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1月前
Circle Reports First Quarter 2026 ResultsMay 11, 2026 6:25 AM
Business Wire Circle Internet Group, Inc. (NYSE: CRCL) today announced results for the first quarter of fiscal year 2026. Financial Highlights (Q1’26 vs. Q1’25) USDC in circulation of $77.0 billion at quarter end grew 28%; USDC onchain transaction volume in Q1’26 of $21.5 trillion grew 263% Total revenue and reserve income in Q1’26 of $694 million grew 20% Net income from continuing operations in Q1’26 of $55 million decreased 15% Adjusted EBITDA in Q1’26 of $151 million grew 24% Business Highlights ARC Token: $222M presale raise at a $3 billion fully diluted network valuation from a consortium of leading investors including a16z crypto, Apollo Funds, ARK Invest, BlackRock, Bullish, General Catalyst, Haun Ventures, Intercontinental Exchange, IDG Capital, Janus Henderson Investors, Marshall Wace, SBI Group, and Standard Chartered Ventures. ARC Token whitepaper published today, outlining how a native coordination asset could support governance, security, and network operations on Arc. The Agent Stack: Circle is building for an agent-led future, announcing critical agent platform capabilities with new permissionless infrastructure, alongside its existing Nanopayments offering built on Circle Gateway. New products, including Circle CLI (command line interface), Agent Wallets, and Agent Marketplace enable developers and merchants to create, fund, and monetize agent-driven activity in USDC across multiple blockchains and payment protocols. Continued CPN Expansion: Circle continues to grow the CPN network, with $8.3 billion in annualized transaction volume based on the trailing 30 day activity as of March 31, 2026. In April, Circle expanded its payment products with the launch of Managed Payments, which allows financial institutions to launch stablecoin payments without managing digital assets. Digital Assets Growth: Circle continued to expand the scale and utility of its digital asset platform during the quarter, with USDC representing 63% of stablecoin transaction volumes in the first quarter, according to Visa Onchain Analytics. As of May 7th, USYC is the world’s largest tokenized money market fund. New and Expanded USDC Use Cases: Kyriba embedding USDC capabilities into enterprise treasury systems, enabling corporate treasury teams to access 24/7 liquidity and manage it more efficiently within their existing workflows, controls, and systems. Polymarket advancing its use of USDC as the core collateral and settlement asset for their markets. “Circle’s first quarter reflected strong execution against a much bigger opportunity: the rapid convergence of AI platforms and economic operating systems into a new internet stack,” said Jeremy Allaire, Co-Founder, Chief Executive Officer, and Chairman at Circle. “With the ARC token presale, momentum behind the Arc network, and the launch of our Agent Stack, we are building trusted infrastructure for AI-native economic activity and a more programmable internet financial system.” Key Financial Results and Operating Indicators The following table presents our key financial results and operating indicators, as well as the relevant GAAP measures, for the periods indicated: Key Financial Results Q1 2026 YoY
Change ($ in millions unless noted otherwise) Total Revenue and Reserve Income $694 20% Revenue Less Distribution Costs(1) $287 24% RLDC Margin(2) 41% 148bps Net Income from Continuing Operations $55 (15%) Net Income from Continuing Operations Margin(3) 8% (324bps) Adjusted EBITDA(4) $151 24% Adjusted EBITDA Margin(4) 53% (33bps) Key Operating Indicators Q1 2026 YoY
Change ($ in billions unless noted otherwise) USDC in Circulation, end of period $77.0 28% USDC in Circulation, average of period $75.2 39% Reserve Return Rate 3.5% (66bps) USDC on Platform, end of period $13.7 254% USDC on Platform, daily weighted average percentage 17.2% 1,149bps (1) Revenue Less Distribution Costs (RLDC) is calculated as Total Revenue and Reserve Income less Total Distribution, Transaction and Other Costs. (2) RLDC Margin is calculated as Total Revenue and Reserve Income less Total Distribution, Transaction and Other Costs as a percentage of Total Revenue and Reserve Income. (3) Net Income from Continuing Operations Margin is calculated as Net Income from Continuing Operations / Total Revenue and Reserve Income. (4) Refer to Non-GAAP Financial Measures for further details and a reconciliation of the GAAP to non-GAAP measures presented. Adjusted EBITDA Margin is calculated as Adjusted EBITDA / Total Revenue and Reserve Income less Total Distribution, Transaction and Other Costs. First Quarter 2026 Financial Highlights and Operating Results Reserve Income of $653 million increased 17% year-over-year, primarily from the 39% growth in average USDC in circulation, partially offset by a 66 bps decline in the reserve return rate. Other Revenue of $42 million up $21 million year-over-year as subscription and services revenue and transaction revenue grew strongly. Total Distribution, Transaction and Other Costs of $407 million increased 17% year-over-year due to increased distribution payments. Operating Expenses of $242 million increased 76% year-over-year, primarily due to higher compensation costs from post IPO stock-based compensation and related payroll taxes. Adjusted Operating Expenses of $136 million increased 32% year-over-year, primarily driven by increased investments into our product, distribution, and operating infrastructure. Net Income of $55 million decreased 15% year-over-year as growth in Revenue Less Distribution Costs was offset by higher stock-based compensation and continued investment into product, distribution, and operating infrastructure. Adjusted EBITDA of $151 million increased 24% year-over-year reflecting the revenue growth from higher USDC in circulation. Other Platform Metrics Q1 2026 YoY
Change (USDC related figures in $ billions; meaningful wallets in millions) USDC Minted $73 38% USDC Redeemed $72 93% Stablecoin Market Share, end of period(1) 28% (62bps) Meaningful Wallets, end of period(2) 7.2 47% (1) Stablecoin market share is defined as the amount of USDC in circulation as a percentage of the total U.S. dollar fiat-backed stablecoins with circulation above $100 million, according to CoinMarketCap, and that have established periodic public attestations. (2) Onchain digital asset wallets that hold more than $10 USDC. Guidance To give investors insight into our business and expectations, management is affirming its prior guidance on the following key performance indicators. However, this does not include the future financial impacts of the ARC Token presale, Arc incentive programs, and future Arc revenue streams. Key Indicator Period Current
Outlook USDC in Circulation Multi-year through cycle 40% CAGR Other Revenue FY 2026 $150-$170M RLDC Margin(1) FY 2026 38-40% Adjusted Operating Expenses(2) FY 2026 $570-$585M (1) RLDC Margin is calculated as Total Revenue and Reserve Income less Total Distribution, Transaction and Other Costs as a percentage of Total Revenue and Reserve Income. (2) Refer to Non-GAAP Financial Measures for further details and a reconciliation of the GAAP to non-GAAP measures presented. Conference Call and Livestream Information Circle will host a conference call to discuss the results for the first quarter 2026 on May 11, 2026 at 8:00 am ET. Circle’s Investor Relations website at https://investor.circle.com will provide access to the live webcast, as well as a replay of the call and transcript shortly following earnings. In addition to filings with the Securities and Exchange Commission, Circle uses its Investor Relations website (https://investor.circle.com), its blog (https://www.circle.com/blog), press releases (https://www.circle.com/pressroom), public conference calls and webcasts, its X feed (https://x.com/circle), and its LinkedIn page (https://www.linkedin.com/company/circle-internet-financial) as a means of disclosing material nonpublic information, announcing upcoming investor conferences and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor these sites in addition to following Circle’s SEC filings. Forward-Looking Statements This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. These statements include, but are not limited to, statements regarding our future operating results and financial position; our plans with respect to the anticipated future expenses and investments; expectations relating to certain of our key financial and operating metrics; our business strategy and plans; expectations relating to legal and regulatory proceedings; expectations relating to our industry, the regulatory environment, market conditions, trends and growth; expectations relating to customer behaviors and preferences; our market position; potential market opportunities; and our objectives for future operations. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on management’s expectations, assumptions, and projections based on information available at the time the statements were made. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including, but not limited to: intense and increasing competition from new and existing issuers offering competing products, combined with the rise of yield-bearing digital assets, including TMMFs, that are attractive to digital asset trading participants, may reduce market demand and circulation of Circle stablecoins; stablecoins may face periods of uncertainty, loss of trust, or systemic shocks resulting in the potential for rapid redemption requests (or runs), and extreme scenarios, such as market shocks that affect the value of USDC’s reserves or simultaneous requests to redeem all or substantially all USDC in circulation, or concerns related to Circle stablecoin reserves, may lead to redemption delays and USDC reserves being insufficient to meet all redemption requests; as a relatively new innovation, stablecoins are particularly susceptible to operational challenges and risks, including due to surges in demand; any negative publicity regarding stablecoins or the broader digital asset industry may have an outsized negative effect on consumer confidence; the acceptance of Circle stablecoins could be negatively impacted by disruptions in secondary marketplaces that facilitate the purchase and sale of Circle stablecoins; the GENIUS Act will change the payment stablecoin ecosystem and may affect our business in ways that cannot yet be known; the GENIUS Act amends the U.S. federal securities laws to explicitly exclude from the definition of “security” payment stablecoins issued by PPSIs, which will include USDC, however, until those amendments are effective, we will continue to rely on our conclusion that USDC is not a security under the U.S. federal securities laws; we hold a substantial amount of USDC reserves in the Circle Reserve Fund and thus are subject to risks associated with the issuer, the manager, and the custodian of the Circle Reserve Fund; any significant disruption in our or our third-party service providers’ or partners’ technology could result in a loss of customers or funds and adversely impact our business, results of operations, financial condition, and prospects; our customers’ funds and digital assets may fail to be adequately safeguarded by us or the third-party service providers upon whom we rely; our inability to maintain existing relationships with financial institutions and similar firms or to enter into new such relationships could impact our ability to offer services to customers; we are subject to credit risks in respect of counterparties, including banks and other financial institutions; if we are unable to maintain existing distribution arrangements or enter into additional distribution arrangements on less favorable financial terms, USDC and EURC in circulation and Circle’s financial results may be adversely affected; Arc and the ARC Token involve execution, market, and operational risk, including risks relating to launch timing, ecosystem adoption in a competitive blockchain market, technology and cybersecurity vulnerabilities, validator and governance dynamics, token price volatility, and the operational complexity of running the network and related treasury infrastructure; Arc and the ARC Token present legal, regulatory, and structural risk, including uncertainty under securities and other financial regulatory regimes, risks arising from token presale and distribution arrangements, potential liability tied to third-party ecosystem participants, conflicts and governance issues during any transition to decentralization, and possible repayment obligations if key launch milestones are not achieved; our products and services may be exploited by our customers, employees, service providers, and other third parties to facilitate illegal activity such as fraud, money laundering, terrorist financing, gambling, tax evasion, and scams; our compliance and risk management methods might not be effective; fluctuations in interest rates could impact our results of operations; we are subject to an extensive and highly evolving regulatory landscape; the regulatory environment to which we are subject gives rise to various licensing requirements, significant compliance costs and other restrictions, and noncompliance could result in a range of penalties, including fines, compliance costs, operational restrictions, reputational damage, and loss of licenses; we are subject to laws, regulations, and executive orders regarding economic and trade sanctions, anti-bribery, AML, and counter-terrorism financing that could impair our ability to compete in international markets or subject us to criminal or civil liability if we violate them; and insiders will continue to have substantial control over Circle and limit shareholders’ ability to influence the outcome of key transactions, including a change of control. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, our actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. For a detailed discussion of the risks, uncertainties, and other factors that could cause our actual results to differ materially from those anticipated or expressed in any forward-looking statements, see the section entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed with the SEC on March 9, 2026 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 to be filed with the SEC. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements. Nothing in this communication constitutes an offer to sell or a solicitation of an offer to buy securities or an invitation or inducement to engage in investment activity. About Circle Internet Group, Inc. Circle (NYSE: CRCL) is a global financial technology firm that enables businesses of all sizes to harness the power of digital currencies and public blockchains for payments, commerce and financial applications worldwide. Circle is building the world’s largest, most-widely used, stablecoin network, and issues, through its regulated affiliates, USDC and EURC stablecoins. Circle provides a comprehensive suite of financial and technology services that empower enterprises and developers to integrate stablecoins and blockchains into their products, services and business operations. CIRCLE INTERNET GROUP, INC. – CONDENSED CONSOLIDATED BALANCE SHEETS (in $ thousands, except share information) March 31,
2026 December 31,
2025 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 1,517,264 $ 1,526,046 Cash and cash equivalents segregated for corporate-held stablecoins 792,662 822,963 Cash and cash equivalents segregated for the benefit of stablecoin holders 76,893,681 75,067,932 Accounts receivable, net 72,168 62,866 Prepaid expenses and other current assets 326,800 321,660 Total current assets 79,602,575 77,801,467 Non-current assets: Restricted cash 2,800 2,792 Investments 100,073 84,265 Fixed assets, net 22,520 22,791 Digital assets 84,217 86,515 Goodwill 265,742 265,742 Intangible assets, net 421,017 411,146 Deferred tax assets, net 11,285 11,110 Other non-current assets 26,549 27,379 Total assets $ 80,536,778 $ 78,713,207 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Deposits from stablecoin holders $ 76,778,530 $ 74,912,567 Accounts payable and accrued expenses 262,215 360,609 Convertible debt, net of debt discount — 36,821 Other current liabilities 14,637 18,398 Total current liabilities 77,055,382 75,328,395 Non-current liabilities: Deferred tax liabilities, net 28,071 28,702 Other non-current liabilities 24,694 25,337 Total non-current liabilities 52,765 54,039 Total liabilities $ 77,108,147 $ 75,382,434 Stockholders’ equity Class A common stock ($0.0001 par value; 2.5 billion authorized as of March 31, 2026 and December 31, 2025; 228.9 million and 223.6 million issued and outstanding as of March 31, 2026 and December 31, 2025, respectively) 25 24 Class B common stock ($0.0001 par value; 500.0 million authorized as of March 31, 2026 and December 31, 2025; 18.7 million issued and outstanding as of March 31, 2026 and December 31, 2025) 2 2 Class C common stock ($0.0001 par value; 500.0 million authorized as of March 31, 2026 and December 31, 2025; nil issued and outstanding as of March 31, 2026 and December 31, 2025) — — Treasury stock at cost (4.6 million and 4.7 million shares held as of March 31, 2026 and December 31, 2025, respectively) (2,683 ) (2,721 ) Additional paid-in capital 4,658,949 4,610,216 Accumulated deficit (1,237,456 ) (1,292,709 ) Accumulated other comprehensive income 8,367 14,515 Total stockholders’ equity attributable to common stockholders 3,427,204 3,329,327 Noncontrolling Interest 1,427 1,446 Total stockholders’ equity 3,428,631 3,330,773 Total liabilities and stockholders’ equity $ 80,536,778 $ 78,713,207 CIRCLE INTERNET GROUP, INC. – CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in $ thousands, except per share information) Three Months Ended March 31, 2026 March 31, 2025 Revenue and reserve income Reserve income $ 652,508 $ 557,911 Other revenue 41,625 20,662 Total revenue and reserve income 694,133 578,573 Distribution, transaction and other costs Distribution and transaction costs 405,402 347,312 Other costs 1,379 335 Total distribution, transaction and other costs 406,781 347,647 Operating expenses Compensation expenses 138,127 75,620 General and administrative expenses 57,261 30,684 Depreciation and amortization expenses 26,767 13,880 IT infrastructure costs 12,722 7,672 Marketing expenses 6,617 3,860 Digital assets losses (gains) 856 6,270 Total operating expenses 242,350 137,986 Operating income from continuing operations 45,002 92,940 Other income (expense), net 11,683 (3,103 ) Net income from continuing operations before income taxes 56,685 89,837 Income tax expense (benefit) 1,439 25,046 Net income from continuing operations 55,246 64,791 Less: Net loss attributable to noncontrolling interests (7 ) — Net income attributable to common stockholders $ 55,253 $ 64,791 Earnings per share attributable to common stockholders: Basic $ 0.23 $ — Diluted $ 0.21 $ — Weighted-average shares used to compute earnings per share attributable to common stockholders: Basic 244,038 57,966 Diluted 266,687 75,650 Quarterly Results of Operations The following table summarizes certain key financial performance measures derived from our unaudited quarterly consolidated statements of operations data for each of the three months ended March 31, 2025, June 30, 2025, September 30, 2025, December 31, 2025, and March 31, 2026. The information for each of these periods has been prepared on the same basis as our audited annual consolidated financial statements and, in the opinion of management, reflects all adjustments of a normal, recurring nature that are necessary for the fair statement of the results of operations for these periods. Three Months Ended (in $ millions, except RLDC Margin and Net Reserve Margin)? March 31,
2026 December 31,
2025 September
30, 2025 June 30,
2025 March 31,
2025 ?Reserve Income $ 653 $ 733 $ 711 $ 634 $ 558 Other Revenue 42 37 29 24 21 Total Revenue and ?Reserve Income $ 694 $ 770 $ 740 $ 658 $ 579 Distribution and Transaction Costs $ 405 $ 461 $ 447 $ 406 $ 347 Other Costs 1 1 0 0 0 Total Distribution, ?Transaction and Other ?Costs $ 407 $ 461 $ 448 $ 407 $ 348 Total Revenue and Reserve Income less Total Distribution, Transaction ?and Other Costs $ 287 $ 309 $ 292 $ 251 $ 231 RLDC Margin(1) 41 % 40 % 39 % 38 % 40 % Net Reserve Margin(2) 38 % 37 % 37 % 36 % 38 % Note: Figures presented may not sum precisely due to rounding. (1) RLDC Margin is calculated as Total Revenue and Reserve Income less Total Distribution, Transaction and Other Costs as a percentage of Total Revenue and Reserve Income. (2) Net Reserve Margin is Reserve Income less Distribution and Transaction Costs as a percentage of Reserve Income. Non-GAAP Financial Measures We report our financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). However, Adjusted EBITDA and Adjusted Operating Expenses are non-GAAP financial measures regarding our operational performance. Management and our board of directors use non-GAAP financial measures to (i) monitor and evaluate the growth and performance of our business operations, (ii) evaluate our historical and prospective financial performance as well as our performance relative to our competitors, (iii) review and assess the performance of our management team and other employees, and (iv) prepare budgets and evaluate strategic investments. Accordingly, we believe that non-GAAP measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. Non-GAAP financial measures, including Adjusted EBITDA and Adjusted Operating Expenses, have limitations as financial measures and should not be relied upon as substitutes for, or considered in isolation from, measures calculated in accordance with GAAP. Adjusted EBITDA Adjusted EBITDA is calculated as net income (loss) from continuing operations excluding: net income (loss) attributable to noncontrolling interests; depreciation and amortization expenses; interest expense, net of amortization of discounts and premiums; interest income; income tax expense (benefit); stock-based compensation expense and payroll tax expense related to stock-based compensation; certain legal expenses; realized and unrealized (gains) losses, net, on digital assets held for investment, other related investments and strategic investments; realized (gains) losses on available-for-sale debt securities; impairment losses on strategic investments; restructuring expenses; acquisition-related costs; change in fair value of convertible debt, warrant liability, embedded derivatives and U.S. Treasury securities; charitable contributions to Circle Foundation; losses on sale of long-lived assets; and foreign currency exchange (gains) losses. Beginning in the first quarter of 2026, we have amended the above definition of Adjusted EBITDA to exclude payroll tax expense related to stock-based compensation, because these taxes are directly related to stock-based compensation expense which is already excluded from Adjusted EBITDA. These expenses represent employer payroll taxes related to the vesting and settlement of certain equity awards, and are variable with our stock price and other factors outside of our control. We believe it is useful to exclude non-cash charges, such as depreciation and amortization, stock-based compensation expense, and change in fair value of various financial instruments as well as certain cash charges such as payroll tax related to stock-based compensation from Adjusted EBITDA because the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations. We believe it is useful to exclude income tax expense (benefit), interest income, interest expense, and non-routine items as these items are not components of our core business operations. Adjusted Operating Expenses Adjusted Operating Expenses excludes depreciation and amortization, charitable contributions to Circle Foundation, digital assets losses (gains), and stock-based compensation. Beginning in the first quarter of 2026, we have amended the definition of Adjusted Operating Expenses to exclude (a) payroll tax expense related to stock-based compensation, because these taxes are directly related to stock-based compensation expense which is already excluded from Adjusted Operating Expenses and these taxes are variable with our stock price and other factors outside of our control (which will also be reflected in Adjusted EBITDA as discussed above), as well as (b) certain one-time legal expenses, acquisition-related costs, and where relevant, restructuring expenses, as they reflect the same adjustments as in Adjusted EBITDA. We believe it is useful to exclude certain non-cash charges from Adjusted Operating Expenses because the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations. We have provided a reconciliation below of Adjusted EBITDA to Net Income (loss) from Continuing Operations and of Adjusted Operating Expenses to Operating Expenses, in each case, the most directly comparable GAAP financial measure. CIRCLE INTERNET GROUP, INC. – RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS) FROM CONTINUING OPERATIONS (in $ thousands) Three Months Ended March 31,
2026 December 31,
2025 September
30, 2025 June 30,
2025 March 31,
2025 Net income (loss) from continuing operations $ 55,246 $ 133,406 $ 214,385 $ (482,100 ) $ 64,791 Less: Net loss attributable to noncontrolling interests (7 ) (10 ) — — — Net income (loss) from continuing operations attributable to common stockholders $ 55,253 $ 133,416 $ 214,385 $ (482,100 ) $ 64,791 Adjusted for: Depreciation and amortization expenses 26,767 25,536 23,002 14,209 13,880 Interest expense, net of amortization of discounts and premiums 38 193 354 344 335 Interest income(1) (13,709 ) (16,302 ) (13,453 ) (9,952 ) (7,965 ) Income tax expense (benefit) 1,439 6,776 (61,294 ) (3,903 ) 25,046 Stock-based compensation expense 51,836 59,414 59,081 434,966 12,716 Legal expenses(2) 7,019 2,875 3,014 1,706 1,905 Realized and unrealized losses (gains), net, on digital assets held for investment, other related investments and strategic investments 3,325 (25,074 ) (2,267 ) (5,738 ) 8,263 Impairment losses on strategic investments 251 — 500 506 — Acquisition-related costs(3) 1,870 — — — 535 Change in fair value of convertible debt, warrant liability, embedded derivatives, and U.S. Treasury securities 4,108 (42,472 ) (56,212 ) 167,724 2,382 Charitable contributions to Circle Foundation(4) 7,737 23,149 — — — Losses on sale of long-lived assets — — 6 4 12 Foreign currency exchange (gains) losses (5,121 ) (29 ) (655 ) 8,067 539 Adjusted EBITDA (Prior Definition) $ 140,813 $ 167,482 $ 166,461 $ 125,833 $ 122,439 Stock-based compensation related payroll expense(5) 10,588 8,428 5,015 7,164 — Adjusted EBITDA (New Definition) $ 151,401 $ 175,910 $ 171,476 $ 132,997 $ 122,439 (1) Reflects interest income from corporate cash and cash and cash equivalents balances. For the avoidance of doubt, this amount does not include the impact of reserve income. (2) Reflects litigation expenses related to the FT Partners litigation, legal and settlement expenses related to legacy businesses, and legal fees and other costs related to one-time regulatory matters. (3) Reflects special one-time compensation related to an asset acquisition that closed in January 2026, and one-time legal and professional services costs related to the Hashnote acquisition in January 2025. (4) Reflects the charge related to the charitable contribution of shares of our Class A common stock for the benefit of Circle Foundation, a donor-advised fund. (5) Beginning in the first quarter of 2026, we have amended the definition of Adjusted EBITDA to exclude payroll tax expense related to stock-based compensation. CIRCLE INTERNET GROUP, INC. – RECONCILIATION OF ADJUSTED OPERATING EXPENSES TO OPERATING EXPENSES (in $ thousands) Three Months Ended March 31,
2026 December
31, 2025 September
30, 2025 June 30,
2025 March 31,
2025 Operating expenses $ 242,350 $ 253,595 $ 211,127 $ 576,718 $ 137,986 Adjusted for: Stock-based compensation expense and related payroll taxes(1) (62,424 ) (67,842 ) (64,096 ) (442,130 ) (12,716 ) Depreciation and amortization expenses(2) (26,767 ) (25,536 ) (23,002 ) (14,209 ) (13,880 ) Digital assets losses (gains)(3) (856 ) (1,387 ) 1,671 693 (6,270 ) Charitable contributions to Circle Foundation(4) (7,737 ) (23,149 ) — — — Legal expenses(5) (7,019 ) (2,875 ) (3,014 ) (1,706 ) (1,905 ) Acquisition-related costs(6) (1,870 ) — — — (535 ) Adjusted Operating Expenses $ 135,677 $ 132,806 $ 122,686 $ 119,366 $ 102,680 (1) Stock-based compensation expense represents equity compensation and associated payroll taxes. (2) Depreciation and amortization expenses include depreciation of fixed assets, and amortization of capitalized engineering costs and intangible assets. (3) Digital assets losses (gains) represent the fair value losses/gains of digital assets, a non-cash expense. (4) Charitable contributions to Circle Foundation reflects the charge related to the charitable contribution of shares of our Class A common stock for the benefit of Circle Foundation, a donor-advised fund. (5) Reflects litigation expenses related to the FT Partners litigation, legal and settlement expenses related to legacy businesses, and legal fees and other costs related to one-time regulatory matters. (6) Reflects special one-time compensation related to an asset acquisition that closed in January 2026, and one-time legal and professional services costs related to the Hashnote acquisition in January 2025. CIRCLE INTERNET GROUP, INC. – FORWARD OUTLOOK RECONCILIATION OF ADJUSTED OPERATING EXPENSES TO OPERATING EXPENSES (in $ millions) FY26 Low High Operating expenses $ 950 $ 1,025 Adjusted for: Stock-based compensation expense(1) (219 ) (249 ) Depreciation and amortization expenses(2) (108 ) (118 ) Digital assets losses (gains)(3) – – Charitable contributions to Circle Foundation(4) (32 ) (32 ) Legal expenses(5) (13 ) (33 ) Acquisition-related costs(6) (8 ) (8 ) Adjusted Operating Expenses $ 570 $ 585 (1) Stock-based compensation expense represents equity compensation and associated payroll taxes. The range of guidance depends on incremental headcount through the rest of the year and stock price. (2) Depreciation and amortization expense includes depreciation of fixed assets, and amortization of capitalized engineering costs and intangible assets. The range of the guidance depends on capitalization rates, total SBC and cash compensation throughout the rest of the year. (3) Digital assets losses (gains) represent the year to date fair value losses/gains of digital assets, a non-cash expense, and we are not forecasting the amounts in 2026. (4) Charitable contributions to Circle Foundation represents our anticipated transfer of 268,239 shares of Class A common stock to the Donor Advised Fund for the Circle Foundation and is a non-cash expense arising from donating the company’s equity. The amount is estimated as at the closing stock price of CRCL on May 6, 2026 ($121.80), however, such amount will be dependent on the stock price on the date of the transfer of the applicable shares, which is expected to occur in substantially equal quarterly installments throughout 2026. (5) Represents estimated fees associated with specific nonrecurring costs, including the one-time implementation of new governance structures to meet U.S. regulatory requirements. (6) Reflects special one-time compensation related to an asset acquisition that closed in January 2026. View source version on businesswire.com: https://www.businesswire.com/news/home/20260511188445/en/ Investor Relations
investors@circle.com Media Relations
press@circle.com Original: Circle Reports First Quarter 2026 Results
US Market News
4月前
Circle Reports Fourth Quarter and Full Fiscal Year 2025 Financial ResultsFebruary 25, 2026 6:25 AM
Business Wire
Circle Internet Group, Inc. (NYSE: CRCL) today announced results for the fourth quarter and full fiscal year 2025.
Fourth Quarter Highlights (Q4’25 vs. Q4’24)
USDC in circulation of $75.3 billion at year end grew 72%; USDC onchain transaction volume in Q4’25 of $11.9 trillion, up 247%
Total revenue and reserve income in Q4’25 of $770 million grew 77%
Net Income from continuing operations in Q4’25 of $133 million increased $129 million
Adjusted EBITDA in Q4’25 of $167 million grew 412%
Full Year Financial Highlights (FY25 vs. FY24)
Total revenue and reserve income in FY25 of $2.7 billion grew 64%
Net Loss from continuing operations in FY25 of $70 million, significantly impacted by $424 million for stock-based compensation related to vesting conditions met by our IPO, compared to Net Income from continuing operations in FY24 of $157 million
Adjusted EBITDA in FY25 of $582 million grew 104%
Business Highlights
Arc: Public testnet launched with 100+ participants spanning banking, capital markets, digital assets, payments, and technology. Testnet is performing strongly with near 100% uptime, half second transaction finality, and daily average transaction volumes of 2.3 million based on the trailing 30 days as of February 20, 2026. Total transactions have exceeded 166 million since testnet launch. Arc remains on track for mainnet launch this year.
Circle Payments Network (CPN) Expansion: 55 financial institutions enrolled and 74 going through eligibility reviews as of February 20, 2026. Activity has continued to grow with annualized transaction volume based on the trailing 30 day activity of $5.7 billion as of February 20, 2026.
Digital assets growth: EURC in circulation of €310 million at year end grew 284% year-over-year and 44% quarter-over-quarter; USYC assets of $1.5 billion at year end declined 6% year-over-year but grew 111% quarter-over-quarter, following our relaunch of USYC in early Q3’25.
Continued Momentum: Major enterprises continue adopting Circle’s infrastructure to enable safe, compliant use of stablecoins.
Visa announced that U.S. issuers and acquirers can fully settle with Visa using USDC, enabling continuous settlement outside of traditional banking hours.
Intuit launched a multi-year strategic partnership to integrate USDC and Circle’s supporting infrastructure across its platform.
We partnered with Polymarket, the largest prediction market in the world, to advance its use of USDC as the core collateral and settlement asset for their markets.
The Government of Bermuda announced plans to become the world’s first fully onchain national economy supported by Circle’s digital asset infrastructure.
National trust charter: In December, Circle received conditional approval from the Office of the Comptroller of the Currency to establish a national trust bank, further strengthening USDC infrastructure.
“The fourth quarter marked another step forward in Circle’s mission to build the infrastructure for an open, programmable internet financial system,” said Jeremy Allaire, Co-Founder, Chief Executive Officer, and Chairman at Circle. “USDC adoption continued to expand globally as more enterprises, developers, and public institutions integrated digital dollars into real-world payments, treasury, and onchain financial workflows. We saw strong engagement across our platform, meaningful progress toward launching Arc mainnet, continued growth in CPN TPV, and growing momentum for EURC and USYC. With increasing collaboration across traditional finance, fintech, and the public sector, Circle is helping build the infrastructure for a more open and resilient global financial system.”
Key Financial Results and Operating Indicators
The following table presents our key results and operating indicators, as well as the relevant GAAP measures, for the periods indicated:
Key Financial Results
Q4
2025
YoY
Change
FY
2025
YoY
Change
($ in millions unless noted otherwise)
Total Revenue and Reserve Income
$770
77%
$2,747
64%
Revenue Less Distribution Costs(1)
$309
136%
$1,083
64%
RLDC Margin(2)
40%
1,004bps
39%
12bps
Net Income (loss) from Continuing Operations
$133
NM
($70)
NM
Net Income (loss) from Continuing Operations Margin(3)
17%
NM
(3%)
NM
Adjusted EBITDA(4)
$167
412%
$582
104%
Adjusted EBITDA Margin(4)
54%
NM
54%
NM
Key Operating Indicators
Q4
2025
YoY
Change
FY
2025
YoY
Change
($ in billions unless noted otherwise)
USDC in Circulation, end of period
$75.3
72%
$75.3
72%
USDC in Circulation, average of period
$76.2
100%
$64.9
95%
Reserve Return Rate
3.8%
(68bps)
4.1%
(90bps)
USDC on Platform, end of period
$12.5
459%
$12.5
459%
USDC on Platform, daily weighted average percentage
17.8%
1,529bps
11.1%
899bps
NM = Not Meaningful.
(1)
Revenue Less Distribution Costs (RLDC) is calculated as Total Revenue and Reserve Income less Total Distribution, Transaction and Other Costs.
(2)
RLDC Margin is calculated as Total Revenue and Reserve Income less Total Distribution, Transaction and Other Costs as a percentage of Total Revenue and Reserve Income.
(3)
Net Income (loss) from Continuing Operations Margin is calculated as Net Income (loss) from Continuing Operations / Total Revenue and Reserve Income.
(4)
Refer to Non-GAAP Financial Measures for further details and a reconciliation of the GAAP to non-GAAP measures presented. Adjusted EBITDA Margin is calculated as Adjusted EBITDA / Total Revenue and Reserve Income less Total Distribution, Transaction and Other Costs.
Fourth Quarter 2025 Financial Highlights and Operating Results
Reserve Income of $733 million increased 69% year-over-year, primarily from 100% growth in average USDC in circulation, partially offset by a 68 bps decline in the reserve return rate.
Other Revenue of $37 million increased $34 million year-over-year as subscription and services revenue and transaction revenue grew strongly.
Total Distribution, Transaction and Other Costs of $461 million increased 52% year-over-year, due to increased distribution payments. Distribution costs in the prior year period included the previously disclosed one-time fee to a distribution partner of $60 million in November 2024.
Operating Expenses of $254 million increased 95% year-over-year, primarily driven by higher compensation expenses and general and administrative costs. The year-over-year comparison was impacted by a $48 million increase in stock-based compensation expense following our IPO, as well as a $23 million charge related to our first annual share contribution to the Circle Foundation.
Adjusted Operating Expenses of $144 million increased 32% year-over-year, primarily driven by higher cash compensation expenses, payroll tax expenses related to stock-based compensation which did not exist in the prior year period, as well as higher general and administrative expenses.
Net Income from continuing operations of $133 million increased $129 million year-over-year. Other income of $85 million increased $75 million year-over-year primarily driven by a benefit from the decrease in fair value of our convertible debt due to a lower stock price in the fourth quarter, gains on digital assets held for investments due to increases in underlying market prices, as well as an increase in interest income received on corporate cash balances. The prior year period included the one-time distribution cost.
Adjusted EBITDA of $167 million increased 412% year-over-year reflecting the revenue growth from higher USDC in circulation and the operating leverage inherent in our business model. The prior year period included the one-time distribution cost.
Other Platform Metrics
Q4
2025
YoY
Change
FY
2025
YoY
Change
(USDC related figures in $ billions; meaningful wallets in millions)
USDC Minted
$82.4
107%
$257.5
82%
USDC Redeemed
$80.9
157%
$226.1
85%
Stablecoin Market Share, end of period(1)
28%
426bps
28%
426bps
Meaningful Wallets, end of period(2)
6.8
59%
6.8
59%
(1)
Defined as the amount of USDC in circulation as a percentage of USD-denominated fiat-backed stablecoins in circulation above $100 million, according to CoinMarketCap.
(2)
Onchain digital asset wallets that hold more than $10 USDC.
Guidance
To give investors insight into our business and expectations, management is providing guidance on the following key performance indicators.
Key Indicator
Period
Guidance
USDC in Circulation
Multi-year through cycle
40% CAGR
Other Revenue
FY 2026
$150-$170M
RLDC Margin(1)
FY 2026
38-40%
Adjusted Operating Expenses(2)
FY 2026
$570-$585M
(1)
RLDC Margin is calculated as Total Revenue and Reserve Income less Total Distribution, Transaction and Other Costs as a percentage of Total Revenue and Reserve Income.
(2)
Refer to Non-GAAP Financial Measures for further details and a reconciliation of the GAAP to non-GAAP measures presented. Beginning in the first quarter of 2026, we have amended the definition of Adjusted Operating Expenses to exclude (a) payroll tax expense related to stock-based compensation, because these taxes are directly related to stock-based compensation expense which is already excluded from Adjusted Operating Expenses and these taxes are variable with our stock price and other factors outside of our control (which will also be reflected in Adjusted EBITDA), as well as (b) certain one-time legal expenses, acquisition-related costs, and where relevant, restructuring expenses, as they reflect the same adjustments as in Adjusted EBITDA. For FY25, payroll tax expense related to stock-based compensation totaled $20.6M, certain one-time legal expenses totaled $9.5 million and acquisition-related costs totaled $0.5 million.
Conference Call and Livestream Information
Circle will host a conference call to discuss the results for the fourth quarter and full fiscal year 2025 on February 25, 2026 at 8:00 am ET. Circle’s Investor Relations website at https://investor.circle.com will provide access to the live webcast, as well as a replay of the call and transcript shortly following earnings.
In addition to filings with the Securities and Exchange Commission, Circle uses its Investor Relations website (https://investor.circle.com), its blog (https://www.circle.com/blog), press releases (https://www.circle.com/pressroom), public conference calls and webcasts, its X feed (https://x.com/circle), and its Linkedin page (https://www.linkedin.com/company/circle-internet-financial) as a means of disclosing material nonpublic information, announcing upcoming investor conferences and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor these sites in addition to following Circle’s SEC filings.
Forward-Looking Statements
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. These statements include, but are not limited to, statements regarding our future operating results and financial position, including our guidance for the year ending December 31, 2026; our plans with respect to the anticipated future expenses and investments; expectations relating to certain of our key financial and operating metrics; our business strategy and plans; expectations relating to legal and regulatory proceedings; expectations relating to our industry, the regulatory environment, market conditions, trends and growth; expectations relating to customer behaviors and preferences; our market position; potential market opportunities; and our objectives for future operations. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on management’s expectations, assumptions, and projections based on information available at the time the statements were made. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including, but not limited to: intense and increasing competition; periods of uncertainty, loss of trust, or systemic shocks resulting in the potential for rapid redemption request, redemption delays and USDC reserves being insufficient to meet all redemption requests; operational challenges and risks related to the new innovation of digital assets and the blockchains that support them, including due to surges in demand; impact of disruptions in secondary marketplaces that facilitate the purchase and sale of digital assets; negative developments regarding other stablecoins that could adversely affect our business; impact of negative publicity regarding digital assets or the broader industry; impact of the GENIUS Act on our payment stablecoin ecosystem; impact of other laws and regulations, including the U.S. securities laws, that affect digital assets; impact of risks associated with the issuer, manager, and custodian of the Circle Reserve Fund, which holds a substantial amount of our USDC reserves; impact of tax examinations or disputes, or changes in tax laws; our failure to develop new products and services that gain market adoption and the substantial expenditures required to bring new products and services to market; impact of a significant disruption in our partners’ technology; our failure or our providers’ failure to safeguard customer funds and digital assets; impact of the loss or destruction of keys required to access any digital assets in custody for our own account or for our customers; our inability to maintain existing relationships with financial institutions and similar firms or enter into new relationships; the impact of credit risks with respect to our counterparties; our inability to maintain existing distribution and partnership arrangements or enter into additional distribution or partnership arrangements on less favorable financial terms; risks related to the Arc blockchain network, including that it may not be successful, and any potential launch of a native token poses additional risks; our dependence on a few key distributors of our digital assets; impact of the use of our products and services to exploit third parties or facilitate illegal activity; impact of any potential ineffectiveness of our compliance program, risk management methods, or internal controls; risks related to minting and redeeming; the importance of our brand, reputation, and intellectual property to our business and the cost of protecting them; impact of a disruption, failure or breach of our networks or systems, including as a result of cyber incidents or attacks; impact of the fluctuation of interest rates and currency exchange rates on our business; the fact that we are subject to an extensive and highly evolving regulatory landscape; impact of economic uncertainty or instability caused by political or geopolitical developments; and the fact that insiders continue to have substantial control over our business and could limit a stockholder’s ability to influence the outcome of key transactions, including a change of control. In light of these risks, uncertainties, and assumptions, our actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Further information on risks that could cause actual results to differ materially from forecasted results are, or will be included, in our filings we make with the SEC from time to time, including our Annual Report on Form 10-K for the year ended December 31, 2025 to be filed with the SEC following the date hereof. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.
About Circle Internet Group, Inc.
Circle (NYSE: CRCL) is one of the world’s leading internet financial platform companies, building the foundation of a more open, global economy through programmable blockchain infrastructure, digital assets, and payment applications. Circle’s platform includes the world’s largest stablecoin network anchored by USDC, Circle Payments Network for global money movement, and Arc, an enterprise-grade blockchain designed to become the Economic OS for the internet. Enterprises, financial institutions, and developers use Circle to power trusted, internet-scale financial innovation.
CIRCLE INTERNET GROUP, INC. – CONSOLIDATED BALANCE SHEETS
(in $ thousands, except share information)
December 31,
2025
December 31,
2024
ASSETS
Current assets:
Cash and cash equivalents
$
1,526,046
$
750,981
Cash and cash equivalents segregated for corporate-held stablecoins
822,963
294,493
Cash and cash equivalents segregated for the benefit of stablecoin holders
75,067,932
43,918,572
Accounts receivable, net
62,866
6,418
Stablecoins receivable, net
—
6,957
Prepaid expenses and other current assets
321,660
187,528
Total current assets
77,801,467
45,164,949
Non-current assets:
Restricted cash
2,792
3,558
Investments
84,265
84,114
Fixed assets, net
22,791
18,682
Digital assets
86,515
31,330
Goodwill
265,742
169,544
Intangible assets, net
411,146
331,394
Deferred tax assets, net
11,110
10,223
Other non-current assets
27,379
20,615
Total assets
$
78,713,207
$
45,834,409
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY
Current liabilities:
Deposits from stablecoin holders
$
74,912,567
$
43,727,363
Accounts payable and accrued expenses
360,609
287,007
Convertible debt, net of debt discount
36,821
—
Other current liabilities
18,398
16,597
Total current liabilities
75,328,395
44,030,967
Non-current liabilities:
Convertible debt, net of debt discount
—
40,717
Deferred tax liabilities, net
28,702
29,559
Warrant liability
—
1,591
Other non-current liabilities
25,337
21,281
Total non-current liabilities
54,039
93,148
Total liabilities
$
75,382,434
$
44,124,115
Commitments and contingencies
Redeemable convertible preferred stock
Redeemable convertible preferred stock ($0.0001 par value, nil and 139.8 million shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively; aggregate liquidation preference of nil and $1.1 billion as of December 31, 2025 and December 31, 2024, respectively)
—
1,139,765
Stockholders’ equity
Class A common stock ($0.0001 par value; 2.5 billion and 300.0 million authorized as of December 31, 2025 and December 31, 2024, respectively; 223.6 million and 56.4 million issued and outstanding as of December 31, 2025 and December 31, 2024, respectively)
24
6
Class B common stock ($0.0001 par value; 500.0 million and nil authorized as of December 31, 2025 and December 31, 2024, respectively; 18.7 million and nil issued and outstanding as of December 31, 2025 and December 31, 2024, respectively)
2
—
Class C common stock ($0.0001 par value; 500.0 million and nil authorized as of December 31, 2025 and December 31, 2024, respectively; nil issued and outstanding as of December 31, 2025 and December 31, 2024)
—
—
Treasury stock at cost (4.7 million and 5.0 million shares held as of December 31, 2025 and December 31, 2024, respectively)
(2,721
)
(2,877
)
Additional paid-in capital
4,610,216
1,792,969
Accumulated deficit
(1,292,709
)
(1,223,213
)
Accumulated other comprehensive income
14,515
3,644
Total stockholders’ equity attributable to common stockholders
3,329,327
570,529
Noncontrolling interests
1,446
—
Total stockholders’ equity
3,330,773
570,529
Total liabilities, redeemable convertible preferred stock and stockholders’ equity
$
78,713,207
$
45,834,409
CIRCLE INTERNET GROUP, INC. – CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share information)
Three Months Ended
Year Ended
(unaudited)
December 31,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Revenue and reserve income
Reserve income
$
733,396
$
432,967
$
2,636,822
$
1,661,084
Other revenue
36,836
2,400
109,820
15,169
Total revenue and reserve income
770,232
435,367
2,746,642
1,676,253
Distribution, transaction and other costs
Distribution and transaction costs
460,566
303,746
1,661,549
1,010,811
Other costs
884
801
2,102
6,553
Total distribution, transaction and other costs
461,450
304,547
1,663,651
1,017,364
Operating expenses
Compensation expenses
136,571
69,388
844,878
263,410
General and administrative expenses
70,971
37,700
190,272
137,283
Depreciation and amortization expenses
25,536
13,507
76,627
50,854
IT infrastructure costs
10,805
7,036
36,638
27,109
Marketing expenses
8,325
6,488
25,718
17,326
Digital assets losses (gains)
1,387
(4,093
)
5,293
(4,251
)
Total operating expenses
253,595
130,026
1,179,426
491,731
Operating income (loss) from continuing operations
55,187
794
(96,435
)
167,158
Other income (expense), net
84,995
9,573
(6,458
)
54,416
Net income (loss) from continuing operations before income taxes
140,182
10,367
(102,893
)
221,574
Income tax expense (benefit)
6,776
5,934
(33,375
)
64,583
Net income (loss) from continuing operations
133,406
4,433
(69,518
)
156,991
Loss from operations of discontinued businesses
-
(1,324
)
-
(1,324
)
Net income (loss)
133,406
3,109
(69,518
)
155,667
Less: Net loss attributable to noncontrolling interests
(10
)
-
(10
)
-
Net income (loss) attributable to common stockholders
$
133,416
$
3,109
$
(69,508
)
$
155,667
Earnings (loss) per share attributable to common stockholders:
Basic earnings (loss) per common share attributable to common stockholders:
Continuing operations
$
0.56
$
0.00
$
(0.44
)
$
0.33
Discontinued operations
-
$
(0.00
)
-
$
(0.00
)
Basic earnings (loss) per common share attributable to common stockholders
$
0.56
$
0.00
$
(0.44
)
$
0.33
Diluted earnings (loss) per common share attributable to common stockholders:
Continuing operations
$
0.43
$
0.00
$
(0.44
)
$
0.30
Discontinued operations
-
$
(0.00
)
-
$
(0.00
)
Diluted earnings (loss) per common share attributable to common stockholders
$
0.43
$
0.00
$
(0.44
)
$
0.30
Weighted-average shares used in computing earnings (loss) per share attributable to common stockholders:
Basic
236,676
54,722
158,699
54,413
Diluted
267,804
70,869
158,699
73,042
Quarterly & Annual Results of Operations
The following table summarizes certain key financial performance measures derived from our unaudited quarterly consolidated statements of operations data for each of the three months ended December 31, 2024, March 31, 2025, June 30, 2025, September 30, 2025, and December 31, 2025. The information for each of these periods has been prepared on the same basis as our audited annual consolidated financial statements and, in the opinion of management, reflects all adjustments of a normal, recurring nature that are necessary for the fair statement of the results of operations for these periods.
Three months ended
(in $ millions, except RLDC Margin and Net Reserve Margin)?
December 31,
2025?
September 30,
2025?
June 30,
2025?
March 31,
2025?
December 31, ??
2024?
?Reserve Income
$?
733
$
711?
$?
634
$?
558
$?
433
Other Revenue
?? ??
37
?? ??
2?9
?? ????
24
???
21
? ??
??2
Total Revenue and ?Reserve Income
$
770
$
740
$??
658
$?
579
$?
435
Distribution and Transaction Costs
??$??
461
??$?
447
??$??
406
$??
347
?$??
304
Other Costs
??
??1
?? ??
0
?? ??
0
0
? ??
1
Total Distribution, ?Transaction and Other ?Costs
$
461
$?
448
$?
407
$??
348
$?
305
Total Revenue and Reserve Income less Total Distribution, Transaction ?and Other Costs
?$?
309
?$???
292
?$?
251??
?$?
231
?$???
131
RLDC Margin(1)
?
40%
?
39%
?
38%
40%
?
30%
Net Reserve Margin(2)
37%?
?
37%
?
36%
?
38%
?
30%
Note: Figures presented may not sum precisely due to rounding.
(1)
RLDC Margin is calculated as Total Revenue and Reserve Income less Total Distribution, Transaction and Other Costs as a percentage of Total Revenue and Reserve Income.
(2)
Net Reserve Margin is Reserve Income less Distribution and Transaction Costs as a percentage of Reserve Income.
The following table summarizes certain key financial performance measures derived from our annual consolidated statements of operations data for the years ended December 31, 2024, and December 31, 2025.
Year ended
(in $ millions, except RLDC Margin and Net Reserve Margin)?
December 31,
2025?
December 31, ?
2024?
?Reserve Income
$?
2,637
$?
1,661
Other Revenue
??
?110
? ??
15
Total Revenue and ?Reserve Income
$
?2,747
$?
1,676
Distribution and Transaction Costs
$
1,662
?$
1,011
Other Costs
2
?
7
Total Distribution, ?Transaction and Other ?Costs
$?
1,664
$??
1,017
Total Revenue and Reserve Income less Total Distribution, Transaction ?and Other Costs
$?
1,083
$??
659
RLDC Margin(1)
39%
39%
Net Reserve Margin(2)
?
37%
?
39%
Note: Figures presented may not sum precisely due to rounding.
(1)
RLDC Margin is calculated as Total Revenue and Reserve Income less Total Distribution, Transaction and Other Costs as a percentage of Total Revenue and Reserve Income.
(2)
Net Reserve Margin is Reserve Income less Distribution and Transaction Costs as a percentage of Reserve Income.
Non-GAAP Financial Measures
We report our financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). However, Adjusted EBITDA and Adjusted Operating Expenses are non-GAAP financial measures regarding our operational performance.
Management and our board of directors use non-GAAP financial measures to (i) monitor and evaluate the growth and performance of our business operations, (ii) evaluate our historical and prospective financial performance as well as our performance relative to our competitors, (iii) review and assess the performance of our management team and other employees, and (iv) prepare budgets and evaluate strategic investments. Accordingly, we believe that non-GAAP measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. Non-GAAP financial measures, including Adjusted EBITDA and Adjusted Operating Expenses, have limitations as financial measures and should not be relied upon as substitutes for, or considered in isolation from, measures calculated in accordance with GAAP.
Adjusted EBITDA
Adjusted EBITDA is calculated as net income (loss) from continuing operations excluding: net income (loss) attributable to noncontrolling interests, depreciation and amortization expenses; interest expense, net of amortization of discounts and premiums; interest income; income tax expense (benefit); stock-based compensation expense; certain legal expenses; realized and unrealized (gains) losses, net, on digital assets held for investment, other related investments and strategic investments; realized (gains) losses on available-for-sale debt securities; impairment losses on strategic investments; restructuring expenses; acquisition-related costs; change in fair value of convertible debt, warrant liability, and embedded derivatives; charitable contributions to Circle Foundation; losses on sale of long-lived assets; and foreign currency exchange loss (gain).
We believe it is useful to exclude non-cash charges, such as depreciation and amortization, stock-based compensation expense, and change in fair value of various financial instruments from Adjusted EBITDA because the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations. We believe it is useful to exclude income tax expense (benefit), interest income, interest expense, and non-routine items as these items are not components of our core business operations.
Adjusted Operating Expenses
Adjusted Operating Expenses excludes depreciation and amortization, charitable contributions to Circle Foundation, digital assets losses (gains), and stock-based compensation. Beginning in the first quarter of 2026, we have amended the definition of Adjusted Operating Expenses to exclude (a) payroll tax expense related to stock-based compensation, because these taxes are directly related to stock-based compensation expense which is already excluded from Adjusted Operating Expenses and these taxes are variable with our stock price and other factors outside of our control (which will also be reflected in Adjusted EBITDA), as well as (b) certain one-time legal expenses, acquisition-related costs, and where relevant, restructuring expenses, as they reflect the same adjustments as in Adjusted EBITDA.
We believe it is useful to exclude certain non-cash charges from Adjusted Operating Expenses because the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations.
We have provided a reconciliation below of Adjusted EBITDA to Net Income (loss) from Continuing Operations and of Adjusted Operating Expenses to Operating Expenses, in each case, the most directly comparable GAAP financial measure.
CIRCLE INTERNET GROUP, INC. – RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS) FROM CONTINUING OPERATIONS
(in $ thousands)
Three Months Ended
December 31, 2025
September 30, 2025
June 30, 2025
March 31, 2025
December 31, 2024
Net income (loss) from continuing operations
$
133,406
$
214,385
$
(482,100
)
$
64,791
$
4,433
Less: Net loss attributable to noncontrolling interests
(10
)
-
-
-
-
Net income (loss) from continuing operations attributable to common stockholders
$
133,416
$
214,385
$
(482,100
)
$
64,791
$
4,433
Adjusted for:
Depreciation and amortization expenses
25,536
23,002
14,209
13,880
13,507
Interest expense, net of amortization of discounts and premiums
193
354
344
335
357
Interest income(1)
(16,302
)
(13,453
)
(9,952
)
(7,965
)
(8,646
)
Income tax expense (benefit)
6,776
(61,294
)
(3,903
)
25,046
5,934
Stock-based compensation expense
59,414
59,081
434,966
12,716
11,142
Legal expenses(2)
2,875
3,014
1,706
1,905
4,834
Realized and unrealized (gains) losses, net, on digital assets held for investment, other related investments and strategic investments
(25,074
)
(2,267
)
(5,738
)
8,263
(4,470
)
Realized (gains) on available-for-sale debt securities
-
-
-
-
(75
)
Impairment losses on strategic investments
-
500
506
-
1,580
Acquisition-related costs(3)
-
-
-
535
1,054
Change in fair value of convertible debt, warrant liability, and embedded derivatives
(42,472
)
(56,212
)
167,724
2,382
4,225
Charitable contributions to Circle Foundation(4)
23,149
-
-
-
-
Losses on sale of long-lived assets
-
6
4
12
7
Foreign currency exchange (gain) loss
(29
)
(655
)
8,067
539
(1,157
)
Adjusted EBITDA
$
167,482
$
166,461
$
125,833
$
122,439
$
32,725
(1)
Reflects interest income from corporate cash and cash and cash equivalents balances. For the avoidance of doubt, this amount does not include the impact of reserve income.
(2)
Reflects litigation expenses related to the FT Partners litigation, legal and settlement expenses related to legacy businesses, and legal fees and other costs related to the one-time establishment of new governance structures to comply with U.S. regulatory requirements.
(3)
Reflects one-time legal and professional services costs related to the Hashnote acquisition.
(4)
Reflects the charge related to the charitable contribution of shares of our Class A common stock for the benefit of Circle Foundation, a donor-advised fund.
CIRCLE INTERNET GROUP, INC. – RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS) FROM CONTINUING OPERATIONS
(in $ thousands)
Year Ended
December 31, 2025
December 31, 2024
Net income (loss) from continuing operations
$
(69,518
)
$
156,991
Less: Net loss attributable to noncontrolling interests
(10
)
-
Net income (loss) from continuing operations attributable to common stockholders
$
(69,508
)
$
156,991
Adjusted for:
Depreciation and amortization expenses
76,627
50,854
Interest expense, net of amortization of discounts and premiums
1,226
1,906
Interest income(1)
(47,672
)
(34,712
)
Income tax expense (benefit)
(33,375
)
64,583
Stock-based compensation expense
566,177
50,134
Legal expenses (2)
9,500
9,281
Realized and unrealized (gains) losses, net, on digital assets held for investment, other related investments and strategic investments
(24,816
)
(9,464
)
Realized (gains) on available-for-sale debt securities
-
(88
)
Impairment losses on strategic investments
1,006
2,358
Restructuring expenses(3)
-
3,186
Acquisition-related costs(4)
535
1,054
Change in fair value of convertible debt, warrant liability, and embedded derivatives
71,422
(11,653
)
Charitable contributions to Circle Foundation(5)
23,149
-
Losses on sale of long-lived assets
22
73
Foreign currency exchange loss
7,922
368
Adjusted EBITDA
$
582,215
$
284,871
(1)
Reflects interest income from corporate cash and cash and cash equivalents balances. For the avoidance of doubt, this amount does not include the impact of reserve income.
(2)
Reflects litigation expenses related to the FT Partners litigation, legal and settlement expenses related to legacy businesses, and legal fees and other costs related to the one-time establishment of new governance structures to comply with U.S. regulatory requirements.
(3)
Reflects one-time restructuring expenses incurred in connection with our change in domicile from the Republic of Ireland to the State of Delaware.
(4)
Reflects one-time legal and professional services costs related to the Hashnote acquisition.
(5)
Reflects the charge related to the charitable contribution of shares of our Class A common stock for the benefit of Circle Foundation, a donor-advised fund.
CIRCLE INTERNET GROUP, INC. – RECONCILIATION OF ADJUSTED OPERATING EXPENSES TO OPERATING EXPENSES
(in $ thousands)
Three Months Ended
December 31,
2025
September 30,
025
June 30,
2025
March 31,
2025
December 31,
2024
Operating expenses
$
253,595
$
211,127
$
576,718
$
137,986
$
130,026
Adjusted for:
Stock-based compensation expense(1)
(59,414
)
(59,081
)
(434,966
)
(12,716
)
(11,142
)
Depreciation and amortization expenses(2)
(25,536
)
(23,002
)
(14,209
)
(13,880
)
(13,507
)
Digital assets losses (gains)(3)
(1,387
)
1,671
693
(6,270
)
4,093
Charitable contributions to Circle Foundation(4)
(23,149
)
-
-
-
-
Adjusted Operating Expenses (prior definition)
$
144,109
$
130,715
$
128,236
$
105,120
$
109,470
Adjusted for:
Payroll tax expense related to stock-based compensation(5)
(8,428
)
(5,015
)
(7,164
)
-
-
Legal expenses (6)
(2,875
)
(3,014
)
(1,706
)
(1,905
)
(4,834
)
Acquisition-related costs(7)
-
-
-
(535
)
(1,054
)
Adjusted Operating Expenses (new definition)
$
132,806
$
122,686
$
119,366
$
102,680
$
103,582
(1)
Stock-based compensation expense represents equity compensation, a non-cash expense.
(2)
Depreciation and amortization expenses include depreciation of fixed assets, and amortization of capitalized engineering costs and intangible assets.
(3)
Digital assets losses (gains) represent the fair value losses/gains of digital assets, a non-cash expense.
(4)
Charitable contributions to Circle Foundation reflects the charge related to the charitable contribution of shares of our Class A common stock for the benefit of Circle Foundation, a donor-advised fund.
(5)
Reflects payroll tax expenses related to equity compensation, a non-cash expense.
(6)
Reflects litigation expenses related to the FT Partners litigation, legal and settlement expenses related to legacy businesses, and legal fees and other costs related to the one-time establishment of new governance structures to comply with U.S. regulatory requirements.
(7)
Reflects one-time legal and professional services costs related to the Hashnote acquisition.
CIRCLE INTERNET GROUP, INC. – RECONCILIATION OF ADJUSTED OPERATING EXPENSES TO OPERATING EXPENSES
(in $ thousands)
Year Ended
December 31,
2025
December 31,
2024
Operating expenses
$
1,179,426
$
491,731
Adjusted for:
Stock-based compensation expense(1)
(566,177
)
(50,134
)
Depreciation and amortization expenses(2)
(76,627
)
(50,854
)
Digital assets losses (gains)(3)
(5,293
)
4,251
Charitable contributions to Circle Foundation(4)
(23,149
)
-
Adjusted Operating Expenses (prior definition)
$
508,180
$
394,994
Adjusted for:
Payroll tax expense related to stock-based compensation(5)
(20,607
)
-
Legal expenses (6)
(9,500
)
(9,281
)
Acquisition-related costs(7)
(535
)
(1,054
)
Restructuring expenses(8)
-
(3,186
)
Adjusted Operating Expenses (new definition)
$
477,538
$
381,473
(1)
Stock-based compensation expense represents equity compensation, a non-cash expense.
(2)
Depreciation and amortization expenses include depreciation of fixed assets, and amortization of capitalized engineering costs and intangible assets.
(3)
Digital assets losses (gains) represent the fair value losses/gains of digital assets, a non-cash expense.
(4)
Charitable contributions to Circle Foundation reflects the charge related to the charitable contribution of shares of our Class A common stock for the benefit of Circle Foundation, a donor-advised fund.
(5)
Reflects payroll tax expenses related to equity compensation, a non-cash expense.
(6)
Reflects litigation expenses related to the FT Partners litigation, legal and settlement expenses related to legacy businesses, and legal fees and other costs related to the one-time establishment of new governance structures to comply with U.S. regulatory requirements.
(7)
Reflects one-time legal and professional services costs related to the Hashnote acquisition.
(8)
Reflects one-time restructuring expenses incurred in connection with our change in domicile from the Republic of Ireland to the State of Delaware.
CIRCLE INTERNET GROUP, INC. – FORWARD GUIDANCE RECONCILIATION OF ADJUSTED OPERATING EXPENSES TO OPERATING EXPENSES
(in $ millions)
FY26
Low
High
Operating expenses
$
929
$
994
Adjusted for:
Stock-based compensation expense(1)
(219
)
(249
)
Depreciation and amortization expenses(2)
(108
)
(118
)
Digital assets losses (gains)(3)
-
-
Charitable contributions to Circle Foundation(4)
(17
)
(17
)
Legal expenses(5)
(7
)
(17
)
Acquisition-related costs(6)
(8
)
(8
)
Adjusted Operating Expenses (new definition)
$
570
$
585
(1)
Stock-based compensation expense represents equity compensation and associated payroll taxes. The range of guidance depends on incremental headcount through the rest of the year and stock price.
(2)
Depreciation and amortization expense includes depreciation of fixed assets, and amortization of capitalized engineering costs and intangible assets. The range of the guidance depends on capitalization rates, total SBC and cash compensation throughout the rest of the year.
(3)
Digital assets losses (gains) represent the year to date fair value losses/gains of digital assets, a non-cash expense, and we are not forecasting the amounts in 2026.
(4)
Charitable contributions to Circle Foundation represents our anticipated transfer of 268,239 shares of Class A common stock to the Donor Advised Fund for the Circle Foundation and is a non-cash expense arising from donating the company’s equity. The amount is estimated as at the closing stock price of CRCL on February 20, 2026 ($63.02), however, such amount will be dependent on the stock price on the date of the transfer of the applicable shares, which is expected to occur in substantially equal quarterly installments throughout 2026.
(5)
Represents estimated fees associated with specific nonrecurring costs, including the one-time implementation of new governance structures to meet U.S. regulatory requirements.
(6)
Reflects special one-time compensation related to an acquihire that closed in Q1’26.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260225882643/en/
Investor Relations
investors@circle.com
Media Relations
press@circle.com
Original: Circle Reports Fourth Quarter and Full Fiscal Year 2025 Financial Results
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