We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Circle offers USD Coin (USDC), which is redeemable on a one-for-one basis for U.S. dollars. USDC, along with EURO Coin (EURC), are digital currency tokens issued natively on blockchain networks and backed by reserves consisting of highly liquid, price-stable cash and cash equivalents. Both USDC and EURC are used for payments, settlements, and as a digital dollar store of value.
The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $708.92 million. The consensus mark for earnings is currently pegged at 17 cents per share, revised upward by 5 cents over the past 30 days.
Image Source: Zacks Investment Research
In the last reported results for the second quarter of 2025, Circle posted adjusted earnings of $1.02 per share, which beat the Zacks Consensus Estimate of 29 cents.
Circle Internet Group, Inc. Price and EPS Surprise
Our proven model conclusively predicts an earnings beat for Circle this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the exact case here.
Circle's third-quarter 2025 results are likely to benefit from steady growth in its main stablecoin, USDC. The company ended its second quarter with $61.3 billion USDC in circulation, which increased to $65.2 billion as of Aug. 10, 2025. Onchain USDC transaction volume reached almost $6 trillion in the second quarter, which was 5.4 times higher than last year. Activity picked up further in July with $2.4 trillion in transactions. The number of meaningful wallets, or wallets holding more than $10 of USDC, rose 68% year over year.
Circle is also seeing more usage from institutional customers. More exchanges, trading firms, wallets and banks are integrating Circle’s wallet and liquidity tools. USDC held within Circle’s own platform grew 10 times compared to last year and made up 10% of total USDC circulation during the second quarter, as USDC adoption continues to expand globally.
New products launched over the past year are expected to have driven growth in the to-be-reported quarter. The Circle Payments Network is now active in Hong Kong, Brazil, Nigeria and Mexico, and more than 100 financial institutions are interested in joining, reflecting growing usage. Additionally, the company also launched Circle Gateway in July 2025, which helps users move USDC across different blockchains more easily. Circle also announced Arc, a new Layer-1 blockchain built for payments, FX and other financial use cases.
The above-mentioned factors are likely to have contributed positively to Circe’s progress in the to-be-reported quarter. Overall, strong USDC activity, aided by more platform usage, along with new product adoption, is likely to have supported Circle’s performance in the third quarter.
CRCL Price Performance & Stock Valuation
Circle shares have rallied 20.2% since it started trading on the stock exchange on June 5, 2025, outperforming the Zacks Financial - Miscellaneous Services industry’s growth of 1.8%.
During the same time frame, Circle has outperformed Coinbase Global ((COIN - Free Report) ) and PayPal ((PYPL - Free Report) ), and Fiserv ((FI - Free Report) ). Shares of Coinbase have gained 15.4%, while PayPal and Fiserv have plunged 8.9% and 62.5%, respectively.
CRCL Price Return Performance
Image Source: Zacks Investment Research
Circle is currently trading at a higher price-to-sales (P/S) multiple compared with the industry. The stock’s forward 12-month P/S ratio sits at 8.18X, significantly higher than the industry’s forward 12-month P/S ratio of 3.25X.
CRCL Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
Circle stock also trades at a higher P/S multiple compared with its peers, including PayPal and Fiserv. At present, PayPal and Fiserv have P/S multiples of 1.83X and 1.67X, respectively.
Investment Consideration for CRCL
Improving regulatory environment and growing demand for stablecoins like USDC bode well for the company’s long-term prospects. Moreover, the company's expanding partner base is expected to boost top-line growth in the upcoming quarters.
In the second quarter of 2025, Circle expanded relationships with major exchanges, such as Binance and OKX, which are increasing the usage of USDC and Circle’s wallet technology on large trading platforms. Moreover, Circle has also signed agreements with large payment infrastructure companies, such as FIS, Corpay and Matera, which serve tens of thousands of banks, enabling adoption of stablecoin technology into the traditional financial system.
However, the company faces stiff competition from established companies, including Coinbase, PayPal and Fiserv. Fiserv and the Bank of North Dakota have collaborated to launch “Roughrider Coin,” fully backed by U.S. dollars and built on the Fiserv digital asset platform. Coinbase acquired Deribit, the world’s top crypto options exchange, making Coinbase the most complete global crypto derivatives platform. PayPal launched “Pay with Crypto,” a service that lets U.S. merchants accept crypto payments with near-instant settlement, helping businesses reach global customers more easily.
Conclusion: Hold Circle Stock for Now
Circle’s focus on developing USDC-based payment infrastructure, along with its growing partnerships with tech giants and financial institutions, is expected to boost growth prospects over the long term.
However, the company faces stiff competition from industry giants and well-established players, which could limit its market share over time. Additionally, Circle’s stretched valuation is also a concern. These factors could affect Circle’s market positioning, despite its technological edge.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CRCL Pre-Q3 Earnings Analysis: Should You Hold or Fold the Stock?
Key Takeaways
Circle Internet Group, Inc. ((CRCL - Free Report) ) is set to report its third-quarter 2025 results on Nov. 12.
Circle offers USD Coin (USDC), which is redeemable on a one-for-one basis for U.S. dollars. USDC, along with EURO Coin (EURC), are digital currency tokens issued natively on blockchain networks and backed by reserves consisting of highly liquid, price-stable cash and cash equivalents. Both USDC and EURC are used for payments, settlements, and as a digital dollar store of value.
The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $708.92 million. The consensus mark for earnings is currently pegged at 17 cents per share, revised upward by 5 cents over the past 30 days.
Image Source: Zacks Investment Research
In the last reported results for the second quarter of 2025, Circle posted adjusted earnings of $1.02 per share, which beat the Zacks Consensus Estimate of 29 cents.
Circle Internet Group, Inc. Price and EPS Surprise
Circle Internet Group, Inc. price-eps-surprise | Circle Internet Group, Inc. Quote
Earnings Whispers for Circle
Our proven model conclusively predicts an earnings beat for Circle this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the exact case here.
Circle has an Earnings ESP of +14.16% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors to Note for CRCL’s Q3 Earnings
Circle's third-quarter 2025 results are likely to benefit from steady growth in its main stablecoin, USDC. The company ended its second quarter with $61.3 billion USDC in circulation, which increased to $65.2 billion as of Aug. 10, 2025. Onchain USDC transaction volume reached almost $6 trillion in the second quarter, which was 5.4 times higher than last year. Activity picked up further in July with $2.4 trillion in transactions. The number of meaningful wallets, or wallets holding more than $10 of USDC, rose 68% year over year.
Circle is also seeing more usage from institutional customers. More exchanges, trading firms, wallets and banks are integrating Circle’s wallet and liquidity tools. USDC held within Circle’s own platform grew 10 times compared to last year and made up 10% of total USDC circulation during the second quarter, as USDC adoption continues to expand globally.
New products launched over the past year are expected to have driven growth in the to-be-reported quarter. The Circle Payments Network is now active in Hong Kong, Brazil, Nigeria and Mexico, and more than 100 financial institutions are interested in joining, reflecting growing usage. Additionally, the company also launched Circle Gateway in July 2025, which helps users move USDC across different blockchains more easily. Circle also announced Arc, a new Layer-1 blockchain built for payments, FX and other financial use cases.
The above-mentioned factors are likely to have contributed positively to Circe’s progress in the to-be-reported quarter. Overall, strong USDC activity, aided by more platform usage, along with new product adoption, is likely to have supported Circle’s performance in the third quarter.
CRCL Price Performance & Stock Valuation
Circle shares have rallied 20.2% since it started trading on the stock exchange on June 5, 2025, outperforming the Zacks Financial - Miscellaneous Services industry’s growth of 1.8%.
During the same time frame, Circle has outperformed Coinbase Global ((COIN - Free Report) ) and PayPal ((PYPL - Free Report) ), and Fiserv ((FI - Free Report) ). Shares of Coinbase have gained 15.4%, while PayPal and Fiserv have plunged 8.9% and 62.5%, respectively.
CRCL Price Return Performance
Image Source: Zacks Investment Research
Circle is currently trading at a higher price-to-sales (P/S) multiple compared with the industry. The stock’s forward 12-month P/S ratio sits at 8.18X, significantly higher than the industry’s forward 12-month P/S ratio of 3.25X.
CRCL Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
Circle stock also trades at a higher P/S multiple compared with its peers, including PayPal and Fiserv. At present, PayPal and Fiserv have P/S multiples of 1.83X and 1.67X, respectively.
Investment Consideration for CRCL
Improving regulatory environment and growing demand for stablecoins like USDC bode well for the company’s long-term prospects. Moreover, the company's expanding partner base is expected to boost top-line growth in the upcoming quarters.
In the second quarter of 2025, Circle expanded relationships with major exchanges, such as Binance and OKX, which are increasing the usage of USDC and Circle’s wallet technology on large trading platforms. Moreover, Circle has also signed agreements with large payment infrastructure companies, such as FIS, Corpay and Matera, which serve tens of thousands of banks, enabling adoption of stablecoin technology into the traditional financial system.
However, the company faces stiff competition from established companies, including Coinbase, PayPal and Fiserv. Fiserv and the Bank of North Dakota have collaborated to launch “Roughrider Coin,” fully backed by U.S. dollars and built on the Fiserv digital asset platform. Coinbase acquired Deribit, the world’s top crypto options exchange, making Coinbase the most complete global crypto derivatives platform. PayPal launched “Pay with Crypto,” a service that lets U.S. merchants accept crypto payments with near-instant settlement, helping businesses reach global customers more easily.
Conclusion: Hold Circle Stock for Now
Circle’s focus on developing USDC-based payment infrastructure, along with its growing partnerships with tech giants and financial institutions, is expected to boost growth prospects over the long term.
However, the company faces stiff competition from industry giants and well-established players, which could limit its market share over time. Additionally, Circle’s stretched valuation is also a concern. These factors could affect Circle’s market positioning, despite its technological edge.