NEW YORK--(BUSINESS WIRE)--Circle Internet Group, Inc. (NYSE: CRCL) today announced results for the second quarter of fiscal year 2026.
Financial Highlights (Q2’26 vs. Q2’25)
- USDC in circulation of $73.3 billion at quarter end, 19% growth year-over-year; USDC onchain transaction volume in Q2’26 of $14.8 trillion grew 151% year-over-year.
- Total revenue and reserve income in Q2’26 of $701 million grew 7% year-over-year.
- Net income from continuing operations in Q2’26 of $48 million increased $530 million year-over-year, driven by prior-year IPO stock-based compensation impacts.
- Adjusted EBITDA in Q2’26 of $143 million grew 8% year-over-year.
Business Highlights
-
Arc today has over 100 ecosystem and institutional builders. September 16 public mainnet launch will unveil a full product suite that includes privacy capabilities, an agent stack for programmable finance, and support for tokenized real-world assets.
- Network Validators: Circle announced the founding third party validator cohort for Arc today, a curated set of global financial institutions representing a new model for blockchain infrastructure where the institutions that depend on network integrity are also the institutions that secure it. Alongside Circle, validators include: BlackRock, The Depository Trust & Clearing Corporation (DTCC), Galaxy, Global Payments, ICE, Mastercard, MoneyGram, SBI Group, Standard Chartered, Sumitomo Corporation, and Visa.
-
Financial Institution Traction: BlackRock, BNY, DTCC, and Standard Chartered each building and exploring integrations with Arc, spanning tokenized asset settlement, digital asset custody, stablecoin access, and FX and repo infrastructure.
- BlackRock is expected to deploy BUIDL, the BlackRock USD Institutional Digital Liquidity Fund, on Arc.
- DTCC will enable the tokenization of The Depository Trust Company (DTC)-custodied assets on Arc.
-
New and Expanded USDC Use Cases/Commercial Updates
- BNY expanded its partnership with Circle, adding USDC minting and redemption directly within BNY's Digital Asset Custody platform, building on BNY's existing role as primary custodian of USDC reserves.
- Grupo Bind announced a collaboration with Circle to bring USDC access to institutions in Argentina. A major step for USDC/ARS liquidity.
- JCB combined Circle’s stablecoin infrastructure with JCB's global merchant network, focusing initially on cross-border treasury transfers using USDC and in-store stablecoin payment experiences for merchants and international visitors in Japan.
- Kakao Group began exploration of blockchain payment infrastructure and USDC integration in Korea.
- Marex enabled the first stablecoin-powered initial margin transaction in regulated derivatives clearing — allowing institutional clients to post USDC as collateral for CFTC-regulated derivatives under the December 2025 CFTC no-action letter.
- Nium partnered with Circle to connect USDC settlement with their global payout infrastructure across 190+ countries, permitting financial institutions to move funds via USDC through the Circle Payments Network and settle in local currencies.
- Standard Chartered launched integrated access to USDC minting and redemption, allowing institutional clients to convert between fiat and USDC through a single bank-led onboarding experience.
- Trust Bank Approvals: Circle received final approval from the U.S. Office of the Comptroller of the Currency to establish a national trust bank, Circle National Trust, which makes Circle one of the first stablecoin issuers to hold a federal bank charter. The approval authorizes federally regulated digital asset custody and enables future capabilities, including management of the USDC Reserve, which would further enhance the safety, transparency, and trust of USDC. Additionally, Circle received approval from the New York Department of Financial Services to open Circle New York Trust as a digital asset-focused limited purpose trust company.
- Continued CPN Expansion: CPN reached $14.7 billion in annualized transaction volume for the trailing 30 days as of the end of Q2, up 76% quarter-over-quarter, with 175 financial institutions enrolled, up 29% quarter-over-quarter.
- Agentic Economy Momentum: After shipping payment infrastructure for agents in H1, Circle launched Agent Stack in May 2026 — currently home to 900+ paid services — with 99.3% of x402 agent-payment volume settling in USDC. Circle will turn to a more fulsome agentic product roadmap in H2 that includes enabling agents to earn.
“Our quarterly financial results reflect the current rate environment and a crypto market that has slowed – both are conditions outside our network. But near-term activity tells a different story. We received our federal trust bank charter; Arc is launching on public mainnet September 16th; we launched the Agent Stack to put programmable money at the center of the agentic economy; and the institutions using USDC today, like BlackRock, BNY, and Standard Chartered aren't piloting, they are expanding," said Jeremy Allaire, Co-Founder, CEO, and Chairman at Circle. "We have built the platform for the internet financial system – for traditional and digital finance, real-world assets, and the institutions that move the world's capital. That trust is earned, not assumed, and it took over a decade to build. We're only beginning to see what it unlocks."
Key Financial Results and Operating Indicators
The following table presents our key financial results and operating indicators, as well as the relevant GAAP measures, for the periods indicated:
Key Financial Results | Q2 2026 | YoY Change | |
($ in millions unless noted otherwise) |
|
| |
Total Revenue and Reserve Income | $701 | 7% | |
Revenue Less Distribution Costs(1) | $289 | 15% | |
RLDC Margin(2) | 41% | 302bps | |
Net Income from Continuing Operations | $48 | n.m. | |
Net Income from Continuing Operations Margin(3) | 7% | n.m. | |
Adjusted EBITDA(4) | $143 | 8% | |
Adjusted EBITDA Margin(4) | 50% | (329bps) |
Key Operating Indicators | Q2 2026 | YoY Change | |
($ in billions unless noted otherwise) |
|
| |
USDC in Circulation, end of period | $73.3 | 19% | |
USDC in Circulation, average of period | $76.5 | 25% | |
Reserve Return Rate | 3.5% | (66bps) | |
USDC on Platform, end of period | $12.4 | 106% | |
USDC on Platform, daily weighted average percentage | 19.5% | 1,204bps | |
n.m. = not meaningful |
| (1) | Revenue Less Distribution Costs (RLDC) is calculated as Total Revenue and Reserve Income less Total Distribution, Transaction and Other Costs. | |
| (2) | RLDC Margin is calculated as Total Revenue and Reserve Income less Total Distribution, Transaction and Other Costs as a percentage of Total Revenue and Reserve Income. | |
| (3) | Net Income from Continuing Operations Margin is calculated as Net Income from Continuing Operations / Total Revenue and Reserve Income. | |
| (4) | Refer to Non-GAAP Financial Measures for further details and a reconciliation of the GAAP to non-GAAP measures presented. Adjusted EBITDA Margin is calculated as Adjusted EBITDA (New Definition) / Total Revenue and Reserve Income less Total Distribution, Transaction & Other Costs. See the Appendix for a reconciliation. |
Second Quarter 2026 Financial Highlights and Operating Results
- Reserve Income of $668 million increased 5% year-over-year, primarily from the 25% growth in average USDC in Circulation, partially offset by a 66 bps decline in the Reserve Return Rate.
- Other Revenue of $34 million increased 41% year-over-year from growth in subscription and services revenue.
- Total Distribution, Transaction and Other Costs of $412 million increased 1% year-over-year, mostly from increased distribution payments.
- Operating Expenses of $254 million decreased 56% year-over-year, primarily due to lower stock-based compensation expense following our IPO in Q2 2025.
- Adjusted Operating Expenses of $146 million increased 23% year-over-year, primarily driven by continued investment in product development, infrastructure, and AI capabilities.
- Net Income of $48 million increased $530 million year-over-year, primarily due to lower stock-based compensation expense following our IPO in Q2 2025.
- Adjusted EBITDA of $143 million increased 8% year-over-year reflecting the revenue growth from higher USDC in circulation, partially offset by increased investment in costs related to new products.
Other Platform Metrics
| Q2 2026 | YoY Change | |
(USDC related figures in $ billions; meaningful wallets in millions) |
|
| |
USDC Minted | $83 | 97% | |
USDC Redeemed | $87 | 113% | |
Stablecoin Market Share, end of period(1) | 27% | (66bps) | |
Meaningful Wallets, end of period(2) | 7.0 | 24% |
(1) | Stablecoin market share is defined as the amount of USDC in circulation as a percentage of the total U.S. dollar fiat-backed stablecoins with circulation above $100 million, according to CoinMarketCap, and that have established periodic public attestations. | |
(2) | Onchain digital asset wallets that hold more than $10 USDC. |
Guidance
To give investors insight into our business and expectations, management is providing guidance on the following key performance indicators.
Key Indicator | Period | Previous Guidance | Revised Guidance |
USDC in Circulation | Multi-year through cycle | 40% CAGR | 40% CAGR |
Other Revenue | FY 2026 | $150-$170M | $310-$330M(3) |
RLDC Margin(1) | FY 2026 | 38-40% | 41.7-43.7%(3) |
Adjusted Operating Expenses(2) | FY 2026 | $570-$585M | $570-$585M |
(1) |
| Revenue Less Distribution Costs (RLDC) Margin is Total Revenue & Reserve Income less Total Distribution, Transaction & Other Costs as a percentage of Total Revenue & Reserve Income. |
(2) |
| Adjusted Operating Expenses is a non-GAAP financial measure. Refer to Non-GAAP Financial Measures for further details and a reconciliation of the GAAP to non-GAAP measures presented. |
(3) |
| Includes recognized ARC Token presale revenue. |
Conference Call and Livestream Information
Financial results and business highlights will be discussed during a livestream webcast event at 8 a.m. ET, hosted through Circle’s official channels on YouTube and X. An audio only version of the livestream and all related materials will be hosted on Circle’s Investor Relations website at https://investor.circle.com where a replay of the call and transcript will also be available shortly following earnings.
In addition to filings with the Securities and Exchange Commission, Circle uses its Investor Relations website (https://investor.circle.com), its blog (https://www.circle.com/blog), press releases (https://www.circle.com/pressroom), public conference calls and webcasts, its X feed (https://x.com/circle), its YouTube channel (https://www.youtube.com/@BuildOnCircle), and its LinkedIn page (https://www.linkedin.com/company/circle-internet-financial) as a means of disclosing material nonpublic information, announcing upcoming investor conferences and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor these sites in addition to following Circle’s SEC filings.
Forward-Looking Statements
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. These statements include, but are not limited to, statements regarding our future operating results and financial position; our plans with respect to the anticipated future expenses and investments; expectations relating to certain of our key financial and operating metrics; our business strategy and plans; expectations relating to legal and regulatory proceedings; expectations relating to our industry, the regulatory environment, market conditions, trends and growth; expectations relating to customer behaviors and preferences; our market position; potential market opportunities; and our objectives for future operations. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on management’s expectations, assumptions, and projections based on information available at the time the statements were made. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including, but not limited to: intense and increasing competition from new and existing issuers offering competing products, combined with the rise of yield-bearing digital assets, including TMMFs, that are attractive to digital asset trading participants, may reduce market demand and circulation of Circle stablecoins; stablecoins may face periods of uncertainty, loss of trust, or systemic shocks resulting in the potential for rapid redemption requests (or runs), and extreme scenarios, such as market shocks that affect the value of USDC’s reserves or simultaneous requests to redeem all or substantially all USDC in circulation, or concerns related to Circle stablecoin reserves, may lead to redemption delays and USDC reserves being insufficient to meet all redemption requests; as a relatively new innovation, stablecoins are particularly susceptible to operational challenges and risks, including due to surges in demand; any negative publicity regarding stablecoins or the broader digital asset industry may have an outsized negative effect on consumer confidence; the acceptance of Circle stablecoins could be negatively impacted by disruptions in secondary marketplaces that facilitate the purchase and sale of Circle stablecoins; the GENIUS Act will change the payment stablecoin ecosystem and may affect our business in ways that cannot yet be known; the GENIUS Act amends the U.S. federal securities laws to explicitly exclude from the definition of “security” payment stablecoins issued by PPSIs, which will include USDC, however, until those amendments are effective, we will continue to rely on our conclusion that USDC is not a security under the U.S. federal securities laws; we hold a substantial amount of USDC reserves in the Circle Reserve Fund and thus are subject to risks associated with the issuer, the manager, and the custodian of the Circle Reserve Fund; any significant disruption in our or our third-party service providers’ or partners’ technology could result in a loss of customers or funds and adversely impact our business, results of operations, financial condition, and prospects; our customers’ funds and digital assets may fail to be adequately safeguarded by us or the third-party service providers upon whom we rely; our inability to maintain existing relationships with financial institutions and similar firms or to enter into new such relationships could impact our ability to offer services to customers; we are subject to credit risks in respect of counterparties, including banks and other financial institutions; if we are unable to maintain existing distribution arrangements or enter into additional distribution arrangements on less favorable financial terms, USDC and EURC in circulation and Circle’s financial results may be adversely affected; Arc and the ARC Token involve execution, market, and operational risk, including risks relating to launch timing, ecosystem adoption in a competitive blockchain market, technology and cybersecurity vulnerabilities, validator and governance dynamics, token price volatility, and the operational complexity of running the network and related treasury infrastructure; Arc and the ARC Token present legal, regulatory, and structural risk, including uncertainty under securities and other financial regulatory regimes, risks arising from token presale and distribution arrangements, potential liability tied to third-party ecosystem participants, conflicts and governance issues during any transition to decentralization, and possible repayment obligations if key launch milestones are not achieved; our products and services may be exploited by our customers, employees, service providers, and other third parties to facilitate illegal activity such as fraud, money laundering, terrorist financing, gambling, tax evasion, and scams; our compliance and risk management methods might not be effective; fluctuations in interest rates could impact our results of operations; we are subject to an extensive and highly evolving regulatory landscape; the regulatory environment to which we are subject gives rise to various licensing requirements, significant compliance costs and other restrictions, and noncompliance could result in a range of penalties, including fines, compliance costs, operational restrictions, reputational damage, and loss of licenses; we are subject to laws, regulations, and executive orders regarding economic and trade sanctions, anti-bribery, AML, and counter-terrorism financing that could impair our ability to compete in international markets or subject us to criminal or civil liability if we violate them; insiders will continue to have substantial control over Circle and limit shareholders’ ability to influence the outcome of key transactions, including a change of control; and our development and use of artificial intelligence in our business could result in reputational harm, competitive harm, and legal liability. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, our actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. For a detailed discussion of the risks, uncertainties, and other factors that could cause our actual results to differ materially from those anticipated or expressed in any forward-looking statements, see the section entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed with the SEC on March 9, 2026 as well as in other filings we may make with the SEC from time to time. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements. Nothing in this communication constitutes an offer to sell or a solicitation of an offer to buy securities or an invitation or inducement to engage in investment activity.
About Circle Internet Group, Inc.
Circle (NYSE: CRCL) is a global financial technology firm that enables businesses of all sizes to harness the power of digital currencies and public blockchains for payments, commerce and financial applications worldwide. Circle is building the world’s largest, most-widely used, stablecoin network, and issues, through its regulated affiliates, USDC and EURC stablecoins. Circle provides a comprehensive suite of financial and technology services that empower enterprises and developers to integrate stablecoins and blockchains into their products, services and business operations.
CIRCLE INTERNET GROUP, INC. – CONDENSED CONSOLIDATED BALANCE SHEETS
(in $ thousands, except share information) |
| June 30, 2026 |
| December 31, 2025 | ||||
|
| (unaudited) |
|
| ||||
ASSETS |
|
|
|
| ||||
Current assets: |
|
|
|
| ||||
Cash and cash equivalents |
| $ | 1,730,126 |
|
| $ | 1,526,046 |
|
Cash and cash equivalents segregated for corporate-held stablecoins |
|
| 889,311 |
|
|
| 822,963 |
|
Cash and cash equivalents segregated for the benefit of stablecoin holders |
|
| 73,161,172 |
|
|
| 75,067,932 |
|
Accounts receivable, net |
|
| 105,431 |
|
|
| 62,866 |
|
Prepaid expenses and other current assets |
|
| 283,578 |
|
|
| 321,660 |
|
Total current assets |
|
| 76,169,618 |
|
|
| 77,801,467 |
|
Non-current assets: |
|
|
|
| ||||
Restricted cash |
|
| 12,806 |
|
|
| 2,792 |
|
Investments |
|
| 103,757 |
|
|
| 84,265 |
|
Fixed assets, net |
|
| 22,177 |
|
|
| 22,791 |
|
Digital assets |
|
| 106,539 |
|
|
| 86,515 |
|
Goodwill |
|
| 265,742 |
|
|
| 265,742 |
|
Intangible assets, net |
|
| 446,577 |
|
|
| 411,146 |
|
Deferred tax assets, net |
|
| 11,354 |
|
|
| 11,110 |
|
Other non-current assets |
|
| 26,890 |
|
|
| 27,379 |
|
Total assets |
| $ | 77,165,460 |
|
| $ | 78,713,207 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
| ||||||
Current liabilities: |
|
|
|
| ||||
Deposits from stablecoin holders |
| $ | 72,927,544 |
|
| $ | 74,912,567 |
|
Accounts payable and accrued expenses |
|
| 418,588 |
|
|
| 360,609 |
|
Convertible debt, net of debt discount |
|
| — |
|
|
| 36,821 |
|
Other current liabilities |
|
| 256,021 |
|
|
| 18,398 |
|
Total current liabilities |
|
| 73,602,153 |
|
|
| 75,328,395 |
|
Non-current liabilities: |
|
|
|
| ||||
Deferred tax liabilities, net |
|
| 28,495 |
|
|
| 28,702 |
|
Other non-current liabilities |
|
| 24,837 |
|
|
| 25,337 |
|
Total liabilities |
| $ | 73,655,485 |
|
| $ | 75,382,434 |
|
|
|
|
|
| ||||
Stockholders’ equity |
|
|
|
| ||||
Class A common stock ($0.0001 par value; 2.5 billion authorized as of June 30, 2026 and December 31, 2025; 233.5 million and 223.6 million issued and outstanding as of June 30, 2026 and December 31, 2025, respectively) |
|
| 25 |
|
|
| 24 |
|
Class B common stock ($0.0001 par value; 500.0 million authorized as of June 30, 2026 and December 31, 2025; 19.2 million and 18.7 million issued and outstanding as of June 30, 2026 and December 31, 2025) |
|
| 2 |
|
|
| 2 |
|
Class C common stock ($0.0001 par value; 500.0 million authorized as of June 30, 2026 and December 31, 2025; nil issued and outstanding as of June 30, 2026 and December 31, 2025) |
|
| — |
|
|
| — |
|
Treasury stock at cost (4.6 million and 4.7 million shares held as of June 30, 2026 and December 31, 2025, respectively) |
|
| (2,645 | ) |
|
| (2,721 | ) |
Additional paid-in capital |
|
| 4,693,986 |
|
|
| 4,610,216 |
|
Accumulated deficit |
|
| (1,189,235 | ) |
|
| (1,292,709 | ) |
Accumulated other comprehensive income |
|
| 6,449 |
|
|
| 14,515 |
|
Total stockholders’ equity attributable to common stockholders |
|
| 3,508,582 |
|
|
| 3,329,327 |
|
Noncontrolling interests |
|
| 1,393 |
|
|
| 1,446 |
|
Total stockholders’ equity |
|
| 3,509,975 |
|
|
| 3,330,773 |
|
Total liabilities and stockholders’ equity |
| $ | 77,165,460 |
|
| $ | 78,713,207 |
|
CIRCLE INTERNET GROUP, INC. – CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in $ thousands, except per share information) |
| Three Months Ended |
| Six Months Ended | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
| June 30, 2026 |
| June 30, 2025 |
| June 30, 2026 |
| June 30, 2025 | |||||||||
Revenue and reserve income |
|
|
|
|
|
|
|
| ||||||||
Reserve income |
| $ | 667,733 |
|
| $ | 634,274 |
|
| $ | 1,320,241 |
|
| $ | 1,192,185 |
|
Other revenue |
|
| 33,582 |
|
|
| 23,804 |
|
|
| 75,207 |
|
|
| 44,466 |
|
Total revenue and reserve income |
|
| 701,315 |
|
|
| 658,078 |
|
|
| 1,395,448 |
|
|
| 1,236,651 |
|
Distribution, transaction and other costs |
|
|
|
|
|
|
|
| ||||||||
Distribution and transaction costs |
|
| 410,414 |
|
|
| 406,472 |
|
|
| 815,816 |
|
|
| 753,784 |
|
Other costs |
|
| 2,056 |
|
|
| 470 |
|
|
| 3,435 |
|
|
| 805 |
|
Total distribution, transaction and other costs |
|
| 412,470 |
|
|
| 406,942 |
|
|
| 819,251 |
|
|
| 754,589 |
|
Operating expenses |
|
|
|
|
|
|
|
| ||||||||
Compensation expenses |
|
| 133,999 |
|
|
| 503,392 |
|
|
| 272,126 |
|
|
| 579,012 |
|
General and administrative expenses |
|
| 66,273 |
|
|
| 43,140 |
|
|
| 123,534 |
|
|
| 73,824 |
|
Depreciation and amortization expenses |
|
| 29,896 |
|
|
| 14,209 |
|
|
| 56,663 |
|
|
| 28,089 |
|
IT infrastructure costs |
|
| 16,359 |
|
|
| 8,760 |
|
|
| 29,081 |
|
|
| 16,432 |
|
Marketing expenses |
|
| 8,657 |
|
|
| 7,910 |
|
|
| 15,274 |
|
|
| 11,770 |
|
Digital assets losses (gains) |
|
| (698 | ) |
|
| (693 | ) |
|
| 158 |
|
|
| 5,577 |
|
Total operating expenses |
|
| 254,486 |
|
|
| 576,718 |
|
|
| 496,836 |
|
|
| 714,704 |
|
Operating income (loss) from continuing operations |
|
| 34,359 |
|
|
| (325,582 | ) |
|
| 79,361 |
|
|
| (232,642 | ) |
Other income (expense), net |
|
| 17,947 |
|
|
| (160,421 | ) |
|
| 29,630 |
|
|
| (163,524 | ) |
Net income (loss) from continuing operations before income taxes |
|
| 52,306 |
|
|
| (486,003 | ) |
|
| 108,991 |
|
|
| (396,166 | ) |
Income tax expense (benefit) |
|
| 4,092 |
|
|
| (3,903 | ) |
|
| 5,531 |
|
|
| 21,143 |
|
Net income (loss) from continuing operations |
|
| 48,214 |
|
|
| (482,100 | ) |
|
| 103,460 |
|
|
| (417,309 | ) |
Less: Net loss attributable to noncontrolling interests |
|
| (7 | ) |
|
| — |
|
|
| (14 | ) |
|
| — |
|
Net income (loss) attributable to common stockholders |
| $ | 48,221 |
|
| $ | (482,100 | ) |
| $ | 103,474 |
|
| $ | (417,309 | ) |
|
|
|
|
|
|
|
|
| ||||||||
Earnings (loss) per share attributable to common stockholders: |
|
|
|
|
|
|
|
| ||||||||
Basic |
| $ | 0.19 |
|
| $ | (4.48 | ) |
| $ | 0.42 |
|
| $ | (5.04 | ) |
Diluted |
| $ | 0.18 |
|
| $ | (4.48 | ) |
| $ | 0.39 |
|
| $ | (5.04 | ) |
|
|
|
|
|
|
|
|
| ||||||||
Weighted-average common shares used in computing earnings (loss) per share attributable to common stockholders: |
|
|
|
|
|
|
|
| ||||||||
Basic |
|
| 248,183 |
|
|
| 107,514 |
|
|
| 246,122 |
|
|
| 82,877 |
|
Diluted |
|
| 268,637 |
|
|
| 107,514 |
|
|
| 267,940 |
|
|
| 82,877 |
|
Contacts
Investor Relations
investors@circle.com
Media Relations
press@circle.com
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