Circle Swings to $48M Profit as USDC Volume Surges 151%

Circle Internet Group reported $48 million in second-quarter 2026 net income from continuing operations, reversing a $482 million loss a year earlier, as USDC onchain transaction volume climbed 151% to $14.8 trillion.

In its second-quarter earnings release, Circle said total revenue and reserve income rose 7% year over year to $701 million. Adjusted EBITDA increased 8% to $143 million, while USDC circulation ended June at $73.3 billion, up 19%.

The profit swing reflects more than rising stablecoin usage. Operating expenses dropped 56% to $254 million, primarily because the year-earlier quarter included substantial stock-based compensation tied to Circle’s initial public offering.

Reserve income grew 5% to $668 million as a 25% increase in average USDC circulation offset some pressure from falling yields. Circle said its reserve return rate declined by 66 basis points from the previous year.

The company is also expanding its regulatory and product footprint. Its recent New York trust charter approval complements federal approval for Circle National Trust, while its Arc blockchain is scheduled for a September 16 public mainnet launch with more than 100 institutional and ecosystem builders.

The quarter highlights a central tension in Circle’s model: USDC transaction activity is growing far faster than revenue, while earnings remain exposed to interest rates and operating costs. Arc and Circle’s institutional payment products will need to turn that usage into more diversified fee income.