Circle Reports Third Quarter 2025 Results
Circle Internet Group, Inc. (NYSE: CRCL) today announced results for the third quarter of fiscal year 2025. Financial Highlights USDC in circulation of $73.7 billion at quarter end grew 108% year-ove...
NEW YORK: Circle Internet Group, Inc. (NYSE: CRCL) today announced results for the third quarter of fiscal year 2025.
Financial Highlights
- USDC in circulation of $73.7 billion at quarter end grew 108% year-over-year
- Total revenue and reserve income of $740 million grew 66% year-over-year
- Net Income of $214 million increased 202% year-over-year
- Adjusted EBITDA of $166 million grew 78% year-over-year
Corporate & Commercial Highlights
- More than 100 Companies Joined the Launch of Arc Public Testnet: Brands representing some of the most important companies in banking, payments, digital assets, technology, capital markets, asset issuers and developers participated in the Arc public testnet launch.
- Arc Token: Circle is exploring the possibility of launching a native token on the Arc Network.
- Circle Payments Network (CPN) Expansion: 29 financial institutions enrolled on CPN, 55 additional going through eligibility reviews and 500 in the pipeline.
- Increasing Adoption: New partnerships and expanded collaborations across digital assets, banking infrastructure, payments, international dollar access and capital markets that included Brex, Deutsche Börse Group, Finastra, Fireblocks, Hyperliquid, Kraken, Unibanco Itaú and Visa.
“Circle continued to see accelerating adoption of USDC and our platform in the third quarter as we build the new Economic OS for the internet,” said Jeremy Allaire, Co-Founder, Chief Executive Officer, and Chairman at Circle. “The launch of the Arc public testnet met with extraordinary enthusiasm from partners across traditional and digital finance – evidence of the deep and diverse ecosystem forming around open, programmable money. As digital dollars become integrated with the technological utility of the internet, Circle’s infrastructure is helping global finance move with greater trust, transparency and velocity. With growing circulation, accelerating commercial partnerships and expanding collaboration across industries, we’re proud of the tangible progress toward a more open and efficient global financial system.”
Key Financial Results and Operating Indicators
The following table presents our key results and operating indicators, as well as the relevant GAAP measures, for the periods indicated:
Key Financial Results | Q3 2025 | YoY Change | ||
($ in millions unless noted otherwise) |
| |||
Total Revenue and Reserve Income | $740 | 66% | ||
Revenue Less Distribution Costs(1) | $292 | 55% | ||
RLDC Margin(2) | 39% | (270bps) | ||
Net Income from Continuing Operations | $214 | 202% | ||
Net Income from Continuing Operations Margin(3) | 29% | NM | ||
Adjusted EBITDA(4) | $166 | 78% | ||
Adjusted EBITDA Margin(4) | 57% | 737bps | ||
Key Operating Indicators | Q3 2025 | YoY Change | ||
(USDC related figures in $ billions; meaningful wallets in millions) |
|
| ||
USDC in Circulation, end of period | $73.7 | 108% | ||
Average USDC in Circulation | $67.8 | 97% | ||
Reserve Return Rate | 4.2% | (96bps) | ||
USDC on Platform, end of period | $10.2 | 1,277% | ||
Daily Weighted-Average Percentage of USDC on Platform | 13.5% | 1,172bps | ||
USDC Minted | $79.7 | 128% | ||
USDC Redeemed | $67.3 | 112% | ||
Stablecoin Market Share, end of period(5) | 29% | 643bps | ||
Meaningful Wallets, end of period(6) | 6.3 | 77% | ||
(1) | Revenue Less Distribution Costs (RLDC) is calculated as Total Revenue and Reserve Income less Total Distribution, Transaction and Other Costs. | |
(2) | RLDC Margin is calculated as Total Revenue and Reserve Income less Total Distribution, Transaction and Other Costs as a percentage of Total Revenue and Reserve Income. | |
(3) | Net Income from Continuing Operations Margin is calculated as Net Income from Continuing Operations / Total Revenue and Reserve Income. | |
(4) | Refer to Non-GAAP Financial Measures for further details and a reconciliation of the GAAP to non-GAAP measures presented. Adjusted EBITDA Margin is calculated as Adjusted EBITDA / Total Revenue and Reserve Income less Total Distribution, Transaction and Other Costs. | |
(5) | Defined as the amount of USDC in circulation as a percentage of USD-denominated fiat-backed stablecoins in circulation above $100 million, according to CoinMarketCap. | |
(6) | Onchain digital asset wallets that hold more than $10 USDC. |
Third Quarter 2025 Financial Highlights and Operating Results
- Reserve Income of $711 million increased 60% year-over-year, primarily from the 97% growth in average USDC in circulation, partially offset by a 96 bps decline in the reserve return rate.
- Other Revenue of $29 million up $28 million year-over-year as subscription and services revenue and transaction revenue grew strongly.
- Total Distribution, Transaction and Other Costs of $448 million increased 74% year-over-year, primarily from increased distribution payments reflecting higher USDC circulation balances and growth in Coinbase’s average on-platform holdings of USDC, and other strategic partnerships.
- Operating Expenses of $211 million increased 70% year-over-year, primarily from higher compensation expenses, including $59 million of stock-based compensation expense in Q3.
- Adjusted Operating Expenses of $131 million increased 35% year-over-year, primarily driven by higher cash compensation expenses due to increased average headcount of 14%, and general and administrative expenses.
- Net Income of $214 million increased 202% year-over-year and included an income tax benefit of $61 million due to stock-based compensation expense, research and development tax credits and the impact of recently enacted U.S. tax legislation. Net Income also included a $48 million benefit from the decrease in fair value of our convertible debt caused by a lower stock price in the third quarter.
- Adjusted EBITDA of $166 million increased 78% year-over-year reflecting the revenue growth from higher USDC in circulation and the operating leverage inherent in our business model.
Other Notable Items and Recent Developments
- Arc public testnet: Circle announced the launch of Arc public testnet on Oct 28, with more than 100 participating companies. Arc is the Circle Layer-1 blockchain designed to meet the needs of developers and companies seeking to bring more economic activity onchain with programmable financial infrastructure for the global economy. Notably, the launch includes leading institutions spanning capital markets, banks, asset managers, insurers, payments, fintech and technology, as well as all parts of the digital asset ecosystem.
- Native token on Arc: Circle is exploring the possibility of launching a native token on the Arc network which could foster network participation to drive adoption, further align the interests of Arc stakeholders and support the long-term growth and success of the Arc network.
- CPN: CPN now supports flows in 8 countries with 29 financial institutions enrolled on CPN, 55 additional going through eligibility reviews and 500 in the pipeline. Since launch in late May this year, activity has grown sharply with annualized transaction volume based on trailing 30 day activity of $3.4 billion as of November 7, 2025.
- Increasing adoption: A number of key partnerships and collaborations with USDC were announced since the second quarter, including with Brex, Deutsche Börse Group, Finastra, Fireblocks, Hyperliquid, Kraken, Unibanco Itaú and Visa.
- USYC growth: Our tokenized money market fund, USYC, grew over 200% from June 30, 2025 to November 8, 2025, to approximately $1 billion.
Forward Outlook
To give investors insight into our business and expectations, management is providing guidance on the following key performance indicators.
Key Indicator | Period | Prior Outlook | Updated Outlook | |||
USDC in Circulation | Multi-year through cycle | 40% CAGR | No change | |||
Other Revenue | FY 2025 | $75-$85M | $90-$100M | |||
RLDC Margin(1) | FY 2025 | 36-38% | ~38% | |||
Adjusted Operating Expenses(2) | FY 2025 | $475-$490M | $495-$510M |
(1) | RLDC Margin is calculated as Total Revenue and Reserve Income less Total Distribution, Transaction and Other Costs as a percentage of Total Revenue and Reserve Income. | |
(2) | Refer to Non-GAAP Financial Measures for further details and a reconciliation of the GAAP to non-GAAP measures presented. |
- Other Revenue: We have raised the range to $90-$100M primarily as a result of higher subscription and services revenue in the third quarter, and underlying growth dynamics in transaction revenue.
- RLDC Margin: We anticipate RLDC Margin to be ~38%, the upper end of our prior outlook.
- Adjusted Operating Expenses: We have raised the range to $495-$510M, reflecting growing investment in building our platform, capabilities and global partnerships to meet the accelerating market interest and opportunity, as well as higher payroll taxes anticipated from option exercises.
Conference Call and Livestream Information
Circle will host a conference call to discuss the results for the third quarter 2025 on November 12, 2025 at 8:00 am ET. Circle’s Investor Relations website at https://investor.circle.com will provide access to the live webcast, as well as a replay of the call and transcript shortly following earnings.
In addition to filings with the Securities and Exchange Commission, Circle uses its Investor Relations website (https://investor.circle.com), its blog (https://www.circle.com/blog), press releases (https://www.circle.com/pressroom), public conference calls and webcasts, its X feed (https://x.com/circle), and its Linkedin page (https://www.linkedin.com/company/circle-internet-financial) as a means of disclosing material nonpublic information, announcing upcoming investor conferences and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor these mediums in addition to following Circle’s SEC filings.
Forward-Looking Statements
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. These statements include, but are not limited to, statements regarding our future operating results and financial position, including for the third quarter ended September 30, 2025; our plans with respect to the anticipated future expenses and investments; expectations relating to certain of our key financial and operating metrics; our business strategy and plans; expectations relating to legal and regulatory proceedings; expectations relating to our industry, the regulatory environment, market conditions, trends and growth; expectations relating to customer behaviors and preferences; our market position; potential market opportunities; and our objectives for future operations. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on management’s expectations, assumptions, and projections based on information available at the time the statements were made. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including, but not limited to: intense and increasing competition from new and existing issuers offering competing products, combined with the rise of yield-bearing digital assets, including TMMFs, that are attractive to digital asset trading participants, may reduce market demand and circulation of Circle stablecoins; stablecoins may face periods of uncertainty, loss of trust, or systemic shocks resulting in the potential for rapid redemption requests (or runs), and extreme scenarios, such as market shocks that affect the value of USDC’s reserves or simultaneous requests to redeem all or substantially all USDC in circulation, or concerns related to Circle stablecoin reserves, may lead to redemption delays and USDC reserves being insufficient to meet all redemption requests; as a relatively new innovation, stablecoins are particularly susceptible to operational challenges and risks, including due to surges in demand; any negative publicity regarding stablecoins or the broader digital asset industry may have an outsized negative effect on consumer confidence; the acceptance of Circle stablecoins could be negatively impacted by the disruptions in secondary marketplaces that facilitate the purchase and sale of Circle stablecoins; the GENIUS Act will change the payment stablecoin ecosystem and may affect our business in ways that cannot yet be known; the GENIUS Act amends the U.S. federal securities laws to explicitly exclude from the definition of “security” payment stablecoins issued by PPSIs, which will include USDC, however, until those amendments are effective, we will continue to rely on our conclusion that USDC is not a security under the U.S. federal securities laws; we hold a substantial amount of USDC reserves in the Circle Reserve Fund and thus are subject to risks associated with the issuer, the manager, and the custodian of the Circle Reserve Fund; any significant disruption in our or our third-party service providers’ or partners’ technology could result in a loss of customers or funds and adversely impact our business, results of operations, financial condition, and prospects; our customers’ funds and digital assets may fail to be adequately safeguarded by us or the third-party service providers upon whom we rely; our inability to maintain existing relationships with financial institutions and similar firms or to enter into new such relationships could impact our ability to offer services to customers; we are subject to credit risks in respect of counterparties, including banks and other financial institutions; if we are unable to maintain existing distribution arrangements or enter into additional distribution arrangements on less favorable financial terms, USDC and EURC in circulation and Circle’s financial results may be adversely affected; the Arc network may not be successful and we may not realize a return on our investments and resources devoted to this project; any potential launch of a native token on the Arc network is uncertain and may pose additional risks to Circle; our products and services may be exploited by our customers, employees, service providers, and other third parties to facilitate illegal activity such as fraud, money laundering, terrorist financing, gambling, tax evasion, and scams; our compliance and risk management methods might not be effective; fluctuations in interest rates could impact our results of operations; we are subject to an extensive and highly evolving regulatory landscape; the regulatory environment to which we are subject gives rise to various licensing requirements, significant compliance costs and other restrictions, and noncompliance could result in a range of penalties, including fines, compliance costs, operational restrictions, reputational damage, and loss of licenses; we are subject to laws, regulations, and executive orders regarding economic and trade sanctions, anti-bribery, AML, and counter-terrorism financing that could impair our ability to compete in international markets or subject us to criminal or civil liability if we violate them; and insiders will continue to have substantial control over Circle and limit shareholders ability to influence the outcome of key transactions, including a change of control. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, our actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Further information on risks that could cause actual results to differ materially from forecasted results are, or will be included, in our filings we make with the SEC from time to time, including our Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 to be filed with the SEC on November 12, 2025. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.
About Circle Internet Group, Inc.
Circle (NYSE: CRCL) is a global financial technology firm that enables businesses of all sizes to harness the power of digital currencies and public blockchains for payments, commerce and financial applications worldwide. Circle is building the world’s largest, most-widely used, stablecoin network, and issues, through its regulated affiliates, USDC and EURC stablecoins. Circle provides a comprehensive suite of financial and technology services that empower enterprises and developers to integrate stablecoins and blockchains into their products, services and business operations.
CIRCLE INTERNET GROUP, INC. – CONDENSED CONSOLIDATED BALANCE SHEETS
(in $ thousands, except share information) |
| September 30, |
| December 31, | ||||
|
| (unaudited) |
|
| ||||
ASSETS |
|
|
|
| ||||
Current assets: |
|
|
|
| ||||
Cash and cash equivalents |
| $ | 1,348,901 |
|
| $ | 750,981 |
|
Cash and cash equivalents segregated for corporate-held stablecoins |
|
| 837,143 |
|
|
| 294,493 |
|
Cash and cash equivalents segregated for the benefit of stablecoin holders |
|
| 73,372,843 |
|
|
| 43,918,572 |
|
Accounts receivable, net |
|
| 22,154 |
|
|
| 6,418 |
|
Stablecoins receivable, net |
|
| 1,000 |
|
|
| 6,957 |
|
Prepaid expenses and other current assets |
|
| 321,343 |
|
|
| 187,528 |
|
Total current assets |
|
| 75,903,384 |
|
|
| 45,164,949 |
|
Non-current assets: |
|
|
|
| ||||
Restricted cash |
|
| 3,222 |
|
|
| 3,558 |
|
Investments |
|
| 81,781 |
|
|
| 84,114 |
|
Fixed assets, net |
|
| 23,486 |
|
|
| 18,682 |
|
Digital assets |
|
| 51,550 |
|
|
| 31,330 |
|
Goodwill |
|
| 266,384 |
|
|
| 169,544 |
|
Intangible assets, net |
|
| 411,990 |
|
|
| 331,394 |
|
Deferred tax assets, net |
|
| 13,414 |
|
|
| 10,223 |
|
Other non-current assets |
|
| 25,797 |
|
|
| 20,615 |
|
Total assets |
| $ | 76,781,008 |
|
| $ | 45,834,409 |
|
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY |
|
|
|
| ||||
Current liabilities: |
|
|
|
| ||||
Deposits from stablecoin holders |
| $ | 73,267,103 |
|
| $ | 43,727,363 |
|
Accounts payable and accrued expenses |
|
| 268,955 |
|
|
| 287,007 |
|
Convertible debt, net of debt discount |
|
| 149,094 |
|
|
| - |
|
Other current liabilities |
|
| 16,604 |
|
|
| 16,597 |
|
Total current liabilities |
|
| 73,701,756 |
|
|
| 44,030,967 |
|
Non-current liabilities: |
|
|
|
| ||||
Convertible debt, net of debt discount |
|
| - |
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