Circle will release its second quarter financial report on August 5, and the market will focus on USDC circulation and yield
Major issuer of stablecoin USDC Internet Group (NYSE: CRCL) announced that it will announce its second quarter financial results on August 5, 2026 (Wednesday) before the U.S. stock market opens. The company will hold a live video broadcast at 8 a.m. (U.S. Eastern Time) that day to discuss financial results and business highlights. This financial report release has attracted much market attention. As the issuer of USDC, Circle’s business model relies on three core variables: USDC circulation, reserve asset return rate, and the proportion of earnings retained after paying fees to the distribution platform. From the revenue side, reserve income in the second quarter is expected to be basically the same as in the first quarter. Although USDC circulation dropped slightly to approximately US$73 billion from US$77 billion in the first quarter, the energy shock caused by the Iran war during the quarter pushed up short-term market interest rates, which partially offset the impact of the decline in USDC balances. However, the company may face pressure from rising distribution costs. Circle's retained yield in the first quarter was 41.4%, exceeding management's guidance range of 38%-40% for fiscal 2026. Analysts are concerned that with the agreement with the decentralized trading platform Hyperliquid in May this year and the renewal negotiations with Coinbase on the existing cooperation agreement in August, distribution costs may rise, causing the retained yield to fall back to the guidance range. Circle has also made important regulatory developments recently. The U.S. Office of the Comptroller of the Currency officially approved its application for a national trust bank license on July 10, giving Circle deeper access to the regulated financial system. Analysts estimate the license could bring the company about $20 million in additional revenue annually. However, Circle's stock price has fallen sharply from its historical high of approximately $299 in June 2025. As of mid-July, it was trading in the range of $60 to $64, a drop of more than 75%. The company's first-quarter revenue was US$694 million, a year-on-year increase of 20%, but earnings per share of US$0.21 fell short of market expectations.