Company: CRCL
Filing Date: 2025-08-04
Form Type: DRS
Source: 0000950123-25-006942
Chunk: 148

Company: Circle Internet Group, Inc.
Filing Date: 2025-08-04
Form: DRS
Chunk 148
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compared to the three months ended June 30, 2024, primarily driven by a $90.2 million increase in distribution costs 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.

Other costs. Other costs decreased by $1.0 million, or
68.2%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily driven by a decrease in the costs related to the discontinued legacy products.

Operating expenses

Compensation expenses.
Compensation expenses increased by $435.8 million, or 644.6%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily driven by $423.8 million of stock-based compensation expense related to the
vesting of RSUs for which the service-based condition had been met prior to the IPO and the liquidity-event related performance condition was met upon the commencement of trading of our Class A common stock on the NYSE. In addition, there was
an increase of $8.8 million in salaries, wages and bonus expenses due to increase in headcount.

General and administrative expenses. General and
administrative expenses increased by $7.4 million or 20.7% for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to a $4.5 million increase in contributions and a $2.7 million increase in
travel and entertainment costs due to Company events and associated travel expenses.

Depreciation and amortization expenses. Depreciation and
amortization expenses increased by $1.6 million, or 12.5%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to a $2.1 million increase in amortization expense of internally developed
software, offset by a $0.6 million decrease in amortization expense of acquired intangible assets.

IT infrastructure costs. IT infrastructure
costs increased by $1.9 million, or 27.4%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to a $2.1 million increase in software