CRCL Stock Swings After Q1 Earnings Miss, Profit Squeeze – Retail Bullish On CLARITY Act Markup Hopes

• Circle Internet Group reported Q1 2026 revenue of $694 million, missing Wall Street's consensus estimate of $715 million
• CRCL’s stock plummeted after an early pre-market rally of as much as 8%.
• Circle’s USDC in circulation grew 28% year-over-year to $77 billion, and on-chain transaction volume surged 263% to $21.5 trillion.

Shares of Circle Internet Group (CRCL) pared gains in early morning trade after the company’s first quarter (Q1) report missed on both earnings and revenue but retail traders are still bullish ahead of the anticipated CLARITY Act markup later this week.

Circle reported revenue and reserve income of $694 million, falling short of Wall Street's consensus estimate of $715 million, according to Koyfin data. Adjusted earnings per share (EPS) came in at $0.21 per diluted share, below the expected $0.27. 

CRCL’s stock rose as much as 8% in pre-market trade on Monday, before declining into the red, down 0.1% after the earnings report went live. Retail sentiment around the USDC (USDC) stablecoin issuer trended in ‘bullish’ territory over the past day, accompanied by ‘extremely high’ levels of chatter.

Some users on Stocktwits attributed the jump in CRCL’s share price to the momentum behind the CLARITY Act. Others were unsure if the CLARITY Act would necessarily be “good” for Circle, but anticipated that the company would make strides “no matter what.”

Meanwhile, retail sentiment around the USDC stablecoin on Stocktwits trended in 'neutral' territory over the past day, but chatter surged to 'extremely high' from 'normal' levels. 

The overall cryptocurrency market was stable, edging 0.3% higher in the last 24 hours to around $2.78 trillion. Bitcoin (BTC) moved 0.4% higher in the same time, steady above the support level of $81,000. 

Where Will CRCL’s Stock Go Next?

Coinbase (COIN) and Robinhood (HOOD) both missed earnings and saw sharp drops in stock price in the days that followed.  For Circle, the core concern is its heavy dependence on reserve income, which at $653 million represented 94% of Q1 revenue. With the reserve return rate already down 66 basis points to 3.5%, any Federal Reserve rate cuts could hit Circle's top line.

Net income from continuing operations dropped 15% year-over-year (YoY) to $55 million, even as total revenue grew 20%. This was because operating expenses surged 76% from the previous year to $242 million driven largely by post-IPO stock-based compensation costs.

On the positive side, USDC in circulation grew 28% YoY to $77 billion, and on-chain transaction volume surged 263% to $21.5 trillion. The company also announced it had closed a $3 billion fully diluted valuation presale of ARC tokens led by a16z crypto, BlackRock, and ARK Invest. The new blockchain network is positioned as financial infrastructure for AI-native economic activity.

CRCL’s stock has gained over 40% this year and around 64% since its Wall Street debut in June last year. Other crypto-linked equities expected to report earnings today include Bitcoin miners pivoting to data center infrastructure. MARA Holdings (MARA), and CleanSpark (CLSK) will report their Q1 print after market close today.

Read also: CLARITY Act Markup Could Reportedly Hit Next Week — Coinbase CEO Brian Armstrong Says It Won't Change Contract With Circle

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