Circle Internet Group Q1 2026 Earnings: Stablecoin Usage Surges as Costs Weigh on Profit

May 11, 2026 · Published August 7, 2026

Circle posted $0.21 per share as USDC circulation and transaction volume grew sharply, though rising costs cut into net income and trailing-year profitability stayed negative.

Figures as reported by the company to the SEC for the quarter ended March 31, 2026. Analyst estimates are not part of a filing, so no comparison to expectations is shown.

Key takeaways

• Total revenue and reserve income — which includes interest earned on the reserves that back USDC — rose 20% year-over-year to $694 million, driven mainly by continued growth in the amount of USDC in circulation.
• USDC in circulation grew 28% to $77.0 billion, and the total value of transactions moved onchain using USDC jumped 263% to $21.5 trillion, a sign that use of Circle’s stablecoin is expanding well beyond simply being held.
• “Other revenue” — money Circle earns from subscriptions, services, and transaction fees rather than reserve interest — came in at roughly $41.6 million, up from the prior year as these newer business lines continue to scale.
• Net income from continuing operations fell 15% year-over-year to $55 million even as revenue grew, while adjusted EBITDA (operating profit before certain non-cash and one-time items) rose 24% to $151 million, indicating rising costs are weighing on bottom-line profit even as the underlying business expands.
• Looking at the trailing twelve months, the company’s net margin was negative (about -2.8%), reflecting losses recorded in earlier quarters; the March-quarter profit of $0.21 per share was a positive contributor within that longer window rather than a full turnaround.
• Management raised its outlook for the rest of 2026, guiding to “other revenue” of $150 million to $170 million, a reserve-related margin of 38% to 40%, and adjusted operating expenses of $570 million to $585 million.
• In April, Circle launched “Managed Payments,” letting banks and other financial institutions offer stablecoin-based payments without directly holding or managing digital assets themselves, part of a broader push into payments infrastructure.
• Circle also completed a presale of a new token called Arc, raising $222 million from investors including BlackRock, a16z, ARK Invest and Intercontinental Exchange at a $3 billion valuation — an early-stage initiative separate from the core USDC business.

Q1 2026 in context

Figures for the quarter ended Mar 2026 and the quarter ended Mar 2025, as reported to the SEC.

How the stock took it

Circle Internet Group Inc closed at $113.67 on May 8, 2026, the last session before the report, and at $123.65 on May 12, 2026, the first session after it — +8.8% across the report.

Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.

Financial history →

Sources: company report · AllInvestView · Yahoo Finance