Circle reported stronger than expected fourth quarter earnings, sending its shares sharply higher as growth in USDC circulation reinforced investor confidence in the stablecoin sector. The company posted earnings per share of 43 cents, significantly above the 16 cent consensus estimate, marking a substantial outperformance relative to market expectations.
Total revenue rose 77 percent from the same period a year earlier to 770 million dollars. Net income reached 133.4 million dollars for the quarter, reflecting a dramatic increase compared to the prior year. A large portion of Circle’s revenue continues to come from interest income generated by reserves backing USDC, which are primarily held in cash and short term US government securities.
USDC issuance expanded 72 percent over the course of the year, highlighting sustained demand for dollar backed digital assets even during a broader crypto market slowdown. With a market capitalization of nearly 75 billion dollars, USDC remains the second largest stablecoin globally, trailing Tether’s USDT but maintaining a clear lead over other competitors.
The earnings results underscore the relative resilience of the stablecoin segment compared to more volatile parts of the cryptocurrency market. While bitcoin and other digital assets experienced prolonged price corrections in recent months, stablecoins have continued to see increased adoption for trading, payments and cross border settlement use cases.
Circle also reported expansion of its Circle Payments Network, with 55 financial institutions enrolled and an additional 74 progressing through eligibility processes as of late February. The company has positioned the network as a bridge between traditional financial institutions and blockchain based settlement infrastructure.
On the earnings call, Circle leadership emphasized the strength of network effects in the stablecoin market, describing it as dominated by two primary issuers. Despite USDT’s larger overall market share, its percentage dominance has gradually declined in recent months, while USDC has gained incremental share in certain regions and institutional use cases.
CRCL shares rose more than 20 percent during trading following the announcement, reflecting investor enthusiasm for both earnings growth and improving operating metrics. Analysts pointed to revenue less distribution costs margins exceeding expectations and stronger than anticipated subscription and transaction revenue as key drivers of the upside surprise.
Investment banks covering the company described Circle as one of the few publicly traded crypto infrastructure firms offering exposure to stablecoin growth without direct token price volatility. Market participants are now watching whether continued expansion of on platform USDC activity and broader commercialization efforts will sustain revenue momentum in the coming quarters.
