciate the question. It's a good one, since credit card is one of the most exciting offerings in our portfolio at the moment. Q3 brought enormous expansion for it. It's been one of our most exciting growth drivers. After all, we lead the market in this area. We keep pushing forward and bringing on new customers. Something particularly noteworthy: among our new transacting users in the U.S., 55% are arriving via the credit card onboarding funnel, and because it's one seamless experience, they turn into exchange users too. The Solana Card rollout is a solid illustration of how we lean on product and UX to pull cardholders into other offerings on the platform. Alongside that card, we introduced an option letting people automatically stake their rewards whenever they pick Solana or another asset eligible for staking. The result: a sharp jump in the number of users staking on Gemini, all of them credit card holders who are auto staking their Solana rewards, and along the way they're getting more familiar with what else we offer. They're interacting with additional offerings and solutions, and that stands out as one of the most thrilling opportunities available to us at this moment.

Mike, that's a fantastic question. Dan here. I truly value how thoughtful that was. Marshall put it extremely well, in my view. And earlier, as I'm sure you caught, Cameron and Tyler brought up the efforts involving the small business card. I'd like to draw attention to that, since the credit card serves as an amazing acquisition channel for us, yet we aren't satisfied with merely offering a prime consumer card as our product. We recognize the chance before us is to leverage that channel — given that we run the program in-house, we're able to broaden and establish a foothold there, then bring in additional channels. Small businesses, after all, represent an underbanked and underappreciated segment of this economy that matters enormously for America's prosperity, and we genuinely see this as part of our own opportunity too. We aim to take this product, extend it toward a group that's underserved, and build from that point onward.

Great. If I may follow up about card losses while you're pursuing account growth. Could you maybe discuss what you expect for losses, and also on fraud? Perhaps remind us what causes those fraud losses? And which actions can you take to bring that down over time?

Sure, Mike. This is Dan. Glad to take an initial pass at those questions. Regarding losses, honestly, losses this quarter were extremely low. They demonstrated significant improvement compared with what we saw in earlier periods. We think that reflects 2 things. First and most importantly, we see it as reflecting the credit discipline we apply to ensure we underwrite the right customers, where we extend credit to individuals who can afford it. Second, there's a denominator effect, to be candid: as we expand that program, losses will at first be somewhat lower as new customers join and use the product. And eventually, charge-offs level off. So it's an excellent level. We think we'll keep losses strongly mitigated. We have a terrific team handling the credit. They're highly focused on deploying the best technology available to keep losses, whether credit or fraud, tightly mitigated. So from where we sit, that's a core hypothesis. For example, we cannot obtain third-party financing. We cannot scale the business if we extend credit to those who cannot afford it.

I genuinely value all the detail regarding the new business wins — that's truly striking, as you both mentioned. That said, I was hoping you might discuss a few of the safeguards you've put in place, simply to ensure your unit economics stay solid as you aim to win back and expand market share.

Yeah. Marshall Beard here. I'll give that a try. What I'd say is, this year — and Q3 in particular — ranked among the strongest quarters for bringing on new users that we've seen in many years, which is evident from our lifetime transacting users and the growth in our MTU; therefore, we have a lot of confidence in our capacity to put capital to work right now at levels far beneath our CAC targets and still comfortably inside our payback period. So back earlier in the summer, we experienced enormous growth, and we had excellent tools for acquiring users — for instance, the XRP credit card drove user cost down to a very low level. That's still the case today; we remain highly confident in our capacity to put capital to work under the plan we've followed all year, at minimum through the close of the year. That said, as noted in our shareholder letter, we do treat marketing spend as a lever, correct? We'll keep pushing into peak moments when we can bring in users at the lowest cost possible, and we're equally able to scale back whenever we choose. So we still feel quite good about our capacity to bring on users comfortably inside our range, comfortably inside our CAC and payback period. So we'll keep doing that for as long as the market sort of presents us with those numbers, and we feel good about it.

That's really useful. Then, folks, I just have one more question regarding the super app you plan to develop. To us, that completely makes sense. There's obviously demand in the market for an offering like this. I was simply hoping you might address how you weigh buying against building against partnering as you aim to create that super app and sort of complete your entire set of offerings? A bit of detail on that would be great.

Certainly. Cameron here. We are indeed developing that super app for that future. It's an onchain capability. Our company operates onchain, and this falls squarely within our expertise. Therefore, this is a thing we'll create rather than partner or buy.

I want to dig into what's behind that medium-term guidance of 20% to 25% monthly transacting users. Can you walk us through the main components that make up that guidance?