Circle Internet Group Inc (NYSE:CRCL) delivered a robust fourth-quarter performance that significantly exceeded Wall Street's expectations, driving a sharp positive reaction in its share price during pre-market trading. The company, a leading issuer of the USDC stablecoin, reported strong growth across its core financial and operational metrics, underscoring accelerating adoption of its digital dollar infrastructure.
Earnings and Revenue Beat
For the quarter ended December 31, 2025, Circle reported total revenue and reserve income of $770 million, a 77% increase year-over-year. This figure comfortably surpassed the analyst consensus estimate of approximately $754.2 million. The company’s profitability was even more striking, with non-GAAP earnings per share (EPS) coming in at $0.43, dramatically higher than the $0.251 per share that analysts had forecast.
The market's immediate reaction validated the strength of these results. In pre-market trading following the announcement, CRCL shares surged over 16%, indicating strong investor approval of the earnings beat and the underlying business momentum.
Key Drivers and Operational Highlights
The earnings beat was fueled by substantial growth in Circle's flagship product, USDC. The press release highlighted several critical achievements:
- USDC Growth: The amount of USDC in circulation reached $75.3 billion at year-end, representing a 72% year-over-year increase. On-chain transaction volume for the quarter hit $11.9 trillion, up 247%.
- Profitability Metrics: Adjusted EBITDA soared to $167 million, a 412% increase from the prior year. The company also reported net income from continuing operations of $133 million for Q4, a substantial improvement.
- Platform Expansion: The Circle Payments Network (CPN) continues to gain traction, with 55 financial institutions enrolled and annualized transaction volume running at $5.7 billion. The company’s new enterprise blockchain, Arc, remains on track for a mainnet launch this year after a successful public testnet.
- Strategic Partnerships: The quarter saw significant enterprise adoption, including a multi-year partnership with Intuit and an announcement that Visa will enable U.S. issuers to settle with USDC.
Full-Year Context and Forward Outlook
For the full fiscal year 2025, Circle generated $2.75 billion in total revenue and reserve income, up 64% from the previous year. It's important to note that the company posted a net loss from continuing operations of $70 million for the year, which management attributed largely to a $424 million stock-based compensation charge related to vesting conditions met by its initial public offering (IPO). On an adjusted basis, full-year EBITDA grew 104% to $582 million.
Looking ahead, management provided guidance for 2026 that focuses on operational metrics rather than explicit revenue or EPS figures. The company expects "Other Revenue" – which includes subscription, services, and transaction fees – to be in the range of $150 to $170 million for the full year 2026. This can be compared to the analyst sales estimate of $3.26 billion for 2026, which primarily captures the larger reserve income stream tied to USDC circulation. Circle also guided for a Revenue Less Distribution Costs (RLDC) margin of 38-40% and Adjusted Operating Expenses of $570-$585 million.
Market Reaction and Analyst Sentiment
The powerful pre-market move suggests the earnings report may have caught some market participants off guard. The significant beat on both the top and bottom lines, coupled with demonstrable growth in USDC adoption and transaction volume, paints a picture of a company executing effectively on its growth strategy. The news headlines highlighting a potential "short squeeze," as warned by some analysts, add context to the volatility, indicating that bearish positioning may be contributing to the sharp upward price movement as those positions are covered.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
