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Circle Internet Group, Inc. Class A (CRCL)
NYSE:CRCL
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Circle Internet Group, Inc. Class A
(NYSE:CRCL)
Select Model
Select Model
Rating:64Neutral
Price Target:
$75.00
▼(-11.61% Downside)
Circle Internet Group, Inc. demonstrates strong financial recovery and growth potential, particularly highlighted by its earnings call. However, bearish technical indicators and lack of valuation metrics create uncertainty. The company's strategic initiatives and robust earnings performance are significant positives, but technical and valuation concerns temper the overall score.
Positive Factors
Revenue Growth
The significant revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.
Expansion of Circle Payments Network
The rapid expansion of CPN strengthens Circle's market position and diversifies its revenue streams, supporting sustainable growth.
Strong Balance Sheet
A strong balance sheet with low leverage reduces financial risk and provides flexibility for future investments and growth initiatives.
Negative Factors
Declining Gross Margins
Declining gross margins suggest potential cost management issues, which could impact profitability if not addressed.
Regulatory Challenges
New regulatory requirements in key markets could increase operational costs and compliance burdens, affecting profitability.
Cash Flow Management
Inefficient cash flow management can limit the company's ability to invest in growth opportunities and respond to market changes.
Circle Internet Group, Inc. Class A (CRCL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.97B
Dividend YieldN/A
Average Volume (3M)10.90M
Price to Earnings (P/E)―
Beta (1Y)0.95
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees900
SectorTechnology
Sector Strength88
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.64
Shares Outstanding216,487,170
10 Day Avg. Volume6,014,780
30 Day Avg. Volume10,902,555
Financial Highlights & Ratios
PEG Ratio-1.06
Price to Book (P/B)12.09
Price to Sales (P/S)4.12
P/FCF Ratio22.58
Enterprise Value/Market Cap1.50
Enterprise Value/Revenue5.50
Enterprise Value/Gross Profit65.27
Enterprise Value/Ebitda-1.03K
Forecast
1Y Price Target
$142.73Price Target Upside68.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
EPS Forecast (FY)1
Revenue Forecast (FY)$3.25B
Circle Internet Group, Inc. Class A Business Overview & Revenue Model
Company DescriptionCircle Internet Group, Inc. operates as a platform, network, and market infrastructure for stablecoin and blockchain applications. The company provides a suite of stablecoins and related products that include a network utility and application platform for organizations to benefit from stablecoins and the internet financial system; and issues a U.S. dollar-denominated stablecoin. Its stablecoins network comprises circle stablecoins, tokenized funds, liquidity, payments, and developer services, as well as integration services. The company was founded in 2013 and is based in New York, New York.
How the Company Makes MoneyCircle 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 Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Aug 18, 2026
Earnings Call Sentiment Positive
The earnings call presented a robust financial performance, impressive growth in USDC circulation, and strong expansion of the Circle Payments Network. Despite a decline in reserve return rates, the company's strategic initiatives, including the launch of Arc and market share gains, contributed to a positive outlook.Q3-2025 Updates
Positive Updates
Significant Growth in USDC Circulation
USDC in circulation grew 108% year-over-year to $73.7 billion, alongside a 580% increase in onchain transactions to $9.6 trillion, reflecting strong network growth.
Financial Performance and Revenue Growth
Circle reported $740 million in total revenue and reserve income, representing 66% year-on-year growth. Adjusted EBITDA grew 78% year-on-year to $166 million with a 57% margin.
Expansion of Circle Payments Network (CPN)
CPN saw significant growth with 100x increase in trailing 30-day payment volumes and an annualized transaction volume reaching $3.4 billion by early November.
Launch of Arc Public Testnet
Arc launched with over 100 major participants, including AWS, BlackRock, HSBC, Mastercard, and Visa, demonstrating strong interest in Circle’s new operating system layer.
Market Share Gains
Circle's share in the stablecoin market increased to 29% in Q3, with USDC's share in stablecoin transaction volumes expanding to 40%.
Negative Updates
Decline in Reserve Return Rate
Reserve return rate fell 96 basis points year-on-year to 4.15%, reflecting a decline in SOFR during the period.
Company Guidance
During the Circle Internet Group's Third Quarter 2025 Earnings Conference Call, the company provided strong guidance and metrics reflecting significant growth and expansion in its operations. Circle reported that USDC in circulation grew by 108% year-over-year, reaching $73.7 billion, and onchain transactions using USDC surged by 580% to $9.6 trillion. Total revenue and reserve income increased by 66% to $740 million, while adjusted EBITDA grew by 78% to $166 million, with a 57% adjusted EBITDA margin, marking a 737 basis point expansion. The company also highlighted the progress of its Arc Network, which recently launched into public testnet with over 100 major participants, and is exploring the possibility of launching a native token on the Arc Network. Furthermore, Circle's Cross-Chain Transfer Protocol (CCTP) volume grew approximately 640% year-over-year to $31.3 billion, and the Circle Payments Network (CPN) saw significant expansion with 29 financial institutions onboard, contributing to a 100x growth in monthly total payment volume over the past five months, reaching an annualized transaction volume of $3.4 billion. The company remains optimistic about its future growth and is actively investing in expanding its platform capabilities and global partnerships.Circle Internet Group, Inc. Class A Financial Statement Overview
Summary
Circle Internet Group, Inc. has shown significant improvement in its financial health, transitioning from losses to profitability, reducing leverage, and strengthening cash flow. 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 | 5.43B | 1.68B | 1.45B | 772.05M | 84.88M | 15.44M |
| Gross Profit | 457.51M | 395.48M | 426.69M | 249.74M | -25.91M | -7.10M |
| EBITDA | -29.01M | 274.33M | 355.75M | -742.55M | -495.14M | -9.34M |
| Net Income | 22.92M | 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 | 502.12M | 305.48M | 106.71M | -91.01M | -100.20M | -22.01M |
| Operating Cash Flow | 564.70M | 344.58M | 139.57M | -72.69M | -92.33M | -14.92M |
| Investing Cash Flow | -173.58M | 186.30M | 8.51B | -8.49B | -28.85M | -17.93M |
| Financing Cash Flow | 85.67B | 19.45B | -20.33B | 2.58B | 38.72B | 3.53B |
Circle Internet Group, Inc. Class A Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $19.97B | ― | ― | ― | ― | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
47 Neutral | $19.00M | -8.33 | -19.02% | ― | 16.60% | 70.20% | |
40 Underperform | $35.77M | -0.81 | -313.72% | ― | -39.75% | -89.61% | |
39 Underperform | $9.06M | -0.18 | -268.12% | ― | -9.05% | 77.41% |
* Technology Sector Average
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Circle Internet Group, Inc. Class A
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.