By Ines Ferre

CHONGQING, CHINA - AUGUST 08: In this photo illustration, a person holds a smartphone displaying the logo of Circle Internet Group Inc. (NYSE: CRCL), a global fintech company and issuer of the USDC stablecoin, with the company's circular emblem visible in the background, on August 8, 2025 in Chongqing, China. (Photo illustration by Cheng Xin/Getty Images) · Cheng Xin via Getty Images

Circle (CRCL) stock jumped over 6% in premarket trading on Tuesday morning after the stablecoin issuer posted better than expected quarterly results for the first time since going public.

The company posted a loss per share of $4.48, with revenue of $658 million versus the $647 million analysts expected. The company's net loss of $482 million was affected by IPO-related charges.

Circle also announced Arc, an open Layer-1 blockchain, designed to provide a foundation for stablecoin payments and capital markets applications.

The stock is up more than 400% from its IPO price of $31 per share as crypto-friendly legislation has lifted the sector.

Circle has been at the center of optimism over the stablecoin market following the passage of the GENIUS Act, legislation that creates guardrails and a framework for digital tokens backed by assets such as the US dollar.

Circle makes much of its money from interest income — specifically from short-term Treasury bills backing its stablecoin, USDC (USDC-USD).

The company's income earned from the management of stablecoin-related reserves grew from $735.9 million in 2022 to $1.4 billion in 2023 and $1.7 billion in 2024.

That represented 95.3%, 98.6%, and 99.1%, respectively, of Circle's total revenue from continuing operations.

Reserve income increased 50% year-over-year to $634 million, primarily from an 86% growth in USDC stablecoin circulation.

Circle also shares part of its revenue with Coinbase (COIN), a major partner.

Last month, Wall Street analysts flagged risks heading into the back half of the year for the high-flier, including rising distribution costs.

"In the coming months, we expect Circle to expand its distribution network while sharing a greater percent of interest income," Compass Point analyst Ed Engel wrote. He downgraded the stock to Sell from Neutral.

"We also expect traditional banks and Fintechs to announce competing stablecoin products," he added.

However, others on Wall Street see the stock as a way for investors to participate in rising enthusiasm over stablecoins.

"CRCL is a global leader in stablecoins and is the purest stablecoin play in the public markets right now, and we anticipate further gains in the shares as the company creates new opportunities for itself and its partners," wrote Seaport Research analysts Jeff Cantwell last month.

The analyst has a Buy Rating and price target of $280 on the stock.