Circle Q2 Earnings & Revenues Beat Estimates, Shares Decline

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Circle Internet Group CRCL shares have dropped 14.7% since second-quarter 2025 results reported on Aug. 12. The company reported second-quarter 2025 adjusted earnings of $1.02 per share, which beat the Zacks Consensus Estimate of 29 cents.Circle reported total revenues and reserve income of $658.1 million, up 53% year over year. The top line beat the Zacks Consensus Estimate by 1.97%. Despite the strong results, the drop in CRCL's share price indicates growing concerns over prospects.
Circle Internet Group, Inc. Price, Consensus and EPS Surprise
Circle Internet Group, Inc. price-consensus-eps-surprise-chart | Circle Internet Group, Inc. Quote
CRCL's Q2 Quarterly Details
Reserve Income accounted for 96.4% of revenues. The figure jumped 50% year over year to $634.3 million. Other revenues were $23.8 million compared with $6.8 million reported in the year-ago quarter.USDC in circulation grew 90% year over year to $61.3 billion at quarter end, and has grown an additional 6.4% to $65.2 billion as of Aug. 10, 2025. Average USDC in circulation jumped 86% year over year to $61 billion. Circle minted USDC worth $42.2 billion, up 21%. The company redeemed USDC worth $40.8 billion, up 17%. Meaningful wallets, defined as wallets holding more than $10 of USDC, were up 68% year over year as USDC adoption continues to expand globally.In the second quarter of 2025, USDC onchain transaction volume grew 5.4 times year over year to nearly $6 trillion. The company launched Circle Payments Network in May, a platform for financial institutions to use stablecoins for payments, with more than100+ institutions in the pipeline. The company also introduced Arc, an open Layer-1 blockchain purpose-built for stablecoin finance. CRCL's revenues less distribution costs (RLDC) surged 38% year over year to $251 million. RLDC margin contracted 408 basis points (bps) year over year to 38%. Adjusted EBITDA surged 52% year over year to $126 million. Adjusted EBITDA margin expanded 463 bps year over year to 50%.
Circle's Balance Sheet Details
In June, Circle completed its $1.2 billion initial public offering. Of the total offering of 39.1 million shares, Circle sold 19.9 million newly issued primary shares of Class A common stock at a price of $31 per share, which resulted in net proceeds of $583 million.Circle announced a public offering of 10 million shares of its Class A common stock at a price of $130.00 per share. The company is offering 2 million shares of Class A common stock and the selling stockholders are offering 8 million shares of Class A common stock. In connection with the offering, Circle is expected to grant the underwriters a 30-day option to purchase up to an additional 1.5 million shares of Class A common stock.
Circle Offers 2025 Guidance
Circle expects USDC in circulation to see a CAGR of multi-year through the cycle of 40%. Other revenues are expected between $75 million and $85 million. For 2025, the RLDC margin is expected in the 36-38%. Adjusted operating expenses are expected between $475 million and $490 million.
Zacks Rank & Stocks to Consider
Currently, Circle carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader Zacks Finance sector are Citigroup C, Robinhood HOOD and Virtu Financial VIRT. Each of the three stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.The long-term earnings growth rates for Citigroup, Robinhood and Virtu Financial are pegged at 15.3%, 17.2% and 17.4%, respectively.
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