Circle's Soaring Revenue Fails to Ease Concerns Over Profitability Amid Falling Share Prices
- Circle's shares fell 9.3% post-Q3 2025 earnings despite 66% revenue growth to $740M and record USDC adoption, erasing IPO gains. - USDC circulation hit $73.7B (+108%) and on-chain volume reached $9.6T (+680%), but $4.48/share Q2 loss vs $0.64 GAAP EPS raised profitability doubts. - Strategic partnerships with Deutsche Börse/Visa and reversible stablecoin pilots aim to strengthen USDC's market leadership against Tether . - Analysts split between J.P. Morgan's Sell and Monness Crespi's Buy ($150 target), w
Shares of Circle Internet Group (CRCL) experienced a significant drop after the release of its Q3 2025 financial results, even though revenue soared 66% year-over-year to $740 million and the company achieved record
The third-quarter report showcased impressive momentum in Circle’s USDC stablecoin network, with circulation climbing to $73.7 billion—a 108% jump from the previous year—and on-chain transaction volume reaching $9.6 trillion, representing a 680% annual increase, according to
Circle continued to broaden its reach through new alliances with Deutsche Börse and Visa, aiming to accelerate stablecoin integration in both European and traditional financial sectors, as
Analyst opinions were split. J.P. Morgan kept a Sell rating, citing concerns over the stock’s valuation, while Monness Crespi Hardt began coverage with a Buy rating and a $150 price target, expressing confidence in Circle’s potential to capture more market share,
Despite optimism, investors paid close attention to Circle’s shrinking margins. RLDC (revenue less distribution costs) margin dropped by 270 basis points year-over-year to 39%, pressured by higher distribution expenses as more USDC balances shifted to partner platforms,
Regulatory changes added further complexity. Bernstein analysts pointed out that the U.S. crypto regulatory environment, including the GENIUS Act, has helped the country become a global leader in stablecoin development, with total supply surpassing $260 billion,
Circle’s third-quarter results highlight the double-edged sword of its growth strategy—capitalizing on stablecoin adoption while contending with valuation doubts and margin pressures. With a 29% share of the total stablecoin market and a growing list of institutional partners,
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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