Circle’s stock rallied nearly 50% during the two trading sessions following its February 25 fourth-quarter earnings report. The company exceeded analyst estimates for both revenue and earnings. USDC circulation increased 72% year-over-year to reach $75.3 billion.
Analysis from February 27 indicates a massive short squeeze significantly amplified the stock's upward movement. Numerous hedge funds held sizable bearish positions against Circle prior to the earnings announcement. Better-than-expected results forced these investors to rapidly cover short positions, creating intense buying pressure.
Circle reported a $70 million net loss for the full year 2025. This loss occurred despite the company achieving strong revenue growth during the fiscal period.