Circle Internet Group (CRCL) Q2 2025 earnings summary

Executive summary

• USDC in circulation reached $61.3B at Q2 end, up 90% year-over-year, and $65.2B as of August 10, with market share rising to 28%.

• Total revenue and reserve income rose 53% year-over-year to $658M in Q2, driven by an 86% increase in average daily USDC in circulation.

• Net loss from continuing operations was $482M for Q2 2025, primarily due to $423.8M in IPO-triggered stock-based compensation and $167M from convertible debt revaluation.

• Completed IPO in June 2025, raising $583M in net proceeds and converting all preferred stock to common stock.

• Major product launches include Circle Payments Network, Circle Gateway, and Arc, a new Layer 1 blockchain using USDC as native gas.

Financial highlights

• Reserve income increased 50% year-over-year to $634M; other revenue grew 252% to $24M, led by blockchain partnerships and transaction revenues.

• Distribution, transaction, and other costs rose 64% year-over-year to $407M, mainly due to higher payments to partners.

• Adjusted EBITDA was $126M, up 52% year-over-year, with a margin of 50%.

• Compensation expenses surged to $503M, driven by IPO-related RSU vesting.

• Cash and equivalents (including segregated for stablecoins) totaled $63.1B at June 30, 2025.

Outlook and guidance

• Management projects USDC in circulation to grow at a 40% CAGR over the multi-year cycle.

• FY 2025 guidance: other revenue of $75M–$85M, RLDC margin of 36%–38%, and adjusted operating expenses of $475M–$490M.

• No short-term quarterly guidance; full-year guidance provided for key metrics.

• Anticipates further revenue diversification from developer services, tokenized funds, and liquidity services.

• Interest rate changes and regulatory developments (GENIUS Act) may impact future operations.