Circle's Q1 total revenue and reserve gains reached $694 million, below market expectations, with USDC circulation increasing by 28% year-on-year

BlockBeats News, May 11th, Circle released its Q1 FY2026 earnings report, revealing that the circulating supply of USDC has reached $77 billion, with a 20% year-over-year revenue growth (previously expected by the market to be $721 million); operating income was $55 million, a 15% year-over-year decrease. Here are the key highlights from the financial report:

· As of the end of the quarter, the circulating supply of USDC was $77 billion, a 28% year-over-year growth; the on-chain transaction volume of USDC in Q1 2026 was $21.5 trillion, a 263% year-over-year increase.

· Reserve revenue was $653 million, a 17% year-over-year growth, mainly driven by a 39% increase in the average USDC circulation, partially offset by a 66 basis points decrease in the reserve yield.

· Other revenue was $420 million, a $210 million year-over-year increase, primarily due to strong growth in subscription and service revenue, as well as transaction revenue.

· Distribution, transaction, and other costs totaled $407 million, a 17% year-over-year increase, mainly due to increased distribution expenses.

· Operating expenses were $242 million, a 76% year-over-year increase, primarily driven by higher post-listing equity incentive compensation and related payroll tax resulting in increased labor costs.

· Adjusted operating expenses were $136 million, a 32% year-over-year increase, mainly propelled by increased investments in product, distribution, and operational infrastructure by the company.

· Net income was $55 million, a 15% year-over-year decrease, attributed to the growth in income after deducting distribution costs being offset by the increase in equity incentive compensation and continued investment in product, distribution, and operational infrastructure.

· Adjusted EBITDA was $151 million, a 24% year-over-year increase, reflecting the revenue growth driven by the increase in the USDC circulation.