Circle Q2 Snapshot: $61.3B USDC in Circulation, $126M Adjusted EBITDA, $482M Net Loss

Circle Internet Group (NYSE: CRCL) reported robust growth in the second quarter of fiscal 2025 but slid to a large net loss as one-time IPO-related non-cash charges weighed on the period. Circle said USDC in circulation jumped 90% year-over-year to $61.3 billion at the end of the quarter and rose further to $65.2 billion as of Aug. 10, 2025.

Total revenue and reserve income climbed 53% to $658 million. Meanwhile, adjusted EBITDA grew 52% to $126 million. These numbers highlight continued commercial traction even as the company absorbed significant accounting items. Despite the top-line momentum, Circle posted a net loss of $482 million.

From IPO to Arc

Management said the result was heavily affected by $591 million of non-cash IPO-related charges, including $424 million of stock-based compensation that vested on the offering and a $167 million increase in the fair value of convertible debt tied to the rise in Circle’s share price. Operating expenses for the quarter were $577 million, which included the stock-based compensation charge.

The quarter also marked a milestone in Circle’s corporate journey: the company completed a $1.2 billion initial public offering in June, selling 19.9 million newly issued Class A shares at $31 each and generating net proceeds of about $583 million (before offering costs). Circle said it reserved 2,682,392 Class A shares for its Circle Foundation as part of a pledge to donate 1% of the company’s equity to charitable causes.

Circle highlighted a string of commercial developments that it says underpin the growth in USDC adoption. In May, the company launched the Circle Payments Network (CPN), which already has four active payment corridors and more than 100 financial institutions in the pipeline, according to the release. Circle also announced partnerships and expanded engagements across banking and payments with firms including Binance, Corpay, FIS, Fiserv and OKX.

Looking ahead, Circle unveiled plans for Arc, an open, EVM-compatible Layer-1 blockchain purpose-built for stablecoin finance. Arc is designed to use USDC as native gas, feature sub-second finality and offer an integrated stablecoin FX engine and opt-in privacy controls; the network is slated for a public testnet launch this fall. The company also said Circle Gateway, which provides unified USDC balances for instant cross-chain liquidity, debuted on testnet in July.

“I’m proud of Circle’s performance in the second quarter, our first as a public company, where we demonstrated sustained growth and adoption of our platform across a multitude of use cases and with a diverse set of industry-defining partners,” said Jeremy Allaire, Co-Founder, Chief Executive Officer and Chairman at Circle.

Circle provided multi-year guidance and near-term targets to help investors model the business: management reiterated a long-term outlook for USDC circulation of roughly a 40% CAGR through the cycle, set FY-2025 other revenue at $75–85 million, an RLDC (revenue less distribution costs) margin of 36–38%, and adjusted operating expenses of $475–490 million for the year.

The company emphasized that the passage of the GENIUS Act , legislation establishing a federal regulatory framework for payment stablecoins, was an important development that “codified” many of Circle’s compliance practices and strengthened its position as a regulated stablecoin issuer. At the same time, Circle reiterated the usual caveats about the risks facing stablecoins and the digital-asset sector, and noted that forward-looking statements are subject to significant uncertainties.