Circle reports $1.4 billion revenue amid high distribution costs

Circle, the issuer of the USDC stablecoin, generated approximately $1.4 billion in revenue during the first half of 2026. However, the company retained only about $103 million in net profit due to significant expenditures.

According to financial disclosures, $819 million was paid to distribution partners and for transaction costs, while roughly $473 million was allocated to operations, infrastructure, and other expenses. The company’s revenue is highly sensitive to interest rates, as approximately 95% of its second-quarter revenue was derived from reserve income generated by cash and short-term government-backed instruments.

Major distribution partners, including Coinbase, receive a share of the reserve income associated with the balances they bring to the network. This highlights the high cost of persuading businesses to distribute and utilize the stablecoin.