Core Insights - Circle Internet Group (CRCL) shares have dropped 12.2% following the release of third-quarter 2025 results, despite reporting adjusted earnings of 64 cents per share, surpassing the Zacks Consensus Estimate of 20 cents [1][9] - Total revenues and reserve income reached $740 million, reflecting a 66% year-over-year increase and exceeding the Zacks Consensus Estimate by 4.5% [1][9] - Concerns over future prospects are evident as CRCL shares have declined 36.3% over the past month, contrasting with a 1.6% return in the Zacks Finance Sector [2] Financial Performance - Reserve Income constituted 96.1% of total revenues, increasing by 60% year over year to $711.2 million, while other revenues rose to $28.5 million from $0.5 million in the previous year [3] - USDC in circulation grew by 108% year over year to $73.7 billion, with average USDC in circulation increasing by 97% to $67.8 billion [4] - USDC minted reached $79.7 billion, up 128% year over year, and USDC redeemed amounted to $67.3 billion, reflecting a 112% increase [4] - On-chain transaction volume for USDC surged 6.8 times year over year to nearly $9.6 trillion [5] - Revenues less distribution costs (RLDC) increased by 55% year over year to $292 million, with RLDC margin contracting by 270 basis points to 39% [5] - Adjusted EBITDA rose by 78% year over year to $166 million, with the adjusted EBITDA margin expanding by 737 basis points to 57% [5] Balance Sheet and Capital Raises - As of September 30, 2025, cash and cash equivalents stood at $1.35 billion, up from $1.12 billion as of June 30, 2025 [6] - Circle completed a $1.2 billion initial public offering in June 2025, selling 19.9 million shares at $31 per share, resulting in net proceeds of $583 million [6] - In August 2025, Circle conducted a follow-on public offering, issuing 3.5 million shares at $130.00 per share, generating net proceeds of $444.8 million [7] Future Guidance - Circle anticipates a compound annual growth rate (CAGR) of 40% for USDC in circulation over multiple years [8] - Other revenues are projected to be between $90 million and $100 million, an increase from the previous guidance of $75-$85 million [8] - The RLDC margin is expected to be approximately 38%, compared to prior guidance of 36-38% [8] - Adjusted operating expenses are forecasted to be between $495 million and $510 million, up from the previous guidance of $475-$490 million [8]
Circle Q3 Earnings & Revenues Beat Estimates, Shares Decline