01—Abstract
Summary
Summary of the 10-K filed March 9, 2026. Cited figures are marked; the original filing is the authoritative source.
Circle Internet Group, Inc. (Class A ticker CRCL) reports that its revenue is driven primarily by reserve income on the assets backing its stablecoins, USDC and EURC.
Reserve income was $2.64 billiona in 2025, or 96.0% of total revenue, up from $1.66 billion in 2024. Total revenue and reserve income rose 63.9% to $2.75 billion. Net loss from continuing operations was $69.5 million for 2025, compared with net income of $157.0 million in 2024, largely because of $423.8 million of stock-based compensation recognized on RSUs whose liquidity condition was met at the June 2025 IPO.
Adjusted EBITDA, a non-GAAP measure, grew to $582.2 millionb from $284.9 million. USDC in circulation reached $75.3 billion at year-end 2025, up from $43.9 billion. Cash and cash equivalents segregated for the benefit of stablecoin holders was $75.1 billion, against deposits from stablecoin holders of $74.9 billion.
Approximately 88%c of USDC reserves were held in the Circle Reserve Fund, a government money market fund managed by BlackRock. The company's strategy spans three pillars: the Arc Layer-1 blockchain, Circle Digital Assets and Services (including USDC, EURC, the tokenized fund USYC, Circle Mint and xReserve), and Circle Applications such as Circle Payments Network and StableFX. The filing highlights significant risk factors.
The GENIUS Act, signed July 18, 2025, will take effect on the earlier of January 18, 2027 or 120 days after final implementing regulations. Concentration of distribution with Coinbase is a key dependency, with distribution and transaction costs of $1.66 billiond in 2025, including $1.4 billion paid to Coinbase. The company is also in litigation with FT Partners over advisory fees, and it has received preliminary conditional OCC approval to establish a national trust bank.
02—Key points
Key Highlights
- Total revenue and reserve income grew 63.9% to $2,746.6 million in 2025, with reserve income at $2,636.8 million (96.0% of total revenue).
- Net loss from continuing operations of $69.5 million in 2025 versus net income of $157.0 million in 2024, significantly affected by $423.8 million of stock-based compensation tied to IPO vesting conditions.
- Adjusted EBITDA rose to $582.2 million from $284.9 million, a non-GAAP measure reconciled to GAAP net loss in the filing.
- USDC in circulation was $75.3 billion at December 31, 2025, versus $43.9 billion a year earlier; USDC minted totaled $257.5 billion and redeemed totaled $226.1 billion in 2025.
- Distribution and transaction costs were $1,661.5 million in 2025, including $1.4 billion paid to Coinbase under the Collaboration Agreement.
- The company completed its IPO in June 2025 at $31.00 per share (net proceeds $583.0 million) and a follow-on offering in August 2025 at $130.00 per share (net proceeds $444.8 million).
- Approximately 88% of USDC reserves were held in the BlackRock-managed Circle Reserve Fund as of December 31, 2025; the GENIUS Act will take effect on the earlier of January 18, 2027 or 120 days after final implementing regulations.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed March 9, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $2.75B$1.68B | +63.9% |
| Operating Expenses | $1.18B$491.73M | +139.9% |
| Operating Income | -$96.44M$167.16M | −157.7% |
| Net Income | -$69.51M$155.67M | −144.7% |
| EPS (Basic) | $-0.44$0.33 | −233.3% |
| EPS (Diluted) | $-0.44$0.30 | −246.7% |
| Shares Outstanding (Basic) | 158.70M54.41M | +191.7% |
| Shares Outstanding (Diluted) | 158.70M73.04M | +117.3% |
05—Questions
Frequently Asked Questions
What drives Circle's revenue and how concentrated is it?
Revenue is primarily reserve income earned on the reserves backing USDC and EURC. Reserve income was 96.0% of total revenue in 2025, versus 99.1% in 2024, and other revenue (subscription and services, transaction revenue and other) was $109.8 million. The filing notes that reserve income depends on the reserve return rate, which was 4.1% in 2025 versus 5.0% in 2024, and on USDC in circulation, which averaged $64.9 billion in 2025.
Why did Circle swing to a net loss in 2025?
Compensation expenses rose to $844.9 million from $263.4 million, largely due to $516.0 million of higher stock-based compensation tied to RSUs whose liquidity-event condition was satisfied when the Class A stock began trading on the NYSE. Other income (expense) also included an $87.2 million loss tied to the fair value of convertible notes. Net loss from continuing operations was $69.5 million compared with net income of $157.0 million in 2024.
What are the key regulatory and concentration risks?
The GENIUS Act, enacted July 18, 2025, will establish a federal framework for payment stablecoins and takes effect on the earlier of January 18, 2027 or 120 days after final regulations. The filing also flags reliance on key distributors, with Coinbase costs of $1.4 billion in 2025, and on BlackRock and BNY for the Circle Reserve Fund. Circle received preliminary conditional OCC approval in December 2025 to establish a national trust bank.
How are USDC reserves held and protected?
Cash and cash equivalents segregated for stablecoin holders totaled $75.1 billion at year-end 2025. Approximately 88% of USDC reserves were held in the Circle Reserve Fund, and the remainder was held as cash at banks, primarily GSIBs. The filing states that deposits from stablecoin holders are not covered by FDIC deposit insurance, and that the company holds only bare legal title to reserve assets.
What litigation is pending against the company?
Circle is in a dispute with financial advisor FT Partners, which filed suit on May 28, 2024 in the U.S. District Court for the Southern District of New York. The advisor alleges that its engagement letters' termination is ineffective and seeks fees and interest on transactions including the IPO and follow-on offering, which generated aggregate proceeds of approximately $1.9 billion. The company strenuously disputes the claim, and the filing states it cannot reasonably quantify or estimate the outcome at this stage.
06—Continue