Circle Posts $701M Q2 Revenue, Net Income Jumps but Stock Falls 3% on Revenue Miss

Circle (CRCL) reported Q2 2026 revenue of $701M in an SEC 8-K filing — up 7% year-over-year but below market expectations.

📊 Price at Time of Writing (Aug 6, 2026, 3:03 PM KST)
$63.28 ▲ +0.05%

Earnings at a Glance

Revenue grew but fell short of market expectations. Net income and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), however, both rose, marking a clear improvement in profitability.

• Revenue (including reserve income): $701M, +7% year-over-year
• Earnings per share (EPS): Not disclosed in the filing — foreign media reported it beat Wall Street estimates
• Net income: $48M, up $530M from a year earlier — reflecting the absence of last year's one-time stock compensation charges tied to Circle's IPO
• Adjusted EBITDA: $143M, +8% year-over-year
• USDC in circulation (end of quarter): $73.3B, +19% year-over-year
• Average USDC in circulation: $76.5B, +25% year-over-year — though the reserve yield fell 0.66 percentage points to 3.5%, so reserve income growth trailed this figure
• USDC on-chain transaction volume: $14.8T, +151% year-over-year

Market Reaction

Circle's stock fell 3% following the earnings release, according to CoinDesk. Analysts attributed the decline largely to the revenue miss, even as net income and adjusted EBITDA came in ahead of expectations. Moomoo noted that while EPS beat estimates, revenue was weak. Alongside the earnings report, Circle announced that its new blockchain 'Arc' will officially launch on September 16. The annualized transaction volume of its Circle Payments Network (CPN) rose 76% quarter-over-quarter to $14.7B, with participating financial institutions climbing 29% to 175. Circle also received final approval from the U.S. Office of the Comptroller of the Currency (OCC) to establish a trust bank, becoming the first stablecoin issuer to obtain a federal banking charter. 'Agentic Stack,' its payment service for AI agents, has secured more than 900 paying services since its launch in May. CEO Jeremy Allaire said this quarter's results reflect the current interest rate environment and a slowing crypto market, but that recent developments — including the trust bank charter and Arc's launch preparations — tell a different story. As of 3:03 PM on August 6, Circle shares traded at $63.28, up a slight 0.05% from the previous day.

Segment Breakdown

• Reserve income (interest earned on reserves): $668M, +5% year-over-year
• Other revenue (subscription and services, etc.): $34M, +41% year-over-year
• Distribution and transaction costs: $412M, +1% year-over-year
• Revenue less distribution and transaction costs (RLDC): $289M, +15% year-over-year, representing 41% of revenue

This article was auto-generated based on the original SEC 8-K filing and foreign media reports, intended to deliver key data promptly after the announcement. Readers are advised to review the company's official filing before making trading decisions. Prices reflect the time of writing and may differ from current levels.