Circle Internet Q2 revenue rises 7% on increase in average USDC in circulation
CRCL•Outlook
- Circle raises FY 2026 Other Revenue guidance to $310-$330 mln from $150-$170 mln
- Company lifts FY 2026 RLDC margin outlook to 41.7-43.7% from 38-40%
- Circle maintains FY 2026 USDC in circulation growth target at 40% CAGR
Overview
- US stablecoin issuer's fiscal Q2 revenue grew 7% yr/yr but missed analyst expectations
- Net income rose sharply, mainly due to lower stock-based compensation after prior-year IPO
- Adjusted EBITDA for fiscal Q2 rose 8% yr/yr to $143 mln
Result drivers
- USDC growth - Revenue growth was primarily driven by a 25% increase in average USDC in circulation, partially offset by a lower reserve return rate
- Lower stock-based compensation - Net income rose mainly due to reduced stock-based compensation expense following the prior-year IPO
- Product and infrastructure investment - Adjusted operating expenses increased 23% year-over-year, mainly from continued investment in product development, infrastructure, and AI capabilities
