Stablecoin issuer Circle (CRCL) recently published its Q3 2025 earnings, posting better-than-expected results. However, its shares are down 11% on Wednesday. Despite the solid earnings, Circle updated its full-year outlook to reflect higher expenses, which sent analysts and investors onto the bearish side of its stock.
Circle’s third-quarter revenue rose 66% year over year, landing at $740 million. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped from $126 million to $166 million. While this is a solid return, the company’s stock offering is just two fiscal quarters old; therefore, it’s hard to give a proper analysis given the lack of stock history. Further, the company’s revised expected operating expenses shook some in their boots. Indeed, the full-year guidance was raised by $20 million, while other revenues saw a $15 million increase.
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On Wednesday, Circle CFO Jeremy Fox-Geen pushed back against concerns that the company’s main source of revenue could be squeezed amid expectations for falling interest rates next year. “We’re already in a rate-cutting cycle, and through that cycle we are delivering sustained growth,” he said Wednesday morning.
Since its blockbuster IPO debut in June, Circle (CRCL) stock is up 180% as landmark legislation passed earlier this year paved the way for stablecoin adoption. The shares, however, remain roughly 60% below all-time highs reached over the summer. The latest slip could be felt for longer as well, given the increased spending in AI that scared investors