Circle's financial report surprises the market, with stock price soaring 35%! Investment banks maintain an "outperform the market" rating

Benefiting from better-than-expected earnings, stablecoin issuer Circle (NASDAQ: CRCL) saw its stock surge over 35% on Wednesday, reaching a high of $83.14, successfully continuing the strong momentum from pre-market trading.
According to Circle’s Q4 2025 financial report, the company achieved a total quarterly revenue and reserve income of $770 million, a significant 77% increase compared to the same period last year. By the end of last year, the circulation of its USDC stablecoin reached $75.3 billion, a 72% year-over-year growth.
Looking at the details, Circle’s revenue growth was mainly driven by “reserve income,” which reached $733 million in Q4. Despite the impact of changing interest rate environments causing reserve yields to decline by 68 basis points to 3.8%, the average circulation of USDC doubled to $76.2 billion, successfully offsetting lower yields with higher volume and supporting overall profitability.
Notably, Circle’s profit performance improved significantly. Net profit from ongoing operations in Q4 reached $133 million, far higher than $4 million in the same period of 2024. Additionally, adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), a key measure of core operating profitability, hit $167 million, a 412% increase from the previous year.
Circle CEO Jeremy Allaire stated in the earnings report that Q4 marked an important milestone in building an “open, programmable financial infrastructure” for the internet. The global adoption of USDC continues to expand, with more companies, developers, and public institutions integrating digital dollars into payments, fund management, and on-chain financial processes.
Looking ahead to 2025, Circle expects its core business to post a net loss of $70 million, compared to a net profit of $157 million in 2024, indicating a clear decline. The company explained that this was mainly due to a one-time expense of $424 million related to stock-based compensation triggered after its initial public offering (IPO).
At the same time, Circle announced a multi-year growth target, aiming for USDC circulation to maintain an average annual compound growth rate (CAGR) of 40%. If achieved, USDC’s market share in the stablecoin market would increase significantly. Currently, the market leader remains Tether (USDT), with a circulation of about $183 billion.
Investment bank William Blair reaffirmed its “outperform” rating on Circle following the earnings release, considering the company one of the few high-quality cryptocurrency infrastructure providers in the public market today.