Crypto’s Payments Giant Swings To Q4 Profit As USDC Volume Surges – But Full-Year Loss Hits $70M

Circle beat earnings estimates and saw its stock jump over 15% pre-market after reporting a strong Q4.

• Circle reported fourth-quarter earnings of $133 million in net income from continuing operations.
• USDC, issued by Circle, in circulation reached $75.3 billion at year-end.
• The fourth-quarter on-chain transaction volume for USDC rose 247% year over year to $11.9 trillion.

Stablecoin issuer Circle Internet Group (CRCL) delivered a stronger-than-expected fourth quarter as USDC circulation and transaction volumes surged. But despite the upbeat quarter, it ended its fiscal year 2025 with a $70 million net loss.

In the fourth quarter, Circle, a leading global financial platform, reported $770 million in revenue and net income from continuing operations of $133 million, compared with $4.4 million in 2024. Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose 412% year-over-year to $167 million, reflecting higher reserve income tied to USD Coin (USDC) growth.

For 2025, Circle reported $2.7 billion in total revenue and reserve income, up 64% from the previous year. The company posted a net loss from continuing operations of $70 million, compared with net income of $157 million in 2024. Circle said the full-year results were significantly impacted by $424 million in stock-based compensation related to vesting conditions met upon its IPO.

Circle Internet Group (CRCL) traded up 20.55% in pre-market hours, following the earnings announcement. On Stocktwits, it was the top trending ticker at the time of writing. The retail sentiment around CRCL moved from ‘bearish’ to ‘bullish,’ as chatter levels around it improved from ‘normal’ to ‘extremely high’ over the past day. 

Circle Beats Forecasts As USDC Circulation Surges

Ahead of the release, the Zacks Consensus Estimate estimated fourth-quarter revenue of $748.62 million and earnings of 15 cents per share. However, Circle reported revenue of $770 million and diluted earnings per share of $0.43, exceeding those estimates.

USDC in circulation, Circle’s US dollar-pegged stablecoin, stood at $75.3 billion at year-end, up 72% year-over-year, while USDC on-chain transaction volume reached $11.9 trillion in the fourth quarter, up 247% from a year earlier.

“The fourth quarter marked another step forward in Circle’s mission to build the infrastructure for an open, programmable internet financial system,” said Jeremy Allaire, CEO at Circle, in the earnings report. 

“USDC adoption continued to expand globally as more enterprises, developers, and public institutions integrated digital dollars into real-world payments, treasury, and on-chain financial workflows. We saw strong engagement across our platform, meaningful progress toward launching Arc mainnet, continued growth in CPN TPV, and growing momentum for EURC and USYC.”

Payments Expansion And Polymarket Partnership

Circle also highlighted platform developments during the quarter. The company said its Circle Payments Network (CPN) expanded to 55 enrolled financial institutions, with additional firms under review.

In addition, Circle announced a partnership with Polymarket, the world’s largest prediction market, earlier last month, to advance the use of USDC as the core collateral and settlement asset for its markets.

The company reiterated its multi-year outlook for USDC in circulation growth and provided 2026 guidance, including projected revenue from other services and adjusted operating expense expectations.

Earlier this month, Morgan Stanley initiated coverage of Circle with an “Equalweight” rating and a $66 price target. The investment bank said that an uncertain regulatory pathway, use cases still primarily tied to crypto, and share volatility could act as barriers discouraging deeper investor participation in the stock.

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