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Circle Q4 Earnings Beat as USDC Growth Sends Shares Higher Today

Strong Revenue and New Rules Lift Circle’s Stablecoin Business

Written By : Yusuf Islam
Reviewed By : Manisha Sharma

Circle Internet Group reported fourth-quarter revenue of $770 million, beating Wall Street estimates and posting a 77% annual increase. Net income reached $133.4 million, or 43 cents per share, far above analyst forecasts of 16 cents on $747 million in revenue. Shares surged more than 20% in early trading and closed at $83.14, marking a gain above 35% for the session.

Earnings Beat and Market Reaction

For the quarter ended December 31, 2025, Circle delivered stronger-than-expected financial results. The company’s performance exceeded projections by a wide margin. Analysts had expected lower revenue and earnings per share.

Investors responded quickly. Circle shares rose sharply in pre-market trading and extended gains during the session. The stock climbed to nearly $74 early Wednesday before closing at $83.14.

Despite the rally, shares remain 68% below their all-time high of $263.45 reached on June 23, 2025, according to Dow Jones Market Data. Meanwhile, Bitcoin has fallen nearly 50% from its October peak, adding pressure across the sector.

Circle Chief Financial Officer Jeremy Fox-Geen told Barron’s that the quarter shows the company can thrive during what he called “interesting turmoil in crypto.” He added that USDC has “decoupled from the vagaries” of price swings in Bitcoin and other digital assets.

USDC Expansion and Revenue Diversification

Circle reiterated its outlook for a multiyear annual growth rate of 40% for USDC in circulation. Chief Executive Officer Jeremy Allaire said enterprises, developers, and public institutions expanded their use of digital dollars in payments and treasury operations.

The company earns most of its revenue from interest on USDC reserves. However, it has started to broaden its business model. Other revenue, including subscription and services tied to its payments network, rose to $37 million in the fourth quarter from $3 million a year earlier.

Circle expects other revenue to reach between $150 million and $170 million in full-year 2026. As USDC circulation grows, the company continues to deepen payments partnerships and build blockchain infrastructure services.

Also Read: Circle Stock Jumps as Visa Opens USDC Settlement to Banks

Stablecoins function as blockchain-based transaction tools rather than growth assets. In that context, the latest earnings raise a central question: Can regulated stablecoins continue expanding even as broader crypto markets face volatility?

Clear Street analyst Owen Lau wrote that the results show continued USDC adoption despite softer crypto conditions and support a positive stock reaction.

Regulatory Shift and Policy Backdrop

Circle’s momentum comes as US regulation shifts. The company has benefited from the GENIUS Act signed under President Donald Trump’s administration. The law establishes a federal framework for payment stablecoins and clarifies oversight for issuers.

Fox-Geen said the GENIUS Act largely codified how Circle operates. He added that the legislation could accelerate institutional adoption of stablecoins.

At the same time, progress on the CLARITY Act, a broader crypto market structure bill, has stalled. Tensions between crypto advocates and banking groups have slowed movement, especially around stablecoin yield and reward mechanisms.

Even amid policy debates and market declines, Circle reported rising USDC circulation and expanding infrastructure initiatives. As regulated dollar-backed stablecoins gain traction, Circle remains active in shaping digital dollar infrastructure within the evolving financial system.

Conclusion

Circle posted stronger-than-expected fourth-quarter results as revenue rose 77% and profit topped forecasts. USDC adoption kept expanding, while new US stablecoin rules supported growth. The results show Circle is gaining ground as a key player in digital dollar payments.

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