Circle (CRCL), the issuer of the USDC stablecoin, reported strong Q4 2025 earnings that beat analyst expectations, sending its shares surging in pre-market trading on February 25, 2026. $770 million, up 77% year-over-year, exceeding consensus estimates around $745–$749 million.
Earnings per share (EPS): $0.43 (diluted), significantly beating estimates of $0.16–$0.35 depending on the source. Adjusted EBITDA: $167 million, reflecting a 412% increase year-over-year, driven by strong operating leverage.
USDC circulation: Ended 2025 at $75.3 billion, up 72% from the prior year. Q4 on-chain USDC volume reached $11.9 trillion, up 247% year-over-year. Full-year 2025 results included total revenue of about $2.7 billion but a net loss of $70 million; largely due to IPO-related charges, though Q4 swung to profitability with $133 million in net income.
The market reacted positively to the beat and signs of accelerating USDC adoption amid growing stablecoin usage in payments and crypto infrastructure. Shares jumped around 15–20% in pre-market trading (reports varied from 14% to over 19%, with some showing levels around $73–$74 from a prior close near $61).
This comes as Circle continues expanding its payments network, Arc blockchain initiatives, and products like EURC, while highlighting regulatory progress; conditional OCC approval for a national trust bank.
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The company provided optimistic 2026 guidance, including other revenue of $150–$170 million, RLDC margins of 38–40%, adjusted operating expenses of $570–$585 million, and a multi-year target of 40% CAGR in USDC circulation.
The results underscore Circle’s shift toward scalable profitability in the stablecoin space, even as competition from Tether and others remains intense. The pre-market pop reflects investor enthusiasm for the growth story in internet-native finance. Note that stock prices can fluctuate rapidly.
Circle Internet Group (NYSE: CRCL) shares surged significantly in pre-market and early trading following the release:Pre-market gains reported between 14-23% (varying by source, with peaks around 18-20% and levels reaching ~$72-74 from a prior close near $61).
This marks one of the strongest single-day reactions since its IPO, reversing some of the year’s earlier declines stock was down ~23% YTD through February 24. Retail sentiment on platforms like Stocktwits shifted rapidly from bearish to bullish, with CRCL becoming a top trending ticker amid high chatter.
The jump reflects investor relief and enthusiasm over the profitability inflection, strong USDC growth metrics, and signs that the core stablecoin business is scaling despite prior concerns about interest rate headwinds and competition. Circulation hit $75.3 billion up 72% YoY, outpacing overall fiat-backed stablecoin market growth, gaining ~426 basis points in market share to ~28%.
On-chain transaction volume exploded to $11.9 trillion in Q4 up 247% YoY, highlighting real utility in payments, DeFi, and cross-border transfers. Q4 net income of $133 million vs. full-year net loss of $70 million, driven by one-time IPO costs and adjusted EBITDA up 412% to $167 million demonstrate improving operating leverage and a path to sustained profitability.
Other revenue (from payments network, Arc blockchain, etc.) showed acceleration, with optimistic 2026 guidance ($150-170 million, implying strong growth). This reduces reliance on reserve income (impacted by potential rate cuts).
These metrics reinforce Circle’s position as the leading regulated, transparent stablecoin issuer, particularly for institutional use. The beat validates growing demand for dollar-pegged assets in a maturing crypto ecosystem, especially amid regulatory tailwinds like the GENIUS Act (federal framework for stablecoins) and Circle’s progress toward a national trust bank charter.
USDC’s faster growth than the market could pressure rivals like Tether (USDT), boosting confidence in compliant, auditable alternatives for payments and treasury management. Analysts and commentators highlight this as a “turning point” for stablecoin issuers as public companies, with potential spillover to crypto infrastructure plays and tokenized finance.
It ties into macro themes: higher stablecoin usage could increase U.S. Treasury demand from reserves, supporting dollar strength and debt dynamics. While the reaction is overwhelmingly positive, some sources note lingering risks: Heavy dependence on interest rates for reserve income (lower rates could pressure margins).
Ongoing competition and full-year loss context. Stock remains well below post-IPO highs down ~77% from peaks in some reports, so volatility could persist. This move positions Circle as a stronger growth story in internet-native finance, with the earnings reinforcing USDC’s momentum and potentially catalyzing renewed interest in the stablecoin sector. Market reactions can evolve quickly.