Circle Beats Q2 Profit Estimates But Revenue Growth Slows Sharply

Circle Internet Group posted Q2 earnings of $0.18 per share, topping the $0.16 consensus, while revenue of $701.3 million came in below estimates. Shares climbed about 9% in pre-market trading Wednesday, trading near $69.

Sequential Numbers Show Slower Growth

While revenue grew 7% from a year earlier, that pace was 20% just one quarter prior. Compared with the March quarter’s $694 million, revenue barely moved. Adjusted EBITDA slipped to $143 million from $151 million, and EPS fell from $0.21 in Q1.

USDC Circulation Rises Yearly But Dips From March

USDC circulation reached $73.3 billion, up 19% year-over-year but down from $77.0 billion at the end of the first quarter.

Arc Blockchain Set To Launch In September

Circle’s Arc mainnet opens September 16, with BlackRock, Visa, Mastercard, DTCC and Intercontinental Exchange serving as founding validators. Arc processed 502 million transactions this quarter, while Circle Payments Network volume rose to $14.7 billion from $8.3 billion in March. Circle also secured a national trust charter from the OCC on July 10, followed by a New York state trust charter.

Analysts Flag Cost Pressures And Competition

Mizuho downgraded Circle to underperform, and JPMorgan trimmed estimates, pointing to distribution costs of $407 million against $653 million in reserve income. Rival stablecoin Open USD launched in June backed by Visa and Coinbase, though Circle says USDC still held close to 70% of June stablecoin transaction volume.

Stock Still Down For The Year

CRCL remains down 20.2% in 2026 even after the earnings pop. Analysts expect $773.7 million in third-quarter revenue, a jump that hinges heavily on Arc’s September launch.