Circle Q2 revenue falls short of Wall Street estimates

Stablecoin issuer Circle reported $701 million in revenue for the second quarter of fiscal year 2026 on Wednesday, narrowly missing preliminary Wall Street estimates.Circle reported $701 million in total revenue and reserve income, up 7% year-over-year, according to its announcement. It also reported net income from continuing operations of $48 million, marking a $530 million year-over-year increase.Circle also reported $668 million in reserve income, which increased 5% year-over-year, primarily due to a 25% increase in average USDC (USDC) circulation.The earnings results narrowly missed the average consensus of $713.32 million, according to Wall Street analyst estimates compiled by Yahoo Finance. Circle’s shares rose 5.7% in pre-market trading on Wednesday to change hands above $66.5, but remain down 20% year-to-date, according to Yahoo Finance data.The earnings report comes weeks ahead of the public mainnet launch of Circle’s Arc blockchain, scheduled for Sept. 16. Ahead of the debut, the blockchain has more than 100 ecosystem and institutional builders, the company said.Circle also revealed the founding validator cohort for Arc, which includes BlackRock, DTCC, Galaxy, Global Pay...