Key facts
- Circle reported $701 million in Q2 revenue, missing Wall Street estimates of $713 million.
- The company's revenue and reserve income grew 7% year-over-year.
- Net income from continuing operations was $48 million, a significant increase from the previous year.
- Average USDC circulation increased 25% year-over-year, boosting reserve income.
- Circle raised its full-year guidance for other revenue, including Arc token presale revenue.
- The overall stablecoin market experienced a slight decline in supply during the quarter.
Circle reported $701 million in revenue for the second quarter of fiscal year 2026, narrowly missing preliminary Wall Street estimates of $713 million. The company's total revenue and reserve income increased by 7% year-over-year, driven by a 25% rise in average USDC circulation. Net income from continuing operations saw a significant jump of $530 million year-over-year to $48 million.
Despite the revenue miss, Circle raised its guidance for other revenue for the current fiscal year to a range of $310 million to $330 million, which includes revenue from the Arc token presale. The company also revealed the founding validator cohort for its upcoming Arc blockchain, set to launch on September 16, which includes major institutions like BlackRock and Visa.
The results were released amidst a broader slump in the stablecoin market, with total stablecoin supply falling to $153 billion on June 30. However, Circle's USDC remains a dominant stablecoin for on-chain settlement, driving a substantial portion of adjusted onchain transfer volume. Circle earns revenue by investing its reserves in low-risk assets like U.S. treasuries and deposits.