Circle Internet Group (CRCL) reported a significant fourth-quarter earnings beat on Wednesday, sending its stock soaring 13% in premarket trading to $69.36. The company posted earnings per share (EPS) of $0.43, dramatically exceeding Wall Street's estimate of $0.16. Total revenue and reserve income reached $770 million, marking a 77% year-over-year increase and surpassing analyst consensus estimates of $747.4 million.
The core driver of this performance was the substantial growth of its USDC stablecoin. USDC circulation grew 72% year-over-year to $75.3 billion in Q4, which in turn propelled reserve income to $733 million for the period. Circle's business model involves issuing USDC and investing the backing cash into low-risk assets like U.S. Treasuries, retaining the yield. "More enterprises, developers, and public institutions integrated digital dollars into real world payments, treasury, and onchain financial workflows," said CEO Jeremy Allaire, highlighting expanding global adoption as a key growth factor.
Adjusted EBITDA for the quarter hit $167 million, a staggering 412% increase from the previous year, with a 54% margin. The company also benefited from regulatory tailwinds, including the GENIUS Act signed into law last year, which created a federal framework for dollar-pegged stablecoins. During Q4, Circle received preliminary approval to establish a national trust bank charter, which could further integrate USDC into traditional banking infrastructure.
Despite the strong quarterly results and premarket surge to as high as $71.17, the stock remains well off its all-time high of $263.45 reached in June 2025, having fallen roughly 77% from that peak. Prior to the earnings announcement, CRCL was already down 23% for the year.
