Circle Posts Strong Revenue Growth in First Earnings Report as a Public Company

Circle Internet Group, the issuer of the USDC stablecoin, has reported its first quarterly results since going public, delivering robust revenue growth and exceeding Wall Street expectations, despite a sizable net loss driven by one-time IPO expenses.

Strong Financial Performance

For the second quarter of 2025, Circle recorded revenue and reserve income of $658 million, a 53% increase year-over-year. The surge was fueled by a 90% rise in USDC circulation, along with higher subscription and service revenues.

Adjusted EBITDA climbed 52% from the same period last year to $126 million, underscoring operational strength despite the headline loss.

Net Loss Driven by IPO Charges

The company reported a net loss of $482 million (or $4.48 per share) for the quarter. This was primarily due to $591 million in non-cash charges related to its IPO:

$424 million in stock-based compensation

$167 million from fair-value adjustments to convertible debt

Excluding these charges, Circle’s core business remained profitable.

USDC Circulation Hits Record Levels

USDC, the company’s flagship stablecoin, reached $61.3 billion in circulation as of June 30, marking a 90% year-over-year increase. The supply continued to expand, hitting $65.2 billion by August 10, reflecting growing adoption in both retail and institutional markets.

Strategic Initiatives and Partnerships

During the quarter, Circle launched the Circle Payments Network, connecting more than 100 financial institutions to enable faster and more secure stablecoin transactions.

It also announced Arc, an open Layer-1 blockchain designed for stablecoin payments and Ethereum Virtual Machine (EVM) transaction fees. The public testnet is expected to go live in fall 2025.

Circle further strengthened its ecosystem through partnerships with major players, including Binance, FIS, Fiserv, Corpay, and OKX.

Positive Market Reaction

Despite the reported loss, investors reacted positively to Circle’s performance. Shares climbed 7–10% in pre-market trading, remaining well above the company’s $31 IPO price. Analysts point to the revenue beat, USDC growth, and regulatory clarity from the recently passed GENIUS Act as key drivers of market optimism.

Key Figures – Q2 2025

Author : Brian Leclere