Circle Shares Fall as Revenue Miss Overshadows Profit Beat

Circle's shares fell nearly 4% in early trading despite beating Wall Street estimates for second-quarter profit. The company's revenue, however, missed expectations due to a decline in reserve return rate.

The stablecoin issuer reported a net income of $0.18 per share attributable to common shareholders, exceeding analysts' estimates of $0.17 per share. This was driven by increased adoption of its USDC token, which saw circulation rise 19% to $73.3 billion in the second quarter.

USDC's onchain transaction volume jumped 151% year-over-year, with demand for stablecoins strengthening due to market volatility and Middle East tensions. Circle's strategic partner, Coinbase, noted similar industry headwinds when reporting a slump in trading volumes last week.