Circle Reports 66% Revenue Growth Amid Rising USDC Circulation

Circle Internet Group beat third-quarter Wall Street expectations on Wednesday, with revenue growth significantly higher than analyst expectations thanks to higher reserve income and rising USDC circulation. 

However, shares fell due to concerns about competition and valuation. 

Circle Internet Reports 66% Revenue Growth 

Circle’s third-quarter fiscal results have exceeded analyst expectations, with adjusted earnings of $0.64 per share, significantly higher than the expected $0.18. Company revenue surged to $740 million, beating analyst expectations of $699 million, and representing a 66% increase YoY. Circle’s impressive performance was driven by the growth in USDC circulation, which reached $73 billion by the end of the quarter, a 108% YoY increase. However, Circle’s stock fell 1.8% despite the robust quarterly numbers. 

Circle’s net income for the quarter rose 202% YoY to $214 million, while the Adjusted EBITDA rose 78% to $166 million. The firm’s stablecoin market share also grew 29%, a 643 basis point increase from the same period last year. Jeremy Allaire, co-founder, CEO, and Chairman of Circle, stated, 

“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.”

Circle has also raised its full-year 2025 guidance, expecting “Other” revenue of $90 to $100 million, up from previous expectations of $75 to $85 million. The company has also increased its Adjusted Operating Expenses outlook to $495-$510 million, citing growing investments in platform development and global partnerships. 

Circle has struck several partnerships with traditional financial platforms and launched initiatives to boost USDC circulation. Circle’s stock fell 10% on Wednesday, but has tripled over its IPO price since listing in June. According to Bo Pei, Circle’s stock is down due to Circle’s revised annual gross margin outlook of 38%, implying a weaker fourth quarter. Owen Lau, managing director at Clear Street, stated, 

“It (stock move) could be due to the still elevated expectation for the growth of USDC reflected in valuation, as well as the potential launch of Arc’s native token, which could impact the adoption of USDC.”

Global Stablecoin Adoption Rising 

Global stablecoin adoption is gaining momentum as traditional financial firms roll out new offerings and regulators push for clearer rules. The Trump administration, as part of its promise to make the US a global leader in cryptocurrency, passed the GENIUS Act to establish a legal framework to regulate dollar-backed stablecoins. David Bartosiak, stock strategist at Zacks Investment Research, stated, 

“This isn’t just crypto speculation anymore, this is the plumbing of digital finance getting laid brick by brick.”

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice