01—Abstract
Summary
Summary of the 10-Q filed August 12, 2025. Cited figures are marked; the original filing is the authoritative source.
Circle Internet Group, Inc. reported its quarterly results for the period ended June 30, 2025, in a Form 10-Q filed August 12, 2025, following its June 2025 IPO at $31.00a per share, which resulted in net proceeds of $583.0 million before offering costs of $12.8 million.
Total revenue and reserve income was $658.1 millionb for the three months ended June 30, 2025, up from $430.0 million a year earlier, with reserve income of $634.3 million making up the bulk of revenue. The company reported a net loss from continuing operations of $482.1 million for the quarter, compared with net income of $32.9 million in the prior-year quarter, driven primarily by $423.8 million of stock-based compensation recognized on RSUs that vested upon the IPO and a $167.7 million loss from the change in fair value of convertible debt and related instruments. The balance sheet grew substantially with the stablecoin business: cash segregated for the benefit of stablecoin holders reached $61.4 billion at June 30, 2025, against deposits from stablecoin holders of $61.1 billion.
USDC in circulation was $61.3 billionc at period end, up from $32.2 billion a year earlier, and the company reported a 28% stablecoin market share. Distribution and transaction costs rose to $406.5 million for the quarter, including payments to Coinbase under the Collaboration Agreement. Adjusted EBITDA, a non-GAAP measure, was $125.8 million for the quarter compared with $82.6 million a year earlier.
Investors should note the company's heavy reliance on reserve income, which represented between 96.4%d and 98.5% of total revenue in the three and six months ended June 30, 2025 and 2024, and the sensitivity of that income to interest rates. The filing also discloses a pending lawsuit from financial advisor FT Partners, which seeks fees related to transactions including the IPO, and states that the outcome cannot be reasonably quantified or estimated. The company also said that the GENIUS Act, signed into law on July 18, 2025, will change the payment stablecoin regulatory framework once effective.
02—Key points
Key Highlights
- Total revenue and reserve income of $658.1 million for Q2 2025, up from $430.0 million in Q2 2024; reserve income was $634.3 million.
- Net loss from continuing operations of $482.1 million for Q2 2025, versus net income of $32.9 million in Q2 2024, driven by $423.8 million of IPO-related RSU stock-based compensation and a $167.7 million fair value increase in convertible debt and embedded derivatives.
- IPO completed in June 2025: 19.9 million Class A shares sold at $31.00 per share, generating net proceeds of $583.0 million before $12.8 million of offering costs.
- USDC in circulation of $61.3 billion at June 30, 2025, up from $32.2 billion a year earlier, with a 28% stablecoin market share and 5.66 million Meaningful Wallets.
- Cash segregated for the benefit of stablecoin holders totaled $61.4 billion, against deposits from stablecoin holders of $61.1 billion.
- Reserve income represented between 96.4% and 98.5% of total revenue in the three and six months ended June 30, 2025 and 2024, making results highly sensitive to interest rates; a 100 basis point change is modeled at $618 million in reserve income over twelve months.
- Adjusted EBITDA (non-GAAP) of $125.8 million for Q2 2025 versus $82.6 million for Q2 2024.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 12, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $658.08M$430.03M | +53.0% |
| Operating Expenses | $576.72M$131.41M | +338.9% |
| Operating Income | -$325.58M$50.25M | −748.0% |
| Net Income | -$482.10M$32.92M | −1564.3% |
| EPS (Basic) | $-4.48— | — |
| EPS (Diluted) | $-4.48— | — |
| Shares Outstanding (Basic) | 107.51M54.40M | +97.7% |
| Shares Outstanding (Diluted) | 107.51M70.42M | +52.7% |
05—Questions
Frequently Asked Questions
What drove the large net loss in the second quarter of 2025?
The net loss from continuing operations of $482.1 million was driven mainly by $423.8 million of stock-based compensation recognized when RSUs vested upon the IPO, which is included in compensation expenses, and by a $167.7 million loss from the change in fair value of convertible debt, warrant liability, and embedded derivatives, which is recorded in other expense.
How much of Circle's revenue comes from reserve income?
The filing states that reserve income comprised between 96.4% and 98.5% of total revenue in both the three and six months ended June 30, 2025 and 2024. Reserve income is earned on the reserves backing USDC and is affected by USDC in circulation and the reserve return rate, which was 4.1% for the quarter ended June 30, 2025, compared with 5.2% a year earlier.
How is the company's reserve income exposed to interest rate changes?
The filing's internal modeling, which assumes USDC in circulation stays at its June 30, 2025 level, estimates that a 100 basis point decrease in rates would reduce reserve income by about $618 million over twelve months, with a corresponding $315 million reduction in distribution and transaction costs. The filing notes that the actual relationship between rates and USDC circulation is uncertain.
What is the status of the FT Partners lawsuit?
FT Partners, a financial advisor, is suing over fees under two 2020 engagement letters that Circle terminated in 2022. As of the filing, the court dismissed several claims, and two breach of contract claims remain pending. FT Partners has moved to add Circle Internet Group, Inc. as a defendant and to include five additional transactions, including the IPO. The company strenuously disputes the claims and says the outcome cannot be reasonably quantified or estimated.
06—Continue