Circle reports $1.4 billion in H1 revenue amid high distribution costs

Circle reported approximately $1.4 billion in revenue for the first half of the year, driven primarily by interest income from reserves backing its USDC stablecoin. According to filings with the SEC, reserve income accounted for roughly $1.32 billion of the total revenue.

Despite the high gross revenue, the company faces significant expenses to maintain its market position. Circle spent approximately $819 million on distribution partners and transaction-related costs, representing about 59% of its revenue. Additionally, roughly $473 million was allocated toward infrastructure, regulatory compliance, product development, and banking partnerships.

After accounting for these costs, Circle reported a net income attributable to common shareholders of approximately $103.47 million, a margin of roughly 7.4%. The company’s business model relies heavily on the yields generated from cash and short-duration U.S. Treasury securities held in reserve, making its revenue sensitive to fluctuations in interest rates.