Circle (CRCL ~;-)

Circle Internet reported Q1 2026 financial results for the period ended March 31, 2026. Total revenue and reserve income increased 20% YoY to $694M, driven by reserve income of $653M (up 17% YoY) and other revenue of $42M (up 102% YoY). USDC in circulation grew 28% YoY to $77.0B, while USDC onchain transaction volume surged 263% YoY to $21.5T. Net income from continuing operations decreased 15% YoY to $55M, with an effective tax rate of 2.5%. Adjusted EBITDA rose 24% YoY to $151M, representing a 53% margin.

Operating expenses increased 76% YoY to $242M, primarily due to higher compensation expenses of $138M (up 83% YoY), driven by $39M in additional stock-based compensation related to IPO-related RSU vesting and increased headcount. Distribution and transaction costs rose 17% YoY to $405M, reflecting higher payments to Coinbase, Binance, and other strategic partners. General and administrative expenses increased 87% YoY to $57M, including $8M in contributions to Circle Foundation. The reserve return rate declined 66 basis points YoY to 3.5% due to Federal Reserve interest rate actions.

Management highlighted continued platform expansion, including Arc blockchain testnet processing 244M transactions since October 2025 launch. In May 2026, Circle completed a presale of 740M ARC Tokens to institutional investors at $0.30 per token, raising approximately $222M in gross proceeds. As of March 31, 2026, total liquidity was $2.3B, consisting of $1.5B in cash and cash equivalents and $793M in corporate-held stablecoins. The company maintains USDC reserves of 86% in the Circle Reserve Fund and 14% in cash across multiple banks.

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Circle | 10-Q: Quarterly report

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