Circle | 8-K: FY2026 Q2 Revenue Misses Estimate at USD 701.32 M

Revenue: As of FY2026 Q2, the actual value is USD 701.32 M, missing the estimate of USD 713.32 M.

EPS: As of FY2026 Q2, the actual value is USD 0.18.

EBIT: As of FY2026 Q2, the actual value is USD 34.42 M.

Financial Highlights (Q2’26 vs. Q2’25)

Revenue and Income

• Total revenue and reserve income: Circle Internet Group, Inc. reported $701 million in Q2’26, marking a 7% year-over-year growth.
• Net income from continuing operations: Net income was $48 million in Q2’26, which is an increase of $530 million year-over-year, primarily due to prior-year IPO stock-based compensation impacts.
• Adjusted EBITDA: Adjusted EBITDA reached $143 million in Q2’26, reflecting an 8% growth year-over-year.

Operational Metrics (Q2’26 vs. Q2’25)

• Revenue Less Distribution Costs (RLDC): RLDC was $289 million, a 15% increase year-over-year.
• RLDC Margin: The RLDC Margin was 41%, an increase of 302 basis points.
• Net Income from Continuing Operations Margin: This margin was 7%.
• Adjusted EBITDA Margin: The Adjusted EBITDA Margin was 50%, a decrease of -329 basis points.
• Reserve Income: Reserve Income was $668 million, increasing 5% year-over-year, primarily driven by 25% growth in average USDC in Circulation, partially offset by a -66 basis points decline in the Reserve Return Rate.
• Other Revenue: Other Revenue was $34 million, increasing 41% year-over-year due to growth in subscription and services revenue.
• Total Distribution, Transaction and Other Costs: These costs totaled $412 million, increasing 1% year-over-year, mostly from increased distribution payments.
• Operating Expenses: Operating Expenses were $254 million, decreasing 56% year-over-year, primarily due to lower stock-based compensation expense following Circle Internet Group, Inc.’s IPO in Q2 2025.
• Adjusted Operating Expenses: Adjusted Operating Expenses were $146 million, increasing 23% year-over-year, primarily driven by continued investment in product development, infrastructure, and AI capabilities.
• Operating income (loss) from continuing operations: Operating income from continuing operations was $34,359 thousand for the three months ended June 30, 2026, compared to -$325,582 thousand for the same period in 2025.

Unique Metrics

• USDC in circulation: USDC in circulation was $73.3 billion at quarter end, showing 19% growth year-over-year.
• USDC onchain transaction volume: USDC onchain transaction volume reached $14.8 trillion in Q2’26, growing 151% year-over-year.
• USDC in Circulation, average of period: The average USDC in Circulation for the period was $76.5 billion, up 25% year-over-year.
• Reserve Return Rate: The Reserve Return Rate was 3.5%, a decrease of -66 basis points.
• USDC on Platform, end of period: USDC on Platform was $12.4 billion at the end of the period, a 106% increase year-over-year.
• USDC on Platform, daily weighted average percentage: This percentage was 19.5%, an increase of 1,204 basis points.
• USDC Minted: USDC Minted totaled $83 billion, an increase of 97% year-over-year.
• USDC Redeemed: USDC Redeemed amounted to $87 billion, an increase of 113% year-over-year.
• Stablecoin Market Share: Stablecoin Market Share was 27% at quarter end, a decrease of -66 basis points.
• Meaningful Wallets: There were 7.0 million Meaningful Wallets at quarter end, representing a 24% increase year-over-year.
• Circle Payments Network (CPN) annualized transaction volume: CPN annualized transaction volume reached $14.7 billion for the trailing 30 days as of the end of Q2, up 76% quarter-over-quarter.
• CPN financial institutions enrolled: 175 financial institutions were enrolled in CPN, up 29% quarter-over-quarter.

Outlook / Guidance (FY 2026)

Circle Internet Group, Inc. maintains its multi-year guidance for USDC in Circulation at a 40% CAGR. The company revised its FY 2026 Other Revenue guidance upwards to $310-$330 million and RLDC Margin to 41.7-43.7%. Adjusted Operating Expenses guidance for FY 2026 remains unchanged at $570-$585 million.