Stablecoin issuer Circle (CRCL) recently announced its 2025 Q3 financial results, which exceeded expectations. However, the company’s stock price fell 11% on Wednesday. Despite strong earnings, Circle updated its full-year outlook to reflect higher expenses, leading analysts and investors to take a bearish stance on the company’s stock.
Circle’s third-quarter revenue increased 66% year-over-year to $740 million. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) jumped from $126 million to $166 million. That’s a solid profit, but the company’s stock offering took place just two fiscal quarters ago. Therefore, it is difficult to perform a proper analysis due to the lack of stock price history. Additionally, the company’s revised operating expense forecast shocked some. In fact, full-year guidance was raised by $20 million and other revenue increased by $15 million.
On Wednesday, Circle’s chief financial officer, Jeremy Fox Jean, dismissed concerns that the company’s main source of revenue could come under pressure amid expectations of lower interest rates next year. “We’re already in a rate-cutting cycle and we’re delivering sustained growth through that cycle,” he said Wednesday morning.
Since its blockbuster IPO debut in June, Circle (CRCL) stock has risen 180% as landmark legislation passed earlier this year paved the way for stablecoin adoption. But the stock remains about 60% below its all-time high reached in the summer. This decline could last for a long time, given that increased spending on AI is scaring investors.
