Circle Stock Surges 35% After Strong Q4 and USDC Growth

TLDR

• Circle Q4 revenue rose 77% year over year to $770M, driven by $733M in reserve income.

• USDC circulation increased 72% to $75.3B, with 28% stablecoin market share.

• On-chain USDC transaction volume surged 247% to $11.9T in Q4 2025.

• CRCL shares jumped over 35% premarket after EPS of $0.43 beat $0.16 estimates.

Circle Internet Group shares jumped more than 35% before the opening bell on Wednesday. The rally followed a strong fourth-quarter earnings report and continued expansion of USDC circulation. CRCL closed near $61.37 previously and traded around $71 in premarket activity. Investors reacted to accelerating revenue growth and improved profitability metrics.

Q4 Earnings Beat Drives CRCL Rally

Circle reported total revenue and reserve income of $770 million for the fourth quarter. That marked a 77% increase compared to the same period last year. Reserve income alone reached $733 million during the quarter.

Net income from continuing operations rose to $133 million. In the prior year quarter, net income was $4 million. Adjusted EBITDA climbed 412% to $167 million, reflecting improved operating leverage.

Diluted earnings per share came in at $0.43. Analysts had expected $0.16 per share. The earnings surprise supported the strong premarket reaction in CRCL stock.

For the full year 2025, Circle reported $2.7 billion in total revenue and reserve income. Adjusted EBITDA for the year reached $582 million, up 104% year over year.

USDC Circulation and Volume Expand Rapidly

USDC in circulation ended 2025 at $75.3 billion. That represented a 72% increase year over year. The stablecoin now holds about 28% market share in the sector.

On chain USDC transaction volume totaled $11.9 trillion in the fourth quarter. That figure rose 247% compared to the previous year. Growth in circulation and volume remains central to Circle’s business model.

Average USDC balances help drive reserve income. As balances rise, interest like income from backing assets increases. Circle said other revenue reached $37 million in Q4, up $34 million year over year.

Stablecoin market capitalization dipped earlier this year but has since recovered toward $75 billion. Investors appear focused on continued enterprise and institutional adoption.

Enterprise Partnerships and Platform Expansion

Circle highlighted partnerships with Visa and Intuit during its earnings update. Visa now allows US issuers and acquirers to settle using USDC. This enables settlement outside traditional banking hours.

The company also discussed progress on its Arc platform. The public testnet includes more than 100 participants. Daily average transaction volumes reached 2.3 million as of February 20.

Circle said the Arc testnet has processed over 166 million transactions with near 100% uptime. A mainnet launch remains planned for later this year. The company also received conditional approval to establish a national trust bank.

CEO Jeremy Allaire said the firm is building infrastructure for automated digital payments. He stated, “We are entering a world where tens or hundreds of billions of AI agents will interact and perform economic functions over the internet.” He added that Circle Gateway supports automated cross chain USDC transfers.

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