Company: CRCL
Filing Date: 2025-08-12
Form Type: S-1
Source: 0001193125-25-178989
Chunk: 360

Company: Circle Internet Group, Inc.
Filing Date: 2025-08-12
Form: S-1
Chunk 360
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 and significant reversals of such fees are not probable.

Transaction revenue is generated from usage-based, volume-based, or event-driven transactions. This includes fees associated with the redemption of Circle stablecoins and USYC, blockchain rewards revenue and use of Circle infrastructure in facilitating digital asset transactions. Transaction revenue contracts constitute a series of distinct processing services that the Company stands ready to provide to the customers over the contract period. The transaction price for these services is variable based on the number or volume of transactions processed, and consideration is allocated to the distinct service that forms part of its single performance obligation to provide such services. Revenue is recognized at the point in time as the performance obligation is met. The Company incurs expenses to assist in fulfilling obligations to process transactions. The Company acts as the principal in providing services to customers and, therefore, recognizes associated revenue and expenses on a gross basis.

Other revenues is primarily generated from fees associated with certain non-recurring services and discontinued legacy products. Such customer contracts typically have one performance obligation and revenue is recognized at the point in time the services are provided.

Deferred Revenue**

Deferred revenue represents consideration received that is yet to be recognized as revenue. The changes in our deferred revenue are reflected in the following table (in thousands):

| Table 11.2. Changes in Deferred Revenue                           |     |   |         |   |
|:------------------------------------------------------------------|:----|:--|--------:|:--|
| Balance at December 31, 2024                                      |     | $ |  13,390 |   |
| Deferred revenue billed in the current period, net of recognition |     |   |  10,413 |   |
| Revenue recognized that was included in the beginning period      |     |   | (15,296 | ) |
| Balance atJune 30, 2025                                           |     | $ |   8,507 |   |
| Balance at December 31, 2023                                      |     | $ |   2,499 |   |
| Deferred revenue billed in the current period, net of recognition |     |   |     106 |   |
| Revenue recognized that was included in the beginning period      |     |   |  (2,439 | ) |
| Balance atJune 30, 2024                                           |     | $ |     166 |   |

F-22

| 12. | Other expense (income), net |

The following table presents our major categories of Other (expense) income, net(in thousands):

| Table