Circle Revenue Less Costs Rises 15% in Q2
Circle reported $288.845 million in revenue less distribution costs for the quarter ended June 30, 2026, up 15% from a year earlier.
Updated on Nov. 2, 2026 in Corporate Finance
Circle reported $288.845 million in revenue less distribution costs for the three months ended June 30, 2026, a 15% increase from Q2 2025. Total revenue and reserve income reached $701.315 million for the quarter.
Why it matters
The figures show how the stablecoin issuer's earnings depend heavily on reserve income from assets backing USDC. Distribution costs tied to Circle's agreements with Coinbase, at $324.6 million, were a major component of expenses.
Operating income was $34.359 million and net income from continuing operations was $48.214 million in Q2 2026, while average USDC circulation reached $76.524 billion, up from $61.039 billion a year earlier. Reserve income of $667.733 million accounted for 95.2% of total quarterly revenue.
The players
Circle
Circle is the company that issues the USDC stablecoin and generates revenue largely from interest on the reserve assets backing it.
The details
Circle's revenue and reserve income totaled $701.315 million for the quarter, against costs of $412.470 million, including $410.414 million for distribution and transactions. Reserve income comes from interest and dividends on assets backing its stablecoins, and operating expenses for the quarter were $254.486 million.
Timeline
June 30, 2026: End of the three-month period covered by the Q2 results.
Q2 2025: Prior-year quarter used as the comparison baseline.
Nov. 4, 2026, 8 a.m. ET: Scheduled Q3 results webcast.
Market Landscape
Circle's Q2 2026 margin of 41.2% compares with 38.2% in Q2 2025, showing a higher share of revenue retained after distribution costs. Average USDC circulation of $76.524 billion, up from $61.039 billion a year earlier, is the scale driver behind the reserve income that makes up most of the company's revenue.
Revenue less distribution costs is the figure that shows how much of the company's income is retained after paying distribution partners. Investors tracking stablecoin issuers can use the 41.2% margin and the $76.524 billion circulation figure to compare with future quarters.
The takeaway
The Q2 2026 results show that growth in reserve-backed stablecoin circulation is driving revenue, while distribution costs remain the largest expense. Tracking the margin share over future quarters will show whether that balance holds.
What happens next
Circle is scheduled to report third-quarter results with a webcast at 8 a.m. ET on Nov. 4, 2026.
Further reading
Explore more Corporate Finance coverage for context on how companies report earnings and manage balance sheets.
