Overview

• US digital currency platform's fiscal Q1 revenue grew 20% yr/yr, missing analyst expectations

• Net income from continuing operations fell 15% yr/yr due to higher compensation and investments

• Adjusted EBITDA for fiscal Q1 rose 24% yr/yr, driven by higher USDC in circulation

Outlook

• Circle affirms FY26 other revenue guidance at $150-$170 mln

• Company maintains FY26 revenue less distribution costs (RLDC) margin forecast at 38-40%

• Circle expects FY26 adjusted operating expenses of $570-$585 mln

Result Drivers

• USDC GROWTH - Higher average USDC in circulation drove reserve income growth, partially offset by a lower reserve return rate

• OPERATING COSTS - Higher compensation costs from post-IPO stock-based compensation and increased investment in product, distribution, and infrastructure weighed on net income

• OTHER REVENUE - Subscription, services, and transaction revenue contributed to growth in other revenue

Company press release: ID:nBwb9j6d4a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Total Revenue and Reserve Income	Miss	$694 mln	$722.39 mln (17 Analysts)
Q1 EPS		$0.21
Q1 Net Income		$55 mln
Q1 Adjusted EBITDA		$151 mln
Q1 Adjusted EBITDA Margin		53%

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 11 "strong buy" or "buy", 12 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the financial technology (fintech) peer group is "buy."

• Wall Street's median 12-month price target for Circle Internet Group Inc is $120.00, about 5.6% above its May 8 closing price of $113.67

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