Financial Performance - Revenue bump is driven by growth [1] - Saw a 90% year-over-year growth in US DC in circulation on the network [2] - Other revenue grew 250% year-on-year, adding a couple hundred basis points to margins [4] - Adjusted EBIT growth of 52% with a 50% adjusted EBIT margin [4] - In Q2, $6 trillion of transactions occurred on the network, with acceleration into Q3 [12] - Year-to-date growth of 49% as of August 10th [14] Business Strategy & Development - Circle positions itself as an Internet platform and network utility company, providing a full stack for financial institutions to leverage Stablecoin finance [6] - Building an application layer through Circle payments network and announced a new blockchain network ARC [3] - ARC is purpose-built for Stablecoin finance, with transaction fees paid in USDC [6] - Focuses on growing the money stock on the network, with optimistic views of 90% category growth for stablecoins over the next five years [13] - Primarily focused on organic growth and software-powered innovation, but has made three acquisitions this year to augment product development [16][17]

Financial Data and Key Metrics Changes - USDC in circulation reached $61.3 billion at the end of Q2 2025, representing a 90% year-over-year growth, and increased to $65.2 billion by August 10, 2025, marking a 6.4% growth since quarter-end [7][26] - Total revenue and reserve income increased by 53% year-over-year to $658 million in Q2 2025, while total distribution transaction and other costs rose by 64% year-over-year to $407 million [26][27] - Adjusted EBITDA for Q2 2025 was $126 million, up 52% year-over-year, with a 50% adjusted EBITDA margin [28] Business Line Data and Key Metrics Changes - USDC on-chain transaction volume grew 5.4 times year-over-year to nearly $6 trillion, with a significant acceleration into Q3 [7][25] - CCTP volume also showed strong growth, up 4.1 times year-over-year, indicating the importance of blockchain interoperability [25] - Other revenue increased to $24 million in Q2 2025, up 3.5 times year-over-year, driven by a $13 million increase in subscription and services revenue [27] Market Data and Key Metrics Changes - The total addressable market for stablecoins is estimated to be massive, with dollar stablecoins representing only 1% of the U.S. M2 money supply [8][9] - The company operates the largest regulated stablecoin network globally, with significant growth driven by partnerships with major financial institutions and technology companies [10][11] Company Strategy and Development Direction - The company aims to build a new Internet financial system using blockchain and digital currency, focusing on mainstream adoption of stablecoins [6][7] - The launch of the Circle Payments Network (CPN) and the new Layer 1 blockchain network, Arc, are key initiatives to enhance global money movement and financial services [12][15] - The Genius Act is expected to accelerate stablecoin adoption among major financial institutions and enterprises, creating a favorable regulatory environment [11][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the rapid expansion of commercial opportunities post-IPO and the Genius Act, with increasing interest from various sectors [8][11] - The company anticipates a conservative multi-year growth rate of 40% CAGR for USDC, with other revenue expected to range between $75 million and $85 million for 2025 [30][32] - Management emphasized the importance of building strong partnerships and the long-term potential of the stablecoin market [29][30] Other Important Information - The company has reserved 2.7 million shares of Class A common stock for future donations to the Circle Foundation as part of its corporate impact commitment [8] - The company is focused on enhancing its liquidity capabilities and expanding its partnerships with global financial institutions [12][18] Q&A Session Summary Question: Insights on ARC and its revenue model - Management highlighted that ARC is designed to support mainstream regulated financial institutions and that gas fees denominated in USDC could become a source of revenue [34][36] Question: Details on the USYC partnership with Binance - The partnership with Binance includes deeper integration of Circle's wallet technology and aims to promote USDC and USYC as yield-bearing collateral [39][41] Question: Understanding transaction volume versus circulation - Management explained that the high velocity of USDC transactions is due to improvements in blockchain technology, allowing for faster and cheaper transactions [48][50] Question: Future milestones for CPN - The focus is on activating more payment corridors and enhancing product features based on market demand [54][56] Question: Payment networks and competition - Management stated that the company views itself as part of a broader ecosystem, encouraging multiple networks to utilize USDC [64][66] Question: Adoption of USDC in remittance - The company is seeing increased demand for USDC in remittance, with partnerships expanding in this area [76][78] Question: Partnership with OKX - The partnership with OKX aims to integrate Circle Wallet technology and enhance liquidity for USDC among its 60 million users [82][84] Question: Growth post-Genius Act - Management noted a significant increase in institutional interest and engagement since the passage of the Genius Act, indicating a positive market response [94][96]

Financial Data and Key Metrics Changes - USDC in circulation grew to $61.3 billion at June 30, representing a 90% year-over-year increase, and reached $65.2 billion by August 10, marking a 6.4% increase since quarter-end [7][28] - Total revenue and reserve income increased by 53% year-over-year to $658 million in Q2, while total distribution transaction and other costs rose by 64% year-over-year to $407 million [28][29] - Adjusted EBITDA was $126 million in the quarter, up 52% year-over-year, resulting in a 50% adjusted EBITDA margin [30] Business Line Data and Key Metrics Changes - USDC on-chain transaction volume grew 5.4 times year-over-year to nearly $6 trillion, with $2.4 trillion in transactions recorded in July alone [7][27] - CCTP volume also showed significant growth, up 4.1 times year-over-year, indicating the importance of blockchain interoperability [27] - Other revenue increased to $24 million in Q2, up 3.5 times year-over-year, primarily driven by a $13 million increase in subscription and services revenue [29] Market Data and Key Metrics Changes - The total addressable market for stablecoins is considered massive, with dollar stablecoins representing only 1% of the U.S. M2 money supply [9] - The company operates the largest regulated stablecoin network globally, with significant growth driven by partnerships with major financial institutions and technology companies [11][22] Company Strategy and Development Direction - The company aims to build the largest stablecoin network, leveraging its platform to support developers, enterprises, and institutions [24] - The launch of the Circle Payments Network (CPN) is a key initiative to transform international money movement, with active payment corridors already established in several countries [13][58] - The introduction of ARC, a new Layer 1 blockchain, is designed to support stablecoin finance and enhance transaction efficiency [15][93] Management's Comments on Operating Environment and Future Outlook - Management highlighted the rapid expansion of commercial opportunities post-IPO and the positive impact of the Genius Act on stablecoin adoption [12][99] - The company anticipates a conservative multi-year growth rate of 40% CAGR for USDC, reflecting the increasing demand for stablecoins across various sectors [31][108] - Management emphasized the importance of building strong partnerships and the need for financial institutions to integrate new technologies, which may take time [100] Other Important Information - The company has committed to corporate impact by reserving shares for future donations to its foundation [9] - The regulatory environment is seen as a significant tailwind for the company's growth, particularly with the passage of the Genius Act [12][100] Q&A Session Summary Question: Thoughts on ARC and its revenue model - Management expressed excitement about ARC and its potential to underpin stablecoin finance, with gas fees in USDC expected to become a revenue source [35][39] Question: Details on USYC and partnership with Binance - The expanded partnership with Binance includes deeper integration of Circle's wallet technology and aims to promote USDC and USYC as yield-bearing collateral [40][44] Question: Understanding transaction volume versus circulation - Management explained that the high velocity of USDC transactions reflects improvements in blockchain technology and growing payment utility [50][53] Question: Milestones for CPN and its relationship with ARC - The focus is on activating more payment corridors and developing self-service tools for institutions to integrate with CPN [58][60] Question: Payment networks and competition - Management views USDC as a market-neutral infrastructure that supports various payment networks, emphasizing the importance of growing utility and distribution [64][66] Question: Adoption of USDC in remittance - The company is seeing increasing demand for USDC in remittance, with partnerships expanding in both consumer and B2B segments [78][80] Question: Partnership with OKX - The partnership with OKX aims to enhance liquidity and promote USDC to a large user base, contributing to the growth of the network [82][86] Question: Distribution and gas fees for ARC - Management discussed the goal of having a distributed network of professional validators for ARC, ensuring low and predictable transaction costs [90][92] Question: Impact of the Genius Act on growth - Management noted a significant increase in institutional interest post-Genius Act, which is expected to drive further adoption of USDC [95][100]

🚨JUST IN: @CIRCLE MAKES PUBLIC IT'S PLAN TO LAUNCH "ARC," A LAYER-1 BLOCKCHAIN ~ FT ...

Financial Data and Key Metrics Changes - In Q1 2025, adjusted revenue increased by 24% year-over-year, while adjusted EBITDA rose by 53% [8][22] - Non-GAAP EPS reached $1.6, an 80% increase from the previous year [22] Business Line Data and Key Metrics Changes - The B2B segment, powered by the ARC platform, saw revenue growth of over 40%, driven by significant BaaS partners [23] - The Money Movement segment experienced a 10% increase in tax processing revenue year-over-year, despite a decrease in the number of tax refunds processed [26] - The Consumer Services segment showed moderated declines in revenue and active accounts, largely due to the partnership with PLS [29] Market Data and Key Metrics Changes - Third-party cash transfer volumes grew by 5% year-over-year, marking the fourth consecutive quarter of growth [27] - The Consumer segment is expected to see revenue declines in the upper single digits, with a more pronounced decline anticipated in Q4 [35] Company Strategy and Development Direction - The company is focused on investing in infrastructure and technology to support growth and manage risk effectively [9][42] - Recent partnerships with Samsung and Crypto.com are expected to enhance the embedded finance offerings and drive future revenue growth [12][41] - The strategic review process aims to maximize shareholder value and assess the company's inherent value in the marketplace [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the return to growth, citing strong performance in new business wins and renewals [10][41] - The company raised its guidance for 2025, expecting non-GAAP revenue of $2 billion to $2.1 billion, up from previous estimates [34] - Management acknowledged the ongoing challenges in the staffing industry but remains optimistic about future growth opportunities [25][38] Other Important Information - The company renewed its long-term agreement with Walmart, extending the partnership through January 2033 [39] - A $70 million incentive payment to a Walmart affiliate will be recognized as an expense, impacting GAAP financial statements [39] Q&A Session Summary Question: Clarification on revenue segments for Crypto.com and Samsung - Revenue from these clients will run through either BaaS or Money Movement channels, with significant growth expected over time [46][48] Question: Details on the new MoneyCard deal with Walmart - The partnership allows for improvements in product capabilities and customer experience, with no significant changes to the economics of the MoneyCard program [50][53] Question: Thoughts on consumer active account growth - The decline in active accounts is moderating, with optimism for stabilization but no expected return to growth in 2025 [60][61] Question: Macro backdrop considerations in guidance - Current guidance reflects the macro environment as understood today, with potential adjustments if conditions change [64] Question: Operating environment for embedded finance today - The market has matured, with increased awareness and demand for embedded finance solutions, favoring established partners [67][70] Question: Competitive environment within Embedded Finance - The marketplace remains competitive, but the company differentiates itself through its comprehensive capabilities and established partnerships [72][73]

Financial Data and Key Metrics Changes - In Q1 2025, adjusted revenue increased by 24% year-over-year, while adjusted EBITDA rose by 53% [6][22] - Non-GAAP EPS reached $1.6, an 80% increase from the previous year [22] - Segment profit improved across all three operating segments for the first time in years [22] Business Line Data and Key Metrics Changes - The B2B segment, powered by the ARC platform, saw revenue growth of over 40%, driven by significant BaaS partners [23] - The Money Movement segment's tax processing revenue increased by 10% year-over-year, despite a decrease in the number of tax refunds processed [27] - The Consumer Services segment experienced moderated revenue and active account declines, largely due to the partnership with PLS [30] Market Data and Key Metrics Changes - The company reported a strong start to the year with robust pipelines and nearly the same amount of revenue signed year-to-date as in all of 2024 [11] - Third-party cash transfer volumes grew by 5% year-over-year, marking the fourth consecutive quarter of growth [28] Company Strategy and Development Direction - The company is focused on building a revenue engine, driving scale, and investing in infrastructure to support growth [6] - Strategic alternatives are being evaluated to maximize shareholder value, with a belief in the company's unique assets and management team [5] - The company aims to enhance its embedded finance capabilities and strengthen partnerships, particularly with Walmart and new clients like Samsung and Crypto.com [9][12][40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the return to growth and the importance of investing in the right people and infrastructure [8] - The macroeconomic environment is being monitored, with guidance raised for 2025 based on strong Q1 performance [35][36] - The company anticipates continued growth in the B2B and Money Movement segments, while the Consumer segment is expected to see declines [37][39] Other Important Information - The company has renewed its long-standing agreement with Walmart, extending the partnership through January 2033 [40] - A $70 million incentive payment to a Walmart affiliate will be recognized as an expense, impacting GAAP financial statements [41] Q&A Session Summary Question: Clarification on revenue segments for Crypto.com and Samsung - Revenue from these clients will run through either BaaS or Money Movement channels, with significant growth expected over time [46][47] Question: Details on the economics of the new MoneyCard deal with Walmart - The partnership with Walmart allows for improvements in product capabilities and customer experience, with no significant changes to the economics of the MoneyCard program [49][52] Question: Thoughts on consumer active account growth - The decline in consumer active accounts is moderating, with optimism for future growth driven by partnerships and product innovations [59][60] Question: Macro backdrop in annual guidance - Current guidance reflects the existing macro environment, with adjustments possible if conditions change [62] Question: Operating environment for embedded finance today - The market has matured, with increased awareness and demand for embedded finance solutions, favoring established partners [66][68] Question: Competitive environment within Embedded Finance - The marketplace remains competitive, but the company differentiates itself through its comprehensive capabilities and established partnerships [70][72]