Circle Reports 53% Revenue Surge, Stock Jumps Over 6% Post-IPO

Circle Internet Group reported a strong second quarter with revenue rising 53% year-over-year to $658.1 million, driven by a 90% increase in USDC stablecoin circulation to $61.3 billion. Despite the revenue growth, the company posted a $482.1 million net loss primarily due to non-cash IPO-related charges, including stock-based compensation and convertible debt adjustments. Since its June IPO, Circle's stock has surged over 400%, fueled by accelerating adoption of stablecoins, favorable U.S. legislation such as the GENIUS Act providing regulatory clarity, and growing institutional interest. Circle projects USDC circulation to grow at a 40% compound annual rate over multiple years and expects adjusted operating expenses between $475 million and $490 million in 2025. The company generates most of its revenue from interest income on short-term U.S. Treasury bills backing USDC, with this reserve income growing substantially in recent years. While some analysts warn of rising distribution costs and increasing competition from banks and fintechs launching stablecoin products, others view Circle as a leading pure-play stablecoin investment benefiting from the expanding digital payments ecosystem.