Circle Misses Q2 Revenue Estimates Despite Strong Growth
Circle's Q2 revenue fell short of Wall Street expectations but still saw growth. The stablecoin issuer reported $701 million in total revenue and reserve income, up 7% year-over-year, alongside net income from continuing operations of $48 million.
The company attributed the increase in reserve income primarily to a 25% rise in average USDC circulation, which contributed to a 5% growth in reserve income. Circle's quarterly performance centered on its reserve income stream.
Circle also disclosed its founding validator cohort for Arc, including major financial and payments-focused firms such as BlackRock, DTCC, Galaxy, Global Payments, ICE, Mastercard, MoneyGram, SBI Group, Standard Chartered, Sumitomo Corporation, and Visa. The company has lined up over 100 ecosystem and institutional builders ahead of the Sept. 16 public mainnet launch.
Circle's guidance for 'other revenue' in the current fiscal year was raised to $310 million-$330 million from $150 million-$170 million, including Arc token presale revenue. The company's ability to convert pre-launch ecosystem commitments into measurable on-chain activity will be crucial next steps.