Circle Q1 Earnings: $21.5 Trillion USDC Volume Fails to Stop 15% Profit Drop as Investors Panic
Circle Internet Group (CRCL) reported a 263% surge in USD Coin (USDC) on-chain transaction quantity to $21.5 trillion in Q1 2026, whereas web earnings from persevering with operations fell 15% to $55 million.
The drop in reported revenue largely displays post-IPO stock-based compensation and continued funding within the firm’s new Arc community and Agent Stack slightly than operational weak point. Adjusted EBITDA nonetheless grew 24% to $151 million.
On-chain Volume Sets a New Record
USDC onchain transaction quantity grew 263% 12 months over 12 months to $21.5 trillion within the first quarter, the standout metric in Circle’s earnings launch. The token captured 63% of all stablecoin transaction volumes in the course of the interval, in accordance to Visa Onchain Analytics.
USDC on Platform climbed 254% 12 months over 12 months to $13.7 billion, representing 17.2% of total USDC supply at quarter-end. Meaningful wallets holding greater than $10 in USDC rose 47% to 7.2 million.
Enterprise integrations assist the learn that USDC exercise is shifting towards programmable use circumstances. Kyriba embedded USDC into company treasury workflows in the course of the quarter. Polymarket continued to scale USDC as core settlement collateral.
Profit Falls 15% as Circle Funds the Next Layer
Net earnings from persevering with operations declined to $55 million in Q1 2026, down from $65 million within the prior-year quarter. The 15% slide got here regardless of a 20% income improve to $694 million.
The squeeze got here from compensation bills. Stock-based compensation jumped to $51.8 million, roughly 4 occasions the $12.7 million booked in Q1 2025, pushed by post-IPO fairness awards and associated payroll taxes.
Operating bills total rose 76% to $242 million as Circle invested in product, distribution, and infrastructure. Adjusted Operating Expenses, which strip out the stock-based objects, grew 32% to $136 million.
Adjusted EBITDA tells a distinct story. The non-GAAP measure grew 24% to $151 million, reflecting underlying working power as soon as stock-based objects and one-off expenses are stripped out. Reserve Income rose 17% to $653 million.
ARC Token Raise Funds Circle’s Layer-1 Pivot
Circle disclosed a $222 million ARC token presale at a $3 billion totally diluted valuation. The whitepaper, revealed Monday, particulars how the token will assist governance, safety, and community operations on Arc.
The presale indicators Circle plans to channel stablecoin income into seeding a Layer-1 ecosystem slightly than depend on third-party rails.
The Agent Stack pairs Circle CLI, Agent Wallets, and an Agent Marketplace with the prevailing Nanopayments product on Circle Gateway.
The toolkit is purpose-built for autonomous brokers transacting in USDC throughout chains and cost protocols.
“Circle’s first quarter mirrored sturdy execution in opposition to a a lot greater alternative: the fast convergence of AI platforms and financial working programs into a brand new web stack,” said Allaire, Circle Co-Founder, Chief Executive Officer, and Chairman.
A Stablecoin Market Splitting in Two
Notwithstanding, Tether stays the volume king of stablecoin supply at roughly $189 billion as of this writing, supported by demand on Tron, Binance Smart Chain, and emerging-market cost corridors.
The firm reported $1.04 billion in Q1 net profit and extra reserves of $8.23 billion by its BDO Italia attestation.
Meanwhilem, Circle’s stablecoin market share slipped 62 foundation factors 12 months over 12 months to 28%.
Even so, USDC overtook USDT in adjusted onchain quantity throughout Q1, in accordance to Mizuho Financial Group analysis that filters out wash and arbitrage flows.
Circle reaffirmed multi-year USDC development steering of roughly 40% compound annual development, with FY 2026 adjusted working bills projected between $570 million and $585 million.
The June Form 10-Q submitting and Arc’s mainnet timeline ought to reveal whether or not Q1’s onchain-utility benefit is widening.
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