Company: CRCL
Filing Date: 2025-05-16
Form Type: S-1/A
Source: 0001193125-25-121234
Chunk: 152

Company: Circle Internet Group, Inc.
Filing Date: 2025-05-16
Form: S-1/A
Chunk 152
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     |          | (115.1)% |
| Net income from continuing operations before income taxes |     |                                    |  89,837 |   |     |      |  72,876 |   |     |         |  16,961 |   |     |          | 23.3%    |
| Income tax expense                                        |     |                                    |  25,046 |   |     |      |  24,237 |   |     |         |     809 |   |     |          | 3.3%     |
| Net income from continuing operations                     |     | $                                  |  64,791 |   |     | $    |  48,639 |   |     | $       |  16,152 |   |     |          | 33.2%    |

105

Revenue and reserve income

Reserve income. Reserve income increased by $198.3 million, or 55.1%, for the three months ended March 31, 2025, compared to the three months ended March
31, 2024, of which approximately $300.6 million of the increase is attributable to a 93% increase in average daily USDC in circulation reflecting increased demand for Circle stablecoins related to digital asset trading activity, market share gains
as we continue to grow in key markets, as well as expanded strategic partnerships and integrations. This was partially offset by a $102.6 million decrease attributable to a 97 basis point decrease in the average yields reflecting interest rate
actions undertaken by the U.S. Federal Reserve.

Other revenue. Other revenue increased by $15.2 million, or 278.8%, for the three months ended March
31, 2025, compared to the three months ended March 31, 2024, primarily due to a $15.3 million increase in revenues related to integration services.

Distribution, transaction and other costs

Distribution and transaction costs. Distribution and transaction costs increased by $144.6 million, or 71.3%, for the three months ended March 31, 2025,
compared to the three months ended March 31, 2024, primarily driven by a $101.8 million increase in distribution costs paid to Coinbase as a combined result of increased reserve income and their on-platform balances, along with a $42.5 million
increase in other distribution costs related to new strategic distribution partnerships.

Other costs. Other costs decreased by $3