Circle Internet Group Inc. reported fourth‑quarter 2025 results that surpassed expectations, with revenue of $770.2 million, up 77% year‑over‑year, and adjusted earnings per share of $0.43, beating the consensus estimate of $0.35 by $0.08 (about 23%).
Revenue was driven by a 40% margin on revenue less distribution costs (RLDC) of $309 million, with reserve income accounting for $733 million and other revenue for $37 million. The high margin reflects a favorable mix toward the higher‑margin reserve income segment and operational leverage as the business scales.
USDC circulation reached $75.3 billion, a 72% increase from the prior year, while on‑chain transaction volume climbed 247% to $11.9 trillion. The growth is largely attributable to expanding use of USDC for payments, treasury operations, and decentralized finance applications, which have driven higher transaction volumes across the network.
Management reaffirmed its 2026 guidance, projecting other revenue between $150 million and $170 million and maintaining an RLDC margin of 38% to 40%. The guidance signals confidence in continued demand for Circle’s platform services and a stable margin profile as the company scales its high‑margin business.
Analysts responded positively to the earnings beat and margin expansion, noting that the results reinforce Circle’s competitive position in the stablecoin market and its ability to generate consistent cash flow from its reserve income business.
The company acknowledged ongoing headwinds, including regulatory uncertainty and sensitivity of reserve income to interest‑rate fluctuations, but emphasized that the growing adoption of USDC and the expansion of its platform services provide a solid foundation for future growth.
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