Circle Internet Group’s Earnings Beat Estimates. The Stock Is Falling Anyway.

The stablecoin issuer raises its full-year forecast for operating costs. (NYSE)

Key Points

• Circle Internet Group shares fell after reporting strong third-quarter earnings but increasing its full-year expense outlook.
• Third-quarter earnings were 64 cents per share on revenue of $739.8 million, exceeding analyst expectations.
• Circle updated its 2025 operating expense forecast to $495 million-$510 million, an increase from previous guidance.

Shares of Circle Internet Group fell 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 3.8% to $94.59 in premarket trading Wednesday. Shares are up more than 200% from their June initial public offering price of $31 as of Wednesday’s close, but down 63% from their all-time high on June 23.

The company’s update 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.

Write to Nate Wolf at nate.wolf@barrons.com