Circle's Q1 total revenue and reserve gains reached $694 million, falling short of market expectations; USDC circulating supply increased by 28% year-over-year.

BlockBeats reported on May 11th that Circle released its Q1 FY2026 financial results, showing a USDC circulating supply of $77 billion and revenue growth of 20% year-over-year (previously market expectations were $721 million); net income from continuing operations was $55 million, a 15% year-over-year decrease. Here are the highlights of the financial report: * As of the end of the quarter, USDC circulating supply was $77 billion, a 28% year-over-year increase; USDC on-chain transaction volume in Q1 2026 was $21.5 trillion, a 263% year-over-year increase. * Reserve revenue was $653 million, a 17% year-over-year increase, primarily driven by a 39% increase in average USDC circulating supply, but partially offset by a 66 basis point decrease in reserve returns. * Other revenue was $42 million, a $21 million year-over-year increase, mainly due to strong growth in subscription and service revenue and transaction revenue. • Distribution, transaction, and other costs totaled $407 million, a 17% increase year-over-year, primarily due to increased distribution expenses. • Operating expenses were $242 million, a 76% increase year-over-year, primarily due to higher personnel costs resulting from increased share-based compensation and related payroll taxes following the IPO. • Adjusted operating expenses were $136 million, a 32% increase year-over-year, primarily driven by increased investment in product, distribution, and operational infrastructure. • Net income was $55 million, a 15% decrease year-over-year, as growth in revenue minus distribution costs was offset by increased share-based compensation and continued investment in product, distribution, and operational infrastructure. • Adjusted EBITDA was $151 million, a 24% increase year-over-year, reflecting revenue growth from increased USDC circulation.