Circle Reports First Quarter 2026 Results
Circle Internet Group, Inc. (NYSE: CRCL) today announced results for the first quarter of fiscal year 2026. Financial Highlights (Q1’26 vs. Q1’25) USDC in circulation of $77.0 billion at quarter ...
NEW YORK: Circle Internet Group, Inc. (NYSE: CRCL) today announced results for the first quarter of fiscal year 2026.
Financial Highlights (Q1’26 vs. Q1’25)
- USDC in circulation of $77.0 billion at quarter end grew 28%; USDC onchain transaction volume in Q1’26 of $21.5 trillion grew 263%
- Total revenue and reserve income in Q1’26 of $694 million grew 20%
- Net income from continuing operations in Q1’26 of $55 million decreased 15%
- Adjusted EBITDA in Q1’26 of $151 million grew 24%
Business Highlights
- ARC Token: $222M presale raise at a $3 billion fully diluted network valuation from a consortium of leading investors including a16z crypto, Apollo Funds, ARK Invest, BlackRock, Bullish, General Catalyst, Haun Ventures, Intercontinental Exchange, IDG Capital, Janus Henderson Investors, Marshall Wace, SBI Group, and Standard Chartered Ventures. ARC Token whitepaper published today, outlining how a native coordination asset could support governance, security, and network operations on Arc.
- The Agent Stack: Circle is building for an agent-led future, announcing critical agent platform capabilities with new permissionless infrastructure, alongside its existing Nanopayments offering built on Circle Gateway. New products, including Circle CLI (command line interface), Agent Wallets, and Agent Marketplace enable developers and merchants to create, fund, and monetize agent-driven activity in USDC across multiple blockchains and payment protocols.
- Continued CPN Expansion: Circle continues to grow the CPN network, with $8.3 billion in annualized transaction volume based on the trailing 30 day activity as of March 31, 2026. In April, Circle expanded its payment products with the launch of Managed Payments, which allows financial institutions to launch stablecoin payments without managing digital assets.
- Digital Assets Growth: Circle continued to expand the scale and utility of its digital asset platform during the quarter, with USDC representing 63% of stablecoin transaction volumes in the first quarter, according to Visa Onchain Analytics. As of May 7th, USYC is the world’s largest tokenized money market fund.
- New and Expanded USDC Use Cases:
- Kyriba embedding USDC capabilities into enterprise treasury systems, enabling corporate treasury teams to access 24/7 liquidity and manage it more efficiently within their existing workflows, controls, and systems.
- Polymarket advancing its use of USDC as the core collateral and settlement asset for their markets.
“Circle’s first quarter reflected strong execution against a much bigger opportunity: the rapid convergence of AI platforms and economic operating systems into a new internet stack,” said Jeremy Allaire, Co-Founder, Chief Executive Officer, and Chairman at Circle. “With the ARC token presale, momentum behind the Arc network, and the launch of our Agent Stack, we are building trusted infrastructure for AI-native economic activity and a more programmable internet financial system.”
Key Financial Results and Operating Indicators
The following table presents our key financial results and operating indicators, as well as the relevant GAAP measures, for the periods indicated:
| Key Financial Results | Q1 2026 | YoY | |
($ in millions unless noted otherwise) |
|
| |
| Total Revenue and Reserve Income | $694 | 20% |
| Revenue Less Distribution Costs(1) | $287 | 24% |
| RLDC Margin(2) | 41% | 148bps |
| Net Income from Continuing Operations | $55 | (15%) |
| Net Income from Continuing Operations Margin(3) | 8% | (324bps) |
| Adjusted EBITDA(4) | $151 | 24% |
| Adjusted EBITDA Margin(4) | 53% | (33bps) |
| Key Operating Indicators | Q1 2026 | YoY | |
($ in billions unless noted otherwise) |
|
| |
| USDC in Circulation, end of period | $77.0 | 28% |
| USDC in Circulation, average of period | $75.2 | 39% |
| Reserve Return Rate | 3.5% | (66bps) |
| USDC on Platform, end of period | $13.7 | 254% |
| USDC on Platform, daily weighted average percentage | 17.2% | 1,149bps |
| (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. |
First Quarter 2026 Financial Highlights and Operating Results
- Reserve Income of $653 million increased 17% year-over-year, primarily from the 39% growth in average USDC in circulation, partially offset by a 66 bps decline in the reserve return rate.
- Other Revenue of $42 million up $21 million year-over-year as subscription and services revenue and transaction revenue grew strongly.
- Total Distribution, Transaction and Other Costs of $407 million increased 17% year-over-year due to increased distribution payments.
- Operating Expenses of $242 million increased 76% year-over-year, primarily due to higher compensation costs from post IPO stock-based compensation and related payroll taxes.
- Adjusted Operating Expenses of $136 million increased 32% year-over-year, primarily driven by increased investments into our product, distribution, and operating infrastructure.
- Net Income of $55 million decreased 15% year-over-year as growth in Revenue Less Distribution Costs was offset by higher stock-based compensation and continued investment into product, distribution, and operating infrastructure.
- Adjusted EBITDA of $151 million increased 24% year-over-year reflecting the revenue growth from higher USDC in circulation.
Other Platform Metrics
Q1 2026 | YoY | ||
(USDC related figures in $ billions; meaningful wallets in millions) |
|
| |
| USDC Minted | $73 | 38% |
| USDC Redeemed | $72 | 93% |
| Stablecoin Market Share, end of period(1) | 28% | (62bps) |
| Meaningful Wallets, end of period(2) | 7.2 | 47% |
| (1) | Stablecoin market share is defined as the amount of USDC in circulation as a percentage of the total U.S. dollar fiat-backed stablecoins with circulation above $100 million, according to CoinMarketCap, and that have established periodic public attestations. |
(2) | Onchain digital asset wallets that hold more than $10 USDC. |
Guidance
To give investors insight into our business and expectations, management is affirming its prior guidance on the following key performance indicators. However, this does not include the future financial impacts of the ARC Token presale, Arc incentive programs, and future Arc revenue streams.
Key Indicator | Period | Current |
USDC in Circulation | Multi-year through cycle | 40% CAGR |
Other Revenue | FY 2026 | $150-$170M |
RLDC Margin(1) | FY 2026 | 38-40% |
Adjusted Operating Expenses(2) | FY 2026 | $570-$585M |
| (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. |
Conference Call and Livestream Information
Circle will host a conference call to discuss the results for the first quarter 2026 on May 11, 2026 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 sites 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; 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 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; Arc and the ARC Token involve execution, market, and operational risk, including risks relating to launch timing, ecosystem adoption in a competitive blockchain market, technology and cybersecurity vulnerabilities, validator and governance dynamics, token price volatility, and the operational complexity of running the network and related treasury infrastructure; Arc and the ARC Token present legal, regulatory, and structural risk, including uncertainty under securities and other financial regulatory regimes, risks arising from token presale and distribution arrangements, potential liability tied to third-party ecosystem participants, conflicts and governance issues during any transition to decentralization, and possible repayment obligations if key launch milestones are not achieved; 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. For a detailed discussion of the risks, uncertainties, and other factors that could cause our actual results to differ materially from those anticipated or expressed in any forward-looking statements, see the section entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed with the SEC on March 9, 2026 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 to be filed with the SEC. 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. Nothing in this communication constitutes an offer to sell or a solicitation of an offer to buy securities or an invitation or inducement to engage in investment activity.
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) |
| March 31, |
| December 31, | ||||
|
| (unaudited) |
|
| ||||
ASSETS |
|
|
|
| ||||
Current assets: |
|
|
|
| ||||
Cash and cash equivalents |
| $ | 1,517,264 |
|
| $ | 1,526,046 |
|
Cash and cash equivalents segregated for corporate-held stablecoins |
|
| 792,662 |
|
|
| 822,963 |
|
Cash and cash equivalents segregated for the benefit of stablecoin holders |
|
| 76,893,681 |
|
|
| 75,067,932 |
|
Accounts receivable, net |
|
| 72,168 |
|
|
| 62,866 |
|
Prepaid expenses and other current assets |
|
| 326,800 |
|
|
| 321,660 |
|
Total current assets |
|
| 79,602,575 |
|
|
| 77,801,467 |
|
Non-current assets: |
|
|
|
| ||||
Restricted cash |
|
| 2,800 |
|
|
| 2,792 |
|
Investments |
|
| 100,073 |
|
|
| 84,265 |
|
Fixed assets, net |
|
| 22,520 |
|
|
| 22,791 |
|
Digital assets |
|
| 84,217 |
|
|
| 86,515 |
|
Goodwill |
|
| 265,742 |
|
|
| 265,742 |
|
Intangible assets, net |
|
| 421,017 |
|
|
| 411,146 |
|
Deferred tax assets, net |
|
| 11,285 |
|
|
| 11,110 |
|
Other non-current assets |
|
| 26,549 |
|
|
| 27,379 |
|
Total assets |
| $ | 80,536,778 |
|
| $ | 78,713,207 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
| ||||||
Current liabilities: |
|
|
|
| ||||
Deposits from stablecoin holders |
| $ | 76,778,530 |
|
| $ | 74,912,567 |
|
Accounts payable and accrued expenses |
|
| 262,215 |
|
|
| 360,609 |
|
Convertible debt, net of debt discount |
|
| - |
|
|
| 36,821 |
|
Other current liabilities |
|
| 14,637 |
|
|
| 18,398 |
|
Total current liabilities |
|
| 77,055,382 |
|
|
| 75,328,395 |
|
Non-current liabilities: |
|
|
|
| ||||
Deferred tax liabilities, net |
|
| 28,071 |
|
|
| 28,702 |
|
Other non-current liabilities |
|
| 24,694 |
|
|
| 25,337 |
|
Total non-current liabilities |
|
| 52,765 |
|
|
|
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