Circle Internet Group (NYSE:CRCL) reported first-quarter revenue that fell short of analyst expectations but topped earnings estimates, as the stablecoin issuer pointed to explosive growth in USDC transaction activity and launched a new suite of services targeting artificial intelligence agents.
Revenue for the quarter ended March 31 came in at $694.13 million, up 20% from a year earlier but below the $714.88 million analysts had anticipated.
Earnings per share of $0.21 beat estimates of $0.18.
The headline miss belied strong momentum in Circle's core business. USDC in circulation reached $77 billion, a 28% year-over-year increase, while onchain transaction volume processed in USDC surged to $21.5 trillion — a 263% jump from the prior-year period. USDC accounted for 63% of stablecoin transaction volumes in the quarter.
Reserve income, the primary driver of Circle's business model, rose 17% to $653 million. Revenue less distribution costs grew 24% to $287 million, with a margin of 41%.
Adjusted EBITDA climbed 24% to $151 million.
"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," CEO Jeremy Allaire said in a statement.
Among the quarter's business highlights, Circle raised $222 million in a presale of its ARC token at a $3 billion fully diluted network valuation. The company also launched Circle Agent Stack, a suite of services enabling AI agents to transact using USDC.
For the full year, Circle guided for other revenue of $150 million to $170 million and adjusted operating expenses of $570 million to $585 million. The company projected a revenue less distribution costs margin of 38% to 40%, and forecast USDC in circulation to grow at a 40% compound annual rate through the cycle.
Circle shares rose over 12% in Monday morning trading.