Circle Q2 Revenue Hits $701M, Misses Estimates, Yet Shares Jump 10%

Circle Internet posted $701 million in second-quarter revenue and reserve income, up 7% year-over-year but slightly below Wall Street’s roughly $712-713 million consensus. Despite the top-line miss, the stablecoin issuer’s shares jumped in premarket trading Wednesday — as much as 10%, according to CoinDesk data — as investors focused on a profit beat and fresh institutional commitments to its upcoming Arc blockchain.

Net income from continuing operations came in at $48 million, topping the $43 million analysts had penciled in and marking a $530 million swing from a year earlier. Adjusted earnings per share hit $0.18, above the $0.16 consensus, while adjusted EBITDA climbed 8% to $143 million. Circle shares remain down 20% year-to-date even after the pop, per Yahoo Finance data.

USDC Circulation Climbs to $73.3B, Still Below 2026 Peak

Reserve income, the interest Circle earns on assets backing USDC, rose 5% year-over-year to $668 million, driven by a roughly 25% increase in average USDC circulation. By the end of June, USDC circulation stood at $73.3 billion, up 19% from a year earlier but still short of its 2026 high near $80 billion.

Onchain transaction volume for USDC surged 151% year-over-year to $14.8 trillion in the quarter, a sign that usage is deepening even as growth in total circulation cools. The results landed amid a broader stablecoin slowdown: total stablecoin supply across the market slipped to $153 billion on June 30 from $156 billion on April 1, according to data provider CryptoQuant.

“Our quarterly financial results reflect the current rate environment and a crypto market that has slowed,” Circle CEO Jeremy Allaire said in a statement. “But the institutions using USDC today, like BlackRock, BNY and Standard Chartered aren’t piloting, they are expanding.”

Arc Mainnet Set for Sept. 16 With Wall Street Validators

Circle used the earnings call to detail progress on Arc, its layer-1 blockchain network slated for public mainnet launch on Sept. 16. The company said more than 100 ecosystem and institutional builders are already developing on the network.

The founding validator cohort for Arc includes BlackRock, DTCC, Galaxy, Global Payments, ICE, Mastercard, MoneyGram, SBI Group, Standard Chartered, Sumitomo Corporation and Visa — a roster that signals substantial traditional-finance buy-in ahead of launch. Circle also raised its full-year guidance for “other revenue,” which includes Arc token presale proceeds, to a range of $310 million to $330 million from a prior forecast of $150 million to $170 million.

Why It Matters

For USDC holders and traders, the numbers show a stablecoin issuer whose core reserve business is cooling in line with the broader stablecoin market contraction, even as transaction activity accelerates. The market’s reaction — rewarding Circle for profit beats and Arc’s institutional lineup despite the revenue miss — suggests investors are pricing in Arc as a growth catalyst that could offset slower USDC circulation growth once the mainnet goes live in September.

Read more: Circle Falls 6% as Morgan Stanley Slashes Price Target to $38 From $106

Sources

• cointelegraph.com
• coindesk.com