Circle Revenue Miss Overshadows Profit Beat Amid Interest Rate Pressures

Circle Internet Group reported its Q1 2026 financials on May 11, but investors were disappointed by a revenue miss. The company's premarket shares fell by about 3% following the release. Circle beat profit expectations with adjusted earnings per share coming in at $0.21 against estimates of $0.18.

The decline in net income from continuing operations to $55 million, down 15% year-over-year, was largely attributed to the interest rate environment squeezing Circle's reserve income. USDC, Circle's stablecoin, reached a record circulation level of $77 billion, up 28% from Q1 2025.

Circle processed an astonishing $21.5 trillion in onchain transactions during the quarter, a 263% increase year-over-year. The company announced it raised $222 million for its ARC token presale, with investors including A16z crypto, Apollo, and BlackRock. Circle maintained its full-year guidance for other revenue at $150 million to $170 million.