Circle Q2 Revenue Falls Short as Stablecoin Market Slumps
Circle reported $701 million in revenue for Q2 FY 2026, falling short of Wall Street estimates. The stablecoin issuer's total revenue and reserve income increased by 7% year-over-year, while net income from continuing operations rose to $48 million, a $530 million year-on-year increase.
The company also saw a 25% increase in average USDC circulation, leading to a 5% rise in reserve income to $668 million. This revenue growth came amidst a stablecoin market slump, with the total stablecoin supply falling to $153 billion on June 30 from $156 billion on April 1.
Circle's shares rose 5.7% in pre-market trading to trade above $66.50, despite being down 20% year-to-date. The company's earnings miss came ahead of the public mainnet launch of its Arc blockchain on September 16, which has already attracted over 100 ecosystem and institutional builders.
Circle revealed its founding validator cohort for Arc, including major players such as BlackRock, DTCC, Galaxy, and Visa. Management increased guidance for several key metrics, including other revenue for the current fiscal year to a range of $310 million to $330 million.