Circle beats Wall Street's revenue expectations in first report since high-profile IPO

Circle, the issuer of the second most capitalized USDC stablecoin, reported a sharp rise in revenue in its first quarterly report since its IPO and subsequent rally, with the company's market value more than quintupling in just 2.5 months. Circle is expanding its partnership with Binance and preparing to launch a new blockchain Arc for transactions with USDC, but Wall Street's views on the fate of the company's stock remain divided: some analysts warn of increased competition, while others see Circle as a market leader with a first mover advantage.

Circle published on August 12 its first financial results after going public on June 5. According to the report, the company's revenue for the second quarter of 2025 jumped 53% year-on-year to $658.1 million. This was almost 2% better than analysts' forecast, Reuters reports citing LSEG data. Such growth was provided by an increase in interest income from cash and short-term investments providing USDC steiblcoins. As of June 30, Stablecoin had a turnover of $61.3 billion - 90% more than a year ago, MarketWatch notes. And by Aug. 10, it had climbed to $65.2 billion.

"We are seeing accelerating interest in developing stablecoin solutions and working with Circle across all key segments of the financial industry," said CEO Jeremy Alleyr.

The company reported a net loss of $482.1 million, or $4.48 per share, compared to a profit of $32.92 million a year earlier (the securities were not traded on the stock exchange at that time). Analysts had forecast a loss of $0.97 per share, MarketWatch adds, citing FactSet data. In Circle specified that the main part of losses is connected with one-time non-cash expenses because of IPO.

Allaire also said that the company is expanding its cooperation with Binance, one of the world's largest trading platforms for cryptoassets, and that in the fall it intends to launch a test version of Arc, a public blockchain network of the first level designed specifically for transactions with stablecoins. According to the company's plans, Arc will become the technological foundation for digital payments and work in capital markets and foreign exchange transactions using USDC. The service is scheduled to be fully launched by the end of the year. "Until now, a blockchain infrastructure capable of meeting the most demanding requirements of large financial organizations and corporations simply did not exist," said the head of Circle.

At trades on August 12 shares of Circle were rising by more than 17%, but by the end of the session rose only by 1.3% - to $163.2. And even taking this into account, the quotations at the closing on Tuesday are almost twice as much as the closing price of the first day of trading on June 5 ($83.23).

Based on the offering price of $31 per share, Circle's market capitalization more than quintupled in just 2.5 months on the exchange. Investors bought up the company's shares thanks to the excitement around cryptocurrencies and optimism after the approval of the Genius Bill, which introduces regulation of the issuance of stablecoins and their asset backing.

There is no consensus on Wall Street about further dynamics of the company's shares, emphasizes Barron's. For example, Mizuho analyst Dan Dolev set the second lowest target price on Wall Street - $85 - and advises investors to get rid of these securities. He believes that the passage of the Genius Act could be negative for Circle. Now the company's main competitor is the larger issuer of stablecoins Tether, but thanks to this law, the number of rivals will grow at the expense of fintech companies, banks and retailers - such as PayPal, Walmart and Amazon.

Seaport analyst Jeff Cantwell, on the contrary, advises traders to buy Circle shares with a $280 target price - the second highest on Wall Street, Barron's emphasizes. He disagrees with Mizuho and sees no threat from increased competition, pointing to Circle's "first mover advantage." He says the increasing proliferation and institutionalization of cryptocurrencies is a positive for the industry, as it provides participants with much-needed regulatory certainty. Cantwell called the adoption of Genius "a game changer that will open up significant new opportunities for stackablecoins," adding that Circle is now "the most appropriate bet for stackablecoins among publicly traded companies."

In all, of the 16 analysts who cover Circle securities, only seven recommend buying them, five advise holding, and the rest recommend selling, Barron's writes. The consensus target price target is around $189, up about 16% from Tuesday's close.

This article was AI-translated and verified by a human editor