Circle Internet Group

Q2 revenue and reserve income was $701 million, up 7% year over year. Adjusted EBITDA was $143 million, up 8% year over year, with adjusted EBITDA margin at 50%. Revenue less distribution cost margin was 41.2%, up 3 percentage points year over year, while adjusted operating expenses were $146 million, up 23% year over year. USDC circulation ended the quarter at $73.3 billion, up 19% year over year, and average USDC circulation was $76.5 billion. Management raised 2026 other revenue guidance to $310 million-$330 million from $150 million-$170 million, and full-year RLDC margin guidance to 41.7%-43.7% from 38%-40%. Adjusted operating expense guidance remained $570 million-$585 million, with expectations to land at the higher end.

Jeremy Allaire framed the quarter as evidence that Circle is in a leadership position as digital dollars and regulated stablecoins gain traction globally. He emphasized Circle’s moat around trust, liquidity, regulation, and network scale, pointing to renewed Coinbase terms, the OCC trust bank charter, and the upcoming Arc Mainnet launch on September 16. His tone was highly confident and expansive, with a strong focus on Circle as infrastructure for payments, capital markets, and the emerging agentic economy.

Jeremy Fox-Geen highlighted resilient USDC circulation despite a roughly 40% decline in broader digital asset market capitalization, saying USDC circulation still grew 19% year over year. He cited a 3.48% reserve return rate, down 66 basis points year over year, and said total revenue and reserve income reached $701 million, with revenue less distribution cost margin at 41.2% and adjusted EBITDA at $143 million. He also noted that adjusted operating expenses were $146 million, driven by product development, go-to-market, AI, and Arc marketing spend, and said the company is keeping the expense guide at $570 million-$585 million while expecting to land near the top end.

Analysts pressed on the CLARITY Act delay, and management said the bill is still being actively negotiated, with bipartisan support but timing uncertain; they stressed that the GENIUS Act is the more critical piece for Circle and is expected to become effective in January 2027. Questions also focused on competition and distribution economics, including consortium stablecoin efforts and Hyperliquid; management argued Circle already has broad partner incentives, strong network effects, and the flexibility to work with Coinbase and other partners when it helps grow USDC. On Arc, management said the token presale and Mainnet launch are central to the raised other revenue guide, while also explaining that some revenue remains lumpy because of blockchain partnership timing and that CPN monetization should begin in the second half of the year.