Circle reported $701 million in total revenue and reserve income for the second quarter of fiscal 2026, narrowly below the Wall Street consensus of $713.32 million. Net income from continuing operations reached $48 million, a $530 million year-on-year improvement driven primarily by a 25% rise in average USDC circulation. The results arrived during a softer period for the stablecoin sector, with total stablecoin supply declining during the quarter amid weaker market activity across trading and decentralized finance platforms.
Circle Reports $701 Million Q2 Revenue With $48 Million Net Income
Circle's total revenue increased 7% from a year earlier, while net income from continuing operations reached $48 million, representing a $530 million year-on-year improvement. Reserve income remained the company's main revenue source, reaching $668 million, up 5% from the prior-year period. Circle attributed the increase primarily to a 25% rise in average USDC circulation, which expanded the reserve base generating interest income.
The company's earnings remain closely tied to the amount of USDC in circulation and the returns earned on the assets backing it. That model can support strong cash generation, but it also leaves revenue exposed to interest-rate changes and shifts in stablecoin demand.
USDC Maintains $73.3 Billion Circulation Despite Sector Decline
Circle reported the results during a softer period for the stablecoin sector. Total stablecoin supply declined during the quarter, reflecting weaker market activity and slower demand for dollar-linked tokens across trading and decentralized finance platforms. USDC nevertheless retained a circulating supply of about $73.3 billion, making it the world's second-largest stablecoin. Tether's USDT remained the largest, with approximately $183 billion in circulation.
Circle said USDC generated $14.8 trillion in onchain transaction volume during the quarter, an increase of 151% from a year earlier. That level of activity suggests USDC is heavily used for settlement, institutional transfers and blockchain-based payments even though its circulating supply remains well below USDT.
Circle Announces Arc Blockchain Mainnet Launch on Sept. 16
Circle plans to launch the public mainnet of its Arc blockchain on Sept. 16. The network already has more than 100 ecosystem and institutional builders preparing to use it, according to the company. Circle also disclosed Arc's founding validator group, which includes BlackRock, DTCC, Galaxy, Global Payments, ICE, Mastercard, MoneyGram, SBI Group, Standard Chartered, Sumitomo Corporation and Visa.
The involvement of major financial and payment companies gives Arc an institutional foundation before its public debut. It may also help Circle extend USDC beyond trading into payments, settlement, tokenized assets and financial infrastructure. Arc could become an important part of Circle's attempt to build revenue streams beyond reserve income.
Circle Raises Full-Year Other Revenue Guidance to $310M-$330M
Management increased its forecast for other revenue to between $310 million and $330 million, up from its previous range of $150 million to $170 million, according to the company's Q2 guidance. The revised outlook includes revenue from the Arc token presale, making the blockchain launch a meaningful contributor to Circle's fiscal-year expectations. The increase also shows that management expects non-reserve activities to account for a larger share of total revenue than previously projected.
That change may help reduce investor concern about Circle's dependence on interest income, although the durability of Arc-related revenue will depend on how much comes from recurring network activity rather than one-time token sales.
FAQ
What revenue did Circle report for Q2 fiscal 2026?
Circle reported $701 million in total revenue and reserve income for the second quarter of fiscal 2026, narrowly below the Wall Street consensus of $713.32 million. Net income from continuing operations reached $48 million, a $530 million year-on-year improvement.
When will Circle launch the Arc blockchain mainnet?
Circle plans to launch the public mainnet of its Arc blockchain on Sept. 16. The network already has more than 100 ecosystem and institutional builders preparing to use it, and its founding validator group includes BlackRock, DTCC, Galaxy, Global Payments, ICE, Mastercard, MoneyGram, SBI Group, Standard Chartered, Sumitomo Corporation and Visa.
How much USDC is currently in circulation?
USDC retained a circulating supply of about $73.3 billion, making it the world's second-largest stablecoin. USDC generated $14.8 trillion in onchain transaction volume during the quarter, an increase of 151% from a year earlier.
