USDC generated $1.4 billion in six months, but only 7% was left as net profit! Is Circle’s stablecoin business really as lucrative as it seems?

On November 4, USDC issuer Circle will release its third-quarter earnings.

The market expects revenue of around $800 million and earnings per share of about $0.40. But more worth watching than whether earnings beat expectations is how much the stablecoin business actually keeps.

① $1.4 billion in revenue—where did it go?

‍$CRCL disclosed revenue of about $1.4 billion in the first half of 2026.

Of that, $819 million went to distribution payments and transaction-related costs, accounting for about 59%.

Another roughly $473 million went to operations, compliance, and infrastructure.

In the end, only about 7 cents of every dollar earned remained as net profit.

A large stablecoin supply doesn’t mean the issuer gets to pocket all the proceeds.

② Fed rate cuts could actually hurt profits

Circle mainly relies on interest income from USDC reserve assets.

USDC in circulation reached $73.3 billion in the second quarter, up 19% year over year, but total revenue and reserve income for the quarter grew just 7% year over year.

One reason is the decline in reserve yields.

More and more people are using USDC, but if interest rates keep falling and distribution costs don’t come down, profit margins could remain under pressure.

③ What should you watch in this earnings report?

Don’t just look at whether revenue beats expectations. Watch three things:

Has the amount of USDC in circulation continued to grow?

Can reserve income offset the impact of falling interest rates?

Has the share of costs going to distribution improved?

If revenue grows but profits after distribution costs don’t improve in tandem, the market will have to reassess Circle’s valuation.

Circle doesn’t lack a stablecoin story; it needs to prove that scale growth can deliver higher profits.

Tonight’s earnings report will put that to the test.#Gate社交年度主播与创作者评选 #每周来晒 $BTC $ETH