Circle Q1 2026: USDC Volume Hits $21.5 Trillion as Revenue Reaches $694 Million
Circle Internet Group reported its first full quarter as a public company on May 11, 2026, posting $694 million in total revenue and reserve income alongside a 263% surge in USDC on-chain transaction volume to $21.5 trillion, as the stablecoin issuer affirmed its target of reaching $150 billion in USDC supply during the second half of 2026.
Circle Internet Group (NYSE: CRCL) delivered its first full quarterly earnings report as a public company on May 11, 2026, revealing $694 million in total revenue and reserve income alongside a 263% year-over-year surge in USDC on-chain transaction volume to $21.5 trillion, numbers that arrived in a week already defined by congressional stablecoin legislation, the Nasdaq debut of rival fintech Wise, and the launch of Circle's own Agent Stack platform.[1][2]
A Defining Week for Digital Payments
The timing of the May 11 release compressed several months of regulatory and competitive narrative into a single session. Just one week earlier, on May 4, Circle shares surged approximately 20% after Senators Thom Tillis and Angela Alsobrooks released a bipartisan compromise framework for the Digital Asset Market CLARITY Act, resolving a prolonged standoff over whether stablecoin issuers could offer yield on passive holdings.[3] The compromise preserved activity-based rewards tied to trading, transactions, and staking, while prohibiting interest on dormant deposits, an outcome analysts described as a structural advantage for Circle's transaction-volume model.[3]
That legislative backdrop gave the Q1 numbers additional weight. Circle's revenue model derives the vast majority of its income from reserve income earned on USDC holdings and from fees tied to network activity, not passive yield distribution, placing it squarely within the CLARITY Act's permissible structure.[3]
Q1 2026 Financial Results
Metric — Q1 2026 — Year-over-Year Change
Total Revenue and Reserve Income — $694 million — +20%
Reserve Income — $653 million — +17%
Other Revenue — $42 million — +$21 million
Adjusted EBITDA — $151 million — +24%
Net Income (continuing operations) — $55 million — -15%
USDC in Circulation (quarter-end) — $77.0 billion — +28%
USDC On-Chain Transaction Volume — $21.5 trillion — +263%
CPN Annualized Transaction Volume — $8.3 billion — +17% QoQ
USDC Share of Stablecoin Tx Volume — 63% — per Visa Onchain Analytics
Total revenue came in at $694 million, up 20% year-over-year, though it declined sequentially from the $770 million reported in the fourth quarter of 2025.[1][4] Reserve income of $653 million grew 17%, driven by a 39% rise in average USDC in circulation, partially offset by a 66 basis point decline in the reserve return rate as interest rates compressed.[1] Other revenue reached $42 million, doubling year-over-year as subscription, services, and transaction revenues gained traction.[1]
Adjusted EBITDA expanded 24% to $151 million, sustaining a 53% adjusted EBITDA margin and reflecting what management characterized as disciplined cost execution even as the company absorbed elevated post-IPO operating expenses.[4] Total operating expenses rose 76% year-over-year to $242 million, with the increase attributable primarily to stock-based compensation and related payroll taxes following Circle's listing.[1] Net income from continuing operations declined 15% to $55 million as those one-time costs offset revenue growth.[1]
The 263% Volume Figure and What It Means
The headline statistic from the quarter was the 263% year-over-year increase in USDC on-chain transaction volume to $21.5 trillion.[1][2] Circle disclosed that approximately $9 trillion of the quarter-over-quarter volume increase was attributable to market-making repricing activity on the decentralized exchange Aerodrome, providing context for the magnitude of the acceleration.[4] Even with that component isolated, the underlying organic volume growth confirmed broad USDC adoption across payments, institutional settlement, and decentralized finance.
Visa Onchain Analytics attributed 63% of all stablecoin transaction volumes to USDC during the quarter, underscoring the token's dominance in its category.[1] On CNBC's Squawk Box on May 12, CEO Jeremy Allaire stated that USDC accounts for roughly 80% of dollar-denominated digital currency transactions, framing the stablecoin as the de facto settlement layer for internet-native commerce.[5]
"Circle's first quarter reflected strong execution against a much bigger opportunity: the rapid convergence of AI platforms and economic operating systems into a new internet stack. With the ARC token presale, momentum behind the Arc network, and the launch of our Agent Stack, we are building trusted infrastructure for AI-native economic activity and a more programmable internet financial system." - Jeremy Allaire, Co-Founder, CEO, and Chairman, Circle Internet Group [1]
Supply Trajectory and the $150 Billion Target
USDC in circulation reached $77.0 billion at the end of March, up 28% year-over-year but roughly flat sequentially, a figure that came in slightly below analyst expectations of $80 billion.[2][3] Management reaffirmed its target of reaching $150 billion in USDC supply during the second half of 2026, a goal that would require roughly doubling circulation from current levels.[2] As of April 10, supply had already climbed to approximately $112 billion, suggesting momentum building into the second quarter.[2]
The Circle Payments Network continued its expansion, with annualized transaction volume reaching $8.3 billion based on trailing 30-day activity as of March 31, up 17% quarter-over-quarter.[1] Management noted that by May 7, CPN was approaching $10 billion in annualized volume, representing nearly 75% growth since the prior report.[4]
New Products and the Arc Ecosystem
Alongside the earnings release, Circle disclosed a $222 million presale of its ARC token at a $3 billion fully diluted network valuation, with participation from a16z crypto, Apollo Funds, ARK Invest, BlackRock, General Catalyst, Haun Ventures, Intercontinental Exchange, and Standard Chartered Ventures, among others.[1]
The company also unveiled its Agent Stack, a suite of permissionless infrastructure tools targeting the emerging AI agent economy.[1] New products including Circle CLI, Agent Wallets, and an Agent Marketplace allow developers and merchants to build agent-driven payment workflows in USDC across multiple blockchains.[1] The release coincided with the announcement of Kyriba embedding USDC capabilities into enterprise treasury systems and Polymarket adopting USDC as its core collateral and settlement asset.[1]
Stock Context and Analyst Views
Shares of CRCL had already staged a significant move before the earnings release. The approximately 20% surge on May 4 following the CLARITY Act compromise brought the stock back above key moving averages after a volatile stretch earlier in the year.[3] Circle's Chief Strategy Officer Dante Disparte had publicly endorsed the compromise, describing it as meaningful progress for the stablecoin sector.[3] Ahead of the May 11 report, analysts had projected consensus revenue of approximately $717 million for the quarter; the $694 million result fell short on the top line while adjusted earnings exceeded expectations.[4] Following the release, at least one firm upgraded the stock from Sell to Hold, citing improved valuation clarity and resilience in the core business model.[4] Wall Street consensus remained at Moderate Buy with price targets as high as $280, more than double the pre-earnings trading range.[3]
Management affirmed its prior full-year guidance, excluding future financial impacts of the ARC token presale and Arc incentive programs, leaving the forward outlook anchored to USDC circulation growth and reserve income.[1]
References
[1] Circle Internet Group, "Circle Reports First Quarter 2026 Results," May 11, 2026. https://www.circle.com/pressroom/circle-reports-first-quarter-2026-results
[2] BusinessWire, "Circle to Announce Q1 2026 Financial Results on May 11, 2026," April 13, 2026. https://www.businesswire.com/news/home/20260413046130/en/Circle-to-Announce-Q1-2026-Financial-Results-on-May-11-2026
[3] CNBC, "Circle jumps nearly 20% on Clarity Act compromise that preserves stablecoin rewards," May 4, 2026. https://www.cnbc.com/2026/05/04/circle-jumps-16percent-on-clarity-act-compromise-that-preserves-stablecoin-rewards.html
[4] MarketBeat, "Circle Internet Group Q1 2026 Earnings Report," May 11, 2026. https://www.marketbeat.com/earnings/reports/2026-5-11-circle-internet-group-inc-stock/
[5] CNBC, "Circle CEO on Q1 results: USDC accounts for about 80% of dollar digital currency transactions," May 12, 2026. https://www.cnbc.com/video/2026/05/11/circle-ceo-on-q1-results-usdc-accounts-for-about-80-percent-of-dollar-digital-currency-transactions.html