Company: CRCL
Filing Date: 2025-05-16
Form Type: S-1/A
Source: 0001193125-25-121234
Chunk: 340

Company: Circle Internet Group, Inc.
Filing Date: 2025-05-16
Form: S-1/A
Chunk 340
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 to provide payment processing services. Revenue is recognized over time as the performance obligation is met. The Company incurs expenses to assist in fulfilling obligations to process payment transactions. The Company acts as the principal in providing transaction services to customers and, therefore, recognizes associated revenue and expenses on a gross basis. Other revenues are primarily generated from fees associated with the management of USYC, fees to facilitate stablecoin redemptions and cross-chain transfers, and developer services. The Company receives fees associated with the management of USYC in the form of performance and redemption fees. Performance fees represent variable consideration and are recognized as revenue when the Company is entitled to such fees and significant reversals of such fees are not probable. Fees to facilitate stablecoin redemptions and cross-chain transfers are charged for expedited redemptions above certain thresholds and transfers of stablecoins from one supported blockchain to another. Redemption and cross-chain transfer fees are recognized at a point in time when the associated performance obligation is met. Developer services provide customers with a suite of tools to securely custody digital assets, develop applications with Circle wallets, enable custom transaction workflows and enhance operational efficiency. Revenue is earned primarily through subscription fee contracts that typically have one performance obligation provided and is satisfied over the contractual life of the agreement. In certain instances, customers prepay their monthly subscription by paying annually or quarterly. In those instances, the Company recognizes revenue over the life of the contract. 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 |     |   |  9,456 |   |
| Revenue recognized that was included in the beginning period      |     |   | (9,845 | ) |
| Balance at March 31, 2025                                         |     | $ | 13,001 |   |
| Balance at December 31, 2023                                      |     | $ |  2,499 |   |
| Deferred revenue billed in the current period, net of recognition |     |   |    100 |   |
| Revenue recognized that was included in the beginning period      |     |   |   (