---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/dolphin/post/38880497.md"
description: "Circle 4Q25 First Take: Given USDC supply and disclosed reserve yields, roughly 95% of interest income is predictable. This keeps CRCL’s share price largely tracking USDC, effectively tethered to rate-cut expectations and shifts in crypto policy. The delta versus expectations in the print lies in non-interest income, internal operating efficiency, and the medium/long-term goals embedded in guidance. These are the true swing factors. 1) Actual Q4 beat, driven by a sharp step-up in 'other income' that accelerated QoQ. Public USDC market-cap data were distorted by outsized crypto drawdowns and outflows, which elevated redemption/burn volumes and led the market to underappreciate USDC’s underlying ecosystem expansion. Since H2 last year, Circle has been active on external ecosystem build-out. The CPN payments system launched in Apr. already has 55 FIs onboard, with 74 under evaluation; Arc L1 launched in Dec. now has 100+ participants in testing; also in Dec., Circle secured a trust bank license, helping attract more traditional institutions. 2) The market had worried that as Circle expands its ecosystem, it must share reserve interest with partners, while Coinbase disclosed a rising USDC mix, potentially lifting Circle’s channel distribution costs and pressuring GPM. Those concerns were front and center. In reality, Circle continued to lift its self-held USDC share, mitigating cost pressure. Coupled with software, payments and other infra services that carry high margins, 'other' grew faster this quarter with higher revenue contribution. GPM reached 40%, improving 50bps QoQ. 3) Guidance met overall, with line items slightly ahead. Details below. (1) On multi-year USDC supply growth, despite volatility late last year and early this year, management still expects ~40% CAGR for multiple years, slightly above the market’s next-3-year view. Dolphin Research suggests this medium/long-term, largely qualitative guide should be taken lightly given market swings, and it does not imply near-term delivery. (2) 'Other income' came in slightly above, with the company guiding $150–170 mn this year (+46% YoY), and consensus sitting near the low end. Dolphin Research views this as the area with more discretionary push from the company; both guidance and consensus are not demanding, and we look for continued quarterly beats. $Circle(CRCL.US)"
datetime: "2026-02-25T12:47:58.000Z"
locales:
  - [en](https://longbridge.com/en/dolphin/post/38880497.md)
  - [zh-CN](https://longbridge.com/zh-CN/dolphin/post/38880497.md)
  - [zh-HK](https://longbridge.com/zh-HK/dolphin/post/38880497.md)
author: "[Dolphin Research](https://longbridge.com/en/dolphin.md)"
generator: "portal-rs"
---

# Circle 4Q25 First Take: Given USDC supply and disc…


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- [CRCL.US](https://longbridge.com/en/quote/CRCL.US.md)
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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**