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Circle Surpasses Revenue Estimates in First Post-IPO Quarterly Report

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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.

Wolfspeed Exceeds Q2 Revenue Expectations Amid Operational Shifts

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Wolfspeed (WOLF.N) outperformed Wall Street expectations for second-quarter revenue and reported a smaller-than-anticipated net loss, demonstrating progress as the company implements changes to enhance profitability.

In the first quarter of 2025, Wolfspeed shut down some facilities and transitioned its device business to a 200-millimeter silicon carbide fab. This move aims to improve product efficiency and increase production capacity, especially in response to the growing demand for chips utilizing silicon carbide technology. These chips are critical for high-power applications such as electric vehicle powertrains, e-mobility, renewable energy systems, battery storage, and AI data centers.

For Q2, Wolfspeed reported revenue of $180.5 million, slightly exceeding the average analyst estimate of $179.9 million. The company’s net loss per share was 95 cents, better than the expected loss of $1.02 per share. The Mohawk Valley Fab facility contributed around $52 million in revenue.

Despite weak demand from automotive clients, Wolfspeed made leadership changes in November, replacing CEO Gregg Lowe with Thomas Werner, who took on the role of executive chairman as the company searches for a permanent CEO.

Looking ahead, Wolfspeed projects third-quarter revenue from continuing operations to range from $170 million to $200 million, with the midpoint falling short of analysts’ expectations of $193.6 million. The company anticipates an adjusted quarterly loss per share between 88 cents and 76 cents, compared to estimates of a loss of 86 cents. It also expects restructuring-related costs of $72 million for the third quarter.