v3.25.2
Revenue recognition
 6 Months Ended 12 Months Ended
Jun. 30, 2025
Dec. 31, 2024
Revenue Recognition and Deferred Revenue [Abstract]    
Revenue recognition
 
11.
Revenue recognition
Disaggregation of Revenue
The following table summarizes the disaggregation of revenue by major product and service (in thousands):
 
Table 11.1. Revenue by Product and Service
  
 
 
  
 
 
  
 
 
  
 
 
 
  
Three months ended June 30,
 
  
Six months ended June 30,
 
 
  
2025
 
  
2024
 
  
2025
 
  
2024
 
Reserve income
  
$
634,274
 
  
$
423,263
 
  
$
1,192,185
 
  
$
782,902
 
Other revenue
  
  
  
  
Subscription and services
  
 
17,784
 
  
 
5,000
 
  
 
36,495
 
  
 
6,001
 
Transaction revenue
  
 
5,825
 
  
 
226
 
  
 
7,451
 
  
 
644
 
Other
  
 
195
 
  
 
1,541
 
  
 
520
 
  
 
5,577
 
Total other revenue
  
$
23,804
 
  
$
6,767
 
  
$
44,466
 
  
$
12,222
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total revenue and reserve income
  
$
658,078
 
  
$
430,030
 
  
$
1,236,651
 
  
$
795,124
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Reserve income
All Circle stablecoins issued and outstanding are fully backed by equivalent amounts of fiat currency denominated assets held in segregated reserve accounts. The Company earns interest and dividends on assets held in reserve accounts, which include cash balances held at banks and investments in the Circle Reserve Fund. Interest income is recognized under the effective interest method, and dividend income from the Circle Reserve Fund is recognized on the declaration date.
Other revenue
Other revenue generally consists of revenues generated from services that increase the utility of Circle stablecoins and related transactions. The components of other revenue primarily includes revenues from subscription and services, transaction revenues, and other revenues.
Subscription and services consist of customer agreements where recurring revenue is generated from integration and maintenance services, fund management, time-based access, and user-based licensing. Payment for services received at the inception of the customer agreements 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. Revenues from subscription contracts and maintenance services are recognized over time as the services are delivered. Revenues from integration services contracts which have specific performance obligations are recognized at the point in time when delivery of the services are completed and accepted by the customer. The Company receives fees associated with the management of USYC in the form of performance fees. Performance fees represent variable consideration and are recognized as revenue when the Company is entitled to such fees and significant reversals of such fees are not probable.
Transaction revenue is generated from usage-based, volume-based, or event-driven transactions. This includes fees associated with the redemption of Circle stablecoins and USYC, blockchain rewards revenue and use of Circle infrastructure in facilitating digital asset transactions. Transaction revenue contracts constitute a series of distinct processing services that the Company stands ready to provide to the customers over the contract period. The transaction price for these services is variable based on the number or volume of transactions processed, and consideration is allocated to the distinct service that forms part of its single performance obligation to provide such services. Revenue is recognized at the point in time as the performance obligation is met. The Company incurs expenses to assist in fulfilling obligations to process transactions. The Company acts as the principal in providing services to customers and, therefore, recognizes associated revenue and expenses on a gross basis.
Other revenues is primarily generated from fees associated with certain non-recurring services and discontinued legacy products. Such customer contracts typically have one performance obligation and revenue is recognized at the point in time the services are provided.
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 11.2. Changes in Deferred Revenue
  
 
 
Balance at December 31, 2024
  
$
13,390
 
Deferred revenue billed in the current period, net of recognition
  
 
10,413
 
Revenue recognized that was included in the beginning period
  
 
(15,296
) 
  
 
 
 
Balance at
June 30, 2025
  
$
8,507
 
  
 
 
 
Balance at December 31, 2023
  
$
2,499
 
Deferred revenue billed in the current period, net of recognition
  
 
106
 
Revenue recognized that was included in the beginning period
  
 
(2,439
) 
  
 
 
 
Balance at
June 30, 2024
  
$
166
 
  
 
 
 
12. Revenue recognition
Disaggregation of Revenue
The following table summarizes the disaggregation of revenue by major product and service (in thousands):
Table 12.1. Revenue by Product and Service
 
 
  
Year ended December 31,
 
 
  
2024
 
  
2023
 
  
2022
 
Reserve income
  
$
1,661,084
 
  
$
1,430,606
 
  
$
735,885
 
Other revenue:
  
  
  
Transaction services
  
$
6,013
 
  
$
9,896
 
  
$
21,885
 
Treasury services
  
 
— 
 
  
 
— 
 
  
 
7,509
 
 
 
  
Year ended December 31,
 
 
  
2024
 
  
2023
 
  
2022
 
Integration services
  
 
6,000
 
  
 
6,990
 
  
 
1,022
 
Other
  
 
3,156
 
  
 
2,974
 
  
 
5,751
 
  
 
 
 
  
 
 
 
  
 
 
 
Total other revenue
  
 
15,169
 
  
 
19,860
 
  
 
36,167
 
  
 
 
 
  
 
 
 
  
 
 
 
Total revenue and reserve income from continuing operations
  
$
1,676,253
 
  
$
1,450,466
 
  
$
772,052
 
  
 
 
 
  
 
 
 
  
 
 
 
Reserve income
All Circle stablecoins issued and outstanding are fully backed by equivalent amounts of fiat currency denominated assets held in segregated reserve accounts. The Company earns interest and dividends on assets held in reserve accounts, which include cash balances held at banks, investments in available-for-sale debt securities and investments in the Circle Reserve Fund. Interest income is recognized under the effective interest method, and dividend income from the Circle Reserve Fund is recognized on the declaration date.
Other revenue
Other revenue generally consists of revenues generated from services that increase the utility of Circle stablecoins and related transactional or wallet infrastructure. The components of other revenue primarily includes revenues from transaction services, integration services and other revenues.
Transaction services relate to the processing of Circle stablecoin native payments, payouts to sellers, vendors or end-users as well as ledger management and facilitating digital asset transactions. Transaction services contracts constitute a series of distinct payment processing services that Circle stands ready to provide to the customers over the contract period. The transaction price for these services is entirely variable based on the number of transactions processed, and consideration is allocated to the distinct service that forms part of its single performance obligation to provide payment processing services. Revenue is recognized over time as the performance obligation is met. 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 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