Circle grows USDC and revenue, but net profit declines
6.6 Investments Circle’s Q1 2026 saw USDC circulation hit $77B (+28%) and $694M in revenue (+20%), but net profit dropped 15% to $55M due to higher costs and competition.
Circle reported robust Q1 2026 financials, fueled by significant USDC growth. USDC circulation surged to $77 billion, marking a 28% year-over-year increase, while on-chain transaction volume soared to $21.5 trillion, up 263%. Total and reserve revenues reached $694 million, a 20% rise from last year, though still below analyst forecasts. Adjusted EBITDA climbed 24% to $151 million. However, net profit declined 15% year-over-year to $55 million, attributed to increased operating expenses and compensation following the IPO. Circle also raised $222 million in the ARC Token presale, achieving a $3 billion valuation with backing from major investors like BlackRock, Apollo, and a16z. The company introduced the 'Agent Stack' infrastructure for USDC-based payments and AI-driven commercial activities. Despite strong USDC performance, Circle faces margin pressure from market volatility, regulatory changes, and competition from Ripple and PayPal.
