USDC Ecosystem Expansion
USDC in circulation grew 19% year-over-year to $73.3 billion, while onchain transaction volume surged 151% to $14.8 trillion, reflecting strong adoption and utility of the stablecoin.
Source: 10-Q Item 2 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
For the second quarter of fiscal year 2026, Circle's performance was anchored by strong USDC ecosystem expansion, as circulation rose 19% year-over-year to $73.3 billion and onchain transaction volume surged 151%. These drivers underpinned a return to net profitability, though distribution costs remained elevated at over $324 million for the quarter, limiting margin expansion. Looking ahead, the planned mainnet launch of the Arc blockchain in September 2026 and the private token sale raising $242 million signal increased capital investment, but profitability remains sensitive to interest rate movements and distributor relationships.
Revenue
$701.32M
+6.57% YoY
EPS (Diluted)
$0.18
+104.02% YoY
Operating Income
$34.36M
+110.55% YoY
Source: SEC XBRL
Circle Internet Group (CRCL) reported Q2 FY2026 revenue of $701.32M, up 6.6% year over year. Operating margin was 4.9%, against -49.5% a year earlier. CRCL's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Mar 2026 | 0.21 | 0.20 | Beat +4.7% |
| Dec 2025 | 0.36 | 0.25 | Beat +43.4% |
| Sep 2025 | 0.20 | 0.23 | Miss -12.2% |
| Jun 2025 | 1.02 | -0.71 | Beat +244.3% |
Compiled by AI from 10-Q Item 2 of this filing
USDC in circulation grew 19% year-over-year to $73.3 billion, while onchain transaction volume surged 151% to $14.8 trillion, reflecting strong adoption and utility of the stablecoin.
Source: 10-Q Item 2 MD&A
Net income swung from a loss of $482 million in the prior year to a profit of $48 million, aided by a 7% increase in total revenue and reserve income; Adjusted EBITDA rose 14% to $143 million.
Source: 10-Q Item 2 MD&A
The Arc blockchain is expected to launch on mainnet in September 2026, following a private mainnet launch in May 2026 with over 100 partners, signaling progress in onchain financial infrastructure.
Source: 10-Q Item 2 MD&A
Circle entered token purchase agreements to sell 807.5 million ARC Tokens at $0.30 per token, raising $242.2 million and implying a fully diluted network valuation of $3 billion, with proceeds contingent on transition to proof-of-stake.
Source: 10-Q Item 2 MD&A
Reserve income accounted for 95.2% of total revenue, though the reserve return rate declined to 3.5% from 4.1% a year earlier, highlighting sensitivity to interest rate changes.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 3 high, 2 medium, 0 low
Circle's increasing use of AI in its operations and products exposes it to potential regulatory scrutiny, litigation, ethical concerns, and cybersecurity threats; AI systems may produce incorrect or biased outputs that could harm reputation and results.
Source: 10-Q Item 1A
A substantial majority of revenue comes from reserve income, which is tied to prevailing interest rates; a decline in rates could materially reduce income even if USDC circulation grows, and the relationship between rates and circulation is uncertain.
Source: 10-Q Item 2 MD&A
Circle relies heavily on strategic partners like Coinbase and Binance to distribute USDC, incurring significant distribution costs; changes in partner relationships or payment terms could adversely affect profitability.
Source: 10-Q Item 2 MD&A
The regulatory environment for stablecoins is rapidly evolving; new laws or regulations could impose compliance burdens, limit operations, or reduce demand for Circle's products, and the company must continually invest in legal and compliance resources.
Source: 10-Q Item 2 MD&A
Circle's growth depends on continued adoption of USDC; intense competition, market share losses, or failure to expand use cases could slow revenue growth, and its stablecoin market share slightly decreased from 28% to 27% year-over-year.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $M | 701.32 $M | 658.08 $M | +6.57% |
Operating Income $M | 34.36 $M | -325.58 $M | +110.55% |
Net Income $M | 48.22 $M | -482.10 $M | +110.00% |
EPS (Basic) $ | 0.19 $ | -4.48 $ | +104.24% |
EPS (Diluted) $ | 0.18 $ | -4.48 $ | +104.02% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
CRCL reported Q1 2026 revenue of $694.1M (+20.0% YoY) but saw operating income fall 51.6% to $45.0M as cost pressures compressed margins, while stockholders' equity surged 360% to $3.43B following significant financing activity.
CRCL reported a 63.9% revenue surge to $2.75B in FY2025, but swung to a net loss of $69.5M from a prior-year profit of $155.7M, as operating costs outpaced growth and operating margin collapsed from +10.0% to -3.5%.