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Key Takeaways CRCL's growth case is supported by USDC expansion, Arc and CPN, but valuation remains demanding.Circle lifted RLDC margin guidance as better platform economics offset pressure from lower reserve yields.CRCL still faces heavy reserve-income reliance, rising spending and limited room for execution setbacks. Circle Internet Group, Inc. (CRCL - Free Report) offers exposure to stablecoin adoption, payments and blockchain infrastructure, but the growth case carries a demanding valuation. The question is whether expanding utility and improving economics can justify that premium.

New products and better margins support the bull case. Rate sensitivity, reserve-income reliance and rising investment spending keep the risk-reward balance from becoming one-sided.

Circle’s Growth Case Extends Beyond Reserve IncomeManagement continues to target roughly 40% compound annual growth in USDC circulation over several years through the cycle. Circle is also building revenue sources around Arc and Circle Payments Network (CPN), broadening the business beyond reserve income.

CPN had 175 enrolled financial institutions across 58 countries, while annualized total payment volume reached about $23 billion as of July 31. Coinbase Global, Inc. (COIN - Free Report) reported record average USDC holdings of $20 billion in its products in the second quarter. Visa Inc. (V - Free Report) said its stablecoin settlement pilot reached a $7 billion annualized run rate and supported nine blockchains as of April, showing that a large payments company is expanding stablecoin settlement capabilities.

CRCL’s Margin Trends Strengthen the Bull CaseRevenue less distribution costs (RLDC) margin improved to 41.2% in the second quarter from 38.2% a year earlier. Net reserve margin also rose to 38.5% from 35.9%, even as short-term rates moved lower.

Circle raised its full-year RLDC margin outlook to 41.7-43.7% from 38-40%. USDC held on Circle’s platform more than doubled year over year to $12.4 billion, supporting better economics under its distribution arrangements.

CRCL’s Valuation Leaves Less Room for ErrorCRCL trades at 7.41 times forward 12-month sales compared with 2.58 times for its Zacks sub-industry and 4.8 times for the S&P 500. The premium leaves less room for slower growth or execution setbacks.

Continued USDC circulation growth, Arc adoption and CPN monetization need to translate into durable revenues and margins. A slower ramp in those areas could make the valuation harder to defend.

Image Source: Zacks Investment Research

Circle’s Rate Exposure Keeps Earnings FragileReserve income represented 95.2% of second-quarter revenues. The reserve return rate fell to 3.48% from 4.14% a year earlier, showing how lower short-term rates can pressure a business still dominated by income earned on reserve assets.

Average USDC circulation increased 25.2% year over year and helped offset the lower yield. Further rate declines would increase the burden on circulation growth and non-reserve products to sustain earnings expansion.

CRCL’s Spending Could Delay Operating LeverageAdjusted operating expenses increased 23% year over year to $146 million in the second quarter. Spending reflected product development, go-to-market infrastructure, Arc marketing, general and administrative needs, infrastructure and artificial intelligence capabilities.

Full-year adjusted operating expense guidance remains $570-$585 million, with management expecting results near the high end. If Arc activity and CPN monetization build gradually, the investment pace could limit near-term operating leverage.

CRCL’s Growth Scores Beat Its Value ProfileCRCL presents a credible growth case, but its premium valuation, rate exposure and spending needs argue against treating growth alone as a buy signal. The setup remains balanced because platform expansion must translate into enough earnings power to support the multiple.

The stock currently carries a Zacks Rank #3 (Hold). Its Growth Score of B and Momentum Score of A indicate favorable growth and momentum characteristics, while the Value Score of F and VGM Score of C show a weaker valuation profile and a mixed combined style picture. The Rank supports a measured stance rather than a clear short-term buy call. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Blueprint for a Banking Fortress: Circle Redraws the MapCircle Internet Group NYSE: CRCL outlined its strategy for expanding USDC, payment infrastructure and its planned Arc blockchain during an earnings-related question-and-answer session, with the company’s chief executive emphasizing stablecoin adoption in cross-border payments, capital markets and emerging agentic AI applications.

The CEO said Circle has increased product-launch velocity since its initial public offering while keeping employee growth “slow and steady” to preserve institutional depth and cohesion. He added that the company is increasingly using AI and agentic infrastructure, initially in software engineering and now across more functions.

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Circle’s IBM Patent Deal Could Redraw the Stablecoin Infrastructure RaceCircle described cyber risk as a key area requiring continued investment as the company takes on a larger role in financial-market infrastructure. It also identified local operations, personnel and infrastructure in emerging markets as an important capability to build as demand grows for Arc, the Circle Payments Network, USDC and other digital assets.

Stablecoin Uses Extend Beyond Crypto Trading According to the CEO, stablecoins are already seeing product-market fit as 24/7 digital dollars for settlement, collateral, working capital and payments in digital-asset markets. He said their use is expanding into traditional financial activity as tokenization and around-the-clock markets develop for assets such as equities and commodities.

MarketBeat Week in Review – 07/06 - 07/10Circle also cited demand in emerging markets, where households, small and medium-sized enterprises and some larger businesses are using stablecoins as an alternative store of value and a substitute for local banking services. The company said stablecoins are supporting savings, commerce, investment and cross-border payments for what it described as hundreds of millions of global users.

Cross-border settlements and international payments; Capital-markets payments and settlements; Corporate treasury management and internal money movement; AI-agent payments; and Potential future merchant payment acceptance. The CEO said Circle is working with banks, fintech companies and cross-border payment providers that are integrating USDC into settlement operations. He also pointed to payment networks such as Visa and Mastercard using stablecoins for cross-border settlement.

For AI-agent commerce, he said USDC’s reliability, broad acceptance, low settlement costs and deterministic operation make it particularly suited for machine-to-machine payments. Circle said that “99 point x percent” of payments occurring over agentic payment protocols are currently being made with USDC, according to the CEO.

Reserve Income Remains Important as Infrastructure Expands Asked whether Circle’s principal economic engine will be USDC reserve income or transaction and infrastructure revenue, the CEO said the company expects reserve income to remain a significant driver while it develops additional revenue streams around payments, blockchain infrastructure, partnerships and digital assets.

He characterized the stablecoin market as being in an early stage, citing roughly $300 billion in stablecoins in circulation. The CEO said Circle sees the longer-term opportunity as a market measured in trillions of dollars, requiring partnerships with financial firms, technology companies and fintech platforms that can distribute and build on the company’s infrastructure.

Circle is also building monetization opportunities around the Circle Payments Network, or CPN, and Arc. The CEO described Arc as an “economic operating system” and compared its potential scale opportunity to Amazon Web Services, while saying the company’s payments network is designed to monetize through transactions and value-added services.

Arc Mainnet Planned for September Circle said Arc’s public mainnet is expected to launch on Sept. 16. The CEO described Arc as a stablecoin-native blockchain where gas fees are paid in USDC, which he said could make blockchain infrastructure less visible to end users and reduce friction for developers.

He said developers could absorb low transaction costs in the same way software companies absorb cloud-computing costs, rather than requiring users to acquire separate crypto tokens to use an application. Circle believes that model can support consumer-facing financial, governance and AI-agent applications.

Over the next five years, the CEO said Circle expects more corporate functions—including ownership structures, contracts, treasury operations and cash-flow mechanisms—to move on-chain. He said the company sees a convergence between systems for AI and systems for economic activity, with software and AI playing a larger role in managing on-chain organizations.

Circle also said it is developing tools for trust in agent-to-agent commerce. These efforts include “Know Your Agent” capabilities, cryptographic identity attestations, agent registries, reputation systems and programmable spending policies through agent wallets. The company recently published a paper titled The Open Economy for Agents, the CEO said.

EURC and Global Regulatory Outlook Circle said EURC recently surpassed €400 million in circulation, which the CEO called the largest digital euro in the market. He attributed the growth to Circle’s early launch under Europe’s MiCA regulatory framework, relationships with regulators and financial institutions, exchange and wallet distribution, and EURC markets on decentralized-finance protocols.

The company said it expects demand for euro stablecoins to grow alongside European capital-markets development, tokenized real-world assets, programmable money and cross-border settlement use cases.

On U.S. policy, the CEO said he expects USDC adoption to continue even if the CLARITY Act does not pass in September. He said stablecoin regulation is advancing globally and argued that stablecoin adoption is largely occurring outside the United States. While he described broader U.S. market-structure legislation as important for consumer protection, competitiveness and capital markets, he said it is not determinative of stablecoin demand.

Circle said CPN has more than 175 financial-institution members and that it offers a partner pathway through its website, along with a broader Circle Alliance program that includes thousands of companies.

About Circle Internet Group (NYSE:CRCL)Circle Internet Group NYSE: CRCL is a financial technology company that builds infrastructure to enable businesses and developers to use and move money on public blockchains. Co-founded by Jeremy Allaire and Sean Neville, the company is best known as a principal issuer and steward of USDC, a dollar-pegged stablecoin developed through the CENTRE Consortium, which Circle co-founded with Coinbase. Jeremy Allaire serves as CEO and has been a visible leader in the company’s strategy and public engagement around digital currency and payments innovation.

Circle’s core products and services center on digital currency issuance and programmable payments.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Circle Internet Group, Inc. (CRCL) Q2 2026 Earnings Call August 19, 2026 9:00 AM EDT

Company Participants

Jeremy Allaire - Co-Founder, Chairman & CEO

Presentation

Operator

During today's conversation, we may make forward-looking statements, which may vary materially from actual results. Any information shared concerning risks, uncertainties or other factors that could cause these results to differ is included in our SEC filings. We may also reference non-GAAP financial measures, definitions of those non-GAAP financial measures and reconciliations can be found in the earnings presentation on our Investor Relations website.

Jeremy Allaire
Co-Founder, Chairman & CEO

Good morning, good afternoon, good evening, wherever you're tuning in from. Welcome to this Circle Earnings AMA. I'm really thrilled to have this time to answer questions and engage with everyone out there about Circle, our strategy, what we're trying to execute. We obviously just came off of our Q2 earnings, shared a lot, but now we want to have an opportunity to open up and have more questions from the broader audience of folks that are interested in Circle. So I'm going to kick in and please, as we go, try and submit questions. We're trying to pull in as many as we can as we go through this.

Question-and-Answer Session

Jeremy Allaire
Co-Founder, Chairman & CEO

First question from, Lufei.

As Circle expands across payments, Arc, capital markets and financial infrastructure, what gives you the greatest confidence in the team's ability to execute ?and what capability do you most need to strengthen?

This is a great question. And I think as a CEO and really our whole board as well, but as a CEO, specifically, I'm always trying to think about the team, how we're executing, what needs to evolve from where we are. And I would really speak to a few things here.

Vancouver, British Columbia--(Newsfile Corp. - August 12, 2026) - Corcel Exploration Inc. (CSE: CRCL) (OTCQB: CRLEF) (FSE: Y67) (the "Company" or "Corcel") is pleased to announce the final assay results from the recently completed Phase I drill program at the Yuma King Project (the "Project") located in west-central Arizona. The initial campaign successfully completed 1,087 meters across six drill holes with copper and gold in each drill hole.

Highlights

YK26-005A: Intersected copper-gold mineralization east of hole YK26-001. Results include:

8.97 meters of 0.46% Cu, 0.39 g/t Au, 3.8 g/t Ag, and 250 ppm Mo1 starting at 116 meters downhole, adjacent to a porphyry intrusion containing 47 meters of strongly anomalous copper-gold-molybdenum

YK26-006: Intersected two distinct mineralized zones, separated by 151-meter interval of porphyritic intrusion containing strongly anomalous copper-gold-molybdenum. Results include:

4.4 meters of 0.71% Cu, 0.19 g/t Au, 8.46 g/t Ag, and 5.5 ppm Mo1 starting at 28.05 meters downhole,

24.5 meters of 0.47% Cu, 0.32 g/t Au, 3.59 g/t Ag, and 164 ppm Mo from 212 meters downhole and including,

10.14 meters of 0.65% Cu, 0.47 g/t Au, 4.73 g/t Ag, and 141 ppm Mo from 219.21 meters downhole

Porphyry-style alteration and mineralization: Elevated copper, gold, and molybdenum (up to 0.22% Cu, 0.24 g/t Au, and 1100 ppm Mo) in altered porphyritic intrusions associated with skarn-related mineralization in drill holes YK26-005A and YK26-006 provide compelling evidence that a porphyry-related copper-gold system may be present nearby.

Expanded skarn potential at depth: Copper-gold mineralized skarn intersected twice in drill hole YK26-006 and suggests that the skarn horizon is structurally duplicated or that skarn may occur in multiple horizons, significantly increasing the target's exploration potential and the prospective extent of mineralization.

Vectoring towards covered target: Historical drilling combined with geological, geophysical, and geochemical data indicates the mineralized system remains open to the north and northwest toward the recently identified North Skarn target, which was delineated by the IP survey conducted earlier this year, highlighting a compelling area for the next phase of exploration and drilling.

"Phase I has significantly advanced our understanding of Yuma King and highlighted the potential for a much larger copper-gold system," commented Jon Ward, CEO of Corcel Exploration. "We have demonstrated continuity of copper-gold skarn mineralization, intersected additional mineralized skarn at depth, and encountered strongly anomalous copper, gold and molybdenum within the associated porphyritic intrusions. Together, these results expand the prospective skarn footprint and provide compelling vectors toward a potentially concealed porphyry system.

With mineralization remaining open under cover to the north and northwest toward the North Skarn target, and additional untested targets at Yuma King West and Three Musketeers, Phase I has provided us with several compelling targets to advance and test during a Phase II exploration program."

2026 Yuma King Drill Program

The Phase I drill program successfully expanded the exploration footprint at the Yuma King Project. The skarn-related mineralization intersected in YK26-006 shows evidence that the mineralized skarn may be structurally duplicated by folding or faulting, or that numerous skarn-hosting horizons may be present, increasing the prospective footprint of the target area. In addition, strongly anomalous copper, molybdenum, and gold in porphyritic intrusions in these holes suggests a vector towards a possible concealed porphyry system at depth and/or to the north (Figure 1, Table 2).

Drill hole YK26-004 was designed to intersect mineralization to the north and below the historical mine workings. The hole was drilled toward the northwest at a dip of -70°. The drill hole intersected a void, presumed to be unmapped historical workings, and was lost. The assays revealed copper and gold increasing and intersected faulted skarn adjacent to the void. Single sample assays range up to 0.63% Cu, 0.27 g/t Au, and 5.4 g/t Ag over 0.75m within 10m of where the hole was lost.

Drill hole YK26-005A was drilled 160 meters to the northeast of YK26-001 and was drilled towards the south at a dip of -55°. The drill hole intersected 8.97 meters of 0.46% Cu, 0.39 g/t Au, and 3.8 g/t Ag1 (Table 1) beginning at 116 meters down hole. This mineralization is hosted in a faulted zone which includes slices of mineralized skarn sandwiched between a strongly propylitic and quartz-sericite-pyrite altered monzonite porphyry and a less-altered feldspar porphyry. Stockwork and sheeted quartz and quartz-pyrite veins are present within the interval. The hanging wall altered monzonite porphyry is strongly anomalous in copper, gold, and molybdenum (47.42 meters of 0.09% Cu, 0.06 g/t Au, and 215 ppm Mo). The hole ended at 245m depth within the footwall feldspar porphyry intrusion.

Drill hole YK26-006 was collared 175-meters to the east of YK26-001 and drilled toward the northeast at a dip of -50°. The primary objective of the hole was to test part of an induced polarization (IP) anomaly identified during the survey conducted earlier this year, as well as evaluate the mineralization and porphyry potential at depth to the northeast. The drill hole intersected two mineralized skarn zones, separated by a thick interval of variably propylitic, quartz-sericite-pyrite, and possibly patchy potassic altered or hematite-stained, possibly multi-stage monzonite porphyry intrusion(s). The upper oxide zone was encountered at a downhole depth of 28.05 and returned 4.4 meters of 0.71% Cu, 0.19 g/t Au, and 8.5 g/t Ag1. The lower sulfide zone began at a downhole depth of 212 meters and returned 24.5 meters of 0.46% Cu, 0.32 g/t Au, and 3.9 g/t Ag1 (Table 1). Between these two skarn intervals in drill hole YK26-006, the intervening monzonite porphyry returned consistently anomalous copper, gold, and molybdenum values (individual samples up to 0.22% Cu, 0.24 g/t Au, and 1100 ppm Mo within 150.7m of 608 ppm Cu, 0.04 g/t Au, and 180 ppm Mo). The monzonite porphyry between the mineralized zones features sheeted quartz and sulfide veinlets.

The deeper intersection of mineralized skarn in drill hole YK26-006 suggests that the skarn horizon may be structurally repeated, likely by folding, significantly expanding the prospective target area and highlighting additional exploration potential. The strongly anomalous copper-gold-molybdenum signature of the associated monzonite porphyry supports the interpretation that the system is related to a porphyry system nearby, most likely under cover to the north, northwest, or northeast.

Figure 1. Map showing the collar location of drill holes YK26-005A and YK26-006, in relation to recently completed holes and to historical drill holes. Location of historical underground workings is shown projected to surface.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/8415/309304_7a9475d374aefae6_001full.jpg

Figure 2. Section showing the IP resistivity with down-hole assay results from historical drill holes and YK26-005A and YK26-006 that show mineralization at depth

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/8415/309304_7a9475d374aefae6_002full.jpg

Table 1. Assay results from the Phase I Drill Program

DrillholeIntercept From - To (m)Intercept Thickness1 (m)Cu (%)Au (g/t)Ag (g/t)Mo (ppm)YK26-001*3.356056.651.070.797.1180including2431.857.852.281.146.8266including4553.88.82.071.8520.5312YK26-002*3070.2540.250.520.44.4985including44.25538.750.740.463.7246including54.470.2515.850.70.598.1152YK26-003*2557320.1740.042.4725including334290.250.093.57including46.653.937.330.30.044.2107YK26-00481.98897.020.160.061.4264YK26-005A68.5811647.420.090.060.43215and116124.978.970.460.393.77250YK26-00628.0532.454.40.710.198.465and50.29201150.710.060.030.5182and212236.524.50.470.323.59164including219.21229.3510.140.650.474.73141*From previous news release dated June 1, 2026, and July 13, 2026

Intercepts are drilled widths; true widths are unknown and reported intercepts may not reflect true widths. Table 2. Collar information for Phase I drill program

DrillholeEastingNorthingElevationAzimuthDipTotal DepthYK26-0012455243747879640.77341-5091.74YK26-0022455673747870650.3846-50152.4YK26-0032451813747932609.422-60103.3YK26-0042455963747960690.35258-7092.96YK26-005^2456473747967691.33180-55127.41YK26-005A2456473747967691.33180-55245.36YK26-0062456943747893700.4250-50274.32^Hole lost and re-drilled as YK26-005A and was not sampled.

Sampling, Quality Assurance/Quality Control (QA/QC)

All sampling was conducted under the supervision of Corcel's geologists, and all drill core analytical results have been monitored through the Company's quality assurance and quality control program (QA/QC). The drill core was sawn in half at Corcel's dedicated and secure core logging and processing facility near Parker, Arizona.

Half of the drill core was sampled and shipped by a bonded courier in sealed and secured woven polyester bags to Agat Laboratories in Calgary, Alberta. Core samples were prepared using standard preparation procedures 200-078 and 200-087 which involve crushing the sample to 80% less than 2mm, followed by a riffle split of 250g, and then a pulverised split to better than 85%, passing 75 microns.

Following sample preparation, the pulps were sent to the Agat Laboratories in Calgary, Alberta for analysis. Agat is registered to ISO/IEC 17025:2017 accreditations for laboratory procedures.

Drill core samples were analyzed for 48 elements, including Cu, Ag, Mo by ICP-OES/MS on a 0.2-gram aliquot using a four-acid digestion (method 201-071 and 201-470 for over-limit results). Gold was analyzed by fire assay on a 50-gram aliquot with an AAS (Atomic Absorption Spectroscopy) finish (method 202-551).

In addition to Agat Laboratories QA/QC protocols, Corcel implements a rigorous internal QA/QC program that includes the insertion of field and lab duplicates, certified reference materials (standards prepared by an independent lab) and blanks into the sample stream. Data verification of the analytical results includes a statistical analysis of the standards and blanks that must pass certain parameters for acceptance to ensure accurate and verifiable results, and the procedures and results are considered acceptable.

Technical Disclosure

Roy Greig, Ph.D., P.Geo., a Qualified Person as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects, and advisor to the Company, has reviewed and approved the scientific and technical information contained in this news release. Historical information referenced herein has not been independently verified by the Company's Qualified Person. The Company considers this information relevant for exploration targeting purposes, but readers should not place undue reliance on such historical information.

About Corcel Exploration Inc.

Corcel Exploration is a mineral resource company engaged in the acquisition and exploration of precious and base metals properties throughout North America. The Company has entered a long-term lease agreement to acquire the Yuma King Cu-Au project in Arizona, which spans a district-scale land position of 3,200 hectares comprising 515 unpatented federal mining claims in the Ellsworth Mining District, including the past-producing Yuma King Mine which saw underground production of copper, lead, gold and silver between 1940 and 1963. For more information, please visit our website at https://corcelexploration.com/.

Caution Regarding Forward-Looking Information

This news release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities laws (collectively, "forward-looking information"). Forward-looking information in this news release includes, without limitation, statements with respect to the Company's plans to conduct future drilling and other exploration work at the Project, including any Phase II drill program; the anticipated timing, scope and objectives of such work; the potential for expansion of known copper-gold-silver mineralized zones; and the potential for the Project to host additional mineralized zones. Forward-looking statements include statements regarding the interpretation of visual observations, which are preliminary in nature and subject to confirmation by assay results.

Forward-looking information is based on a number of assumptions that, while considered reasonable by the Company at the date of this news release, are inherently subject to significant business, economic, competitive, operational and regulatory uncertainties and contingencies. These assumptions include, without limitation: future commodity prices and exchange rates; availability of financing on reasonable terms; availability of equipment, personnel and infrastructure; maintenance of title and access to properties; obtaining all required regulatory, surface and community approvals on expected terms and within expected timelines; accuracy of current technical information; and the absence of material adverse changes in applicable laws, political conditions, taxation, or capital markets.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied. Such risks include, without limitation: commodity price volatility; exploration, development, metallurgical and geological risk; permitting, environmental and regulatory risk; title and access risk; financing and liquidity risk; reliance on contractors and third parties; community, ESG and social license risk; political and security risk in foreign jurisdictions; operational disruptions, accidents and labour matters; changes in laws and taxation; dilution and capital markets risk; and the other risks more fully described under "Risk Factors" in the Company's continuous disclosure filings available under its profile at www.sedarplus.ca.

Readers are cautioned not to place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/309304

Source: Corcel Exploration Inc.

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Key Takeaways Circle raised 2026 other-revenue guidance to $310M-$330M, with Arc driving the increase.Arc's $242M token presale is expected to contribute $180M in 2026 as product milestones are achieved.USDC circulation ended Q2 at $73.3B, while onchain transaction volume jumped 151% to $14.8T. Circle Internet Group, Inc. (CRCL - Free Report) used its second-quarter earnings call to put Arc at the center of its next growth phase, with management framing the blockchain network as a major platform opportunity ahead of its Sept. 16 mainnet launch.

The company also raised its 2026 other-revenue outlook sharply. Earnings of $0.18 per share topped the Zacks Consensus Estimate of $0.16, while total revenues and reserve income of $701.3 million came in below the $741.8 million consensus estimate.

Circle Puts Arc at Center of Platform StrategyCo-founder, chairman and chief executive officer (CEO) Jeremy Allaire said Arc already has more than 100 ecosystem and institutional builders, with BlackRock and DTCC among the major partners preparing integrations around tokenized assets and settlement.

A Goldman Sachs analyst asked why Circle was prioritizing Arc over additional blockchain partnerships. Allaire said Arc represents one of the company’s largest opportunities and could become a broad operating-system layer for financial and economic activity.

Chief financial officer (CFO) Jeremy Fox-Geen said the shift carries near-term tradeoffs. Other revenues declined $8 million sequentially as blockchain revenue moderated and Circle deliberately directed resources toward Arc.

CRCL Lifts Arc-Driven Revenue OutlookFox-Geen raised 2026 other-revenue guidance to $310 million-$330 million from $150 million-$170 million, with Arc driving the increase.

The CFO said Circle completed a $242 million ARC Token presale in Q2 and expects to recognize $180 million in 2026 as product milestones are achieved. The remaining product portfolio is expected to contribute $130 million to $150 million.

CRCL also lifted its 2026 revenue-less-distribution-cost margin outlook to 41.7-43.7% from 38-40%. Adjusted operating-expense guidance remained $570 -$585 million, with management expecting spending near the high end.

Circle Defends USDC Distribution EconomicsUSDC ended Q2 with $73.3 billion in circulation, up 19% year over year, while average circulation reached $76.5 billion. Onchain transaction volume rose 151% to $14.8 trillion.

A Citi analyst pressed management on whether competing distribution models could pressure Circle’s economics. Allaire said Circle already has more than 150 distribution agreements and can structure additional arrangements alongside Coinbase where partners can materially expand USDC adoption.

Fox-Geen said the Hyperliquid arrangement had minimal Q2 impact because migration ramped late in the quarter, with the financial effect expected to begin in Q3. At quarter end, about 90% of Hyperliquid’s USDC was on Coinbase’s platform and 10% on Circle’s.

CRCL Moves CPN Toward MonetizationAllaire said Circle Payments Network reached $14.7 billion in annualized trailing-30-day payment volume at quarter end, up 76% sequentially, with 175 financial institutions enrolled.

By July 31, annualized payment volume had climbed to $23 billion. Allaire said the priority has been scaling the network, but Circle plans to begin monetizing CPN in the second half of 2026.

The CEO also said CPN and related payment products now reach more than 58 countries. Management positioned payments as one of three platform pillars alongside digital assets and Arc-based developer infrastructure.

Circle Builds Agentic Finance Around USDC and ArcAllaire said 99.3% of x402 agent-payment volume settles in USDC, while Circle’s Agent Stack marketplace has more than 900 paid services.

A Clear Street analyst asked when agentic commerce could become more meaningful financially. Allaire said the second-half roadmap centers on agent identity, automated discovery, reputation systems and tools that let agents earn from services.

A Needham analyst asked about Circle’s competitive position in x402. Allaire, who noted Circle was an early design partner, said growing agentic usage should support USDC transaction activity while also driving adoption of Arc infrastructure.

CRCL Ends Call With an Execution FocusManagement’s tone remained confident around Arc, USDC distribution and payments expansion, while acknowledging softer digital-asset markets and lower reserve yields as near-term constraints.

Fox-Geen maintained Circle’s multi-year 40% USDC circulation growth CAGR framework and said the company intends to keep investing in the platform. He also ruled out near-term quarterly dividends, favoring balance-sheet capacity for growth investments.

Zacks Signals Stay MixedCRCL carries a Zacks Rank #3 (Hold). Its Growth Score of B is the strongest style reading, while the Value Score of D is weaker and the Momentum and VGM Score of C each sits in the middle of the grading scale.

The combination does not carry the stronger signal associated with Zacks Rank #1 (Strong Buy) or #2 (Buy) stocks paired with an A or B Style Score. The Zacks Rank can change as earnings estimates are revised following the just-reported results.

You can see the complete list of today’s Zacks #1 Rank stocks here.

NEW YORK--(BUSINESS WIRE)--Circle Internet Group, Inc. (NYSE: CRCL) today announced results for the second quarter of fiscal year 2026.

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

USDC in circulation of $73.3 billion at quarter end, 19% growth year-over-year; USDC onchain transaction volume in Q2’26 of $14.8 trillion grew 151% year-over-year. Total revenue and reserve income in Q2’26 of $701 million grew 7% year-over-year. Net income from continuing operations in Q2’26 of $48 million increased $530 million year-over-year, driven by prior-year IPO stock-based compensation impacts. Adjusted EBITDA in Q2’26 of $143 million grew 8% year-over-year. Business Highlights

Arc today has over 100 ecosystem and institutional builders. September 16 public mainnet launch will unveil a full product suite that includes privacy capabilities, an agent stack for programmable finance, and support for tokenized real-world assets. Network Validators: Circle announced the founding third party validator cohort for Arc today, a curated set of global financial institutions representing a new model for blockchain infrastructure where the institutions that depend on network integrity are also the institutions that secure it. Alongside Circle, validators include: BlackRock, The Depository Trust & Clearing Corporation (DTCC), Galaxy, Global Payments, ICE, Mastercard, MoneyGram, SBI Group, Standard Chartered, Sumitomo Corporation, and Visa. Financial Institution Traction: BlackRock, BNY, DTCC, and Standard Chartered each building and exploring integrations with Arc, spanning tokenized asset settlement, digital asset custody, stablecoin access, and FX and repo infrastructure. BlackRock is expected to deploy BUIDL, the BlackRock USD Institutional Digital Liquidity Fund, on Arc. DTCC will enable the tokenization of The Depository Trust Company (DTC)-custodied assets on Arc. New and Expanded USDC Use Cases/Commercial Updates BNY expanded its partnership with Circle, adding USDC minting and redemption directly within BNY's Digital Asset Custody platform, building on BNY's existing role as primary custodian of USDC reserves. Grupo Bind announced a collaboration with Circle to bring USDC access to institutions in Argentina. A major step for USDC/ARS liquidity. JCB combined Circle’s stablecoin infrastructure with JCB's global merchant network, focusing initially on cross-border treasury transfers using USDC and in-store stablecoin payment experiences for merchants and international visitors in Japan. Kakao Group began exploration of blockchain payment infrastructure and USDC integration in Korea. Marex enabled the first stablecoin-powered initial margin transaction in regulated derivatives clearing — allowing institutional clients to post USDC as collateral for CFTC-regulated derivatives under the December 2025 CFTC no-action letter. Nium partnered with Circle to connect USDC settlement with their global payout infrastructure across 190+ countries, permitting financial institutions to move funds via USDC through the Circle Payments Network and settle in local currencies. Standard Chartered launched integrated access to USDC minting and redemption, allowing institutional clients to convert between fiat and USDC through a single bank-led onboarding experience. Trust Bank Approvals: Circle received final approval from the U.S. Office of the Comptroller of the Currency to establish a national trust bank, Circle National Trust, which makes Circle one of the first stablecoin issuers to hold a federal bank charter. The approval authorizes federally regulated digital asset custody and enables future capabilities, including management of the USDC Reserve, which would further enhance the safety, transparency, and trust of USDC. Additionally, Circle received approval from the New York Department of Financial Services to open Circle New York Trust as a digital asset-focused limited purpose trust company. Continued CPN Expansion: CPN reached $14.7 billion in annualized transaction volume for the trailing 30 days as of the end of Q2, up 76% quarter-over-quarter, with 175 financial institutions enrolled, up 29% quarter-over-quarter. Agentic Economy Momentum: After shipping payment infrastructure for agents in H1, Circle launched Agent Stack in May 2026 — currently home to 900+ paid services — with 99.3% of x402 agent-payment volume settling in USDC. Circle will turn to a more fulsome agentic product roadmap in H2 that includes enabling agents to earn. “Our quarterly financial results reflect the current rate environment and a crypto market that has slowed – both are conditions outside our network. But near-term activity tells a different story. We received our federal trust bank charter; Arc is launching on public mainnet September 16th; we launched the Agent Stack to put programmable money at the center of the agentic economy; and the institutions using USDC today, like BlackRock, BNY, and Standard Chartered aren't piloting, they are expanding," said Jeremy Allaire, Co-Founder, CEO, and Chairman at Circle. "We have built the platform for the internet financial system – for traditional and digital finance, real-world assets, and the institutions that move the world's capital. That trust is earned, not assumed, and it took over a decade to build. We're only beginning to see what it unlocks."

Key Financial Results and Operating Indicators

The following table presents our key financial results and operating indicators, as well as the relevant GAAP measures, for the periods indicated:

Key Financial Results

Q2 2026

YoY

Change

($ in millions unless noted otherwise)

Total Revenue and Reserve Income

$701

7%

Revenue Less Distribution Costs(1)

$289

15%

RLDC Margin(2)

41%

302bps

Net Income from Continuing Operations

$48

n.m.

Net Income from Continuing Operations Margin(3)

7%

n.m.

Adjusted EBITDA(4)

$143

8%

Adjusted EBITDA Margin(4)

50%

(329bps)

Key Operating Indicators

Q2 2026

YoY

Change

($ in billions unless noted otherwise)

USDC in Circulation, end of period

$73.3

19%

USDC in Circulation, average of period

$76.5

25%

Reserve Return Rate

3.5%

(66bps)

USDC on Platform, end of period

$12.4

106%

USDC on Platform, daily weighted average percentage

19.5%

1,204bps

n.m. = not meaningful

  (1) Revenue Less Distribution Costs (RLDC) is calculated as Total Revenue and Reserve Income less Total Distribution, Transaction and Other Costs.

(2) RLDC Margin is calculated as Total Revenue and Reserve Income less Total Distribution, Transaction and Other Costs as a percentage of Total Revenue and Reserve Income.

(3) Net Income from Continuing Operations Margin is calculated as Net Income from Continuing Operations / Total Revenue and Reserve Income.

(4) Refer to Non-GAAP Financial Measures for further details and a reconciliation of the GAAP to non-GAAP measures presented. Adjusted EBITDA Margin is calculated as Adjusted EBITDA (New Definition) / Total Revenue and Reserve Income less Total Distribution, Transaction & Other Costs. See the Appendix for a reconciliation.

Second Quarter 2026 Financial Highlights and Operating Results

Reserve Income of $668 million increased 5% year-over-year, primarily from the 25% growth in average USDC in Circulation, partially offset by a 66 bps decline in the Reserve Return Rate. Other Revenue of $34 million increased 41% year-over-year from growth in subscription and services revenue. Total Distribution, Transaction and Other Costs of $412 million increased 1% year-over-year, mostly from increased distribution payments. Operating Expenses of $254 million decreased 56% year-over-year, primarily due to lower stock-based compensation expense following our IPO in Q2 2025. Adjusted Operating Expenses of $146 million increased 23% year-over-year, primarily driven by continued investment in product development, infrastructure, and AI capabilities. Net Income of $48 million increased $530 million year-over-year, primarily due to lower stock-based compensation expense following our IPO in Q2 2025. Adjusted EBITDA of $143 million increased 8% year-over-year reflecting the revenue growth from higher USDC in circulation, partially offset by increased investment in costs related to new products. Other Platform Metrics

Q2 2026

YoY

Change

(USDC related figures in $ billions; meaningful wallets in millions)

USDC Minted

$83

97%

USDC Redeemed

$87

113%

Stablecoin Market Share, end of period(1)

27%

(66bps)

Meaningful Wallets, end of period(2)

7.0

24%

Guidance

To give investors insight into our business and expectations, management is providing guidance on the following key performance indicators.

Key Indicator

Period

Previous Guidance

Revised Guidance

USDC in Circulation

Multi-year through cycle

40% CAGR

40% CAGR

Other Revenue

FY 2026

$150-$170M

$310-$330M(3)

RLDC Margin(1)

FY 2026

38-40%

41.7-43.7%(3)

Adjusted Operating Expenses(2)

FY 2026

$570-$585M

$570-$585M

Conference Call and Livestream Information

Financial results and business highlights will be discussed during a livestream webcast event at 8 a.m. ET, hosted through Circle’s official channels on YouTube and X. An audio only version of the livestream and all related materials will be hosted on Circle’s Investor Relations website at https://investor.circle.com where a replay of the call and transcript will also be available shortly following earnings.

In addition to filings with the Securities and Exchange Commission, Circle uses its Investor Relations website (https://investor.circle.com), its blog (https://www.circle.com/blog), press releases (https://www.circle.com/pressroom), public conference calls and webcasts, its X feed (https://x.com/circle), its YouTube channel (https://www.youtube.com/@BuildOnCircle), and its LinkedIn page (https://www.linkedin.com/company/circle-internet-financial) as a means of disclosing material nonpublic information, announcing upcoming investor conferences and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor these sites in addition to following Circle’s SEC filings.

Forward-Looking Statements

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. These statements include, but are not limited to, statements regarding our future operating results and financial position; our plans with respect to the anticipated future expenses and investments; expectations relating to certain of our key financial and operating metrics; our business strategy and plans; expectations relating to legal and regulatory proceedings; expectations relating to our industry, the regulatory environment, market conditions, trends and growth; expectations relating to customer behaviors and preferences; our market position; potential market opportunities; and our objectives for future operations. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on management’s expectations, assumptions, and projections based on information available at the time the statements were made. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including, but not limited to: intense and increasing competition from new and existing issuers offering competing products, combined with the rise of yield-bearing digital assets, including TMMFs, that are attractive to digital asset trading participants, may reduce market demand and circulation of Circle stablecoins; stablecoins may face periods of uncertainty, loss of trust, or systemic shocks resulting in the potential for rapid redemption requests (or runs), and extreme scenarios, such as market shocks that affect the value of USDC’s reserves or simultaneous requests to redeem all or substantially all USDC in circulation, or concerns related to Circle stablecoin reserves, may lead to redemption delays and USDC reserves being insufficient to meet all redemption requests; as a relatively new innovation, stablecoins are particularly susceptible to operational challenges and risks, including due to surges in demand; any negative publicity regarding stablecoins or the broader digital asset industry may have an outsized negative effect on consumer confidence; the acceptance of Circle stablecoins could be negatively impacted by disruptions in secondary marketplaces that facilitate the purchase and sale of Circle stablecoins; the GENIUS Act will change the payment stablecoin ecosystem and may affect our business in ways that cannot yet be known; the GENIUS Act amends the U.S. federal securities laws to explicitly exclude from the definition of “security” payment stablecoins issued by PPSIs, which will include USDC, however, until those amendments are effective, we will continue to rely on our conclusion that USDC is not a security under the U.S. federal securities laws; we hold a substantial amount of USDC reserves in the Circle Reserve Fund and thus are subject to risks associated with the issuer, the manager, and the custodian of the Circle Reserve Fund; any significant disruption in our or our third-party service providers’ or partners’ technology could result in a loss of customers or funds and adversely impact our business, results of operations, financial condition, and prospects; our customers’ funds and digital assets may fail to be adequately safeguarded by us or the third-party service providers upon whom we rely; our inability to maintain existing relationships with financial institutions and similar firms or to enter into new such relationships could impact our ability to offer services to customers; we are subject to credit risks in respect of counterparties, including banks and other financial institutions; if we are unable to maintain existing distribution arrangements or enter into additional distribution arrangements on less favorable financial terms, USDC and EURC in circulation and Circle’s financial results may be adversely affected; Arc and the ARC Token involve execution, market, and operational risk, including risks relating to launch timing, ecosystem adoption in a competitive blockchain market, technology and cybersecurity vulnerabilities, validator and governance dynamics, token price volatility, and the operational complexity of running the network and related treasury infrastructure; Arc and the ARC Token present legal, regulatory, and structural risk, including uncertainty under securities and other financial regulatory regimes, risks arising from token presale and distribution arrangements, potential liability tied to third-party ecosystem participants, conflicts and governance issues during any transition to decentralization, and possible repayment obligations if key launch milestones are not achieved; our products and services may be exploited by our customers, employees, service providers, and other third parties to facilitate illegal activity such as fraud, money laundering, terrorist financing, gambling, tax evasion, and scams; our compliance and risk management methods might not be effective; fluctuations in interest rates could impact our results of operations; we are subject to an extensive and highly evolving regulatory landscape; the regulatory environment to which we are subject gives rise to various licensing requirements, significant compliance costs and other restrictions, and noncompliance could result in a range of penalties, including fines, compliance costs, operational restrictions, reputational damage, and loss of licenses; we are subject to laws, regulations, and executive orders regarding economic and trade sanctions, anti-bribery, AML, and counter-terrorism financing that could impair our ability to compete in international markets or subject us to criminal or civil liability if we violate them; insiders will continue to have substantial control over Circle and limit shareholders’ ability to influence the outcome of key transactions, including a change of control; and our development and use of artificial intelligence in our business could result in reputational harm, competitive harm, and legal liability. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, our actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. For a detailed discussion of the risks, uncertainties, and other factors that could cause our actual results to differ materially from those anticipated or expressed in any forward-looking statements, see the section entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed with the SEC on March 9, 2026 as well as in other filings we may make with the SEC from time to time. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements. Nothing in this communication constitutes an offer to sell or a solicitation of an offer to buy securities or an invitation or inducement to engage in investment activity.

About Circle Internet Group, Inc.

Circle (NYSE: CRCL) is a global financial technology firm that enables businesses of all sizes to harness the power of digital currencies and public blockchains for payments, commerce and financial applications worldwide. Circle is building the world’s largest, most-widely used, stablecoin network, and issues, through its regulated affiliates, USDC and EURC stablecoins. Circle provides a comprehensive suite of financial and technology services that empower enterprises and developers to integrate stablecoins and blockchains into their products, services and business operations.

CIRCLE INTERNET GROUP, INC. – CONDENSED CONSOLIDATED BALANCE SHEETS

(in $ thousands, except share information)

June 30,

2026

December 31, 2025

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

1,730,126

$

1,526,046

Cash and cash equivalents segregated for corporate-held stablecoins

889,311

822,963

Cash and cash equivalents segregated for the benefit of stablecoin holders

73,161,172

75,067,932

Accounts receivable, net

105,431

62,866

Prepaid expenses and other current assets

283,578

321,660

Total current assets

76,169,618

77,801,467

Non-current assets:

Restricted cash

12,806

2,792

Investments

103,757

84,265

Fixed assets, net

22,177

22,791

Digital assets

106,539

86,515

Goodwill

265,742

265,742

Intangible assets, net

446,577

411,146

Deferred tax assets, net

11,354

11,110

Other non-current assets

26,890

27,379

Total assets

$

77,165,460

$

78,713,207

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Deposits from stablecoin holders

$

72,927,544

$

74,912,567

Accounts payable and accrued expenses

418,588

360,609

Convertible debt, net of debt discount

—

36,821

Other current liabilities

256,021

18,398

Total current liabilities

73,602,153

75,328,395

Non-current liabilities:

Deferred tax liabilities, net

28,495

28,702

Other non-current liabilities

24,837

25,337

Total liabilities

$

73,655,485

$

75,382,434

Stockholders’ equity

Class A common stock ($0.0001 par value; 2.5 billion authorized as of June 30, 2026 and December 31, 2025; 233.5 million and 223.6 million issued and outstanding as of June 30, 2026 and December 31, 2025, respectively)

25

24

Class B common stock ($0.0001 par value; 500.0 million authorized as of June 30, 2026 and December 31, 2025; 19.2 million and 18.7 million issued and outstanding as of June 30, 2026 and December 31, 2025)

2

2

Class C common stock ($0.0001 par value; 500.0 million authorized as of June 30, 2026 and December 31, 2025; nil issued and outstanding as of June 30, 2026 and December 31, 2025)

—

—

Treasury stock at cost (4.6 million and 4.7 million shares held as of June 30, 2026 and December 31, 2025, respectively)

(2,645

)

(2,721

)

Additional paid-in capital

4,693,986

4,610,216

Accumulated deficit

(1,189,235

)

(1,292,709

)

Accumulated other comprehensive income

6,449

14,515

Total stockholders’ equity attributable to common stockholders

3,508,582

3,329,327

Noncontrolling interests

1,393

1,446

Total stockholders’ equity

3,509,975

3,330,773

Total liabilities and stockholders’ equity

$

77,165,460

$

78,713,207

CIRCLE INTERNET GROUP, INC. – CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in $ thousands, except per share information)

Three Months Ended

Six Months Ended

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Revenue and reserve income

Reserve income

$

667,733

$

634,274

$

1,320,241

$

1,192,185

Other revenue

33,582

23,804

75,207

44,466

Total revenue and reserve income

701,315

658,078

1,395,448

1,236,651

Distribution, transaction and other costs

Distribution and transaction costs

410,414

406,472

815,816

753,784

Other costs

2,056

470

3,435

805

Total distribution, transaction and other costs

412,470

406,942

819,251

754,589

Operating expenses

Compensation expenses

133,999

503,392

272,126

579,012

General and administrative expenses

66,273

43,140

123,534

73,824

Depreciation and amortization expenses

29,896

14,209

56,663

28,089

IT infrastructure costs

16,359

8,760

29,081

16,432

Marketing expenses

8,657

7,910

15,274

11,770

Digital assets losses (gains)

(698

)

(693

)

158

5,577

Total operating expenses

254,486

576,718

496,836

714,704

Operating income (loss) from continuing operations

34,359

(325,582

)

79,361

(232,642

)

Other income (expense), net

17,947

(160,421

)

29,630

(163,524

)

Net income (loss) from continuing operations before income taxes

52,306

(486,003

)

108,991

(396,166

)

Income tax expense (benefit)

4,092

(3,903

)

5,531

21,143

Net income (loss) from continuing operations

48,214

(482,100

)

103,460

(417,309

)

Less: Net loss attributable to noncontrolling interests

(7

)

—

(14

)

—

Net income (loss) attributable to common stockholders

$

48,221

$

(482,100

)

$

103,474

$

(417,309

)

Earnings (loss) per share attributable to common stockholders:

Basic

$

0.19

$

(4.48

)

$

0.42

$

(5.04

)

Diluted

$

0.18

$

(4.48

)

$

0.39

$

(5.04

)

Weighted-average common shares used in computing earnings (loss) per share attributable to common stockholders:

Basic

248,183

107,514

246,122

82,877

Diluted

268,637

107,514

267,940

82,877

Quarterly Results of Operations

The following table summarizes certain key financial performance measures derived from our unaudited quarterly consolidated statements of operations data for each of the three months ended June 30, 2025, September 30, 2025, December 31, 2025, March 31, 2026, and June 30, 2026. The information for each of these periods has been prepared on the same basis as our audited annual consolidated financial statements and, in the opinion of management, reflects all adjustments of a normal, recurring nature that are necessary for the fair statement of the results of operations for these periods.

Three Months Ended

(in $ millions, except RLDC Margin and Net Reserve Margin)‎

June 30, 2026

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

‎Reserve Income

$

668

$

653

$

733

$

711

$

634

Other Revenue

34

42

37

29

24

Total Revenue and ‎Reserve Income

$

701

$

694

$

770

$

740

$

658

Distribution and Transaction Costs

$

410

$

405

$

461

$

447

$

406

Other Costs

2

1

1

0

0

Total Distribution, ‎Transaction and Other ‎Costs

$

412

$

407

$

461

$

448

$

407

Total Revenue and Reserve Income less Total Distribution, Transaction ‎and Other Costs

$

289

$

287

$

309

$

292

$

251

RLDC Margin(1)

41

%

41

%

40

%

39

%

38

%

Net Reserve Margin(2)

39

%

38

%

37

%

37

%

36

%

Note: Figures presented may not sum precisely due to rounding.

Non-GAAP Financial Measures

We report our financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). However, Adjusted EBITDA and Adjusted Operating Expenses are non-GAAP financial measures regarding our operational performance.

Management and our board of directors use non-GAAP financial measures to (i) monitor and evaluate the growth and performance of our business operations, (ii) evaluate our historical and prospective financial performance as well as our performance relative to our competitors, (iii) review and assess the performance of our management team and other employees, and (iv) prepare budgets and evaluate strategic investments. Accordingly, we believe that non-GAAP measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. Non-GAAP financial measures, including Adjusted EBITDA and Adjusted Operating Expenses, have limitations as financial measures and should not be relied upon as substitutes for, or considered in isolation from, measures calculated in accordance with GAAP.

Adjusted EBITDA

Adjusted EBITDA is calculated as net income (loss) from continuing operations excluding: net income (loss) attributable to noncontrolling interests; depreciation and amortization expenses; interest expense, net of amortization of discounts and premiums; interest income; income tax expense (benefit); stock-based compensation expense and payroll tax expense related to stock-based compensation; certain legal expenses; realized and unrealized (gains) losses, net, on digital assets held for investment, other related investments and strategic investments; realized (gains) losses on available-for-sale debt securities; impairment losses on strategic investments; restructuring expenses; acquisition-related costs; change in fair value of convertible debt, warrant liability, embedded derivatives and U.S. Treasury securities; charitable contributions to Circle Foundation; losses on sale of long-lived assets; and foreign currency exchange (gains) losses.

Beginning in the first quarter of 2026, we have amended the above definition of Adjusted EBITDA to exclude payroll tax expense related to stock-based compensation, because these taxes are directly related to stock-based compensation expense which is already excluded from Adjusted EBITDA. These expenses represent employer payroll taxes related to the vesting and settlement of certain equity awards, and are variable with our stock price and other factors outside of our control.

We believe it is useful to exclude non-cash charges, such as depreciation and amortization, stock-based compensation expense, and change in fair value of various financial instruments as well as certain cash charges such as payroll tax related to stock-based compensation from Adjusted EBITDA because the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations. We believe it is useful to exclude income tax expense (benefit), interest income, interest expense, and non-routine items as these items are not components of our core business operations.

Adjusted Operating Expenses

Adjusted Operating Expenses excludes depreciation and amortization, charitable contributions to Circle Foundation, digital assets losses (gains), and stock-based compensation. Beginning in the first quarter of 2026, we have amended the definition of Adjusted Operating Expenses to exclude (a) payroll tax expense related to stock-based compensation, because these taxes are directly related to stock-based compensation expense which is already excluded from Adjusted Operating Expenses and these taxes are variable with our stock price and other factors outside of our control (which will also be reflected in Adjusted EBITDA as discussed above), as well as (b) certain one-time legal expenses, acquisition-related costs, and where relevant, restructuring expenses, as they reflect the same adjustments as in Adjusted EBITDA.

We believe it is useful to exclude certain non-cash charges from Adjusted Operating Expenses because the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations.

We have provided a reconciliation below of Adjusted EBITDA to Net Income (loss) from Continuing Operations and of Adjusted Operating Expenses to Operating Expenses, in each case, the most directly comparable GAAP financial measure.

CIRCLE INTERNET GROUP, INC. – RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS) FROM CONTINUING OPERATIONS

(in $ thousands)

Three Months Ended

June 30, 2026

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

Net income (loss) from continuing operations

$

48,214

$

55,246

$

133,406

$

214,385

$

(482,100

)

Less: Net loss attributable to noncontrolling interests

(7

)

(7

)

(10

)

—

—

Net income (loss) attributable to common stockholders

$

48,221

$

55,253

$

133,416

$

214,385

$

(482,100

)

Adjusted for:

Depreciation and amortization expenses

29,896

26,767

25,536

23,002

14,209

Interest expense, net of amortization of discounts and premiums

64

38

193

354

344

Interest income(1)

(14,517

)

(13,709

)

(16,302

)

(13,453

)

(9,952

)

Income tax expense (benefit)

4,092

1,439

6,776

(61,294

)

(3,903

)

Stock-based compensation expense

53,599

51,836

59,414

59,081

434,966

Legal expenses(2)

10,341

7,019

2,875

3,014

1,706

Realized and unrealized losses (gains), net, on digital assets held for investment, other related investments and strategic investments

(3,702

)

3,325

(25,074

)

(2,267

)

(5,738

)

Impairment losses on strategic investments

115

251

—

500

506

Acquisition-related costs(3)

1,920

1,870

—

—

—

Change in fair value of convertible debt, warrant liability, embedded derivatives, and U.S. Treasury securities

1,876

4,108

(42,472

)

(56,212

)

167,724

Charitable contributions to Circle Foundation(4)

5,411

7,737

23,149

—

—

Losses on sale of long-lived assets

—

—

—

6

4

Foreign currency exchange (gains) losses

(1,475

)

(5,121

)

(29

)

(655

)

8,067

Adjusted EBITDA (Prior Definition)

$

135,841

$

140,813

$

167,482

$

166,461

$

125,833

Stock-based compensation related payroll expense(5)

7,637

10,588

8,428

5,015

7,164

Adjusted EBITDA (New Definition)

$

143,478

$

151,401

$

175,910

$

171,476

$

132,997

(1)

Reflects interest income from corporate cash and cash and cash equivalents balances. For the avoidance of doubt, this amount does not include the impact of reserve income.

(2)

Reflects litigation expenses related to the FT Partners litigation, legal and settlement expenses related to legacy businesses, and legal fees and other costs related to one-time regulatory matters.

(3)

Reflects special one-time compensation related to an asset acquisition that closed in January 2026.

(4)

Reflects the charge related to the charitable contribution of shares of our Class A common stock for the benefit of Circle Foundation, a donor-advised fund.

(5)

Beginning in the first quarter of 2026, we have amended the definition of Adjusted EBITDA to exclude payroll tax expense related to stock-based compensation.

CIRCLE INTERNET GROUP, INC. – RECONCILIATION OF ADJUSTED OPERATING EXPENSES TO OPERATING EXPENSES

(in $ thousands)

Three Months Ended

June 30, 2026

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

Operating expenses

$

254,486

$

242,350

$

253,595

$

211,127

$

576,718

Adjusted for:

Stock-based compensation expense and related payroll taxes(1)

(61,236

)

(62,424

)

(67,842

)

(64,096

)

(442,130

)

Depreciation and amortization expenses(2)

(29,896

)

(26,767

)

(25,536

)

(23,002

)

(14,209

)

Digital assets losses (gains)(3)

698

(856

)

(1,387

)

1,671

693

Charitable contributions to Circle Foundation(4)

(5,411

)

(7,737

)

(23,149

)

—

—

Legal expenses(5)

(10,341

)

(7,019

)

(2,875

)

(3,014

)

(1,706

)

Acquisition-related costs(6)

(1,920

)

(1,870

)

—

—

—

Adjusted Operating Expenses

$

146,380

$

135,677

$

132,806

$

122,686

$

119,366

(1)

Stock-based compensation expense represents equity compensation and associated payroll taxes.

(2)

Depreciation and amortization expenses include depreciation of fixed assets, and amortization of capitalized engineering costs and intangible assets.

(3)

Digital assets losses (gains) represent the fair value losses/gains of digital assets, a non-cash expense.

(4)

Charitable contributions to Circle Foundation reflects the charge related to the charitable contribution of shares of our Class A common stock for the benefit of Circle Foundation, a donor-advised fund.

(5)

Reflects litigation expenses related to the FT Partners litigation, legal and settlement expenses related to legacy businesses, and legal fees and other costs related to one-time regulatory matters.

(6)

Reflects special one-time compensation related to an asset acquisition that closed in January 2026.

CIRCLE INTERNET GROUP, INC. – FORWARD OUTLOOK RECONCILIATION OF ADJUSTED OPERATING EXPENSES TO OPERATING EXPENSES

(in $ millions)

FY26

Low

High

Operating expenses

$

949

$

1,039

Adjusted for:

Stock-based compensation expense and related payroll taxes(1)

(219

)

(249

)

Depreciation and amortization expenses(2)

(116

)

(141

)

Digital assets losses (gains)(3)

–

–

Charitable contributions to Circle Foundation(4)

(22

)

(22

)

Legal expenses(5)

(14

)

(34

)

Acquisition-related costs(6)

(8

)

(8

)

Adjusted Operating Expenses

$

570

$

585

(1) Stock-based compensation expense represents equity compensation and associated payroll taxes. The range of guidance depends on incremental headcount through the rest of the year and stock price.

(2) Depreciation and amortization expense includes depreciation of fixed assets, and amortization of capitalized engineering costs and intangible assets. The range of the guidance depends on capitalization rates, total SBC and cash compensation throughout the rest of the year.

(3) Digital assets losses (gains) represent the year to date fair value losses/gains of digital assets, a non-cash expense, and we are not forecasting the amounts in 2026.

(4) Charitable contributions to Circle Foundation represents our anticipated transfer of 268,239 shares of Class A common stock to the Donor Advised Fund for the Circle Foundation and is a non-cash expense arising from donating the company’s equity. The amount is estimated using the average of the high and low stock price of CRCL on July 31, 2026 ($61.09), however, such amount will be dependent on the stock price on the date of the transfer of the applicable shares, which is expected to occur in substantially equal quarterly installments throughout 2026.

(5) Represents estimated fees associated with specific nonrecurring costs, including the one-time implementation of new governance structures to meet U.S. regulatory requirements.

(6) Reflects special one-time compensation related to an asset acquisition that closed in January 2026.

More News From Circle Internet Group, Inc.

Shares of Circle Internet Group fell sharply in premarket trading on Monday after Morgan Stanley downgraded the stablecoin issuer, while TD Cowen initiated coverage with a bullish rating, highlighting a growing divide on Wall Street over the company's long-term prospects.

Circle stock declined 6% to $58.81 in premarket trading following the contrasting analyst calls. 

Meanwhile, Bitcoin traded 0.64% lower over the past 24 hours at $62,625.

Morgan Stanley cut its rating on Circle to Underweight from Equal Weight and slashed its price target to $38 from $106, while TD Cowen began coverage with a Buy rating and an $82 price target, implying significant upside from current levels.

Morgan Stanley's downgrade was driven by expectations that the circulation of USDC, Circle's dollar-pegged stablecoin, will grow more slowly than previously anticipated.

The brokerage reduced its forecasts for USDC circulation in 2027 and 2028 by 33% and 44%, respectively, challenging Circle's target of achieving average annual growth of 40% across market cycles.

"USDC has effectively not grown" since the third quarter of last year, analysts noted. 

The brokerage added that broader adoption has yet to materialize as "utility beyond remittances and stablecoin-linked card spending has yet to gain meaningful traction."

Morgan Stanley argued that while payment companies including Mastercard and Stripe have increasingly embraced stablecoin technology, practical adoption remains limited.

Citing McKinsey data, the brokerage said stablecoin transaction volume reached about $35 trillion in 2025, but only around $390 billion represented identifiable real-world payments. 

Analysts added that payment activity remains concentrated in cross-border business transactions, remittances and stablecoin-linked card spending.

"Stablecoin activity remains overwhelmingly skewed toward crypto trading and transfer activity rather than payments. McKinsey estimates roughly $35 trillion of adjusted volume, of which only $390 billion represents identifiable payments (which will still think may be optimistic), or roughly 0.5% of unadjusted activity and about 1% of adjusted activity," Morgan Stanley analyst James Faucette wrote.

He added, "While there are real and growing use cases in cross-border B2B and consumer remittances (including stablecoin-linked card spending) that are driving transaction velocity, they have not yet demonstrated the ability to create the durable balances or recurring transaction economics needed to offset pressure on Circle's reserve-income model."

TD Cowen took a more optimistic view, launching coverage with a Buy rating and an $82 price target.

The brokerage said, "We see a compelling combination of attractive growth + diversification via USDC circulation, rapidly growing high-margin fee-based revenues & Arc optionality and think the Street underestimates the evolution into a platform player."

Analyst Bryan Bergin believes Circle's business is expanding beyond stablecoin issuance into a broader financial infrastructure platform that covers payments, treasury services, tokenized real-world assets, interoperability, and developer services.

Bergin also described Circle as "an attractive vehicle for investors seeking exposure to the institutionalization of stablecoins and the modernization of global financial infrastructure."

Analysts remain divided on CircleCircle shares have struggled throughout 2026, falling 21% year to date compared with a 9.4% gain for the broader market. Bitcoin has declined 28% over the same period.

The stock has also faced pressure from uncertainty surrounding the proposed Clarity Act, legislation intended to establish a regulatory framework for the cryptocurrency industry.

Analyst opinion remains closely split. 

According to LSEG data, 16 of the 30 analysts covering Circle rate the stock Hold or Sell, while the remaining 14 recommend Buy or Strong Buy.

The contrasting views underscore differing expectations for the pace of stablecoin adoption, the future growth of USDC and Circle's ability to evolve into a broader financial infrastructure platform as the regulatory landscape continues to develop.

On June 30, a coalition of more than 140 financial, tech, and retail giants -- including Visa, Mastercard, Stripe, BlackRock, Coinbase (COIN +2.28%), Alphabet's Google, and Shopify -- backed a new stablecoin called Open USD (OUSD).

Shares of Circle (CRCL +5.45%), the fintech company that mints the USD Coin (USDC +0.01%) stablecoin, immediately plummeted after the announcement. Let's see why Circle's stock dropped, and whether that pullback is a buying opportunity for patient investors.

Image source: Getty Images.

Why is OUSD an existential threat to USDC? Circle backs the USD Coin with its own cash and U.S. Treasury holdings. Most of its revenue comes from the interest earned on those assets. OUSD aims to disrupt that business model by sharing that reserve income with its ecosystem partners that distribute and use its coins. Therefore, companies now have a major reason to use OUSD instead of USDC.

Unlike USDC, which is only managed by Circle, OUSD is managed by an independent board of partners. That decentralized governance democratizes the control of the stablecoin, making it much more appealing to companies that don't want Circle calling all the shots.

Today's Change

(

5.45

%) $

3.52

Current Price

$

68.14

OUSD also aims to provide zero-cost minting and redemptions with no volume limits. Those perks could undermine Circle's fee structures and reduce the operational friction that institutional investors often experience when moving their capital across Circle's platform.

Lastly, Coinbase's decision to sign on as a partner for OUSD is a bright red flag, since it was also a founding partner of USDC. Coinbase currently retains all interest income on USDC held on its platform and pays half of its residual reserve income to Circle. The crucial revenue-sharing partnership will expire on Aug. 18. If Coinbase refuses to renew that deal and goes all-in on OUSD instead, Circle's stock could drop even further.

Is it the right time to buy Circle's stock? OUSD will launch by the end of 2026, and its pending arrival could generate unpredictable headwinds for Circle over the next few years.

From 2025 to 2028, analysts expect Circle's revenue to nearly double and its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to more than double. If those estimates are accurate, then its stock is still a bargain at three times next year's sales and 14 times its adjusted EBITDA. But if OUSD's arrival forces those analysts to hastily reduce their estimates, Circle could actually be overvalued relative to its growth potential.

It's still too early to assume that OUSD will pull companies away from USDC, but that existential threat makes Circle a lot less appealing. Investors should wait to see how Circle responds -- and if Coinbase renews its revenue-sharing agreement -- before buying the stock.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, BlackRock, Mastercard, Shopify, and Visa. The Motley Fool recommends Coinbase Global. The Motley Fool has a disclosure policy.

Circle Internet Group shares are trending higher. Why are CRCL shares climbing? What Is Driving Circle Internet Group’s Stock Today?Open Standard formally launched Open USD on Tuesday, a stablecoin pitched for global money movement where businesses can mint and redeem without fees or volume limits, and where partners receive reserve earnings after management fees. More than 140 companies have committed to support it, including Visa and Mastercard.

Circle’s competitive risk is landing as USDC’s scale has already been slipping, with its market cap down to $73.7 billion from the year-to-date high of $80 billion. That reserve shrink matters because Circle’s revenue model is tied to investing stablecoin reserves in short-term government bonds, and the two-year yield has also eased to around 4.09% from a 4.235% year-to-date high.

Circle also has a counterweight catalyst on the board after its affiliate Circle Internet Financial signed an MOU with Nomura on June 26 to pursue digital finance opportunities, including Japan. The collaboration specifically flagged instant settlement using stablecoins and on-chain collateral management.

Critical Levels To Watch For CRCL StockEven with Wednesday’s premarket lift, the longer-term chart is still heavy: the stock is trading 20.5% below its 20-day SMA ($79.82) and 35.1% below its 200-day SMA ($97.73), which keeps rallies vulnerable to selling into overhead supply. The moving-average structure stays bearish, with the 20-day SMA below the 50-day SMA and a "death cross" in June (the 50-day SMA crossing below the 200-day SMA).

For momentum, MACD remains the cleaner read right now: it’s below its signal line and the histogram is negative, which points to upside pressure fading unless buyers can rebuild trend strength. In plain terms, MACD below its signal line often means the recent rebound attempts are losing steam versus the prior upswing.

The bigger-picture damage also shows up in the 12-month performance (down 67.47%), and the stock is still much closer to its 52-week low ($49.90) than its 52-week high ($262.97). That context matters because it suggests many participants may treat rebounds as "sell-the-rip" opportunities until price can reclaim key moving averages.

Key Resistance: $77.00 — a prior rebound area that lines up with the market’s recent "line in the sand" for failed bounces Key Support: $49.90 — the 52-week low zone, which is the clearest downside reference if selling resumes CRCL Stock Price Movement During Premarket SessionCRCL Stock Price Activity: Circle Internet Group shares were up 1.26% at $63.42 during premarket trading on Wednesday, according to Benzinga Pro data.

Image: Shutterstock

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