- Circle reports Q4 adjusted EPS of $0.43 on $770 million in revenue and reserve income, with shares rising over 10% premarket.
- USDC in circulation reaches $75.3 billion and quarterly onchain volume hits $11.9 trillion, while Circle issues 2026 and multi-year growth guidance.
Shares of Circle Internet Financial have risen sharply in premarket trading after the company released quarterly figures showing substantial growth in revenue, profitability, and usage of its USDC stablecoin. The latest report highlights rapid expansion in core metrics such as reserves-related income, onchain transaction activity, and digital dollar circulation, alongside detailed guidance for 2026 and beyond.
Fourth-quarter results signal sharp acceleration
Circle’s fourth-quarter performance exceeded Wall Street expectations on several key indicators. Adjusted earnings per share came in at $0.43, outpacing the analyst consensus of $0.35. Total revenue and reserve income reached $770 million, above the $745 million figure anticipated by analysts and representing a 77% increase compared with the same quarter a year earlier.
Profitability metrics improved even more quickly than revenue. Adjusted EBITDA rose 412% year over year to $167 million, underscoring the operating leverage in the company’s model as volumes and balances scale. Net income from continuing operations totaled $133 million, up by $129 million versus the prior-year period, signaling a marked turnaround in bottom-line performance.
Market reaction was immediate. The company’s stock advanced more than 10% in premarket trading after the release of the results, reflecting investor optimism about both recent execution and the outlook provided for the coming years.
Circle stablecoin metrics highlight USDC expansion
Operational data tied to the USDC stablecoin showed particularly strong growth in the quarter and at year end. USDC in circulation reached $75.3 billion by the close of the year, a 72% increase compared with the previous year. The expansion in circulating supply indicates higher adoption across trading, payments, and treasury applications that rely on tokenized dollars.
Onchain transaction volume for USDC also accelerated. Activity reached $11.9 trillion in the quarter, up 247% year over year, pointing to heavier use of the stablecoin in decentralized finance, cross-border payments, and other blockchain-based financial workflows. This growth in both balances and volume reinforces the centrality of USDC to Circle’s business model and revenue base.
Commenting on the quarter, Co-Founder, Chief Executive Officer, and Chairman Jeremy Allaire framed the results as progress toward the company’s goal of supporting an open, programmable financial infrastructure on the internet. He noted that USDC use spread further worldwide as enterprises, software developers, and public institutions incorporated digital dollars into payments, treasury management, and onchain transaction processes.
Full-year 2025 performance and IPO-related impact
For the full fiscal year 2025, Circle reported revenue of $2.7 billion, an increase of 64% from the prior year. The company did not translate that growth into positive net income for the year as a whole, however. It recorded a net loss from continuing operations of $70 million, heavily influenced by stock-based compensation associated with its public listing.
Stock-based compensation tied to IPO-related vesting conditions amounted to $424 million in fiscal 2025. This non-cash expense was a major driver of the reported loss, despite the strong improvement in operating and profitability metrics seen in the most recent quarter. The contrast between quarterly net income and the full-year loss underscores the accounting effect of those compensation charges rather than a deterioration in underlying performance.
Forward guidance and multi-year outlook for Circle
Alongside the latest results, Circle outlined expectations for fiscal year 2026 and shared long-term targets linked to USDC growth. For 2026, the company projected “other revenue” in a range of $150 million to $170 million. Adjusted operating expenses are expected to fall between $570 million and $585 million, providing investors with a view into cost trajectory as the business continues to scale.
Circle also guided to an RLDC margin of 38% to 40% for the full 2026 fiscal year, suggesting it anticipates maintaining robust profitability on core revenue lines. In addition, the company provided multi-year guidance for USDC in circulation, aiming for a 40% compound annual growth rate “through cycle.” This target underscores management’s expectation that demand for tokenized dollars will continue to expand meaningfully over the medium term, both in existing markets and in new use cases as digital financial infrastructure develops.
These forward-looking figures, combined with the latest quarter’s strong performance, give investors a clearer picture of how Circle plans to balance investment in growth with disciplined expense management while continuing to promote the broader adoption of USDC.
Conclusion
Circle’s latest earnings release underscores rapid expansion in both financial and operational metrics, driven by rising USDC circulation and onchain volumes. Fourth-quarter revenue and profits outpaced expectations, while full-year 2025 revenue climbed significantly despite a net loss shaped by IPO-related stock-based compensation. The company’s 2026 outlook and multi-year growth targets for USDC point to continued emphasis on scaling its digital dollar ecosystem and maintaining solid margins as its role in internet-based finance expands.
Disclaimer
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.
Featured image created by AI
