Circle Internet Group shares (CRCL) surged more than 30% after the company reported stronger-than-expected fourth-quarter results. CRCL traded near $79.13, up 28% intraday at one point. The rally followed a sharp earnings beat and continued growth in USDC circulation. Investors reacted to expanding revenue and updated multi-year growth targets.
Strong Q4 Earnings Drive CRCL Stock Higher
Circle reported $770 million in total revenue and reserve income for Q4 2025. That figure marked a 77% increase from the prior year period. Net income from continuing operations reached $133 million compared to $4 million a year earlier.
Earnings per share came in at $0.43, exceeding analyst estimates of $0.16. Adjusted EBITDA rose to $167 million, up more than four times year over year. Analysts noted that revenue less distribution costs margins reached 40.1%, above expectations.
Reserve income accounted for $733 million of quarterly revenue. Average USDC in circulation doubled year over year to $76.2 billion. However, the reserve return rate declined 68 basis points to 3.8%.
Circle shares initially jumped nearly 20% in pre-market trading. After the opening bell, gains extended further as investors absorbed the earnings report.
USDC Circulation Reaches 75 Billion
Circle ended 2025 with $75.3 billion in USDC circulation. That represents a 72% increase from the previous year. USDC remains the second-largest stablecoin behind Tether’s USDT, which holds about $183 billion in circulation.
CEO Jeremy Allaire said, “USDC adoption continued to expand globally as more enterprises, developers, and public institutions integrated digital dollars.” He added that the stablecoin market reflects durable network effects between major issuers.
Circle also issued multi-year guidance targeting a 40% compound annual growth rate for USDC circulation. If achieved, that pace could expand USDC’s market share in the coming years.
Transaction volume linked to USDC reached $11.9 trillion, up 247% year over year. The company’s Circle Payments Network enrolled 55 financial institutions, with 74 more under review.
Product Expansion and Regulatory Progress
Beyond USDC growth, Circle reported expansion in other digital asset offerings. EURC circulation reached €310 million, up 284% year over year, while the USYC assets totaled $1.5 billion at year’s end.
The company’s Arc public testnet processed more than 166 million transactions with near 100% uptime. Concurrently, the daily average transaction volumes reached 2.3 million as of February 20. Moreover, a mainnet launch is planned later this year.
Circle also highlighted partnerships with Visa and Intuit. In December 2025, the firm received conditional approval from the Office of the Comptroller of the Currency to establish a national trust bank.
For the full year 2025, Circle reported a net loss of $70 million. The loss was largely driven by $424 million in stock-based compensation tied to its IPO. Despite that annual loss, quarterly growth metrics fueled a strong investor reaction.
Source: https://coinpaper.com/14921/why-is-circle-s-crcl-stock-soaring-17-today
