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

• Market Cap: $3.97B
• Dividend Yield: N/A
• Average Volume (3M): 15.59M
• Price to Earnings (P/E): ―
• Beta (1Y): -5.87
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 900
• Sector: Technology
• Sector Strength: 83
• Industry: Financial - Capital Markets
• EPS (TTM): N/A
• Shares Outstanding: 211,836,560
• 10 Day Avg. Volume: 15,185,263
• 30 Day Avg. Volume: 15,585,745
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 10.21
• Enterprise Value/Revenue: 32.79
• Enterprise Value/Gross Profit: -364.76
• Enterprise Value/Ebitda: -110.36
• 1Y Price Target: $177.93
• Price Target Upside: 35.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 16

• Rating: 55 Neutral
• Price Target: $163.00 ▲(23.67% Upside)

The overall stock score reflects a mixed outlook. Financial performance is strong, with improvements in profitability and cash flow, but technical indicators suggest bearish momentum. Valuation concerns arise from the stock's high price relative to the analyst target. The positive corporate event is offset by a negative analyst rating.

Positive Factors

Blockchain Innovation

Circle's new Arc blockchain is seen as a potential game-changer due to its bank-grade features and interoperability with Circle products.

Digital Asset Regulation

The passage of the Genius Act by the US Senate marks a historic step in US digital-asset regulation, recognizing compliant stablecoins like USDC as cash by the US Government.

Financial Performance

Revenue of $658 million topped expectations, indicating strong financial performance.

Negative Factors

Market Valuation

Circle's market capitalization is seen as elevated, leading to an Underweight rating.

Revenue Model Concerns

There is a lack of comfort among investors regarding Circle’s revenue model due to interest rate sensitivity, revenue share, and USDC velocity.

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

Company Description

Circle 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 Money

Circle generates revenue through multiple channels, primarily from transaction fees associated with the buying, selling, and transferring of cryptocurrencies. The company also earns income from its stablecoin, USDC, by leveraging the funds held in reserve to generate interest. Furthermore, Circle has established partnerships with various financial institutions and fintech companies, enhancing its service offerings and expanding its market reach. Additional revenue streams may include consulting services, software licenses, and strategic collaborations that enhance its product portfolio.

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, declining gross margins and room for improvement in cash flow management are areas to address.

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 2021
Income Statement
Total Revenue	1.24B	1.68B	1.45B	84.88M
Gross Profit	-111.16M	395.48M	426.69M	-25.91M
EBITDA	-367.40M	274.33M	355.75M	-495.14M
Net Income	-417.31M	155.67M	267.56M	-508.21M
Balance Sheet
Total Assets	64.15B	45.83B	26.00B	43.90B
Cash, Cash Equivalents and Short-Term Investments	1.12B	765.31M	520.81M	161.56M
Total Debt	206.14M	40.72M	58.49M	928.16M
Total Liabilities	61.78B	45.26B	25.66B	44.66B
Stockholders Equity	2.37B	570.53M	339.47M	-768.41M
Cash Flow
Free Cash Flow	303.72M	305.48M	106.71M	-100.20M
Operating Cash Flow	303.72M	344.58M	139.57M	-92.33M
Investing Cash Flow	-46.11M	186.30M	8.51B	-28.85M
Financing Cash Flow	17.80B	19.45B	-20.33B	38.72B

Circle Internet Group, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VRAR	57 Neutral	$28.21M	―	-40.76%	―	-12.30%	76.19%
CRCL	55 Neutral	$3.97B	―		―	―	―
Sector *	50 Neutral	AU$1.63B	-0.40	3.91%	3.39%	16.91%	-3.75%
CISO	―	$29.54M	―	-269.39%	―	―	―
SURG	45 Neutral	$46.38M	―	-210.94%	―	-67.73%	-2274.78%
WLDS	42 Neutral	$1.09M	―	-167.89%	―	536.59%	-5.05%
PETXQ	40 Underperform	$361.44K	―		―	-29.08%	-45.89%

Circle Internet Group, Inc. Class A Corporate Events

Circle Internet Group Expands Board with New Appointment

On July 21, 2025, Circle Internet Group, Inc. expanded its Board of Directors to nine members by appointing Adam Selipsky, a veteran tech executive with extensive experience in internet platform infrastructure. Mr. Selipsky’s appointment is expected to bolster Circle’s platform expansion and growth, leveraging his expertise from leading roles at Amazon Web Services and Tableau Software.