Company: CRCL
Filing Date: 2025-02-13
Form Type: DRS/A
Source: 0000950123-25-001965
Chunk: 154

Company: Circle Internet Group, Inc.
Filing Date: 2025-02-13
Form: DRS/A
Chunk 154
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 million, or %, as of December 31, 2024 compared to December 31, 2023,
. Stockholders’ equity (deficit) increased by $591.6 million, or 234.7%, as of December 31, 2023 compared to December 31, 2022, primarily due to $271.5 million of net income generated
from continuing operations, $209.9 million of common shares issued in connection with the Centre Acquisition, and $121.2 million of stock-based compensation expenses during the year ended December 31, 2023, partially offset by $8.7 million of
cancellation of treasury stocks and a $1.0 million credit losses charge to opening retained earnings related to the adoption of new accounting pronouncement.

Non-GAAPfinancial measures

Adjusted EBITDA

To provide investors with additional information
regarding our financial results, we have disclosed here and elsewhere in this prospectus Adjusted EBITDA, a non-GAAP financial measure that we calculate as net income (loss) from continuing operations
excluding: depreciation and amortization expense; interest expense, net of amortization of discounts and premiums; interest income; income tax expense; stock compensation expense; certain legal expenses; realized and unrealized gains (losses), net,
on available-for-sale debt securities and other investments; impairment losses on strategic investments; merger termination expenses; restructuring expenses; change in fair value of convertible debt, warrant liability, and embedded derivatives; gain
on sale of long-lived assets; foreign currency exchange loss; and certain transaction expenses. We have provided a reconciliation below of Adjusted EBITDA to net income (loss) from continuing operations, the most directly comparable GAAP financial
measure.

We present Adjusted EBITDA because it is a key measure used by our management and board of directors to monitor and evaluate the growth and
performance of our business operations, facilitate internal comparisons of the historical operating performance of our business operations, facilitate external comparisons of the results of our overall business to the historical operating
performance of other companies that may have different capital structures or operating histories, review and assess the performance of our management team and other employees, and prepare budgets and evaluate strategic planning decisions regarding
future operating investments. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.

We believe it is useful to exclude non-cash charges, such as depreciation and amort