Circle Q1 Earnings Show USDC Momentum
Circle Q1 earnings showed USDC circulation and on-chain volume accelerating, lifting reserve income even as net income fell and spurring investor flows.
KEY TAKEAWAYS
- USDC circulation was $77.0 billion at 2026-03-31, up 28% year-over-year.
- On-chain transaction volume hit $21.5 trillion in Q1 2026, up 263% year-over-year.
- Reserve income $653 million and adjusted EBITDA $151 million rose while net income fell to $55 million.
HIGH POTENTIAL TRADES SENT DIRECTLY TO YOUR INBOX
Add your email to receive our free daily newsletter. No spam, unsubscribe anytime.
Circle Internet Group (NYSE: CRCL) reported Q1 earnings on May 11, 2026, highlighting accelerating USDC circulation and a surge in on-chain transaction volume. These trends boosted reserve income and adjusted EBITDA despite a decline in net income. The company also issued multi-year guidance projecting sustained USDC growth.
USDC Growth and On-Chain Activity
USDC in circulation reached $77.0 billion as of March 31, 2026, up 28% year-over-year. On-chain transaction volume rose sharply to $21.5 trillion in Q1, a 263% increase from the prior year, reflecting a significant rise in stablecoin flows across blockchain networks.
Earnings Results and Outlook
Circle reported total revenue and reserve income of $694 million for the quarter, a 20% increase year-over-year. Reserve income was $653 million, up 17%, driven by a 39% rise in average USDC circulation, partially offset by a 66-basis-point decline in the reserve return rate. The revenue figure missed consensus estimates, which ranged from roughly $715 million to $721 million.
Adjusted EBITDA improved 24% year-over-year to $151 million, indicating stronger cash generation linked to reserve yields and other revenue streams. Net income from continuing operations declined 15% to $55 million, as higher stock-based compensation and ongoing investments in product development, distribution, and infrastructure weighed on profits.
The company provided multi-year guidance projecting USDC circulation to grow at a compound annual growth rate of 40% through the cycle, signaling management’s expectation of sustained stablecoin adoption.
