Circle Posts $770M Q4 Revenue as USDC Hits $75.3B, Stock Jumps Up to 35.5% on Earnings Beat

Stablecoin Issuer Details 77% Revenue Growth, 412% EBITDA Surge and $11.9T in Quarterly On-Chain Volume

TL;DR

• Circle reported $770 million in Q4 2025 revenue, up 77% year-over-year, with USDC circulation reaching $75.3 billion.
• Net income from continuing operations rose to $133 million, while adjusted EBITDA climbed 412% to $167 million.
• Shares surged between 30% and 35.5% after the Feb. 25, 2026 earnings release.

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Circle Internet Group reported financial results for the fourth quarter ended Dec. 31, 2025, releasing the figures on Feb. 25, 2026, as revenue and stablecoin circulation reached record levels. Total revenue and reserve income climbed 77% year-over-year to $770 million, exceeding analyst expectations that had ranged between $739 million and $747 million. Of that total, $733 million came from reserve income generated from assets backing its USDC stablecoin.

USDC circulation stood at $75.3 billion at the end of 2025, marking 72% growth compared with late 2024. On-chain transaction volume for the quarter reached $11.9 trillion, up 247% year-over-year. Token minting activity rose 107% during the quarter, while redemptions increased 157%, according to the company’s earnings disclosure tied to the Dec. 31 reporting period.

Net income from continuing operations totaled $133 million for the quarter, or $0.43 per share, compared with $4.4 million in the same period a year earlier. Adjusted EBITDA rose 412% year-over-year to $167 million. Revenue less distribution costs reached a margin of approximately 40%, reflecting changes in the company’s revenue mix during the quarter.

Non-reserve revenue, including transaction and subscription services, expanded from roughly $3 million to $37 million year-over-year. For full-year 2026, Circle projected non-reserve revenue guidance between $150 million and $170 million. Despite quarterly profitability, the company reported a full-year net loss of about $70 million for 2025, driven largely by more than $424 million in stock-based compensation tied to IPO vesting.

Circle reiterated a long-term target of approximately 40% compound annual growth in USDC circulation. CEO Jeremy Allaire said high interest rates boost reserve income but reduce usage velocity, stating that “lower rates could drive broader adoption and growth.” The company also received conditional approval for a national trust bank charter in late 2025.

Operational expansion included investments in a payments network and its Arc blockchain initiative, which the company said processed about 2.3 million daily transactions across more than 100 institutions during pilot activity. Partnerships cited in the earnings materials included arrangements with Visa for USDC settlement and collaboration with Polymarket in prediction markets.

Shares rose between 30% and 35.5% on the day of the earnings release, marking the largest single-day gain since the company’s June 2025 IPO and lifting the stock price into the mid-$80s range. Seaport Research stated, “USDC continues scaling rapidly, at a pace that far outweighs impacts from rates and Circle becoming increasingly profitable.”

Competitive comparisons noted that Ripple’s RLUSD stablecoin had approximately $1.56 billion in circulating supply during the same reporting period. Circle’s USDC supply of $75.3 billion stood in contrast to that figure as disclosed alongside the quarterly earnings data.

Circle shares briefly climbed above $90 on Thursday, their highest level since mid-November, before settling around $87 and extending gains from the prior session’s roughly 30% post-earnings surge. The move followed fresh analyst commentary after the company’s fourth-quarter results topped expectations on both revenue and adjusted EBITDA.

Bernstein reiterated its “outperform” rating and set a $190 price target, describing the quarter as a “clear divergence from crypto” as Circle continued to expand beyond traditional reserve income streams. The firm pointed to stronger transaction revenue, including blockchain rewards tied to Circle’s role as a super validator on the Canton network, as well as a rising share of USDC held directly on Circle’s own platform, which reached 17% of total supply in the fourth quarter, up from 14% in the third quarter.

Bernstein also cited margin durability and product expansion, referencing Arc, the Circle Payments Network, and new “agentic payments” capabilities. The firm noted Circle expects USDC in circulation to compound at 40% annually and projects other revenue could reach as much as $170 million in 2026, compared with $110 million in 2025.

Mizuho analysts Dan Dolev and Alexander Jenkins raised their price target to $90 from $77 but maintained a “neutral” rating. The firm said sentiment has improved partly due to growing activity on prediction markets such as Polymarket, which management identified as a meaningful contributor to recent USDC growth.

Mizuho described prediction markets as a “visible, scaled USDC use case,” generating high-velocity transaction flows that support both transaction revenue and reserve balances. The note also characterized “agentic AI” as a longer-term call option on USDC demand, arguing that autonomous software agents could eventually require internet-native money, though current volumes remain small and experimental.

The firm cautioned that potential interest-rate cuts could pose a headwind, given that reserve income continues to account for the majority of Circle’s revenue.

This article has been refined and enhanced by ChatGPT.