Circle Internet Q2 revenue rises 7% on increase in average USDC in circulation
Circle Internet Q2 revenue rises 7% on increase in average USDC in circulation
Overview
US stablecoin issuer's fiscal Q2 revenue grew 7% yr/yr but missed analyst expectations
Net income rose sharply, mainly due to lower stock-based compensation after prior-year IPO
Adjusted EBITDA for fiscal Q2 rose 8% yr/yr to $143 mln
Outlook
Circle raises FY 2026 Other Revenue guidance to $310-$330 mln from $150-$170 mln
Company lifts FY 2026 RLDC margin outlook to 41.7-43.7% from 38-40%
Circle maintains FY 2026 USDC in circulation growth target at 40% CAGR
Result Drivers
USDC GROWTH - Revenue growth was primarily driven by a 25% increase in average USDC in circulation, partially offset by a lower reserve return rate
LOWER STOCK-BASED COMPENSATION - Net income rose mainly due to reduced stock-based compensation expense following the prior-year IPO
PRODUCT AND INFRASTRUCTURE INVESTMENT - Adjusted operating expenses increased 23% year-over-year, mainly from continued investment in product development, infrastructure, and AI capabilities
Company press release: ID:nBw7gBG0a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Total Revenue and Reserve Income | Miss | $701 mln | $717.45 mln (20 Analysts) |
Q2 Net Income |
| $48 mln |
|
Q2 Adjusted EBITDA |
| $143 mln |
|
Q2 Adjusted EBITDA Margin |
| 50.00% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 14 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the financial technology (fintech) peer group is "buy"
Wall Street's median 12-month price target for Circle Internet Group, Inc. is $107.21, about 69.5% above its August 4 closing price of $63.25
Reuters Recommended Reads
Aug 5 - Circle's quarterly revenue rises as stablecoin circulation accelerates
Aug 3 - Trump brothers-backed American Bitcoin swings to second-quarter loss
Aug 4 - India paves way for return of merchant fees on digital payments
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)