Circle Stock Soars 15%+ on Strong Q4 Earnings Beat

Circle's revenue beats estimates on surging USDC usage despite annual net loss from IPO costs.

  • Circle’s Q4 earnings of $133 million in net income and $770 million in revenue exceeded analyst estimates.
  • The stablecoin USDC saw its circulation jump to $75.3 billion, while on-chain transaction volume surged 247% year-over-year.
  • Despite the strong quarter, the company reported a full-year net loss of $70 million for fiscal 2025, impacted by costs from its IPO.

Stablecoin issuer Circle Internet Group (CRCL) saw its stock surge over 15% in pre-market trading yesterday after announcing a robust fourth-quarter performance. The company reported $770 million in revenue and $133 million in net income from continuing operations, significantly surpassing the Zacks Consensus Estimate for $748.62 million in revenue.

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Adjusted EBITDA rose a staggering 412% year-over-year to $167 million, driven by higher reserve income. This growth was fueled by a major expansion of its flagship stablecoin, USDC, which reached $75.3 billion in circulation at year-end.

Consequently, USDC on-chain transaction volume skyrocketed to $11.9 trillion in Q4. CEO Jeremy Allaire stated, “The fourth quarter marked another step forward in Circle’s mission to build the infrastructure for an open, programmable internet financial system.”

However, the full fiscal year 2025 closed with a $70 million net loss from continuing operations. Circle attributed this largely to $424 million in stock-based compensation expenses related to its recent initial public offering.

Meanwhile, the company expanded its Circle Payments Network and announced a key partnership with prediction market Polymarket to advance USDC use. Morgan Stanley recently initiated coverage of the stock with an “Equalweight” rating, citing regulatory uncertainties as a potential headwind.

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