Circle stock soars 14% as Q2 revenue smashes Wall Street expectations after going public for the first time

Time of India

a day ago

Circle Internet Group Inc. (NYSE: CRCL) delivered a blockbuster debut earnings report on Tuesday, sending its shares surging as much as 14% in early trading after revenue and stablecoin growth easily topped Wall Street forecasts.
The results mark the first time the stablecoin giant has reported as a public company following its June IPO — one of the most closely watched tech listings of the year — and investors appear convinced that Circle is setting the pace for the digital payments sector.
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What drove Circle's stunning post-IPO earnings beat?
Circle reported second-quarter revenue of
$658 million
, a
53% jump
from a year earlier and well above the
$646 million
analysts were expecting, according to LSEG data. Adjusted EBITDA climbed
52% to $126 million
, also surpassing consensus estimates.
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The company credited the surge to explosive growth in the circulation of USD Coin (USDC), its flagship dollar-backed stablecoin, which rose
90% year-over-year
to
$61.3 billion
at the end of Q2 and has since swelled to
$65.2 billion
as of August 10.
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How is USDC reshaping Circle's market position?
USDC's rapid adoption has become the centerpiece of Circle's growth strategy. The stablecoin is now widely used across crypto exchanges, fintech platforms, and global payment providers — a trend fueled in part by new regulatory clarity in the U.S.
Passage of the
Genius Act
, which sets guardrails for stablecoin issuance, has given Circle and its competitors firmer legal footing. 'We believe the Genius Act represents a watershed moment for digital dollar adoption,' CEO Jeremy Allaire said in a statement. 'It allows us to expand globally with confidence while ensuring the highest standards of trust and compliance.'
Why did Circle still post a massive net loss?
Despite its strong top-line performance, Circle reported a
net loss of $482 million
for the quarter. The red ink was driven largely by one-off items tied to its IPO:
$424 million
in stock-based compensation and a
$167 million
loss linked to convertible debt valuation adjustments.
Excluding those charges, Circle said it remains on a 'clear path to sustained profitability' as operational margins improve and transaction volumes climb.
How did investors react to the earnings surprise?
Shares of Circle jumped sharply at the opening bell, trading between
6% and 14% higher
during the session. The rally adds to what has already been a remarkable run — CRCL stock has climbed more than
450%
since its IPO, placing it among the best-performing new listings of 2025.
Market analysts say the earnings beat, coupled with Circle's accelerating role in the payments ecosystem, is fueling speculative momentum. 'Circle is positioning itself not just as a crypto player, but as an infrastructure backbone for the future of money,' said Dan Ives, senior equity analyst at Wedbush Securities.
What's next for Circle in the stablecoin race?
The company is pushing deeper into financial infrastructure with the planned launch of
Arc
, a proprietary Layer-1 blockchain aimed at supporting large-scale payments and settlements. Public testing is expected to begin this fall.
Circle is also rolling out its
Circle Payments Network
and expanding partnerships with major players such as Binance, FIS, Corpay, and OKX — moves designed to cement its dominance as stablecoins enter the mainstream.
For now, the market's verdict is clear: Circle's first act as a public company has exceeded expectations, setting a high bar for the quarters ahead.
FAQs:
Q1. Why did Circle stock jump after Q2 earnings?
Circle stock climbed sharply because its first earnings as a public company easily beat Wall Street's revenue estimates, driven by strong USD Coin (USDC) growth and expanding market adoption, even though it reported IPO-related losses.
Q2. How much has USDC circulation grown?
USDC circulation has surged 90% year-over-year, reaching $65.2 billion, reflecting growing global demand for stablecoins and Circle's expanding role in the digital payments space.