Circle reported $701 million in total revenue and reserve income for the second quarter of fiscal 2026, narrowly below the preliminary Wall Street consensus of $713.32 million. Revenue increased 7% from a year earlier, while net income from continuing operations reached $48 million. Reserve income remained the company’s main revenue source, reaching $668 million, up 5% from the prior-year period. Circle attributed the increase primarily to a 25% rise in average USDC circulation, which expanded the reserve base generating interest income. For investors, the important question is whether transaction activity can produce more revenue outside reserve income.