Circle reported a sharp rise in fourth quarter revenue and profit, driven by strong USDC growth, sending shares higher in early trading.
Key Takeaways
- Revenue jumped 77% year over year to $770 million, beating Wall Street expectations.
- Earnings per share came in at $0.43, topping forecasts by a wide margin.
- USDC circulation climbed 72% to $75.3 billion, boosting reserve income.
- Shares surged more than 20% in early trading, reflecting renewed investor confidence.
What Happened?
Circle Internet Group posted stronger than expected fourth quarter results as income from reserves backing its USDC stablecoin rose sharply. The company benefited from higher token circulation and solid operating leverage, pushing profits well above analyst forecasts.
Shares of Circle climbed as much as 23% during morning trading, reaching $75.56, after closing the previous session at $61.39.
Momentum is building in internet-native finance, and our Q4 and full year 2025 results show it.
— Circle (@circle) February 25, 2026
→ $75.3B USDC in circulation (as of end of period), +72% YoY
→ $11.9T in USDC onchain transaction volume, +247% YoY
→ $770M total revenue and reserve income, +77% YoY
Circle is… pic.twitter.com/QfMtK46mW2
Revenue and Profit Beat Expectations
Circle reported $770 million in total revenue, up 77% from a year earlier. The figure topped analysts’ average estimate of $739 million, according to LSEG data. Most of that revenue came from income generated by reserves backing USDC.
Net income reached $133.4 million, or $0.43 per share, compared with consensus expectations that ranged between $0.16 and $0.35 per share depending on the estimate cited. The earnings per share result marked a significant beat and reflected strong operating efficiency.
Adjusted EBITDA rose 412% year over year to $167 million. Analysts at William Blair noted that revenue less distribution costs and adjusted EBITDA both exceeded their internal projections. They also highlighted a 40.1% fourth quarter revenue less distribution costs margin, which came in above both their model and broader Wall Street expectations.
USDC Circulation Drives Growth
At the center of the quarter was USDC, Circle’s dollar pegged stablecoin. Circulation rose 72% from a year earlier to $75.3 billion at the end of the fourth quarter.
Revenue from reserves climbed to $733 million, reflecting both higher token issuance and yield earned on cash deposits and US Treasuries backing the token. Because Circle invests reserve assets into low risk instruments, its earnings remain sensitive to Federal Reserve interest rate decisions.
Seaport Research Partners analyst Jeff Cantwell said:
Circle’s USDC remains the second largest stablecoin in the market with a capitalization near $75 billion. It trails Tether’s USDT, which stands at roughly $183 billion, though USDT’s market share has edged lower in recent months.
Circle founder and CEO Jeremy Allaire said on the earnings call:
Partnerships and Expansion Efforts
Circle continues expanding its footprint in digital finance. The company has partnered with Visa to allow US institutions to settle transactions using USDC. It has also tied up with Polymarket to position itself in prediction markets.
The Circle Payments Network enrolled 55 financial institutions during the quarter, with another 74 in the eligibility process as of Feb. 20. In addition, Circle received preliminary approval to establish a national trust bank charter, a move that could deepen integration between digital assets and the traditional banking system.
Regulatory developments have also supported growth. The GENIUS Act, signed into law last year, established a federal framework for dollar pegged stablecoins, while global regulators have introduced clearer oversight rules.
Outlook and Valuation Debate
Circle provided optimistic guidance for fiscal 2026 and signaled continued investment in technology, including blockchain and artificial intelligence capabilities. However, analysts noted that the timing of broader USDC commercialization remains uncertain.
Despite the strong rally, shares remain well below their 52 week high. Some research platforms have flagged valuation concerns, noting the stock trades above certain fair value estimates. Analyst price targets vary widely, reflecting differing views on long term growth potential.
CoinLaw’s Takeaway
In my view, Circle’s results show that the stablecoin sector remains one of the strongest corners of crypto, even when broader markets struggle. I found the 72% growth in USDC circulation especially telling. That kind of expansion does not happen without real demand from institutions and payment platforms.
At the same time, valuation risks are real. In my experience, when a stock jumps more than 20% in a single session, expectations rise just as fast. Circle now needs to keep delivering strong circulation growth and margin expansion to justify the momentum.
Still, this quarter sends a clear message. Stablecoins are moving deeper into mainstream finance, and Circle is positioning itself as one of the core infrastructure players.
