The crypto market got some good news on Wednesday morning, as Circle reported better-than-expected earnings numbers, sending its stock soaring.
Circle, a fintech company that issues and regulates stablecoins among other things, reported fourth-quarter and full fiscal year 2025 earnings early Wednesday, which showed that total revenue grew 77% to $770 million during the fourth quarter, and net income for the quarter increased by $129 million. Adjusted EBITDA also grew 412% during the quarter. For the full year, total revenue grew 64% to $2.7 billion.
In response, Circle shares took off, skyrocketing more than 15% during pre-trading. Notably, the stock is down roughly 14% over the past month, and down 51% over the past six months. So, the positive earnings news offered investors some relief.
“The fourth quarter marked another step forward in Circle’s mission to build the infrastructure for an open, programmable internet financial system,” said Jeremy Allaire, Co-Founder, CEO and Chairman at Circle, in a statement included with the earnings release.
“USDC adoption continued to expand globally as more enterprises, developers, and public institutions integrated digital dollars into real-world payments, treasury, and onchain financial workflows. We saw strong engagement across our platform, meaningful progress toward launching Arc mainnet, continued growth in CPN TPV, and growing momentum for EURC and USYC. With increasing collaboration across traditional finance, fintech, and the public sector, Circle is helping build the infrastructure for a more open and resilient global financial system.”
The earnings report is also a good signal for the crypto market, which has taken a beating this year. The Nasdaq CME Crypto Index was up 4% during pre-trading on Wednesday, but remains down almost 30% since the beginning of the year. Another crypto index, the CoinDesk 20, was likewise up around 5% during pre-trading, but down 32% year-to-date.
Overall, the crypto market has taken its licks in recent months for several reasons, including de-risking activity by investors, geopolitical concerns, and even changes in the SaaS market, all of which have crypto holders rethinking their positions. However, Circle’s numbers do indicate that the stablecoin business—which differs a bit from other crypto businesses in that stablecoins are backed by fiat—can be profitable.