By Nate Wolf and Paul R. La Monica
Circle Internet Group stock fell on Wednesday after the issuer of the USDC stablecoin posted better-than-expected quarterly earnings but updated its full-year outlook to reflect higher expenses.
Circle reported earnings of 64 cents a share for the third quarter, surpassing Wall Street's call for 20 cents. Revenue totaled $739.8 million, up 66% from last year and above analysts' consensus estimate of $706.7 million.
USDC in circulation reached $73.7 billion by the end of September, more than double the circulation a year ago. Circle primarily makes money through interest on its USDC reserves, which are held in a registered money-market fund.
Circle stock dipped more than 4.5% in Wednesday's premarket trading to about $93.50. Shares are up more than 200% from their June initial public offering price of $31 as of Tuesday's close, but down 63% from their all-time high on June 23.
The company's updated full-year outlook may be weighing down shares. Circle bumped its 2025 forecast for non-reserve revenue, such as subscriptions and services, to $95 million at the midpoint from a previous estimate of $80 million.
However, its cost forecast rose by even more. Circle anticipates a range of $495 million-$510 million in operating expenses in 2025, up from past guidance of $475 million-$490 million.
Part of that may be due to spending on the company's planned launch of its Arc blockchain network. In addition, Circle said it is considering launching its own token on the network.
Fluctuations in short-term interest rates may also be weighing on Circle, which generates income from U.S. dollar reserves that back its stablecoin. The Federal Reserve cut rates in September and October and is widely expected to do so again in December and several times more in 2026. Lower rates could reduce interest income.
Still, Circle executives remain optimistic that the company will benefit from longer-term adoption of stablecoins and other cryptocurrencies. The market is currently dominated by Circle and its larger rival Tether, the issuer of the USD Token (USDT), which is also pegged to the U.S. dollar.
Circle CEO Jeremy Allaire noted on a conference call with analysts that the regulatory clarity in Washington, thanks to the passage of the Genius Act this summer, will boost the market. Even though the Genius Act could lead to more competition in the stablecoin issuance market, Allaire doesn't seem too concerned.
"Overall, the stablecoin market continues to grow strongly and we continue to gain share," Allaire said on the call, adding that the market remains one where there are "two leading issuers and several much smaller players."
Write to Nate Wolf at nate.wolf@barrons.com and Paul R. La Monica at paul.lamonica@barrons.com.
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(END) Dow Jones Newswires
November 12, 2025 08:45 ET (13:45 GMT)
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