second quarter of fiscal year 2026
Filed Aug 5, 2026Circle reported Q2 2026 total revenue and reserve income growth of 7%, with net income returning to $48 million as IPO-related stock-based compensation expense fell, while FY 2026 other-revenue and RLDC-margin guidance was raised.
Revenue and adjusted EBITDA grew, USDC circulation and transaction activity expanded, and FY 2026 other-revenue and RLDC-margin guidance was raised. Reserve-return-rate compression, lower stablecoin market share, a lower adjusted EBITDA margin, and management's reference to a slowed crypto market tempered the quarter.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total Revenue and Reserve Incomeother | $701 million | – | 7% |
| Reserve Incomeother | $668 million | – | 5% |
| Other Revenueother | $34 million | – | 41% |
| Total Distribution, Transaction and Other Costsother | $412 million | – | 1% |
| Revenue Less Distribution Costsother | $289 million | – | 15% |
| RLDC Marginother | 41% | – | 302bps |
| Operating Expensesother | $254 million | – | (56%) |
| Adjusted Operating Expensesnon-GAAP | $146 million | – | 23% |
| Net Income from Continuing OperationsGAAP | $48 million | – | n.m.; increased $530 million year-over-year |
| Net Income from Continuing Operations MarginGAAP | 7% | – | n.m. |
| Adjusted EBITDAnon-GAAP | $143 million | – | 8% |
| Adjusted EBITDA Marginnon-GAAP | 50% | – | (329bps) |
| USDC in Circulation, end of periodother | $73.3 billion | – | 19% |
| USDC in Circulation, average of periodother | $76.5 billion | – | 25% |
| Reserve Return Rateother | 3.5% | – | (66bps) |
| USDC on Platform, end of periodother | $12.4 billion | – | 106% |
| USDC on Platform, daily weighted average percentageother | 19.5% | – | 1,204bps |
| USDC onchain transaction volumeother | $14.8 trillion | – | 151% |
| USDC Mintedother | $83 billion | – | 97% |
| USDC Redeemedother | $87 billion | – | 113% |
| Stablecoin Market Share, end of periodother | 27% | – | (66bps) |
| Meaningful Wallets, end of periodother | 7.0 million | – | 24% |
| CPN annualized transaction volume for the trailing 30 days as of the end of Q2other | $14.7 billion | 76% | – |
| Financial institutions enrolled in CPNother | 175 financial institutions | 29% | – |
| Paid services on Agent Stackother | 900+ paid services | – | – |
| x402 agent-payment volume settling in USDCother | 99.3% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Reserve IncomePrimarily from the 25% growth in average USDC in Circulation, partially offset by a 66 bps decline in the Reserve Return Rate. | $668 million | – | 5% |
| Other RevenueGrowth in subscription and services revenue. | $34 million | – | 41% |
FY 2026 outlook
- Revenue$310-$330M
- Operating expenses$570-$585M
- NoteUSDC in Circulation: 40% CAGR, Multi-year through cycle
- NoteRLDC Margin: 41.7-43.7%
- NoteOther Revenue and RLDC Margin guidance includes recognized ARC Token presale revenue.
What drove it
- Average USDC in Circulation grew 25% year-over-year.
- USDC onchain transaction volume grew 151% year-over-year.
- Other Revenue growth came from subscription and services revenue.
- Total Distribution, Transaction and Other Costs increased mostly from increased distribution payments.
- Operating Expenses declined primarily due to lower stock-based compensation expense following the IPO in Q2 2025.
- Adjusted Operating Expenses increased from continued investment in product development, infrastructure, and AI capabilities.
- Circle received final approval from the U.S. Office of the Comptroller of the Currency to establish Circle National Trust.
- Arc public mainnet launch is scheduled for September 16.
Concerns
- Management cited the current rate environment and a crypto market that has slowed.
- Reserve Return Rate declined 66 bps year-over-year to 3.5%.
- Stablecoin Market Share declined 66 bps year-over-year to 27%.
- Adjusted EBITDA Margin declined 329 bps year-over-year to 50%.
- USDC redeemed grew 113% year-over-year, exceeding the 97% growth in USDC minted.
What to watch
- Arc's September 16 public mainnet launch and the announced product suite, including privacy capabilities, an agent stack, and support for tokenized real-world assets.
- Execution of integrations and development work with BlackRock, BNY, DTCC, and Standard Chartered.
- The effect of the Reserve Return Rate and USDC circulation on Reserve Income.
- CPN transaction-volume and financial-institution enrollment growth.
- FY 2026 delivery against revised Other Revenue guidance of $310-$330M and RLDC Margin guidance of 41.7-43.7%.
Analysis
Circle reported $701 million of total revenue and reserve income, up 7% year-over-year, while adjusted EBITDA increased 8% to $143 million. Revenue Less Distribution Costs rose 15% to $289 million and RLDC Margin increased 302bps to 41%. Net income from continuing operations was $48 million, with the company attributing the $530 million year-over-year increase to lower stock-based compensation expense following its IPO in Q2 2025.
Reserve Income remained the principal reported revenue category at $668 million, up 5%. The company said 25% growth in average USDC in circulation to $76.5 billion was partially offset by a 66 bps decline in Reserve Return Rate to 3.5%. Other Revenue rose 41% to $34 million on subscription and services growth. USDC activity was robust, with end-period circulation of $73.3 billion, onchain transaction volume of $14.8 trillion, and USDC on Platform of $12.4 billion.
The cost and margin picture was mixed. Total Distribution, Transaction and Other Costs increased 1% to $412 million, mostly from increased distribution payments. Reported Operating Expenses fell 56% to $254 million due primarily to lower IPO-related stock-based compensation expense, but Adjusted Operating Expenses rose 23% to $146 million as Circle invested in product development, infrastructure, and AI capabilities. Adjusted EBITDA Margin was 50%, down 329bps year-over-year, showing the effect of cost investment and the revenue mix despite RLDC Margin improvement.
Platform indicators showed expanding use alongside some competitive and market-rate pressure. Meaningful Wallets rose 24% to 7.0 million, while CPN reached $14.7 billion in annualized transaction volume for the trailing 30 days as of the end of Q2 and 175 enrolled financial institutions. However, Stablecoin Market Share was 27%, down 66bps year-over-year. Management also explicitly identified the current rate environment and a slowed crypto market as conditions affecting financial results.
Management raised FY 2026 Other Revenue guidance to $310-$330M from $150-$170M and raised FY 2026 RLDC Margin guidance to 41.7-43.7% from 38-40%, with both revised measures including recognized ARC Token presale revenue. The company maintained multi-year through-cycle USDC in Circulation guidance of 40% CAGR and FY 2026 Adjusted Operating Expenses guidance of $570-$585M. Operationally, the September 16 Arc public-mainnet launch, national trust-bank approval, and institutional integrations are the reported milestones that frame the second-half execution agenda.
Management, verbatim
Our quarterly financial results reflect the current rate environment and a crypto market that has slowed – both are conditions outside our network. But near-term activity tells a different story. We received our federal trust bank charter; Arc is launching on public mainnet September 16th; we launched the Agent Stack to put programmable money at the center of the agentic economy; and the institutions using USDC today, like BlackRock, BNY, and Standard Chartered aren't piloting, they are expanding,
Jeremy Allaire, Co-Founder, CEO, and Chairman at Circle
We have built the platform for the internet financial system – for traditional and digital finance, real-world assets, and the institutions that move the world's capital. That trust is earned, not assumed, and it took over a decade to build. We're only beginning to see what it unlocks.
Jeremy Allaire, Co-Founder, CEO, and Chairman at Circle
Not in the filing
stated, not guessed- Period-end date
- GAAP operating income
- GAAP and non-GAAP diluted EPS
- Gross margin
- Cash and cash equivalents
- Debt
- Operating cash flow
- Free cash flow
- Share repurchases
- Dividends
- Prior-quarter figures for reported financial and operating metrics
- Prior-year absolute figures for reported financial and operating metrics
- FY 2026 total revenue guidance
- FY 2026 tax-rate guidance
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.