Circle Internet Group (CRCL) reported a 263% increase in USD Coin (USDC) on the lending chain to $21.5 trillion in Q1 2026, while total revenue from ongoing operations fell 15% to $55 million.
The decline in reported profits reflects recent IPO compensation and continued sales of new Arc networks and Agent Stack rather than weak performance. Adjusted EBITDA grew 24% to $151 million.
On-chain Volume Sets New Record
USDC onchain transaction volume grew 263% year-over-year to $21.5 trillion in the first quarter, a key metric for Circle’s coin release. The token accounted for 63% of all stablecoin transactions during this period, according to Visa Onchain Analytics.
USDC on the Platform rose 254% year-over-year to $13.7 billion, representing 17.2% of total USDC revenue at the end of the quarter. Meaningful wallets with more than $10 in USDC rose 47% to 7.2 million.
Business integration helps to calculate that USDC activity is going to resources that can be used. Kyriba included USDC in the company’s financial performance during the quarter. Polymarket continued the growth of USDC as collateral for payment.
Profit Drops 15% As Circle Pays Next Share
Net income from continuing operations fell to $55 million in Q1 2026, down from $65 million a year earlier. The 15% slide came despite a 20% increase in revenue to $694 million.
The squeeze came from compensation money. Stock-based compensation jumped to $51.8 million, nearly four times the $12.7 million booked in Q1 2025, driven by post-IPO equity awards and related taxes.
Operating income rose 76% to $242 million as Circle invested in sales, distribution, and infrastructure. Adjusted Operating Income, which excludes inventory items, grew 32% to $136 million.
Adjusted EBITDA tells a different story. The non-GAAP measure grew 24% to $151 million, reflecting operating strength after excluding fixed assets and one-time charges. Reserves increased 17% to $653 million.
ARC Token Raise Fund Round-1 Pivot
The circle is revealed a $222 million ARC token presale at a reduced cost of $3 billion. The whitepaper, published on Monday, describes how the token will improve control, security, and network operations on the Arc.
Presale Circle signatures plan to convert stablecoins into seed a Layer-1 ecosystem rather than relying on third-party rails.
The Agent Stack pairs Circle CLI, Agent Wallets, and Agent Marketplace with existing Nanopayments products on the Circle Gateway.
This tool was created to support independent organizations working in USDC blockchains and payment protocols.
“Circle’s first quarter showed a strong execution against the biggest opportunity: the rapid evolution of AI platforms and financial systems into the new stack of the Internet,” he said Allaire, Circle Co-Founder, Chief Executive Officer, and Chairman.
Stablecoin Market Splits in Two
Despite this, Tether remains The price of stablecoin about $189 billion as of this writing, supported by the demand for Tron, Binance Smart Chain, and payment gateways emerging from the market.
The company It reported $1.04 billion in Q1 profit with a net worth of $8.23 billion through its BDO Italia portfolio.
Meanwhile, the Circle stablecoin’s market share has fallen by 62% year-to-date to 28%.
Even so, USDC overtook USDT in onchain volume changes in Q1, according to a Mizuho Financial Group survey that filters out arbitrage and laundering.
Circle reaffirmed USDC’s multi-year growth guidance of approximately 40% compound annual growth, and FY 2026 adjusted operating expenses of between $570 million and $585 million.
The June Form 10-Q filing and timing of the Arc mainnet should reveal whether the Q1 onchain-utility opportunity is growing.
A note Circle Q1 Earnings: $21.5 Trillion USDC Volume Fails to Stop 15% Gain as Investors Fear appeared for the first time BeInCrypto.
