Circle's net profit margin at 6.9%... USDC circulation down 4.5% from end of June

Circle posted a 6.9% net profit margin for Q2 2026, with USDC circulation at $70.0 billion as of October 29, down 4.5% from the end of June, per the company's dashboard. Revenue and reserve income totaled $700.13 million in the quarter, per its SEC filing, while direct costs—distribution, transaction, and other expenses—came to $412.47 million, or 58.8% of the total. The remaining balance after direct costs was $288.85 million (41.2% of revenue), up 15.0% year-over-year, though this is before operating expenses such as payroll and general administration. Operating profit stood at $43.59 million. The figures matter because they show Circle's profitability remains thin relative to its revenue scale even as USDC supply contracts, squeezing the reserve-income base that drives its earnings. Watch next: whether USDC circulation stabilizes or continues declining from the $70 billion level, and how operating costs trend against the 41.2% post-direct-cost balance in upcoming disclosures.