Circle Reports Fourth Quarter and Full Fiscal Year 2025 Financial Results
Key Terms
adjusted EBITDA financial
stock-based compensation financial
convertible debt financial
Layer-1 blockchain technical
stablecoin financial
CAGR financial
Fourth Quarter Highlights (Q4’25 vs. Q4’24)
-
USDC in circulation of
$75.3 billion 72% ; USDC onchain transaction volume in Q4’25 of$11.9 trillion 247% -
Total revenue and reserve income in Q4’25 of
$770 million 77% -
Net Income from continuing operations in Q4’25 of
$133 million $129 million -
Adjusted EBITDA in Q4’25 of
$167 million 412%
Full Year Financial Highlights (FY25 vs. FY24)
-
Total revenue and reserve income in FY25 of
$2.7 billion 64% -
Net Loss from continuing operations in FY25 of
$70 million $424 million $157 million -
Adjusted EBITDA in FY25 of
$582 million 104%
Business Highlights
-
Arc: Public testnet launched with 100+ participants spanning banking, capital markets, digital assets, payments, and technology. Testnet is performing strongly with near
100% uptime, half second transaction finality, and daily average transaction volumes of 2.3 million based on the trailing 30 days as of February 20, 2026. Total transactions have exceeded 166 million since testnet launch. Arc remains on track for mainnet launch this year. -
Circle Payments Network (CPN) Expansion: 55 financial institutions enrolled and 74 going through eligibility reviews as of February 20, 2026. Activity has continued to grow with annualized transaction volume based on the trailing 30 day activity of
$5.7 billion -
Digital assets growth: EURC in circulation of
€310 million at year end grew284% year-over-year and44% quarter-over-quarter; USYC assets of$1.5 billion 6% year-over-year but grew111% quarter-over-quarter, following our relaunch of USYC in early Q3’25. -
Continued Momentum: Major enterprises continue adopting Circle’s infrastructure to enable safe, compliant use of stablecoins.
-
Visa announced that
U.S. issuers and acquirers can fully settle with Visa using USDC, enabling continuous settlement outside of traditional banking hours. - Intuit launched a multi-year strategic partnership to integrate USDC and Circle’s supporting infrastructure across its platform.
- We partnered with Polymarket, the largest prediction market in the world, to advance its use of USDC as the core collateral and settlement asset for their markets.
-
The Government of
Bermuda announced plans to become the world’s first fully onchain national economy supported by Circle’s digital asset infrastructure.
-
Visa announced that
- National trust charter: In December, Circle received conditional approval from the Office of the Comptroller of the Currency to establish a national trust bank, further strengthening USDC infrastructure.
“The fourth quarter marked another step forward in Circle’s mission to build the infrastructure for an open, programmable internet financial system,” said Jeremy Allaire, Co-Founder, Chief Executive Officer, and Chairman at Circle. “USDC adoption continued to expand globally as more enterprises, developers, and public institutions integrated digital dollars into real-world payments, treasury, and onchain financial workflows. We saw strong engagement across our platform, meaningful progress toward launching Arc mainnet, continued growth in CPN TPV, and growing momentum for EURC and USYC. With increasing collaboration across traditional finance, fintech, and the public sector, Circle is helping build the infrastructure for a more open and resilient global financial system.”
Key Financial Results and Operating Indicators
The following table presents our key results and operating indicators, as well as the relevant GAAP measures, for the periods indicated:
Key Financial Results |
Q4
|
YoY
|
FY
|
YoY
|
($ in millions unless noted otherwise) |
|
|
|
|
Total Revenue and Reserve Income |
|
|
|
|
Revenue Less Distribution Costs(1) |
|
|
|
|
RLDC Margin(2) |
|
1,004bps |
|
12bps |
Net Income (loss) from Continuing Operations |
|
NM |
( |
NM |
Net Income (loss) from Continuing Operations Margin(3) |
|
NM |
( |
NM |
Adjusted EBITDA(4) |
|
|
|
|
Adjusted EBITDA Margin(4) |
|
NM |
|
NM |
|
|
|
|
|
Key Operating Indicators |
Q4
|
YoY
|
FY
|
YoY
|
($ in billions unless noted otherwise) |
|
|
|
|
USDC in Circulation, end of period |
|
|
|
|
USDC in Circulation, average of period |
|
|
|
|
Reserve Return Rate |
|
(68bps) |
|
(90bps) |
USDC on Platform, end of period |
|
|
|
|
USDC on Platform, daily weighted average percentage |
|
1,529bps |
|
899bps |
NM = Not Meaningful. |
||
| (1) | Revenue Less Distribution Costs (RLDC) is calculated as Total Revenue and Reserve Income less Total Distribution, Transaction and Other Costs. |
|
| (2) | RLDC Margin is calculated as Total Revenue and Reserve Income less Total Distribution, Transaction and Other Costs as a percentage of Total Revenue and Reserve Income. |
|
| (3) | Net Income (loss) from Continuing Operations Margin is calculated as Net Income (loss) from Continuing Operations / Total Revenue and Reserve Income. |
|
| (4) | Refer to Non-GAAP Financial Measures for further details and a reconciliation of the GAAP to non-GAAP measures presented. Adjusted EBITDA Margin is calculated as Adjusted EBITDA / Total Revenue and Reserve Income less Total Distribution, Transaction and Other Costs. |
|
Fourth Quarter 2025 Financial Highlights and Operating Results
-
Reserve Income of
$733 million 69% year-over-year, primarily from100% growth in average USDC in circulation, partially offset by a 68 bps decline in the reserve return rate. -
Other Revenue of
$37 million $34 million -
Total Distribution, Transaction and Other Costs of
$461 million 52% year-over-year, due to increased distribution payments. Distribution costs in the prior year period included the previously disclosed one-time fee to a distribution partner of$60 million -
Operating Expenses of
$254 million 95% year-over-year, primarily driven by higher compensation expenses and general and administrative costs. The year-over-year comparison was impacted by a$48 million $23 million -
Adjusted Operating Expenses of
$144 million 32% year-over-year, primarily driven by higher cash compensation expenses, payroll tax expenses related to stock-based compensation which did not exist in the prior year period, as well as higher general and administrative expenses. -
Net Income from continuing operations of
$133 million $129 million $85 million $75 million -
Adjusted EBITDA of
$167 million 412% year-over-year reflecting the revenue growth from higher USDC in circulation and the operating leverage inherent in our business model. The prior year period included the one-time distribution cost.
Other Platform Metrics
|
Q4
|
YoY
|
FY
|
YoY
|
(USDC related figures in $ billions; meaningful wallets in millions) |
|
|
|
|
USDC Minted |
|
|
|
|
USDC Redeemed |
|
|
|
|
Stablecoin Market Share, end of period(1) |
|
426bps |
|
426bps |
Meaningful Wallets, end of period(2) |
6.8 |
|
6.8 |
|
| (1) |
Defined as the amount of USDC in circulation as a percentage of USD-denominated fiat-backed stablecoins in circulation above |
|
| (2) |
Onchain digital asset wallets that hold more than |
|
Guidance
To give investors insight into our business and expectations, management is providing guidance on the following key performance indicators.
Key Indicator |
Period |
Guidance |
USDC in Circulation |
Multi-year through cycle |
|
Other Revenue |
FY 2026 |
|
RLDC Margin(1) |
FY 2026 |
38 |
Adjusted Operating Expenses(2) |
FY 2026 |
|
| (1) | RLDC Margin is calculated as Total Revenue and Reserve Income less Total Distribution, Transaction and Other Costs as a percentage of Total Revenue and Reserve Income. |
|
| (2) |
Refer to Non-GAAP Financial Measures for further details and a reconciliation of the GAAP to non-GAAP measures presented. Beginning in the first quarter of 2026, we have amended the definition of Adjusted Operating Expenses to exclude (a) payroll tax expense related to stock-based compensation, because these taxes are directly related to stock-based compensation expense which is already excluded from Adjusted Operating Expenses and these taxes are variable with our stock price and other factors outside of our control (which will also be reflected in Adjusted EBITDA), as well as (b) certain one-time legal expenses, acquisition-related costs, and where relevant, restructuring expenses, as they reflect the same adjustments as in Adjusted EBITDA. For FY25, payroll tax expense related to stock-based compensation totaled |
Conference Call and Livestream Information
Circle will host a conference call to discuss the results for the fourth quarter and full fiscal year 2025 on February 25, 2026 at 8:00 am ET. Circle’s Investor Relations website at https://investor.circle.com will provide access to the live webcast, as well as a replay of the call and transcript shortly following earnings.
In addition to filings with the Securities and Exchange Commission, Circle uses its Investor Relations website (https://investor.circle.com), its blog (https://www.circle.com/blog), press releases (https://www.circle.com/pressroom), public conference calls and webcasts, its X feed (https://x.com/circle), and its Linkedin page (https://www.linkedin.com/company/circle-internet-financial) as a means of disclosing material nonpublic information, announcing upcoming investor conferences and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor these sites in addition to following Circle’s SEC filings.
Forward-Looking Statements
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. These statements include, but are not limited to, statements regarding our future operating results and financial position, including our guidance for the year ending December 31, 2026; our plans with respect to the anticipated future expenses and investments; expectations relating to certain of our key financial and operating metrics; our business strategy and plans; expectations relating to legal and regulatory proceedings; expectations relating to our industry, the regulatory environment, market conditions, trends and growth; expectations relating to customer behaviors and preferences; our market position; potential market opportunities; and our objectives for future operations. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on management’s expectations, assumptions, and projections based on information available at the time the statements were made. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including, but not limited to: intense and increasing competition; periods of uncertainty, loss of trust, or systemic shocks resulting in the potential for rapid redemption request, redemption delays and USDC reserves being insufficient to meet all redemption requests; operational challenges and risks related to the new innovation of digital assets and the blockchains that support them, including due to surges in demand; impact of disruptions in secondary marketplaces that facilitate the purchase and sale of digital assets; negative developments regarding other stablecoins that could adversely affect our business; impact of negative publicity regarding digital assets or the broader industry; impact of the GENIUS Act on our payment stablecoin ecosystem; impact of other laws and regulations, including the
About Circle Internet Group, Inc.
Circle (NYSE: CRCL) is one of the world’s leading internet financial platform companies, building the foundation of a more open, global economy through programmable blockchain infrastructure, digital assets, and payment applications. Circle’s platform includes the world’s largest stablecoin network anchored by USDC, Circle Payments Network for global money movement, and Arc, an enterprise-grade blockchain designed to become the Economic OS for the internet. Enterprises, financial institutions, and developers use Circle to power trusted, internet-scale financial innovation.
CIRCLE INTERNET GROUP, INC. – CONSOLIDATED BALANCE SHEETS
(in $ thousands, except share information) |
|
December 31,
|
|
December 31,
|
||||
|
|
|
|
|
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
1,526,046 |
|
|
$ |
750,981 |
|
Cash and cash equivalents segregated for corporate-held stablecoins |
|
|
822,963 |
|
|
|
294,493 |
|
Cash and cash equivalents segregated for the benefit of stablecoin holders |
|
|
75,067,932 |
|
|
|
43,918,572 |
|
Accounts receivable, net |
|
|
62,866 |
|
|
|
6,418 |
|
Stablecoins receivable, net |
|
|
— |
|
|
|
6,957 |
|
Prepaid expenses and other current assets |
|
|
321,660 |
|
|
|
187,528 |
|
Total current assets |
|
|
77,801,467 |
|
|
|
45,164,949 |
|
Non-current assets: |
|
|
|
|
||||
Restricted cash |
|
|
2,792 |
|
|
|
3,558 |
|
Investments |
|
|
84,265 |
|
|
|
84,114 |
|
Fixed assets, net |
|
|
22,791 |
|
|
|
18,682 |
|
Digital assets |
|
|
86,515 |
|
|
|
31,330 |
|
Goodwill |
|
|
265,742 |
|
|
|
169,544 |
|
Intangible assets, net |
|
|
411,146 |
|
|
|
331,394 |
|
Deferred tax assets, net |
|
|
11,110 |
|
|
|
10,223 |
|
Other non-current assets |
|
|
27,379 |
|
|
|
20,615 |
|
Total assets |
|
$ |
78,713,207 |
|
|
$ |
45,834,409 |
|
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Deposits from stablecoin holders |
|
$ |
74,912,567 |
|
|
$ |
43,727,363 |
|
Accounts payable and accrued expenses |
|
|
360,609 |
|
|
|
287,007 |
|
Convertible debt, net of debt discount |
|
|
36,821 |
|
|
|
— |
|
Other current liabilities |
|
|
18,398 |
|
|
|
16,597 |
|
Total current liabilities |
|
|
75,328,395 |
|
|
|
44,030,967 |
|
Non-current liabilities: |
|
|
|
|
||||
Convertible debt, net of debt discount |
|
|
— |
|
|
|
40,717 |
|
Deferred tax liabilities, net |
|
|
28,702 |
|
|
|
29,559 |
|
Warrant liability |
|
|
— |
|
|
|
1,591 |
|
Other non-current liabilities |
|
|
25,337 |
|
|
|
21,281 |
|
Total non-current liabilities |
|
|
54,039 |
|
|
|
93,148 |
|
Total liabilities |
|
$ |
75,382,434 |
|
|
$ |
44,124,115 |
|
|
|
|
|
|
||||
|
|
|
|
|
||||
Commitments and contingencies
|
|
|
|
|
||||
Redeemable convertible preferred stock ( |
|
|
— |
|
|
|
1,139,765 |
|
Stockholders’ equity |
|
|
|
|
||||
Class A common stock ( |
|
|
24 |
|
|
|
6 |
|
Class B common stock ( |
|
|
2 |
|
|
|
— |
|
Class C common stock ( |
|
|
— |
|
|
|
— |
|
Treasury stock at cost (4.7 million and 5.0 million shares held as of December 31, 2025 and December 31, 2024, respectively) |
|
|
(2,721 |
) |
|
|
(2,877 |
) |
Additional paid-in capital |
|
|
4,610,216 |
|
|
|
1,792,969 |
|
Accumulated deficit |
|
|
(1,292,709 |
) |
|
|
(1,223,213 |
) |
Accumulated other comprehensive income |
|
|
14,515 |
|
|
|
3,644 |
|
Total stockholders’ equity attributable to common stockholders |
|
|
3,329,327 |
|
|
|
570,529 |
|
Noncontrolling interests |
|
|
1,446 |
|
|
|
— |
|
Total stockholders’ equity |
|
|
3,330,773 |
|
|
|
570,529 |
|
Total liabilities, redeemable convertible preferred stock and stockholders’ equity |
|
$ |
78,713,207 |
|
|
$ |
45,834,409 |
|
CIRCLE INTERNET GROUP, INC. – CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share information) |
|
Three Months Ended |
Year Ended |
||||||||||||||
|
(unaudited) |
|
|||||||||||||||
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
|||||||||
Revenue and reserve income |
|
|
|
|
|
|
|
|
|
||||||||
Reserve income |
|
$ |
733,396 |
|
|
$ |
432,967 |
|
|
$ |
2,636,822 |
|
|
$ |
1,661,084 |
|
|
Other revenue |
|
|
36,836 |
|
|
|
2,400 |
|
|
|
109,820 |
|
|
|
15,169 |
|
|
Total revenue and reserve income |
|
|
770,232 |
|
|
|
435,367 |
|
|
|
2,746,642 |
|
|
|
1,676,253 |
|
|
Distribution, transaction and other costs |
|
|
|
|
|
|
|
|
|
||||||||
Distribution and transaction costs |
|
|
460,566 |
|
|
|
303,746 |
|
|
|
1,661,549 |
|
|
|
1,010,811 |
|
|
Other costs |
|
|
884 |
|
|
|
801 |
|
|
|
2,102 |
|
|
|
6,553 |
|
|
Total distribution, transaction and other costs |
|
|
461,450 |
|
|
|
304,547 |
|
|
|
1,663,651 |
|
|
|
1,017,364 |
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
||||||||
Compensation expenses |
|
|
136,571 |
|
|
|
69,388 |
|
|
|
844,878 |
|
|
|
263,410 |
|
|
General and administrative expenses |
|
|
70,971 |
|
|
|
37,700 |
|
|
|
190,272 |
|
|
|
137,283 |
|
|
Depreciation and amortization expenses |
|
|
25,536 |
|
|
|
13,507 |
|
|
|
76,627 |
|
|
|
50,854 |
|
|
IT infrastructure costs |
|
|
10,805 |
|
|
|
7,036 |
|
|
|
36,638 |
|
|
|
27,109 |
|
|
Marketing expenses |
|
|
8,325 |
|
|
|
6,488 |
|
|
|
25,718 |
|
|
|
17,326 |
|
|
Digital assets losses (gains) |
|
|
1,387 |
|
|
|
(4,093 |
) |
|
|
5,293 |
|
|
|
(4,251 |
) |
|
Total operating expenses |
|
|
253,595 |
|
|
|
130,026 |
|
|
|
1,179,426 |
|
|
|
491,731 |
|
|
Operating income (loss) from continuing operations |
|
|
55,187 |
|
|
|
794 |
|
|
|
(96,435 |
) |
|
|
167,158 |
|
|
Other income (expense), net |
|
|
84,995 |
|
|
|
9,573 |
|
|
|
(6,458 |
) |
|
|
54,416 |
|
|
Net income (loss) from continuing operations before income taxes |
|
|
140,182 |
|
|
|
10,367 |
|
|
|
(102,893 |
) |
|
|
221,574 |
|
|
Income tax expense (benefit) |
|
|
6,776 |
|
|
|
5,934 |
|
|
|
(33,375 |
) |
|
|
64,583 |
|
|
Net income (loss) from continuing operations |
|
|
133,406 |
|
|
|
4,433 |
|
|
|
(69,518 |
) |
|
|
156,991 |
|
|
Loss from operations of discontinued businesses |
|
|
- |
|
|
|
(1,324 |
) |
|
|
- |
|
|
|
(1,324 |
) |
|
Net income (loss) |
|
|
133,406 |
|
|
|
3,109 |
|
|
|
(69,518 |
) |
|
|
155,667 |
|
|
Less: Net loss attributable to noncontrolling interests |
|
|
(10 |
) |
|
|
- |
|
|
|
(10 |
) |
|
|
- |
|
|
Net income (loss) attributable to common stockholders |
|
$ |
133,416 |
|
|
$ |
3,109 |
|
|
$ |
(69,508 |
) |
|
$ |
155,667 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings (loss) per common share attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
||||||||
Continuing operations |
|
$ |
0.56 |
|
|
$ |
0.00 |
|
|
$ |
(0.44 |
) |
|
$ |
0.33 |
|
|
Discontinued operations |
|
|
- |
|
|
$ |
(0.00 |
) |
|
|
- |
|
|
$ |
(0.00 |
) |
|
Basic earnings (loss) per common share attributable to common stockholders |
|
$ |
0.56 |
|
|
$ |
0.00 |
|
|
$ |
(0.44 |
) |
|
$ |
0.33 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings (loss) per common share attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
||||||||
Continuing operations |
|
$ |
0.43 |
|
|
$ |
0.00 |
|
|
$ |
(0.44 |
) |
|
$ |
0.30 |
|
|
Discontinued operations |
|
|
- |
|
|
$ |
(0.00 |
) |
|
|
- |
|
|
$ |
(0.00 |
) |
|
Diluted earnings (loss) per common share attributable to common stockholders |
|
$ |
0.43 |
|
|
$ |
0.00 |
|
|
$ |
(0.44 |
) |
|
$ |
0.30 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares used in computing earnings (loss) per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
236,676 |
|
|
|
54,722 |
|
|
|
158,699 |
|
|
|
54,413 |
|
|
Diluted |
|
|
267,804 |
|
|
|
70,869 |
|
|
|
158,699 |
|
|
|
73,042 |
|
|
Quarterly & Annual Results of Operations
The following table summarizes certain key financial performance measures derived from our unaudited quarterly consolidated statements of operations data for each of the three months ended December 31, 2024, March 31, 2025, June 30, 2025, September 30, 2025, and December 31, 2025. The information for each of these periods has been prepared on the same basis as our audited annual consolidated financial statements and, in the opinion of management, reflects all adjustments of a normal, recurring nature that are necessary for the fair statement of the results of operations for these periods.
|
Three months ended |
||||||||||
(in $ millions, except RLDC Margin and Net Reserve Margin) |
December 31,
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
||||||
Reserve Income |
$ |
733 |
$ |
711 |
$ |
634 |
$ |
558 |
$ |
433 |
|
Other Revenue |
|
37 |
|
29 |
|
24 |
|
21 |
|
2 |
|
Total Revenue and Reserve Income |
$ |
770 |
$ |
740 |
$ |
658 |
$ |
579 |
$ |
435 |
|
Distribution and Transaction Costs |
$ |
461 |
$ |
447 |
$ |
406 |
$ |
347 |
$ |
304 |
|
Other Costs |
|
1 |
|
0 |
|
0 |
|
0 |
|
1 |
|
Total Distribution, Transaction and Other Costs |
$ |
461 |
$ |
448 |
$ |
407 |
$ |
348 |
$ |
305 |
|
| Total Revenue and Reserve Income less Total Distribution, Transaction and Other Costs | $ |
309 |
$ |
292 |
$ |
251 |
$ |
231 |
$ |
131 |
|
RLDC Margin(1) |
|
|
|
|
|
|
|
|
|
|
|
Net Reserve Margin(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Note: Figures presented may not sum precisely due to rounding. |
||
| (1) | RLDC Margin is calculated as Total Revenue and Reserve Income less Total Distribution, Transaction and Other Costs as a percentage of Total Revenue and Reserve Income. |
|
| (2) | Net Reserve Margin is Reserve Income less Distribution and Transaction Costs as a percentage of Reserve Income. |
|
The following table summarizes certain key financial performance measures derived from our annual consolidated statements of operations data for the years ended December 31, 2024, and December 31, 2025.
|
Year ended |
||||
(in $ millions, except RLDC Margin and Net Reserve Margin) |
December 31,
|
December 31,
|
|||
Reserve Income |
$ |
2,637 |
$ |
1,661 |
|
Other Revenue |
|
110 |
|
15 |
|
Total Revenue and Reserve Income |
$ |
2,747 |
$ |
1,676 |
|
Distribution and Transaction Costs |
$ |
1,662 |
$ |
1,011 |
|
Other Costs |
|
2 |
|
7 |
|
Total Distribution, Transaction and Other Costs |
$ |
1,664 |
$ |
1,017 |
|
| Total Revenue and Reserve Income less Total Distribution, Transaction and Other Costs | $ |
1,083 |
$ |
659 |
|
| RLDC Margin(1) |
|
|
|
||
Net Reserve Margin(2) |
|
|
|
|
|
|
|
|
|||
Note: Figures presented may not sum precisely due to rounding. |
||
| (1) | RLDC Margin is calculated as Total Revenue and Reserve Income less Total Distribution, Transaction and Other Costs as a percentage of Total Revenue and Reserve Income. |
|
| (2) | Net Reserve Margin is Reserve Income less Distribution and Transaction Costs as a percentage of Reserve Income. |
|
Non-GAAP Financial Measures
We report our financial results in accordance with
Management and our board of directors use non-GAAP financial measures to (i) monitor and evaluate the growth and performance of our business operations, (ii) evaluate our historical and prospective financial performance as well as our performance relative to our competitors, (iii) review and assess the performance of our management team and other employees, and (iv) prepare budgets and evaluate strategic investments. Accordingly, we believe that non-GAAP measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. Non-GAAP financial measures, including Adjusted EBITDA and Adjusted Operating Expenses, have limitations as financial measures and should not be relied upon as substitutes for, or considered in isolation from, measures calculated in accordance with GAAP.
Adjusted EBITDA
Adjusted EBITDA is calculated as net income (loss) from continuing operations excluding: net income (loss) attributable to noncontrolling interests, depreciation and amortization expenses; interest expense, net of amortization of discounts and premiums; interest income; income tax expense (benefit); stock-based compensation expense; certain legal expenses; realized and unrealized (gains) losses, net, on digital assets held for investment, other related investments and strategic investments; realized (gains) losses on available-for-sale debt securities; impairment losses on strategic investments; restructuring expenses; acquisition-related costs; change in fair value of convertible debt, warrant liability, and embedded derivatives; charitable contributions to Circle Foundation; losses on sale of long-lived assets; and foreign currency exchange loss (gain).
We believe it is useful to exclude non-cash charges, such as depreciation and amortization, stock-based compensation expense, and change in fair value of various financial instruments from Adjusted EBITDA because the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations. We believe it is useful to exclude income tax expense (benefit), interest income, interest expense, and non-routine items as these items are not components of our core business operations.
Adjusted Operating Expenses
Adjusted Operating Expenses excludes depreciation and amortization, charitable contributions to Circle Foundation, digital assets losses (gains), and stock-based compensation. Beginning in the first quarter of 2026, we have amended the definition of Adjusted Operating Expenses to exclude (a) payroll tax expense related to stock-based compensation, because these taxes are directly related to stock-based compensation expense which is already excluded from Adjusted Operating Expenses and these taxes are variable with our stock price and other factors outside of our control (which will also be reflected in Adjusted EBITDA), as well as (b) certain one-time legal expenses, acquisition-related costs, and where relevant, restructuring expenses, as they reflect the same adjustments as in Adjusted EBITDA.
We believe it is useful to exclude certain non-cash charges from Adjusted Operating Expenses because the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations.
We have provided a reconciliation below of Adjusted EBITDA to Net Income (loss) from Continuing Operations and of Adjusted Operating Expenses to Operating Expenses, in each case, the most directly comparable GAAP financial measure.
CIRCLE INTERNET GROUP, INC. – RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS) FROM CONTINUING OPERATIONS
(in $ thousands) |
Three Months Ended |
|||||||||||||||||||
|
December 31, 2025 |
September 30, 2025 |
June 30, 2025 |
March 31, 2025 |
December 31, 2024 |
|||||||||||||||
Net income (loss) from continuing operations |
$ |
133,406 |
|
$ |
214,385 |
|
$ |
(482,100 |
) |
$ |
64,791 |
|
$ |
4,433 |
|
|||||
Less: Net loss attributable to noncontrolling interests |
|
(10 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||
Net income (loss) from continuing operations attributable to common stockholders |
$ |
133,416 |
|
$ |
214,385 |
|
$ |
(482,100 |
) |
$ |
64,791 |
|
$ |
4,433 |
|
|||||
Adjusted for: |
|
|
|
|
|
|||||||||||||||
Depreciation and amortization expenses |
|
25,536 |
|
|
23,002 |
|
|
14,209 |
|
|
13,880 |
|
|
13,507 |
|
|||||
Interest expense, net of amortization of discounts and premiums |
|
193 |
|
|
354 |
|
|
344 |
|
|
335 |
|
|
357 |
|
|||||
Interest income(1) |
|
(16,302 |
) |
|
(13,453 |
) |
|
(9,952 |
) |
|
(7,965 |
) |
|
(8,646 |
) |
|||||
Income tax expense (benefit) |
|
6,776 |
|
|
(61,294 |
) |
|
(3,903 |
) |
|
25,046 |
|
|
5,934 |
|
|||||
Stock-based compensation expense |
|
59,414 |
|
|
59,081 |
|
|
434,966 |
|
|
12,716 |
|
|
11,142 |
|
|||||
Legal expenses(2) |
|
2,875 |
|
|
3,014 |
|
|
1,706 |
|
|
1,905 |
|
|
4,834 |
|
|||||
Realized and unrealized (gains) losses, net, on digital assets held for investment, other related investments and strategic investments |
|
(25,074 |
) |
|
(2,267 |
) |
|
(5,738 |
) |
|
8,263 |
|
|
(4,470 |
) |
|||||
Realized (gains) on available-for-sale debt securities |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(75 |
) |
|||||
Impairment losses on strategic investments |
|
- |
|
|
500 |
|
|
506 |
|
|
- |
|
|
1,580 |
|
|||||
Acquisition-related costs(3) |
|
- |
|
|
- |
|
|
- |
|
|
535 |
|
|
1,054 |
|
|||||
Change in fair value of convertible debt, warrant liability, and embedded derivatives |
|
(42,472 |
) |
|
(56,212 |
) |
|
167,724 |
|
|
2,382 |
|
|
4,225 |
|
|||||
Charitable contributions to Circle Foundation(4) |
|
23,149 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||
Losses on sale of long-lived assets |
|
- |
|
|
6 |
|
|
4 |
|
|
12 |
|
|
7 |
|
|||||
Foreign currency exchange (gain) loss |
|
(29 |
) |
|
(655 |
) |
|
8,067 |
|
|
539 |
|
|
(1,157 |
) |
|||||
Adjusted EBITDA |
$ |
167,482 |
|
$ |
166,461 |
|
$ |
125,833 |
|
$ |
122,439 |
|
$ |
32,725 |
|
|||||
| (1) | Reflects interest income from corporate cash and cash and cash equivalents balances. For the avoidance of doubt, this amount does not include the impact of reserve income. |
|
| (2) |
Reflects litigation expenses related to the FT Partners litigation, legal and settlement expenses related to legacy businesses, and legal fees and other costs related to the one-time establishment of new governance structures to comply with |
|
| (3) | Reflects one-time legal and professional services costs related to the Hashnote acquisition. |
|
| (4) | Reflects the charge related to the charitable contribution of shares of our Class A common stock for the benefit of Circle Foundation, a donor-advised fund. |
|
CIRCLE INTERNET GROUP, INC. – RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS) FROM CONTINUING OPERATIONS
(in $ thousands) |
Year Ended |
|||||||
|
December 31, 2025 |
December 31, 2024 |
||||||
Net income (loss) from continuing operations |
$ |
(69,518 |
) |
$ |
156,991 |
|
||
Less: Net loss attributable to noncontrolling interests |
|
(10 |
) |
|
- |
|
||
Net income (loss) from continuing operations attributable to common stockholders |
$ |
(69,508 |
) |
$ |
156,991 |
|
||
Adjusted for: |
|
|
||||||
Depreciation and amortization expenses |
|
76,627 |
|
|
50,854 |
|
||
Interest expense, net of amortization of discounts and premiums |
|
1,226 |
|
|
1,906 |
|
||
Interest income(1) |
|
(47,672 |
) |
|
(34,712 |
) |
||
Income tax expense (benefit) |
|
(33,375 |
) |
|
64,583 |
|
||
Stock-based compensation expense |
|
566,177 |
|
|
50,134 |
|
||
Legal expenses (2) |
|
9,500 |
|
|
9,281 |
|
||
Realized and unrealized (gains) losses, net, on digital assets held for investment, other related investments and strategic investments |
|
(24,816 |
) |
|
(9,464 |
) |
||
Realized (gains) on available-for-sale debt securities |
|
- |
|
|
(88 |
) |
||
Impairment losses on strategic investments |
|
1,006 |
|
|
2,358 |
|
||
Restructuring expenses(3) |
|
- |
|
|
3,186 |
|
||
Acquisition-related costs(4) |
|
535 |
|
|
1,054 |
|
||
Change in fair value of convertible debt, warrant liability, and embedded derivatives |
|
71,422 |
|
|
(11,653 |
) |
||
Charitable contributions to Circle Foundation(5) |
|
23,149 |
|
|
- |
|
||
Losses on sale of long-lived assets |
|
22 |
|
|
73 |
|
||
Foreign currency exchange loss |
|
7,922 |
|
|
368 |
|
||
Adjusted EBITDA |
$ |
582,215 |
|
$ |
284,871 |
|||
| (1) | Reflects interest income from corporate cash and cash and cash equivalents balances. For the avoidance of doubt, this amount does not include the impact of reserve income. |
|
| (2) |
Reflects litigation expenses related to the FT Partners litigation, legal and settlement expenses related to legacy businesses, and legal fees and other costs related to the one-time establishment of new governance structures to comply with |
|
| (3) |
Reflects one-time restructuring expenses incurred in connection with our change in domicile from the |
|
| (4) | Reflects one-time legal and professional services costs related to the Hashnote acquisition. |
|
| (5) | Reflects the charge related to the charitable contribution of shares of our Class A common stock for the benefit of Circle Foundation, a donor-advised fund. |
|
CIRCLE INTERNET GROUP, INC. – RECONCILIATION OF ADJUSTED OPERATING EXPENSES TO OPERATING EXPENSES
(in $ thousands) |
Three Months Ended |
|||||||||||||||||||
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|||||||||||
Operating expenses |
$ |
253,595 |
|
$ |
211,127 |
|
$ |
576,718 |
|
$ |
137,986 |
|
$ |
130,026 |
|
|||||
Adjusted for: |
|
|
|
|
|
|||||||||||||||
Stock-based compensation expense(1) |
|
(59,414 |
) |
|
(59,081 |
) |
|
(434,966 |
) |
|
(12,716 |
) |
|
(11,142 |
) |
|||||
Depreciation and amortization expenses(2) |
|
(25,536 |
) |
|
(23,002 |
) |
|
(14,209 |
) |
|
(13,880 |
) |
|
(13,507 |
) |
|||||
Digital assets losses (gains)(3) |
|
(1,387 |
) |
|
1,671 |
|
|
693 |
|
|
(6,270 |
) |
|
4,093 |
|
|||||
Charitable contributions to Circle Foundation(4) |
|
(23,149 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||
Adjusted Operating Expenses (prior definition) |
$ |
144,109 |
|
$ |
130,715 |
|
$ |
128,236 |
|
$ |
105,120 |
|
$ |
109,470 |
|
|||||
Adjusted for: |
|
|
|
|
|
|||||||||||||||
Payroll tax expense related to stock-based compensation(5) |
|
(8,428 |
) |
|
(5,015 |
) |
|
(7,164 |
) |
|
- |
|
|
- |
|
|||||
Legal expenses (6) |
|
(2,875 |
) |
|
(3,014 |
) |
|
(1,706 |
) |
|
(1,905 |
) |
|
(4,834 |
) |
|||||
Acquisition-related costs(7) |
|
- |
|
|
- |
|
|
- |
|
|
(535 |
) |
|
(1,054 |
) |
|||||
Adjusted Operating Expenses (new definition) |
$ |
132,806 |
|
$ |
122,686 |
|
$ |
119,366 |
|
$ |
102,680 |
|
$ |
103,582 |
||||||
| (1) | Stock-based compensation expense represents equity compensation, a non-cash expense. |
|
| (2) | Depreciation and amortization expenses include depreciation of fixed assets, and amortization of capitalized engineering costs and intangible assets. |
|
| (3) | Digital assets losses (gains) represent the fair value losses/gains of digital assets, a non-cash expense. |
|
| (4) | Charitable contributions to Circle Foundation reflects the charge related to the charitable contribution of shares of our Class A common stock for the benefit of Circle Foundation, a donor-advised fund. |
|
| (5) | Reflects payroll tax expenses related to equity compensation, a non-cash expense. |
|
| (6) |
Reflects litigation expenses related to the FT Partners litigation, legal and settlement expenses related to legacy businesses, and legal fees and other costs related to the one-time establishment of new governance structures to comply with |
|
| (7) | Reflects one-time legal and professional services costs related to the Hashnote acquisition. |
|
CIRCLE INTERNET GROUP, INC. – RECONCILIATION OF ADJUSTED OPERATING EXPENSES TO OPERATING EXPENSES
(in $ thousands) |
Year Ended |
|||||||
|
December 31,
|
December 31,
|
||||||
Operating expenses |
$ |
1,179,426 |
|
$ |
491,731 |
|
||
Adjusted for: |
|
|
||||||
Stock-based compensation expense(1) |
|
(566,177 |
) |
|
(50,134 |
) |
||
Depreciation and amortization expenses(2) |
|
(76,627 |
) |
|
(50,854 |
) |
||
Digital assets losses (gains)(3) |
|
(5,293 |
) |
|
4,251 |
|
||
Charitable contributions to Circle Foundation(4) |
|
(23,149 |
) |
|
- |
|
||
Adjusted Operating Expenses (prior definition) |
$ |
508,180 |
|
$ |
394,994 |
|
||
Adjusted for: |
|
|
||||||
Payroll tax expense related to stock-based compensation(5) |
|
(20,607 |
) |
|
- |
|
||
Legal expenses (6) |
|
(9,500 |
) |
|
(9,281 |
) |
||
Acquisition-related costs(7) |
|
(535 |
) |
|
(1,054 |
) |
||
Restructuring expenses(8) |
|
- |
|
|
(3,186 |
) |
||
Adjusted Operating Expenses (new definition) |
$ |
477,538 |
|
$ |
381,473 |
|
||
| (1) | Stock-based compensation expense represents equity compensation, a non-cash expense. |
|
| (2) | Depreciation and amortization expenses include depreciation of fixed assets, and amortization of capitalized engineering costs and intangible assets. |
|
| (3) | Digital assets losses (gains) represent the fair value losses/gains of digital assets, a non-cash expense. |
|
| (4) | Charitable contributions to Circle Foundation reflects the charge related to the charitable contribution of shares of our Class A common stock for the benefit of Circle Foundation, a donor-advised fund. |
|
| (5) | Reflects payroll tax expenses related to equity compensation, a non-cash expense. |
|
| (6) |
Reflects litigation expenses related to the FT Partners litigation, legal and settlement expenses related to legacy businesses, and legal fees and other costs related to the one-time establishment of new governance structures to comply with |
|
| (7) | Reflects one-time legal and professional services costs related to the Hashnote acquisition. |
|
| (8) |
Reflects one-time restructuring expenses incurred in connection with our change in domicile from the |
|
CIRCLE INTERNET GROUP, INC. – FORWARD GUIDANCE RECONCILIATION OF ADJUSTED OPERATING EXPENSES TO OPERATING EXPENSES
(in $ millions) |
FY26 |
||||||
|
Low |
High |
|||||
Operating expenses |
$ |
929 |
|
$ |
994 |
|
|
Adjusted for: |
|
|
|||||
Stock-based compensation expense(1) |
|
(219 |
) |
|
(249 |
) |
|
Depreciation and amortization expenses(2) |
|
(108 |
) |
|
(118 |
) |
|
Digital assets losses (gains)(3) |
|
- |
|
|
- |
|
|
Charitable contributions to Circle Foundation(4) |
|
(17 |
) |
|
(17 |
) |
|
Legal expenses(5) |
|
(7 |
) |
|
(17 |
) |
|
Acquisition-related costs(6) |
|
(8 |
) |
|
(8 |
) |
|
Adjusted Operating Expenses (new definition) |
$ |
570 |
|
$ |
585 |
|
|
| (1) | Stock-based compensation expense represents equity compensation and associated payroll taxes. The range of guidance depends on incremental headcount through the rest of the year and stock price. |
|
| (2) | Depreciation and amortization expense includes depreciation of fixed assets, and amortization of capitalized engineering costs and intangible assets. The range of the guidance depends on capitalization rates, total SBC and cash compensation throughout the rest of the year. |
|
| (3) | Digital assets losses (gains) represent the year to date fair value losses/gains of digital assets, a non-cash expense, and we are not forecasting the amounts in 2026. |
|
| (4) |
Charitable contributions to Circle Foundation represents our anticipated transfer of 268,239 shares of Class A common stock to the Donor Advised Fund for the Circle Foundation and is a non-cash expense arising from donating the company’s equity. The amount is estimated as at the closing stock price of CRCL on February 20, 2026 ( |
|
| (5) |
Represents estimated fees associated with specific nonrecurring costs, including the one-time implementation of new governance structures to meet |
|
| (6) | Reflects special one-time compensation related to an acquihire that closed in Q1’26. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260225882643/en/
Investor Relations
investors@circle.com
Media Relations
press@circle.com
Source: Circle Internet Group, Inc.