Circle Internet Group, Inc. Class A (CRCL) AI Stock Analysis

• Market Cap: $16.42B
• Dividend Yield: N/A
• Average Volume (3M): 13.74M
• Price to Earnings (P/E): ―
• Beta (1Y): <0.01
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 900
• Sector: Technology
• Sector Strength: 88
• Industry: Financial - Capital Markets
• EPS (TTM): 0.64
• Shares Outstanding: 216,487,170
• 10 Day Avg. Volume: 21,356,132
• 30 Day Avg. Volume: 13,736,116
• PEG Ratio: -1.06
• Price to Book (P/B): 12.09
• Price to Sales (P/S): 4.12
• P/FCF Ratio: 22.58
• Enterprise Value/Market Cap: 1.82
• Enterprise Value/Revenue: 15.11
• Enterprise Value/Gross Profit: 453.15
• Enterprise Value/Ebitda: -156.39
• 1Y Price Target: $152.00
• Price Target Upside: 127.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): -0.96
• Revenue Forecast (FY): $2.70B

• Rating: 64 Neutral
• Price Target: $75.00 ▲(12.06% Upside)

Circle Internet Group, Inc. shows strong financial recovery and positive earnings call highlights, which are offset by bearish technical indicators and lack of valuation metrics. The company's strategic growth initiatives and market expansion are promising, but technical weaknesses and valuation uncertainties warrant caution.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective business expansion and increased market demand for Circle's services, supporting long-term financial health.

Market Share Gains

Gaining market share in the stablecoin sector enhances Circle's competitive position and strengthens its influence in the cryptocurrency market.

Balance Sheet Health

A strong balance sheet with low leverage reduces financial risk and provides flexibility for future investments and growth opportunities.

Negative Factors

Declining Gross Margins

Declining gross margins may indicate rising costs or pricing pressures, which could impact profitability if not addressed.

Reserve Return Rate Decline

A declining reserve return rate can reduce income from reserves, potentially affecting overall profitability and financial stability.

Cash Flow Management

Inefficient cash flow management could limit the company's ability to reinvest in growth and manage financial obligations effectively.

Circle Internet Group, Inc. Class A Business Overview & Revenue Model

Company Description

Circle Internet Group, Inc. Class A (CRCL) is a financial technology company that operates within the cryptocurrency and blockchain sectors. The company provides a platform for businesses and consumers to transact in digital currencies, primarily focusing on facilitating peer-to-peer payments and digital asset management. Circle's core products include its digital wallet, payment processing services, and cryptocurrency trading features, enabling users to buy, sell, and store various cryptocurrencies, including Bitcoin and Ethereum.

How the Company Makes Money

Circle generates revenue through several key streams. Primarily, it earns money from transaction fees charged for the buying, selling, and transferring of cryptocurrency on its platform. Additionally, the company may receive revenues from its payment processing services, where it charges businesses for processing cryptocurrency payments. Circle also benefits from market-making activities and trading services, where it may earn profits from the spread between buying and selling prices. Strategic partnerships with financial institutions and payment networks enhance its service offerings and expand its user base, contributing to its overall earnings.

Circle Internet Group, Inc. Class A Financial Statement Overview

Summary

Circle Internet Group, Inc. has shown significant improvement in its financial health. The company has transitioned from losses to profitability, reduced its leverage, and strengthened its cash flow position. However, there are areas for improvement, such as managing gross margins and enhancing cash flow efficiency.

Income Statement

Circle Internet Group, Inc. has shown significant improvement in its income statement metrics over the years. The company has achieved a positive net profit margin of 9.29% in 2024, up from a negative margin in 2021, indicating a turnaround in profitability. However, the gross profit margin has decreased from 29.42% in 2023 to 23.59% in 2024, suggesting potential cost management issues. Revenue growth is strong, with a notable increase from 2023 to 2024. Overall, the company is on a positive trajectory but needs to address declining gross margins.

Balance Sheet

The balance sheet of Circle Internet Group, Inc. reflects a solid financial position with a low debt-to-equity ratio of 0.07 in 2024, indicating low leverage and reduced financial risk. The return on equity is robust at 27.28%, showcasing effective use of equity to generate profits. The equity ratio is stable, suggesting a healthy balance between equity and total assets. The company has improved its financial stability significantly since 2021, when it had negative equity.

Cash Flow

Cash flow metrics for Circle Internet Group, Inc. demonstrate strong free cash flow growth, with a substantial increase from 2023 to 2024. The operating cash flow to net income ratio is positive, indicating efficient cash generation relative to net income. The free cash flow to net income ratio of 0.89 in 2024 suggests that the company is generating ample free cash flow relative to its net income, although there is room for improvement in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.98B	1.68B	1.45B	772.05M	84.88M	15.44M
Gross Profit	65.90M	395.48M	426.69M	249.74M	-25.91M	-7.10M
EBITDA	-190.95M	274.33M	355.75M	-742.55M	-495.14M	-9.34M
Net Income	-202.92M	155.67M	267.56M	-768.85M	-508.21M	3.79M
Balance Sheet
Total Assets	76.78B	45.83B	26.00B	46.73B	43.90B	4.18B
Cash, Cash Equivalents and Short-Term Investments	1.35B	765.31M	520.81M	45.41B	161.56M	40.05M
Total Debt	149.09M	40.72M	60.27M	81.89M	928.16M	57.17M
Total Liabilities	73.76B	45.26B	24.53B	45.85B	44.66B	4.47B
Stockholders Equity	3.02B	570.53M	1.47B	879.16M	-768.41M	-286.51M
Cash Flow
Free Cash Flow	277.39M	305.48M	106.71M	-91.01M	-100.20M	-22.01M
Operating Cash Flow	293.03M	344.58M	139.57M	-72.69M	-92.33M	-14.92M
Investing Cash Flow	-66.45M	186.30M	8.51B	-8.49B	-28.85M	-17.93M
Financing Cash Flow	30.31B	19.45B	-20.33B	2.58B	38.72B	3.53B

Circle Internet Group, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRCL	64 Neutral	$16.42B	―	―	―	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SURG	47 Neutral	$40.82M	-0.90	-313.72%	―	-39.75%	-89.61%
VRAR	43 Neutral	$29.49M	-10.83	-19.02%	―	16.60%	70.20%
WLDS	41 Neutral	$13.96M	-0.27	-268.12%	―	-9.05%	77.41%

Circle Internet Group, Inc. Class A Corporate Events

Circle Internet Group Reports Strong Q3 2025 Growth

Circle Internet Group, Inc. is a financial technology company that facilitates the use of digital currencies and public blockchains for global payments and commerce, primarily through its widely-used stablecoin network, USDC and EURC. In its third-quarter 2025 earnings report, Circle announced significant growth in key financial metrics, highlighting a 108% year-over-year increase in USDC circulation to $73.7 billion and a 66% rise in total revenue and reserve income to $740 million. The company also reported a substantial 202% increase in net income, reaching $214 million.

Circle Internet Group’s Earnings Call Highlights Robust Growth

Circle Internet Group, Inc. Class A recently held its earnings call, showcasing a robust financial performance and an optimistic future outlook. The company reported impressive growth in USDC circulation and a strong expansion of the Circle Payments Network. Despite a decline in reserve return rates, strategic initiatives like the launch of Arc and market share gains contributed to a positive sentiment among stakeholders.