10-K · July 13, 2026
Circle Internet Group, Inc. demonstrated strong revenue performance with Q1 2026 revenue of $694 million, although it fell short of the expected $715 million. The company reported a notable EPS of $0.21 against…
Earnings analysis · 10-Q
CRCL earnings analysis
Filed November 4, 2026 · Our reading of the company's report
The latest report
Circle delivered strong third-quarter operating momentum, with revenue up 16.9% to $864.9 million, operating margin improving to 24.1%, and diluted EPS rising to $0.84 from $0.64. Growth was supported by a $181.8…
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Circle delivered strong third-quarter operating momentum, with revenue up 16.9% to $864.9 million, operating margin improving to 24.1%, and diluted EPS rising to $0.84 from $0.64. Growth was supported by a $181.8 million ARC token presale contribution, higher USDC activity, and lower distribution costs, although reserve income fell 7.5% as yields declined. Liquidity and operating cash generation were robust, but lower interest rates, declining stablecoin market share, rising investment requirements, and new regulatory obligations remain important risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.84
What stood out
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Revenue and operating leverage accelerated
Third-quarter revenue and reserve income increased 16.9% year over year to $864.9 million from $739.8 million. Operating income rose 157.1% to $208.3 million, producing a 24.1% operating margin versus approximately 11.0% in the prior-year quarter.
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Diluted EPS increased 31%
Diluted EPS increased to $0.84 from $0.64 year over year, while net income from continuing operations rose 5.4% to $226.0 million from $214.4 million.
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ARC presale drove other revenue
Other revenue increased 626.8% to $207.3 million, driven primarily by $181.8 million of ARC token presale revenue recognized in the quarter.
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USDC activity continued to expand
Average USDC in circulation increased 8.0% year over year to $73.3 billion, and USDC onchain transaction volume grew 49% to $13.9 trillion.
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Adjusted EBITDA and RLDC margin improved
Adjusted EBITDA increased 90% year over year to $316.7 million from $166.5 million. Revenue less distribution costs increased to $453 million from $292 million, and RLDC margin improved to 52% from 39%.
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Operating cash flow strengthened
Operating cash flow for the first nine months was $523.0 million versus $293.0 million in the prior-year period. Capitalized internally developed software and purchases of long-lived assets totaled $87.9 million, implying approximately $435.0 million of cash flow after those investments, although the company does not label this measure free cash flow.
What to watch
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Lower rates pressured reserve income
Reserve income declined 7.5% to $657.6 million as the reserve return rate fell to 3.5% from 4.2%. Management attributed approximately $106.5 million of the year-over-year decline to a 61-basis-point reduction in average yields following Federal Reserve rate actions.
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Stablecoin market share declined
Stablecoin market share declined to 27% from 29% year over year, despite USDC onchain transaction volume increasing 49% to $13.9 trillion. Competitive pressure could limit USDC growth and reserve income expansion.
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Investment needs are rising
The company expects capital expenditures and working-capital requirements to increase in the immediate future. Capitalized internally developed software was $57.5 million and purchases of long-lived assets were $30.4 million during the first nine months.
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Workforce reduction adds execution risk
The company completed a workforce reduction of approximately 5%, recording $9.1 million of restructuring expenses in the first nine months and $9.1 million in the third quarter reconciliation. Execution risk remains as Circle expands Arc and related products.
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Reserve deposits have limited insurance
USDC reserves included $9.7 billion of cash held at banks, which significantly exceeded the $250,000 FDIC insurance limit per financial institution; aggregate FDIC insurance was only $2.3 million across nine institutions. The related stablecoin-holder liabilities are not FDIC insured.
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EU supervisory requirements increase
Effective November 12, 2026, USDC in the European Union will be subject to dual supervision under MiCA after classification as a significant e-money token. The company states this could require additional capital or liquidity and increase compliance costs, but the financial impact is not yet quantified.
Management's outlook
The 10-Q does not provide explicit numeric revenue or EPS guidance. Management states that capital expenditures and working-capital requirements are expected to increase in the immediate future and that liquidity is expected to be sufficient for at least 12 months from the filing date.
Earlier filings 4
10-Q · May 11, 2026
Circle Internet Group, Inc. reported a quarterly revenue of $694 million for Q1 2026, reflecting a 20% year-over-year increase, though it was slightly below analyst expectations of $714.9 million. EPS was reported at…
10-K · March 9, 2026
Circle positions itself as a full‑stack internet financial platform anchored by its payment stablecoins and a three‑pillar roadmap: Arc Layer‑1 blockchain, Circle Digital Assets & Liquidity Services (USDC, EURC, USYC),…
10-Q · August 12, 2025
Circle reported strong top-line growth as revenue rose to $658.1M in Q2 2025 from $430.0M a year ago (+~53%), driven by reserve income of $634.3M. Profitability deteriorated materially: operating loss was $(325.6)M and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.