Circle Q4 Earnings Preview: Sell This Stock Before February 25

Multiplo Invest2.69K FollowersFollow5ShareSavePlay(6min)CommentsSummaryI reiterate my sell recommendation on Circle ahead of Q4 earnings, citing unattractive valuation and business model risks.Despite 66% YoY revenue growth and a 57% EBITDA margin in Q3, CRCL remains highly dependent on interest income from USDC reserves.USDC's sequential growth is expected to stagnate in Q4, with reserve income likely flat or lower due to stable Fed rates.Rising distribution costs and potential margin compression, alongside heightened competition, reinforce my negative outlook on CRCL shares.

Getty Images Investment Thesis I reiterate my sell recommendation on Circle (CRCL) shares, holder of the USDC stablecoin. This article is a continuation of my initial coverage article published on July 4, 2025. My intention with this article is to provide anThis article was written byMultiplo Invest2.69K FollowersFollowMore than 7 years of experience in equity analysis in LatAm. We provide our clients with in-depth research and insights to help them make informed investment decisions.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.