Circle Internet Group Inc. saw its shares climb over 35% following stronger-than-anticipated fourth quarter financial results. The company's adjusted EBITDA quadrupled year-over-year to $167 million, exceeding Wall Street's expectations with adjusted earnings of $0.43 per share, compared to a forecast of $0.35.
Circle's revenue jumped 77% year-over-year to $770 million, surpassing consensus estimates by $25 million. The flagship USDC stablecoin, pegged to dollar reserves, generated $733 million of this revenue. USDC circulation reached $75.3 billion by the end of 2025, a 72% increase, while transaction volume surged 247% in the fourth quarter to $11.9 trillion. Circle earns revenue by accruing interest on the fiat reserves backing USDC.
The company's 'Other Revenue' segment also saw substantial growth, increasing from $3 million to $37 million annually. This segment includes a portfolio of financial products beyond USDC, such as the EURC stablecoin, which nearly tripled in circulation to 310 million euros, and the USYC money market fund backed by U.S. Treasury bonds.
Fintech services, designed to simplify digital wallet creation and stablecoin launches, contribute to Circle's revenue. The company's growth strategy centers on its custom blockchain, Arc, launched last year. Arc facilitates trading in tokenized financial instruments and e-commerce transactions, processing payments in under a second. Circle monetizes Arc through predictable transaction fees, aiming to offer greater cost certainty than competing platforms.
Arc's testnet, launched in the fourth quarter, is currently being evaluated by over 100 early adopters, including banks and capital markets firms, and processes approximately 2.3 million transactions daily. The production version of Arc is slated for launch later this year. Circle projects its 'Other Revenue' segment to generate between $150 million and $170 million in 2026.