Key Takeaways
- Earnings Surprise: Circle (CRCL) reported a profit of $0.43 per share, nearly triple the analyst estimate of $0.16.
- Revenue Growth: Total revenue hit $770 million for the quarter, a 77% increase compared to the same time last year.
- Network Activity: The volume of transactions using USDC on blockchains reached a staggering $11.9 trillion in Q4 alone.
Why CRCL Stock Is Up Today: Q4 Earnings Beat Explained
Circle Internet Group (NYSE: CRCL) saw its shares jump over 15% in pre-market trading today after the company released a stellar fourth-quarter earnings report. Despite a rocky start to 2026 for the broader digital asset market, the issuer of the USDC stable coin proved that its business model is not just surviving, but thriving.
What Happened: A Record-Breaking Quarter
On February 25, 2026, Circle reported financial results that caught many on Wall Street by surprise. While experts expected the company to perform well, the actual numbers were significantly higher than predicted.
The company’s main product, USDC a digital dollar that stays at a $1 value saw its total supply in circulation grow to **$75.3 billion**. This growth is a key driver for Circle because the company earns interest on the safe, cash-like assets (like U.S. Treasuries) that back every USDC token in existence.
Circle’s (CRCL) Financial Performance at a Glance
| Metric | Q4 2025 Actual | Analyst Estimate | Growth (YoY) |
| Total Revenue | $770 Million | $745 Million | +77% |
| Earnings Per Share | $0.43 | $0.16 | +168% |
| USDC Circulation | $75.3 Billion | ~$74 Billion | +72% |
| Adjusted Profit (EBITDA) | $167 Million | – |
Why It Matters: Real-World Use Is Exploding
The 15% jump in stock price isn’t just about the money earned; it’s about how people are using the technology. Circle reported that on-chain transaction volume grew by 247% year-over-year.
This suggests that USDC is moving beyond just “crypto trading” and into real-world utility. Businesses and financial institutions are increasingly using these digital dollars for:
- Cross-border payments: Sending money instantly across the globe without high bank fees.
- Corporate Treasury: Companies holding digital dollars to earn yield or manage international payroll.
- App Development: Developers building new financial apps on Circle’s new “Arc” blockchain infrastructure.
”The fourth quarter marked another step forward in Circle’s mission to build the infrastructure for an open, internet financial system,” said Jeremy Allaire, CEO of Circle.
Market Reaction: Why the Stock Soared
Before this report, Circle’s stock (CRCL) had been under pressure. Since its debut on the New York Stock Exchange in June 2025, the stock had fallen from its initial highs, tracking the general dip in the crypto market.
However, today’s “beat and raise” (beating estimates and raising future expectations) changed the narrative. Investors were particularly impressed by the Adjusted EBITDA margin, which hit 54% in Q4. This shows that as Circle grows, it is becoming much more efficient at turning revenue into actual profit.
What’s Next: What to Watch in 2026
The circle isn’t slowing down. Along with the earnings beat, management provided a confident outlook for the rest of the year.
- Mainnet Launch for Arc: Circle enterprise blockchain, “Arc,” is expected to move out of testing and launch fully later this year.
- Growth Guidance: The company is targeting a 40% yearly growth rate for USDC circulation over the next several years.
- New Revenue Streams: While most money currently comes from interest, Circle is expanding its “Payments Network” to earn more from service fees and subscriptions.
Frequently Asked Questions (FAQ)
Is Circle a crypto exchange?
No. Circle is a financial technology firm that issues USDC, a digital stablecoin. Unlike an exchange where you buy and sell different coins, Circle provides the “plumbing” for digital dollars.
Why did the stock jump if Bitcoin is down?
Circle earns money from the interest on its reserves and transaction fees, which is less dependent on the price of Bitcoin and more dependent on how many people are using digital dollars.
What is the “GENIUS Act” mentioned in reports?
Passed in 2025, the GENIUS Act provided a clear legal framework in the U.S. for stablecoins, making it safer for big banks and companies to use Circle’s products.
Does Circle pay a dividend?
Currently, it does not pay a dividend. It reinvests its profits into growing its technology and network.
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