Circle (CRCL) Stock: Rallies on $75B USDC Supply and 77% Revenue Growth in Q4

TLDR

• Circle stock jumps 19% after strong Q4 earnings report
• USDC supply rises 72% as adoption accelerates
• Q4 revenue climbs 77% to $770 million
• Adjusted EBITDA surges 412% on operating leverage
• Full-year net loss driven by IPO stock charges

Circle (CRCL) stock advanced sharply in pre-market trading after the company reported strong fourth-quarter and full-year 2025 results. Shares closed at $61.37 and then surged 19.03% to $73.09 before the opening bell. The earnings update highlighted rapid USDC expansion, rising revenue, and improved operating performance.

Circle Internet Group, CRCL

USDC Expansion Drives Revenue and Earnings Growth

Circle reported USDC in circulation of $75.3 billion at year end, marking 72% annual growth. Fourth-quarter USDC onchain transaction volume reached $11.9 trillion, rising 247% year over year. The growth reflected broader adoption across payments, trading, and treasury operations.

Total revenue and reserve income increased 77% to $770 million in the fourth quarter. Reserve income alone rose 69% to $733 million, supported by higher average USDC balances.  The reserve return rate declined 68 basis points to 3.8%.

Net income from continuing operations reached $133 million, up $129 million from the prior year. Additionally, adjusted EBITDA climbed 412% to $167 million, reflecting operating leverage. Revenue less distribution costs totaled $309 million, and RLDC margin expanded to 40%.

Full-Year Performance Impacted by IPO-Related Charges

For fiscal year 2025, Circle generated $2.7 billion in total revenue and reserve income, up 64%. Adjusted EBITDA rose 104% to $582 million, while adjusted EBITDA margin reached 54%. Average USDC in circulation for the year increased 95% to $64.9 billion.

Circle reported a net loss of $70 million for the year. The loss reflected $424 million in stock-based compensation tied to IPO vesting conditions. In contrast, the company posted net income of $157 million in fiscal 2024.

Operating expenses increased 95% year over year in the fourth quarter. The rise reflected higher compensation costs and administrative expenses following the IPO. Distribution and transaction costs grew 52%, mainly due to increased partner payments.

Network Expansion and Institutional Adoption Accelerate

Circle advanced its product roadmap through the Arc public testnet launch. The testnet includes more than 100 participants across banking, payments, and digital asset sectors. Arc recorded near 100% uptime and half-second transaction finality.

The Circle Payments Network enrolled 55 financial institutions and reviewed 74 additional applicants. Annualized transaction volume based on recent activity reached $5.7 billion. EURC in circulation grew 284% year over year to €310 million.

Circle also strengthened institutional partnerships and regulatory positioning. Visa enabled U.S. issuers and acquirers to settle using USDC at any time. Circle received conditional approval from the Office of the Comptroller of the Currency to establish a national trust bank.

The company continued expanding enterprise integrations across finance and technology platforms. Intuit initiated a multi-year partnership to integrate USDC across its ecosystem. Bermuda announced plans to support a fully onchain national economy using Circle infrastructure.

Circle operates as a key issuer of USDC within the digital dollar market. The company generates reserve income from assets backing USDC, primarily short-term U.S. Treasuries. Its latest results underline expanding scale, improving margins, and deeper institutional integration.

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