Circle jumps 7% in premarket trade after Q2 bank charter, in-line earnings

Investing.com -- Shares of Circle Internet Group jumped 7% in premarket trading on Wednesday after the stablecoin issuer reported second-quarter earnings in line with estimates and disclosed it had received the first federal bank charter awarded to a stablecoin company.

The company also unveiled BlackRock, Visa and Mastercard as validators for its forthcoming blockchain network.

Circle Internet Group posted second-quarter earnings per share of $0.18, matching the analyst consensus of $0.18.

Total revenue and reserve income reached $701 million, a 7% increase year-over-year; no consensus range for that figure was available in the provided sources, and no beat or miss determination can be made.

Net income from continuing operations was $48 million, an increase of $530 million year-over-year, driven by lower stock-based compensation expense following the company’s initial public offering in the second quarter of 2025.

Adjusted EBITDA rose 8% to $143 million; the adjusted EBITDA margin of 50% narrowed 329 basis points year-over-year, reflecting increased investment in new products.

Reserve income of $668 million rose 5% year-over-year, driven by 25% growth in average USDC in circulation, partially offset by a 66-basis-point decline in the reserve return rate to 3.5%. Revenue less distribution costs rose 15% to $289 million, with the RLDC margin expanding 302 basis points to 41%.

USDC in circulation stood at $73.3 billion at quarter end, up 19% year-over-year. Onchain transaction volume reached $14.8 trillion in the quarter, up 151% year-over-year. Stablecoin market share was 27%, down 66 basis points year-over-year.

The U.S. Office of the Comptroller of the Currency approved Circle to establish Circle National Trust as a national trust bank. The New York Department of Financial Services separately approved Circle New York Trust as a digital asset-focused limited purpose trust company.

The Circle Payments Network reached $14.7 billion in annualized transaction volume for the trailing 30 days as of quarter end, up 76% quarter-over-quarter, with 175 financial institutions enrolled, up 29% quarter-over-quarter.

Circle raised its full-year 2026 other revenue guidance to $310 million–$330 million from a prior $150 million-$170 million, a revision that includes recognized Arc Token presale revenue, and lifted its RLDC margin guidance to 41.7%-43.7% from 38%-40%. Adjusted operating expense guidance was unchanged at $570 million–$585 million.

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