Company: CRCL
Filing Date: 2025-04-18
Form Type: S-1/A
Source: 0001193125-25-084832
Chunk: 346

Company: Circle Internet Group, Inc.
Filing Date: 2025-04-18
Form: S-1/A
Chunk 346
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 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. Integration services relate to the implementation of Circle stablecoins on public blockchains. Payment for integration services received at the inception of the contract in the form of digital assets is measured at fair value at the contract inception. Refer to the Digital assets discussion above regarding subsequent accounting for digital assets. Integration services contracts typically have one performance obligation, and revenue is recognized at a point in time when the technical implementation is complete. Other revenues are primarily generated from Developer Services. Developer Services provide customers with a suite of tools to securely custody digital assets, develop applications with Circle Wallets, enable custom F-37

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 12.2. Changes in Deferred Revenue                                        |     |   |        |   |
|:-------------------------------------------------------------------------------|:----|:--|-------:|:--|
| Balance at December 31, 2023                                                   |     | $ |  2,499 |   |
| Deferred revenue billed and acquired in the current period, net of recognition |     |   | 13,390 |   |
| Revenue recognized that was included in the beginning period                   |     |   | (2,499 | ) |
| Balance at December 31, 2024                                                   |     | $ | 13,390 |   |
| Balance at December 31, 2022                                                   |     | $ |  3,155 |   |
| Deferred revenue billed and acquired in the current period, net of recognition |     |   |  2,499 |   |
| Revenue recognized that was included in the beginning period                   |     |   | (3,155 | ) |
| Balance at December 31, 2023                                                   |     | $ |  2,499 |   |

13. Other income (expense), net The following table presents our major categories of Other income (expense), net(in thousands):