Circle Stock Reverses Gains After Mixed Q2 Results

Circle's stock price reversed its early 7% rally and fell nearly 3% after the company reported mixed second-quarter results. The decline was driven by concerns over weaker USDC activity and shrinking margins, despite Circle beating Wall Street's earnings per share estimate.

The company reported $701 million in revenue, missing the expected $717 million, but earnings per share came in at $0.18, narrowly beating the consensus forecast of $0.17. Net income exceeded expectations as well, with Circle generating $48 million in profit during the quarter, compared to analysts' estimate of $45.8 million.

Mizuho maintained its Underperform rating and $45 price target on CRCL, citing a sequential decline in USDC circulation and a 31% quarter-over-quarter drop in on-chain transaction volume. Circle's adjusted EBITDA margin also fell 329 basis points from the same quarter last year, indicating that the company retained less operating profit from its revenue.