Circle Internet Group (NYSE:CRC) reported its first quarterly earnings since going public, revealing second-quarter 2025 revenue of $658 million — a 53% increase compared with the same period last year.
Despite strong top-line growth driven by surging USDC stablecoin circulation, the company posted a net loss of $482 million. The loss was largely due to $591 million in non-cash IPO-related expenses, including $424 million in stock-based compensation and $167 million in fair value adjustments to convertible debt.
Adjusted EBITDA rose 52% year-over-year to $126 million, beating analyst estimates, with operating margins holding at 50%. However, distribution expenses climbed 64% to $407 million, narrowing the RLDC margin from 42% to 38%.
USDC (COIN:USDCUSD) circulation surged 90% from a year earlier, hitting $61.3 billion in the quarter and topping $65.2 billion in August. Market share reached 28%, with 5.7 million active wallets, while USDC balances on Circle’s platform jumped 924% to $6 billion.
The average reserve yield fell 103 basis points to 4.1% amid interest rate adjustments. Management projected USDC circulation to grow at a 40% compound annual growth rate over the coming years, with adjusted operating expenses between $475 million and $490 million for 2025.
The company also introduced Arc — an open layer-1 blockchain designed for stablecoin payments, foreign exchange, and capital markets. The EVM-compatible network will offer sub-one-second settlement and feature USDC as its native gas token.
Arc will include a built-in stablecoin exchange, optional privacy features, and full Circle platform integration. Public developer testing is expected in the second half of the year, with a focus on enterprise adoption and high-performance payment systems.
CEO Jeremy Allaire said the IPO represented “a pivotal moment for the global adoption of stablecoins” and emphasized that “the internet and the financial system are converging, with blockchains playing a central role in this transformation.”
Following the announcements, Circle shares rose 7% in pre-market trading, extending gains to roughly 420% since the stock’s June debut on the New York Stock Exchange.
Circle Internet Group stock price
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