Circle Surpasses Revenue Estimates in First Post-IPO Quarterly Report
Stablecoin issuer Circle (CRCL.N) reported stronger-than-expected Q2 revenue in its first quarterly results since going public, sending shares up 5% on Tuesday. The company’s revenue growth was driven by higher USDC circulation and expanded subscription and services offerings.
USDC, Circle’s stablecoin and the second-largest by market value after Tether, grew 90% year-on-year as of June 30. Circle projects USDC circulation to grow at a compound annual rate of 40% in the coming years. The token is increasingly used for cross-border transactions, including both business and individual remittances, CEO Jeremy Allaire said.
Revenue and reserve income rose 53% year-on-year to $658 million, exceeding analyst expectations of $644.7 million, reflecting higher interest earned from cash and short-term investments backing USDC. Subscription and service revenues also contributed to the growth. The company reported a net loss of $482 million, mainly due to non-cash IPO-related charges, including vested employee stock awards and revaluation of convertible debt.
Circle plans to launch Arc, a public blockchain tailored for stablecoin transactions, this fall, aiming to strengthen its role as a core player in U.S. digital payments infrastructure. CFO Jeremy Fox-Geen noted growing institutional interest in USDC following the company’s IPO and the Genius Act, while CEO Allaire emphasized a careful approach to acquisitions despite the stock price rally.