Circle Internet Group Q4 FY2025 earnings call

• Extraordinary transformation underway with technology acceleration, software-powered tech, and AI. Circle aims to build a new Internet financial system. • Stablecoin network growth: USDC circulation, onchain volume growth. Platform expansion: Testnet of Arc launched, on track to launch Mainnet in 2026; Circle Payments Network growing; new products like StableFX in beta. • Mainstream adoption deepening: Partnerships with Intuit, Visa, Polymarket, etc. • AI at Circle: Explosion of developer activity; initiatives like agent-only hackathon, building systems for agentic payments, investing in AI across functions. • Arc progress: Testnet launched with strong activity; Mainnet on track; designed for agentic economic activity.

Stablecoin network: USDC ended the year around $75 billion in circulation, up 72% year-on-year; onchain USDC volume hit nearly $12 trillion, 247% year-on-year growth. CFX stablecoins grew $85 billion in the year, 46% year-on-year growth. Circle's share of transaction volume grew from 39% in Q3 to nearly 50% in Q4. USDC held within Circle's platform infrastructure (on-platform USDC) grew 5.6x year-on-year to $12.5 billion at year-end, representing 17% of total circulation. EURC reached EUR 310 million in Q4, 3.8x year-on-year growth, and has grown to EUR 389 million as of Feb 20. USYC assets ended the year at approx $1.5 billion and have continued to grow to over $1.7 billion since quarter end. Circle Payments Network: 55 financial institutions enrolled, up from 29 in Q3; 74 in eligibility reviews; live flows in 14 markets; annualized volume as of Feb 20 reached $5.7 billion, growing ~68% from Q3 earnings update. StableFX launched in production beta.

• Do not give detailed quarterly or full financial guidance, guide on certain metrics. • FY '25 other revenue exceeded guidance. Fourth quarter results better than expected. FY '25 RLDC margin exceeded guidance. FY '25 adjusted operating expenses in line with guidance. • For FY 2026: Do not give guidance on USDC circulation or growth. Anticipate FY '26 revenue between $150 million and $170 million; RLDC margin between 38% and 40%; adjusted operating expenses between $570 million and $585 million, reflecting growing investments.

Q: On agentic evolution, timing, Arc token, etc.

A: Discussed agentic evolution timing, Arc purpose built for agentic activity, exploration of Arc token.

Q: On regulatory backdrop, GENIUS, CLARITY.

A: GENIUS has been a tailwind, CLARITY close to finish line.

Q: On Arc long-term evolution, asset agnostic.

A: Arc as economic operating system, designed for prudentially sound financial activity, liquidity and distribution hub for asset issuers.

Q: On CPN onboarding, flows, Agentic AI tailwind.

A: CPN onboarding and flows growing, Agentic AI seen as tailwind for sector.

Q: On CPN onboarding, use cases, Agentic impact.

A: CPN onboarding details, Agentic AI seen as new demand driver.

Q: On prediction markets partnership with Polymarket.

A: USDC critical for prediction markets, Polymarket partnership positive.

Q: On on-platform USDC mix, drivers.

A: Factors like infrastructure products, institutional partnerships, National Trust Bank approval driving on-platform USDC.

Q: On other revenue guidance, Arc rollout plan.

A: Other revenue components and Arc rollout plan discussed.

Q: On distribution costs outside Coinbase.

A: USDC network effects driving distribution costs, disciplined approach to incentive relationships.

Q: On Circle being integral to evolving payment networks.

A: Circle's investments in networks, standards, APIs for agentic payments.