Circle Q2: Continued growth and profitability, growing USDC utility, liquidity, and partnerships.
OCC National Trust Bank secured. Arc mainnet launches Sept 16, with major firms joining Arc. CPN seeing rapid qtr growth.
Circle’s quarterTotal revenue and reserve income came to $701 million, up 7% year-over-year and slightly ahead of the previous quarter, though still below the $770 million Circle booked in the final quarter of 2025. Reserve income of $668 million grew 5%, with the reserve return rate down 66 basis points to 3.5%.
Net income of $48 million compares with a $482 million loss a year earlier, when IPO stock compensation dominated the quarter. Adjusted EBITDA reached $143 million, up 8%.
USDC in circulation closed the quarter at $73.3 billion, up 19%, and on-chain transaction volume hit $14.8 trillion, up 151%. Circle's share of the fiat-backed stablecoin market slipped to 27%.
Speaking on the earnings call, Allaire said "digital asset markets themselves have continued to see significant weakness." He also disclosed that Circle's distribution agreement with Coinbase has "renewed on its existing terms," leaving unchanged the arrangement behind the $410 million in distribution and transaction costs Circle booked in the quarter.
Charters and guidanceThe Circle Payments Network reached $14.7 billion in annualized transaction volume, up 76% quarter-over-quarter, with 175 financial institutions enrolled. Allaire said that figure had reached $23 billion by July 31.
Circle roughly doubled its full-year guidance for other revenue, to between $310 million and $330 million from $150 million to $170 million. The company attributes the increase in part to recognized revenue from the ARC token presale.
