Circle Internet Group Q2 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Circle Q2 2026 Earnings Summary

Key Highlights: Circle reported resilient USDC growth amid a ~40% YoY decline in broader digital asset market cap. USDC demonstrated decoupling from crypto volatility through real-world adoption. Strategic milestones include OCC National Trust Bank charter, Arc Mainnet launch on Sept 16, 2026, and major partnerships (DTCC, BlackRock). Network effects strengthened with 70% of consortium-interested companies already on USDC. CPN payments volume surged post-earnings.

Financial Performance

  • Total Revenue & Reserve Income: $701 million, +7% YoY (growth in circulation/other revenue offset by lower 3.48% reserve return rate, down 66 bps YoY due to SOFR decline). Sequentially up due to record avg circulation.
  • Adjusted EBITDA: $143 million, +8% YoY; margin 50%.
  • Revenue Less Distribution Costs Margin: 41.2%, +3 pts YoY (platform mix optimization); -21 bps QoQ.
  • Adjusted Operating Expenses: $146 million, +23% YoY (investments in product, GTM, AI); +8% QoQ.
  • Other Revenue: $34 million, +1.4x YoY (blockchain partnerships); - $8M QoQ.

USDC Metrics (vs. Q2 2025 unless noted)

  • Ending Circulation: $73.3 billion, +19-20% YoY. Avg circulation hit all-time high of $76.5 billion.

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Scott Blair: Good morning, and welcome to Circle's Second Quarter 2026 Earnings Conference Call. I'm Scott Blair, Circle's Head of Strategic Finance. Earlier this morning, we posted our earnings press release and earnings presentation on the Circle Investor Relations website, investor.circle.com. A transcript of this call will be posted on that website once available. I need to remind everyone that our earnings press release, presentation in this call contain statements that are forward-looking. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and some of which are beyond our control, you should not rely on these forward-looking statements as predictions of future events. Information containing risks, uncertainties and other factors that could cause these results to differ is included in our SEC filings. Additionally, nothing in this presentation constitutes an offer to sell or a solicitation of an offer to buy securities or an invitation or inducement to engage in investment activity. We will also disclose non-GAAP financial measures on this call today. Definitions of those non-GAAP financial measures and reconciliations can be found in the earnings release and earnings presentation, which are posted on investor.circle.com. Non-GAAP financial measures should be considered in addition to, not as a substitute for GAAP measures. Today, I'm joined by Jeremy Allaire, our Co-Founder, Chief Executi

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