Circle Q3 Earnings & Revenues Beat Estimates, Shares Decline

Circle Internet Group CRCL shares have plunged 12.2% since the company reported third-quarter 2025 results on Nov. 12. The company reported third-quarter 2025 adjusted earnings of 64 cents per share, which beat the Zacks Consensus Estimate of 20 cents.

Circle reported total revenues and reserve income of $740 million, up 66% year over year. The top line beat the Zacks Consensus Estimate by 4.5%. 

Despite the strong results, the drop in CRCL’s share price indicates growing concerns over prospects. Shares of Circle Internet Group, Inc. have plunged 36.3% over the past month, underperforming the Zacks Finance Sector's return of 1.6%.

Circle Internet Group, Inc. Price, Consensus and EPS Surprise

Circle Internet Group, Inc. price-consensus-eps-surprise-chart | Circle Internet Group, Inc. Quote

CRCL’s Q3 Quarterly Details

Reserve Income accounted for 96.1% of revenues. The figure jumped 60% year over year to $711.2 million. Other revenues were $28.5 million compared with $0.5 million reported in the year-ago quarter.

USDC in circulation grew 108% year over year to $73.7 billion at quarter’s end. Average USDC in circulation jumped 97% year over year to $67.8 billion. Circle minted USDC worth $79.7 billion, up 128% year over year. The company redeemed USDC worth $67.3 billion, up 112%. Meaningful wallets, defined as wallets holding more than $10 of USDC, were up 77% year over year as USDC adoption continues to expand globally.

In the third quarter of 2025, USDC on-chain transaction volume grew 6.8 times year over year to nearly $9.6 trillion. 
CRCL’s revenues less distribution costs (RLDC) surged 55% year over year to $292 million. RLDC margin contracted 270 basis points (bps) year over year to 39%.  

Adjusted EBITDA surged 78% year over year to $166 million. Adjusted EBITDA margin expanded 737 bps year over year to 57%.

Circle’s Balance Sheet Details

As of Sept. 30, 2025, cash and cash equivalent balances were $1.35 billion, up from $1.12 billion as of June 30, 2025.

In June 2025, Circle completed its $1.2 billion initial public offering. Of the total offering of 39.1 million shares, Circle sold 19.9 million newly issued primary shares of Class A common stock at a price of $31 per share, which resulted in net proceeds of $583 million.

In August 2025, Circle completed a follow-on public offering of its Class A common stock, in which the Company issued and sold 3.5 million shares of its Class A common stock, at a public offering price of $130.00 per share, resulting in net proceeds to the Company of $444.8 million.

Circle Updates 2025 Guidance

Circle still expects USDC in circulation to see a CAGR of multi-year through the cycle of 40%. Other revenues are expected between $90 million and $100 million, up from prior guidance of $75-$85 million. 

For 2025, the RLDC margin is expected to be approximately 38% compared with the prior guidance of 36-38%. Adjusted operating expenses are expected to be between $495 million and $510 million, up from prior guidance of $475-$490 million.

Zacks Rank & Other Stocks to Consider

Currently, Circle carries a Zacks Rank #2 (Buy).

BitFuFu Inc. FUFU, Jefferies Financial Group JEF and NerdWallet, Inc. NRDS are some other top-ranked stocks that investors can consider in the Zacks Financial - Miscellaneous Services Industry. BitFuFu, Jefferies Financial Group and NerdWallet sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for BitFuFu Inc.’s full-year 2025 earnings is pegged at 24 cents per share, revised upward by 3 cents over the past 60 days and suggests a year-over-year decrease of 29.41%. BitFuFu shares have plunged 40.4% year to date.

The Zacks Consensus Estimate for Jefferies Financial Group’s full-year 2025 earnings has been revised upward by 16.3% over the past 60 days to $2.93 per share, suggesting a decrease of 4.3% year over year. Jefferies Financial Group shares have declined 24.2% year to date.

The Zacks Consensus Estimate for NerdWallet, Inc.’s full-year 2025 earnings has been revised upward to 58 cents per share from 47 cents per share over the past seven days, implying 680% year-over-year growth. NerdWallet shares have risen 9.7% year to date.

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This article originally published on Zacks Investment Research (zacks.com).

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