Circle Internet Group (NYSE: CRCL) delivered stronger-than-expected fourth-quarter results, primarily driven by accelerating demand for its USDC stablecoin and higher reserve income.
The earnings beat sent shares soaring more than 20% in pre-market trading, signaling renewed investor confidence in the company’s growth outlook.
According to its quarterly report, total revenue and reserve income reached $770 million, beating analysts’ estimates of $745 million. Meanwhile, adjusted earnings per share came in at $0.43, ahead of the $0.35 consensus estimate.
The outperformance was largely fueled by higher income generated from reserves backing USDC.
USDC Expansion Drives Revenue Growth
USDC’s continued expansion was central to the quarter’s strong results. Circulation rose 72% year over year to $75.3 billion, boosting the pool of assets supporting the stablecoin.
As supply increased, so did reserve-related revenue, which totaled $733 million for the quarter. Circle generates this income by investing customer funds in conservative instruments such as U.S. Treasuries and bank deposits. Subsequently, yields earned on these holdings flow directly to the company’s bottom line.
In addition, blockchain activity accelerated sharply. Total on-chain transaction volume involving USDC jumped 247% from a year earlier to $11.9 trillion, highlighting growing adoption across digital asset markets.
USDC remains pegged to the U.S. dollar and is backed by cash and short-term government securities, a structure designed to maintain price stability near $1.
Regulatory Clarity and Strategic Expansion
Beyond operational momentum, Circle benefited from a more defined regulatory backdrop. The GENIUS Act, signed into law last year by U.S. President Donald Trump, established a federal framework for dollar-backed stablecoins. The company also noted increasing global regulatory oversight of digital assets, which it views as supportive of long-term industry stability.
In parallel with regulatory developments, Circle advanced its institutional strategy. During the quarter, the firm received preliminary approval to pursue a national trust bank charter. Management views this as a step toward deeper integration with the traditional banking system.
Commercial partnerships further strengthened its market position. Circle partnered with Visa (NYSE: V) to enable U.S. institutions to settle transactions using USDC. It also entered a collaboration with Polymarket, expanding its presence in prediction markets.
Profitability Improves Despite Annual Net Loss
Stronger operational metrics translated into improved quarterly profitability. Adjusted EBITDA climbed 412% year over year to $167 million. Net income from continuing operations reached $133 million, representing a $129 million increase over the same period in the previous year.
However, the full fiscal year presented a mixed picture. Revenue for fiscal 2025 totaled $2.7 billion, marking 64% annual growth. Despite this expansion, the company reported a net loss of $70 million from continuing operations. Circle attributed the loss primarily to $424 million in stock-based compensation tied to IPO-related vesting conditions.
Forward Guidance and Market Snapshot
Looking ahead, Circle expects other revenue to range between $150 million and $170 million for fiscal 2026. Meanwhile, adjusted operating expenses are projected at $570 million to $585 million, with management guiding for an RLDC margin of 38% to 40% for the year.
Over the longer term, the company aims to grow USDC circulation at a compound annual rate of 40% through the cycle.
As of the latest update, Circle Internet Group (NYSE: CRCL) shares were trading at $74.06. The stock is down 0.41% over the past week and 22.61% year-to-date. Over the past 12 months, shares have traded between $49.90 and $298.99, giving the company a current market capitalization of $14.45 billion.
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