TLDR
- Circle posted $658 million in Q2 revenue, up 53% year-over-year and beating analyst forecasts of $646 million
- USDC stablecoin circulation grew 90% compared to a year earlier, driving revenue growth
- Stock rose 5-6% in premarket trading after earnings, with shares already up over 500% since June IPO
- Company reported $482 million net loss due to IPO-related charges but beat EBITDA expectations at $126 million
- Analysts remain split with 7 Buy ratings, 5 Hold ratings, and 4 Sell ratings due to competition concerns
Circle Internet Group delivered strong results in its debut quarterly report as a public company. The stablecoin issuer posted second-quarter revenue of $658 million, surpassing Wall Street’s estimate of $646 million.
The 53% year-over-year revenue jump was driven by increased circulation of its USDC stablecoin. USDC in circulation grew 90% compared to the same period last year.
Shares responded positively to the earnings beat. The stock rose between 5% and 6% in premarket trading Tuesday morning.
Circle, $CRCL, Q2-25 Results:
📊 EPS: -$4.48 🔴
💰 Revenue: $658M 🟢
📈 Net Loss: $482M
🔎 Circle completed its $1.2B IPO and launched the Circle Payments Network with 100+ institutions in the pipeline. pic.twitter.com/4g80EicKxS— EarningsTime (@Earnings_Time) August 12, 2025
Circle’s revenue growth comes from the interest it earns on cash and short-term investments backing its USDC tokens. The company also saw growth in its subscription and services revenue streams.
The company reported a net loss of $482 million for the quarter. However, this loss was largely expected and attributed to IPO-related charges.
These charges included costs for employee stock awards that vested when Circle went public in June. The company also took a hit from higher valuations of convertible debt following its stock price surge.
Strong EBITDA Performance
Circle’s earnings before interest, taxes, depreciation, and amortization came in at $126 million. This beat analyst expectations of $119 million for the quarter.
The company generates most of its revenue from net interest income earned on dollar reserves backing USDC. Wall Street expects Circle to post profits in the third and fourth quarters of this year.
Circle’s stock has been on a remarkable run since going public. Shares have increased more than five times their initial public offering price from June.
The passage of the Genius Act last month has provided regulatory clarity for stablecoins. This legislation has fueled investor enthusiasm for companies like Circle.
Stablecoins are digital tokens backed by low-risk assets like U.S. dollars or Treasury securities. They serve as a bridge between traditional banking and digital finance.
Analyst Views Remain Mixed
Wall Street analysts are divided on Circle’s future prospects. Of the 16 analysts covering the stock, seven have Buy ratings with a consensus price target of about $189.
However, five analysts maintain Hold recommendations while four have assigned Sell ratings. This split reflects uncertainty about the company’s competitive position.
Dan Dolev from Mizuho Securities has concerns about future competition. He worries that the Genius Act could actually hurt Circle by attracting new competitors.
Dolev believes larger fintech firms and retailers like PayPal, Walmart, and Amazon may enter the stablecoin market. His price target of $85 reflects these competitive concerns.
Ed Engel from Compass Point Research shares similar worries. He points to potential margin pressure and the stock’s high valuation of nearly 80 times estimated 2026 EBITDA.
On the bullish side, Jeff Cantwell from Seaport Research Partners has a $280 price target. He believes Circle’s first-mover advantage will protect it from new competition.
Cantwell sees the Genius Act as a positive catalyst that will unlock new opportunities for stablecoins. He views Circle as the “purest stablecoin play in the public markets.”
Oppenheimer’s Owen Lau also remains optimistic about Circle’s prospects. He describes the company as a clean way to gain exposure to blockchain disruption across multiple sectors.
Circle currently faces its primary competition from Tether, which operates the largest stablecoin by market value. USDC ranks as the second-largest stablecoin in the market.
The company maintains a partnership with crypto investing platform Coinbase. This relationship helps drive adoption and circulation of USDC tokens.
Circle expects to continue benefiting from growing institutional and retail interest in stablecoins. The regulatory clarity provided by recent legislation should support this trend.
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