Circle's Stable Core Business Grows Amid Arc Blockchain Momentum

Circle's second-quarter results show a stable core business driven by USDC circulation and reserve income, along with an emerging new growth engine in Arc blockchain infrastructure.

The company reported revenue of $701 million for Q2 2026, up 7% year over year but below the expected $717 million. Adjusted EBITDA rose 8% to $143 million, while adjusted diluted earnings per share came in at $0.18, above market estimates.

USDC circulation grew by approximately 25%, with an average of around $76.8 billion circulating on Circle's platforms. The average reserve return rate declined by 66 basis points to 3.5%. This growth offset the decline in reserve yields, which were affected by decreasing interest rates.

Arc's test network has already processed over 500 million transactions across nearly three million wallets. The company raised its full-year other revenue guidance from $150 million to a new range of $310 million to $330 million, with Arc-related token pre-sales raising approximately $242 million by the end of Q2.