$701M Q2 Revenue Miss: Circle Prepares for Arc Blockchain Launch

Circle's Q2 revenue fell short of Wall Street estimates, reporting $701 million in total revenue and reserve income, up 7% year-over-year. The stablecoin issuer narrowly missed the average consensus of $713.32 million, according to preliminary Wall Street analyst estimates compiled by Yahoo Finance.

The company also reported net income from continuing operations of $48 million, marking a $530 million year-over-year increase. Circle's reserve income was $668 million, increasing 5% year-over-year due to a 25% rise in average USDC circulation.

Despite missing estimates, Circle's shares rose 5.7% in pre-market trading on Wednesday to change hands above $66.5, but remain down 20% year-to-date, according to Yahoo Finance data. The earnings report comes weeks ahead of the public mainnet launch of Circle's Arc blockchain, scheduled for September 16.

Ahead of the debut, the Arc blockchain has over 100 ecosystem and institutional builders on board, with a founding validator cohort that includes prominent financial institutions such as BlackRock, DTCC, and Visa. Management has hiked its guidance for other revenue in the current fiscal year to $310 million to $330 million, including Arc token presale revenue.