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

• Market Cap: N/A
• Dividend Yield: N/A
• Average Volume (3M): 11.44M
• Price to Earnings (P/E): ―
• Beta (1Y): -1.36
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 900
• Sector: Technology
• Sector Strength: 88
• Industry: Financial - Capital Markets
• EPS (TTM): -4.48
• Shares Outstanding: 211,836,560
• 10 Day Avg. Volume: 9,252,663
• 30 Day Avg. Volume: 11,441,697
• 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: 10.00T>
• Enterprise Value/Revenue: 32.79
• Enterprise Value/Gross Profit: -364.76
• Enterprise Value/Ebitda: -110.36
• 1Y Price Target: $168.21
• Price Target Upside: 23.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 61 Neutral
• Price Target: $151.00 ▲(10.94% Upside)

Circle Internet Group, Inc. demonstrates a solid financial performance with a strong balance sheet and improving cash flow, contributing significantly to the overall score. Technical analysis shows mixed signals with short-term bullish momentum but potential bearish pressure. The lack of valuation data limits the ability to fully assess the stock's attractiveness, resulting in a moderate overall score.

Positive Factors

Strong Balance Sheet

A low debt-to-equity ratio indicates reduced financial risk and enhances the company's ability to invest in growth opportunities without excessive leverage.

Launch of Arc Blockchain

The launch of Arc positions Circle as a leader in blockchain innovation, potentially expanding its market reach and enhancing its competitive edge in the digital asset space.

Cash Flow Growth

Strong free cash flow growth provides Circle with the financial flexibility to invest in new projects, pay down debt, and return capital to shareholders, supporting long-term sustainability.

Negative Factors

Declining Gross Margin

A declining gross margin suggests potential cost management issues, which could impact profitability if not addressed, affecting long-term financial health.

Competition from Tether

Tether's larger market share in stablecoins presents a competitive challenge for Circle, potentially limiting USDC's growth and market dominance.

Cash Flow Management

Inefficient cash flow management could constrain Circle's ability to fund operations and growth initiatives, impacting long-term strategic execution.

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

Company Description

Circle Internet Group, Inc. Class A (CRCL) is a leading technology firm that specializes in blockchain and cryptocurrency solutions. The company operates primarily in the financial services sector, offering a suite of products that facilitate digital asset management, including cryptocurrency trading, payments, and investment services. Circle is known for its stablecoin, USDC, which is pegged to the U.S. dollar and is widely used for transactions in the cryptocurrency ecosystem.

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
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CRCL	―	―	―	―	―	―	―
SURG	―	$59.46M	―	-210.94%	―	-67.73%	-2274.78%
VRAR	―	$33.49M	-12.30	-17.93%	―	19.58%	64.40%
WLDS	―	$16.71M	-0.38	-268.12%	―	-9.05%	77.41%

Circle Internet Group, Inc. Class A Corporate Events

Circle Internet Group Reports Strong Q2 2025 Growth

Circle Internet Group, Inc. is a global financial technology company that specializes in digital currencies and public blockchains, primarily known for its stablecoin network including USDC and EURC. The company operates in the financial technology sector, providing services that enable businesses to integrate stablecoins and blockchains into their operations.