01—Abstract
Summary
Summary of the 10-Q filed November 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 September 30, 2025 in this Form 10-Q.
Total revenue and reserve income for the three months ended September 30, 2025 was $739.8 milliona, up from $445.8 million a year earlier, and net income from continuing operations was $214.4 million, compared with $71.0 million. For the nine months, the company posted a net loss from continuing operations of $202.9 million, compared with net income of $152.6 million in the prior-year period, driven largely by $506.8 million of stock-based compensation and a $113.9 million change in the fair value of convertible debt and related instruments. Reserve income was $711.2 million in the quarter and accounted for 96.1% of total revenue, and the company's growth was tied to USDC in circulation, which reached $73.7 billion at September 30, 2025, up from $35.5 billion a year earlier.
The company completed its initial public offering in June 2025, raising net proceeds of $583.0 millionb at $31.00 per share, and a follow-on offering in August 2025, raising $444.8 million at $130.00 per share. Cash and cash equivalents segregated for the benefit of stablecoin holders was $73.4 billion, against deposits from stablecoin holders of $73.3 billion.
Adjusted EBITDA, a non-GAAP measure, was $166.5 millionc for the quarter and $414.7 million for the nine months, and the company stated that its liquidity sources of $2.2 billion are sufficient for at least the next 12 months. The filing also highlights ongoing legal exposure, including a dispute with financial advisor FT Partners that seeks fees tied to transactions the company says it does not owe, and identifies a number of risks, including reliance on Coinbase distribution arrangements, interest rate sensitivity of reserve income, and the pending implementation of the GENIUS Act.
02—Key points
Key Highlights
- Total revenue and reserve income of $739.8 million for Q3 2025, up from $445.8 million in Q3 2024; reserve income was $711.2 million, or 96.1% of total revenue.
- Net income from continuing operations of $214.4 million for Q3 2025 versus $71.0 million a year earlier, while the nine-month period showed a net loss from continuing operations of $202.9 million.
- USDC in circulation reached $73.7 billion at September 30, 2025, compared with $35.5 billion at September 30, 2024; Circle held a 29% stablecoin market share.
- Completed IPO in June 2025 (net proceeds of $583.0 million at $31.00 per share) and follow-on offering in August 2025 (net proceeds of $444.8 million at $130.00 per share).
- Adjusted EBITDA of $166.5 million for Q3 2025 and $414.7 million for the nine months ended September 30, 2025, both non-GAAP measures reconciled to net income in the filing.
- Stock-based compensation expense of $506.8 million for the nine months ended September 30, 2025, which drove the nine-month operating loss of $151.6 million.
- Ongoing FT Partners litigation seeking fees related to capital raises, which the company disputes; the filing states the outcome cannot yet be predicted with certainty.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed November 12, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $739.76M$445.76M | +66.0% |
| Operating Expenses | $211.13M$124.26M | +69.9% |
| Operating Income | $81.02M$63.80M | +27.0% |
| Net Income | $214.38M$71.00M | +202.0% |
| EPS (Basic) | $0.93— | — |
| EPS (Diluted) | $0.64— | — |
| Shares Outstanding (Basic) | 229.90M54.55M | +321.4% |
| Shares Outstanding (Diluted) | 266.68M73.13M | +264.7% |
05—Questions
Frequently Asked Questions
What drove the swing from profit in Q3 2025 to a loss for the nine months?
The nine-month loss reflects $506.8 million of stock-based compensation, largely from RSUs whose liquidity-event condition was met at the NYSE listing, and a $113.9 million change in fair value of convertible debt, warrant liability, and embedded derivatives. Q3 2025 benefited from a $56.2 million fair value gain on those instruments and an income tax benefit of $61.3 million.
How dependent is the company's revenue on interest rates?
Reserve income represented 96.1% of total revenue in Q3 2025 and 96.3% for the nine months. The filing states that reserve return rates track interest rates, but that USDC in circulation is inherently difficult to predict, so the company says it cannot accurately forecast the impact of rate changes on reserve income. Management estimates a 100 basis point change in rates would change reserve income by about $740 million over twelve months, holding USDC in circulation constant.
What is the company's exposure to Coinbase?
Distribution costs are paid to Coinbase under a Collaboration Agreement. The filing states that the company incurred $989.1 million of distribution costs with Coinbase for the nine months ended September 30, 2025, and that the percentage of USDC held on Coinbase's platform affects those payments, a factor the company says it does not control.
What liquidity does the company have to fund operations?
As of September 30, 2025, total liquidity sources were $2.2 billion, consisting of $1.3 billion of cash and cash equivalents and $837.1 million of cash segregated for corporate-held stablecoins. The company believes these sources, together with operating cash flow, will be sufficient for at least 12 months from the filing date. Net cash provided by operating activities was $293.0 million for the nine months.
06—Continue