Circle Internet Financial (CRCL) reported first-quarter revenue of $694 million, missing the $721 million consensus estimate despite record network activity for its USDC stablecoin. USDC circulation climbed to $77 billion, up 28% year-over-year, and on-chain transaction volume surged 263% to $21.5 trillion. The revenue shortfall contributed to a 3% premarket decline in Circle’s stock.
Adjusted earnings per share reached $0.21, beating the $0.18 analyst forecast, but net income dropped 15% year-over-year to $55 million. The reserve return rate—a key driver of Circle’s revenue from USDC’s backing assets—fell to 3.5%, reflecting tighter spreads. The earnings report, Circle’s first since its confidential IPO filing in early 2025, highlighted rising operating costs and a slowing crypto trading environment. Robinhood, for instance, reported a 47% decline in crypto trading revenue for the same quarter.
Alongside the results, Circle announced its Agent Stack platform, a suite of tools for AI agents including wallets, a marketplace, and a nanopayments protocol supporting transactions as small as $0.000001. CEO Jeremy Allaire described the move as capitalizing on “the rapid convergence of AI platforms and economic operating systems.” Circle also raised $222 million in an ARC Token presale at a $3 billion fully diluted valuation, with backing from a16z, BlackRock, ARK Invest, and Apollo Funds.
Regulatory uncertainty remains a headwind. A U.S. stablecoin bill has stalled amid bank resistance to proposed yields for stablecoin holders, which could affect Circle’s revenue model. Circle maintained full-year guidance of $150–$170 million in other revenue and $570–$585 million in adjusted operating expenses, while reaffirming a multi-year target of 40% compound annual USDC supply growth.
