Circle Internet Group reported third‑quarter 2025 results that exceeded analyst expectations across the board. Total revenue and reserve income rose 66% year‑over‑year to $740 million, a $40 million beat on the consensus estimate of $699.57 million. Net income from continuing operations jumped 202% to $214 million, up from $71 million in Q3 2024, while GAAP earnings per share of $0.64 surpassed the $0.17–$0.22 consensus by $0.42–$0.47.
Revenue growth was driven by a 97% increase in average U.S. dollar‑coin (USDC) in circulation, which reached $67.8 billion on average during the quarter and $73.7 billion at quarter‑end—an 108% year‑over‑year jump. The surge in USDC volume lifted the company’s core platform revenue, while other revenue, largely high‑margin fee income, grew sharply, contributing to the overall revenue lift. Compared with Q2 2025, revenue grew from $658 million to $740 million, a 12% sequential gain that helped offset the decline in legacy reserve‑income streams.
Margin performance reflected a mix of cost pressures and operational leverage. The revenue‑less‑distribution‑costs (RLDC) margin fell to 39% from 39.5% in the prior year, a 270‑basis‑point contraction driven by higher distribution costs and increased marketing spend. However, the margin improved sequentially from 37% in Q2 2025, indicating that the company is managing the cost impact. Adjusted EBITDA margin expanded to 57% from 55% YoY, supported by the high‑margin other‑revenue segment and improved pricing power in the USDC ecosystem.
Management raised its full‑year 2025 guidance for other revenue to $90–$100 million and projected an RLDC margin of about 38%, the high end of its previous outlook. The company also increased its adjusted operating‑expense guidance to $495–$510 million, up from $475–$490 million, reflecting continued investment in the Arc blockchain, cross‑chain transfer protocol, and talent acquisition. The guidance signals confidence in revenue growth but also signals that margin compression will persist as the company scales its platform.
Investors reacted cautiously, with the stock falling 7–9% in early trading. The decline was largely attributed to the higher operating‑expense guidance and the year‑over‑year margin contraction, which raised concerns about the sustainability of earnings growth. Analysts noted that while the company’s market share in the stablecoin space expanded to 29% of global circulation, regulatory uncertainties and competitive pressure from Tether remain headwinds.
CEO Jeremy Allaire emphasized the company’s momentum, stating, “Circle continued to see accelerating adoption of USDC and our platform in the third quarter as we build the new Economic OS for the internet.” He added that the Arc public testnet launch attracted over 100 partners, underscoring the ecosystem’s growth and the company’s strategic focus on open, programmable money.”
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