Company: CRCL
Filing Date: 2025-08-12
Form Type: S-1
Source: 0001193125-25-178989
Chunk: 158

Company: Circle Internet Group, Inc.
Filing Date: 2025-08-12
Form: S-1
Chunk 158
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| (2) | Net Reserve Margin is Reserve Income less Distribution and Transaction Costs as a percentage of Reserve Income. |

102

Quarterly Trends Total Revenue and Reserve Income.Total Revenue and Reserve Income generally reflected an increasing trend over the 5 quarterly periods ended June 30, 2025 and increased by $228.0 million, or 53%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily driven by:

| • |     | $211.0 million increase in reserve income. This increase is attributable to an increase in the average USDC in circulation reflecting increased demand for Circle stablecoins. This was offset by a decrease attributable to the decline in the average yields reflecting interest rate actions undertaken by the U.S. Federal Reserve. |

| • |     | $17.0 million increase in other revenue. This increase is attributable to an increase in subscription and services revenue and transaction revenue, which were primarily driven by additional Integration Services performed, fund management fees, and redemption fees related to our Tokenized Funds and Circle stablecoins. |

Total Distribution, Transaction and Other Costs.Total Distribution, Transaction and Other Costs generally reflected an increasing trend over the 5 quarterly periods ended June 30, 2025 and increased by $159.0 million, or 64%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily driven by $159.6 million increase in distribution and transaction costs. This increase is attributable to the distribution costs of $90.2 million paid to Coinbase as a combined result of increased reserve income and their on-platform balances, along with a $68.7 million increase in other distribution costs related to new strategic distribution partnerships, offset by $1.0 million decrease in other costs primarily driven by decrease in the costs related to the discontinued legacy products. In the three months ended December 31, 2024, we entered into a key new strategic distribution partnership, which included an upfront, one-time fee, resulting in a larger increase in distribution costs relative to the slight decrease in reserve income. RLDC Margin.Over the 5 quarterly periods ended June 30, 2025, RDLC Margin remained consistent at approximately 40%, except for the quarter ended December 31, 2024. For the quarter ended December 31, 2024, RLDC Margin declined, primarily due to the upfront, one-time fee paid to our