Circle Q1 Earnings: $21.5 Trillion USDC Volume Fails to Stop 15% Profit Drop as Investors Panic

Circle Internet Group (CRCL) reported a 263% surge in USD Coin (USDC) on-chain transaction volume to $21.5 trillion in Q1 2026, while net income from continuing operations fell 15% to $55 million. The drop in reported profit largely reflects post-IPO stock-based compensation and continued investment in the company’s new Arc network and Agent Stack rather than operational weakness. Adjusted EBITDA still grew 24% to $151 million. On-chain Volume Sets a New Record USDC onchain transaction volume grew 263% year over year to $21.5 trillion in the first quarter, the standout metric in Circle’s earnings release. The token captured 63% of all stablecoin transaction volumes during the period, according to Visa Onchain Analytics. USDC on Platform climbed 254% year over year to $13.7 billion, representing 17.2% of total USDC supply at quarter-end. Meaningful wallets holding more than $10 in USDC rose 47% to 7.2 million. Enterprise integrations support the read that USDC activity is shifting toward programmable use cases. Kyriba embedded USDC into corporate treasury workflows during the quarter. Polymarket continued to scale USDC as core settlement collateral. The Internet’s largest paradigm shift is happening now, and our Q1 results underscore Circle’s role at the center of these changes.→ $694M total revenue and reserve income, +20% YoY→ $77.0B USDC in circulation, +28% YoY→ $21.5T in USDC onchain transaction volume, +263% YoY… pic.twitter.com/GYwLy0v2Dl— Circle (@circle) May 11, 2026 Profit Falls 15% as Circle Funds the Next Layer Net income from continuing operations declined to $55 million in Q1 2026, down from $65 million in the prior-year quarter. The 15% slide came despite a 20% revenue increase to $694 million. The squeeze came from compensation expenses. Stock-based compensation jumped to $51.8 million, roughly four times the $12.7 million booked in Q1 2025, driven by post-IPO equity awards and related payroll taxes. Operating expenses overall rose 76% to $242 mill...