Company: CRCL
Filing Date: 2025-06-02
Form Type: S-1/A
Source: 0001193125-25-132755
Chunk: 154

Company: Circle Internet Group, Inc.
Filing Date: 2025-06-02
Form: S-1/A
Chunk 154
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42.5 million
increase in other distribution costs related to new strategic distribution partnerships.

Other costs. Other costs decreased by $3.7 million, or 91.6%,
for the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily driven by a $3.6 million decrease in the fees related to the discontinued legacy transactions services products.

Operating expenses

Compensation expenses. Compensation expenses increased by $14.5 million, or 23.7%, for the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily due to a $10.4 million increase in salaries, wages, and bonus
expense related to an increase in headcount and a $3.2 million increase in stock-based compensation expenses.

General and administrative expenses. General and administrative expenses were relatively flat for the three months ended March 31, 2025, compared to the three months ended March 31, 2024.

Depreciation and amortization expenses. Depreciation and amortization expenses increased by $2.3 million, or 19.7%, for the three months ended March 31,
2025, compared to the three months ended March 31, 2024, primarily due to a $3.0 million increase in amortization expense of internally developed software, partially offset by a $0.6 million decrease in amortization expense of acquired intangible
assets.

IT infrastructure costs. IT infrastructure costs increased $1.3 million, or 21.1%, for the three months ended March 31, 2025, compared to the
three months ended March 31, 2024, primarily due to a $1.7 million increase in software licenses to support infrastructure build-out and enhanced product offerings.

Marketing expenses. Marketing expenses increased by $3.0 million, or 371.9%, for the three months ended March 31, 2025, compared to three months ended March
31, 2024, driven by increased spending on marketing, sponsorship campaigns and advertising.

Digital assets losses (gains). Digital assets losses
(gains) increased by $10.6 million, or 243.4%, for the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily due to a $10.3 million increase in unrealized losses on digital assets driven by