Circle Q2 revenue falls short of Wall Street estimates

Circle, a stablecoin issuer, announced Q2 revenue of $701 million, slightly below Wall Street estimates of approximately $713 million. The company reported a 7% year-over-year increase in revenue and net income from continuing operations, reaching $48 million. Circle's reserve income also grew by 5%, primarily due to a 25% increase in average USDC circulation.

The earnings report fell short of the average consensus estimate of $713.32 million. Circle's shares climbed 5.7% in pre-market trading, trading above $66.50, but the stock has decreased 20% year-to-date. The earnings report was released ahead of the public mainnet launch of Circle's Arc blockchain, set for September 16. The blockchain has over 100 ecosystem and institutional builders backing it.

Circle also disclosed the founding validator cohort for Arc, which includes major financial institutions such as BlackRock, DTCC, Galaxy, Global Payments, ICE, Mastercard, MoneyGram, SBI Group, Standard Chartered, Sumitomo Corporation, and Visa. Management raised guidance for several key metrics, including other revenue for the current fiscal year, which now ranges from $310 million to $330 million.

Despite the revenue miss, Circle's USDC stablecoin remains the dominant player, accounting for 72% of the $15.6 trillion in adjusted on-chain transfer volume.