Circle Internet Stock Rises on Strong Q2 Revenue, Stablecoin Demand

Circle Internet's Q2 revenue beats expectations, with a 7.9% increase in stock price in premarket trading. The company, behind the USCoin (USDC-USD) stablecoin, saw a surge in interest in stablecoins, with USDC in circulation expected to increase. The fintech firm, which completed its IPO in June, is focused on digital currencies.

Circle Internet Group, Inc. (NYSE: CRCL) reported robust financial results for the second quarter of fiscal year 2025, showcasing sustained growth and increased adoption of its stablecoin platform, USDC. The company’s stock price experienced a 7.9% increase in premarket trading following the announcement.

Key financial highlights include:
- USDC in Circulation: USDC in circulation grew by 90% year-over-year to $61.3 billion at quarter end, further increasing to $65.2 billion by August 10, 2025.
- Total Revenue: Total revenue and reserve income grew by 53% year-over-year to $658 million.
- Net Loss: The net loss was $482 million, significantly impacted by IPO-related non-cash charges totaling $591 million, including $424 million for stock-based compensation and $167 million due to the increase in the fair value of convertible debt.

Circle’s adjusted EBITDA grew by 52% year-over-year to $126 million, reflecting the ongoing growth of USDC in circulation and the company’s inherent operating leverage.

The company’s corporate and commercial highlights include:
- IPO Success: Circle successfully completed a $1.2 billion initial public offering in June.
- GENIUS Act: The GENIUS Act, which establishes a federal regulatory regime for payment stablecoins, was signed into law.
- Circle Payments Network (CPN): Launched in May, CPN now has four active payment corridors and is set for accelerating growth in the second half of 2025 with 100+ financial institutions in the pipeline.
- Strategic Partnerships: Circle expanded its partnerships with major industry leaders such as Binance, Corpay, FIS, Fiserv, and OKX, further enhancing its position in the digital asset, banking, payments, and capital markets sectors.

Circle also introduced Arc, an open Layer-1 blockchain purpose-built for stablecoin finance, which will be integrated across its platform and services.

Looking ahead, Circle expects USDC in circulation to grow at a multi-year compound annual growth rate (CAGR) of 40%, with other revenue projected to reach $75-$85 million in FY 2025. The company aims to maintain an RLDC margin of 36-38% and keep adjusted operating expenses between $475-$490 million for the same period.

Circle’s conference call to discuss the second-quarter results is scheduled for August 12, 2025, at 8:00 am ET. Investors can access the live webcast and replay via the Circle Investor Relations website [1].

References:
[1] https://www.businesswire.com/news/home/20250812836620/en/Circle-Reports-Second-Quarter-2025-Results