Non-cash IPO expenses overshadow strong operating performance; Stablecoin giant ramps up partnerships, launches new blockchain
NEW YORK — August 12, 2025 — Circle Internet Group (NYSE: CRCL), the issuer of USD Coin (USDC), reported a 53% year-over-year jump in revenue and reserve income to $658 million in Q2 2025, its first earnings report since going public. USDC circulation hit $61.3 billion, up 90% from a year ago, as adoption expanded across both crypto-native and traditional finance sectors.
However, the company posted a net loss of $482 million, largely due to $591 million in non-cash IPO-related charges, including $424 million in stock-based compensation triggered by the IPO and $167 million from an increase in the fair value of convertible debt tied to Circle’s share price rise.
Key Takeaways — Circle Q2 2025
USDC in circulation: $61.3B (+90% YoY), $65.2B as of Aug. 10Total revenue & reserve income: $658M (+53% YoY)Reserve income: $634M (+50% YoY) despite lower interest ratesOther revenue: $24M (+252% YoY) from subscriptions and transactionsAdjusted EBITDA: $126M (+52% YoY) with a 50% marginNet loss: $482M, driven by IPO-related non-cash chargesCircle Payments Network launched, with 100+ financial institutions in pipelineArc blockchain unveiled, purpose-built for stablecoin financeGENIUS Act signed into law, setting U.S. federal framework for payment stablecoins
IPO Debut and Expansion Moves
Circle’s $1.2 billion IPO in June saw the company sell 19.9 million new shares at $31 each, raising $583 million in net proceeds. CEO Jeremy Allaire called the public debut “a pivotal moment” for both Circle and the broader stablecoin market, noting accelerating institutional interest.
In Q2, Circle launched the Circle Payments Network (CPN), enabling financial institutions to settle transactions in stablecoins. Partnerships expanded with Binance, Corpay, FIS, Fiserv, and OKX, integrating USDC into trading platforms, FX settlement systems, and digital banking infrastructure.
New Blockchain and Regulatory Wins
Circle also introduced Arc, an open Layer-1 blockchain designed for stablecoin finance. Arc promises sub-second settlement, integrated FX, and uses USDC as native gas. A public testnet is planned for later in 2025.
The quarter coincided with the passage of the GENIUS Act, creating the first U.S. federal regulatory regime for payment stablecoins. Circle says the law strengthens its position as the leading regulated issuer and affirms that USDC is not a security.
Outlook
Circle reaffirmed guidance for:
Multi-year USDC circulation growth: 40% CAGRFY 2025 other revenue: $75M–$85MAdjusted operating expenses: $475M–$490MRLDC margin: 36–38%
“We are seeing accelerating interest in building on stablecoins and partnering with Circle across every significant sector of the financial industry,” Allaire said. “This is an extraordinary moment for our company and industry.”
Related: USD Coin (USDC) July 2025 Market Report
FAQ: Circle Q2 2025 Earnings
1. Why did Circle report such a large net loss despite strong revenue growth?
The $482 million net loss was driven primarily by non-cash IPO-related charges totaling $591 million, including stock-based compensation from IPO-triggered vesting and an increase in convertible debt valuation due to share price gains.
2. How much is USDC in circulation now?
At the end of Q2, USDC circulation was $61.3 billion, up 90% year-over-year. As of August 10, 2025, it has grown further to $65.2 billion.
3. What is the Circle Payments Network (CPN)?
Launched in May 2025, CPN is a platform allowing financial institutions to settle payments using stablecoins, with over 100 institutions in the pipeline and multiple active corridors.
4. What is Arc and why is it significant?
Arc is Circle’s new open Layer-1 blockchain built for stablecoin finance. It supports sub-second settlement, integrated FX, privacy options, and uses USDC as native gas. It will launch in public testnet later this year.
5. What impact does the GENIUS Act have on Circle?
The GENIUS Act establishes a federal regulatory framework for payment stablecoins in the U.S., codifying many of Circle’s compliance practices and clarifying that USDC is not a security.