Circle reported sharply higher fourth-quarter and full-year 2025 results, driven by USDC growth and reserve income. The company said Q4 total revenue and reserve income rose to $770 million, while USDC in circulation reached $75.3 billion at year-end.
The earnings release also shows Circle improving profitability metrics, but with higher operating expenses after its IPO and a larger compensation base.
USDC growth was the main driver
Circle said USDC in circulation at the end of Q4 reached $75.3 billion, up 72% year over year, while Q4 on-chain USDC transaction volume climbed to $11.9 trillion, up 247%. The company also reported average USDC in circulation of $76.2 billion in Q4, up 100% year over year.
CEO Jeremy Allaire said the company saw stronger adoption across payments, treasury, and on-chain finance use cases, and highlighted momentum in EURC, USYC, and progress toward Arc mainnet. As USDC’s footprint scales, Circle has also been formalizing who gets to operate on those rails through compliance-led partner programs — including the USDC Partner Allowance Program that CyberScope says it has now been approved for.
Q4 revenue and profitability improved sharply
For Q4 2025, Circle reported total revenue and reserve income of $770 million, up 77% year over year. Revenue less distribution costs (RLDC) came in at $309 million, up 136%, with RLDC margin at 40%.
Net income from continuing operations was $133 million in Q4, up $129 million year over year, and adjusted EBITDA reached $167 million, up 412%. Circle also said reserve income rose to $733 million, while other revenue increased to $37 million as subscription/services and transaction revenue grew.
Costs rose as Circle scaled after its IPO
Circle reported Q4 total distribution, transaction, and other costs of $461 million, up 52% year over year, mainly due to higher distribution payments. The company also noted the prior-year quarter included a previously disclosed one-time $60 million fee to a distribution partner.
Operating expenses rose to $254 million in Q4, up 95% year over year. Circle said the increase was driven by higher compensation and G&A costs, including a $48 million rise in stock-based compensation after the IPO and a $23 million charge tied to its first annual share contribution to the Circle Foundation.
Full-year 2025 also showed strong growth
For FY2025, Circle reported total revenue and reserve income of $2.747 billion, up 64% year over year. RLDC was $1.083 billion, also up 64%, with RLDC margin at 39%.
Adjusted EBITDA for the full year was $582 million, up 104%. Circle reported a full-year net loss from continuing operations of $70 million, compared with Q4 profitability, reflecting the broader cost structure and non-operating items across the year.
Reserve economics and platform mix are shifting
Circle’s reserve return rate declined to 3.8% in Q4 (down 68 bps year over year) and 4.1% for the full year (down 90 bps), but the impact was offset by higher USDC balances. That helps explain why reserve income still increased strongly even as yield rates fell.
The company also reported USDC on Platform at $12.5 billion at year-end, up 459%, and said the daily weighted average percentage of USDC on Platform rose to 17.8% in Q4 from a year earlier.
Why it matters for crypto
- Circle’s results show stablecoin issuers can still grow fast even with lower reserve rates, if circulation expands.
- USDC transaction volume growth suggests deeper usage in payments and on-chain financial workflows.
- Rising distribution costs show how competitive stablecoin distribution remains.
- Circle’s Q4 profitability strengthens the case for stablecoin infrastructure as a scalable crypto business model.
- Growth in “USDC on Platform” may signal stronger traction in Circle-controlled product rails and services.
What to watch next
- Whether USDC circulation keeps growing at this pace in 2026.
- Changes in reserve return rates, which directly affect Circle’s reserve income.
- Circle’s next updates on Arc mainnet, CPN TPV, EURC, and USYC adoption.
- Whether RLDC margin holds near 40% as distribution costs continue rising.
- Any guidance from management on balancing growth with post-IPO operating expense expansion.
Source: Circle Press Release