Circle's Revenue Outlook Doubles on Massive Token Presale

Circle's reserve engine had a tough second quarter, absorbing high USDC redemptions and a lower reserve yield. Despite this, the company's revenue outlook has doubled due to a massive new token presale.

The gross flows for Circle Mint customers showed $87 billion in redemptions versus $83 billion in mints, resulting in a $4 billion gap in customer flow activity. The quarter-end USDC circulation was $73.3 billion, 19% higher than the previous year's average.

Circle's reserve return rate fell by 66 basis points to 3.5%, while its average USDC balance absorbed the rate hit, lifting reserve income 5% to $667.7 million.

The company's other revenue climbed 41% year over year to $33.582 million and is expected to jump from a range of $150 million to $170 million to $310 million to $330 million in full-year FY2026, with the midpoint doubling to $320 million.