Circle reported $275 million in revenue for FY2025, despite a net loss of $70 million, as operating expenses surged. The company's revenue model is heavily reliant on reserve income, which totaled $2.637 billion, up from $1.661 billion in FY2024. This increase was driven by the growth in USDC balances and reserve yields, although operating expenses, including $845 million in compensation, offset profitability. Circle's strategic partnership with Coinbase significantly impacts its financials, with substantial revenue-sharing arrangements. In FY2025, distribution costs reached $1.662 billion, with a large portion paid to Coinbase. Despite the expansion of USDC and EURC, Circle remains primarily a reserve income business, sensitive to interest rates and balance sizes, rather than a diversified software platform.