Circle Internet Group (CRCL) Q1 2026 earnings summary

Executive summary

• USDC in circulation reached $77 billion in Q1 2026, up 28% year-over-year, with onchain transaction volume surging 263% to $21.5 trillion.

• Total revenue and reserve income grew 20% year-over-year to $694 million, while adjusted EBITDA rose 24% to $151 million and net income from continuing operations fell 15% to $55 million.

• Major product launches included Circle Agent Stack, CPN Managed Payments, and the ARC Token presale, which raised $222 million at a $3 billion valuation.

• Expanded partnerships with enterprises and financial institutions, including Meta, DoorDash, Kyriba, and SBI, driving new use cases and global reach.

• Arc blockchain testnet processed 244.1 million transactions since October 2025; mainnet launch expected in 2026.

Financial highlights

• Reserve income was $653 million, up 17% year-over-year, driven by a 39% increase in average daily USDC in circulation, partially offset by a 66bps decline in reserve return rate.

• Other revenue doubled year-over-year to $42 million, led by integration services, blockchain rewards, and fund management fees.

• Distribution, transaction, and other costs rose 17% to $407 million, mainly due to higher payments to partners.

• Adjusted operating expenses increased 32% year-over-year to $136 million, reflecting investments in growth and infrastructure.

• Net income margin declined to 8% from 11% in Q1 2025.

Outlook and guidance

• Multi-year guidance for USDC in circulation remains at 40% CAGR, with FY 2026 other revenue expected at $150–$170 million and RLDC margin forecasted at 38–40%.

• FY 2026 adjusted operating expenses projected at $570–$585 million.

• Guidance excludes future financial impacts from ARC Token presale and Arc network incentives; updated guidance to be provided in the next earnings call.

• Management expects continued growth in stablecoin adoption, platform expansion, and new product launches, including the Arc mainnet and ARC Token.

• Interest rate fluctuations and regulatory developments remain key variables for future performance.