Hi Folks,

Circle8 Group Inc. (NASDAQ: CIRC) has made a series of moves that could put this stock firmly on traders’ radar.

And the numbers behind the story are beginning to get difficult to ignore.

Circle8 just reported record first-half service revenue of $569.7M—up 176.9% year over year—as the company’s expanded global platform begins operating at a dramatically larger scale.

But record revenue is only part of the story.

Circle8 is also reporting stronger gross profit, improving operating leverage and a major step toward simplifying its capital structure.

Here’s what has my attention.

$569.7M in First-Half Revenue—Already Above Last Year’s Full-Year Record

For the first six months of 2026, Circle8 generated record service revenue of $569.7M, compared with $205.7M during the same period last year.

That represents 176.9% year-over-year growth.

Even more noteworthy, first-half revenue has already surpassed Circle8’s previous full-year revenue record of approximately $442M.

Gross profit also doubled, climbing from $22.6M to $45.2M.

That is a substantial increase in scale in a relatively short period of time.

And the second-quarter numbers reinforce that trend.

Q2 Revenue Reaches a Record $319.8M

Circle8 reported second-quarter service revenue of $319.8M, up 210.8% from $102.9M in the prior-year period.

Gross profit increased 108.5%, rising from $11.4M to $23.8M.

At the same time, selling, general and administrative expenses declined to 11.75% of revenue, compared with 18.3% in the prior-year period.

That last figure deserves attention.

Rapid revenue growth can capture the market’s attention, but the bigger question is whether a company can translate that additional scale into stronger operating performance.

Circle8’s declining SG&A as a percentage of revenue provides an early indication of the operating leverage management believes exists across the combined platform.

Now Operating Above a $1.2B Annualized Revenue Level

CEO and Executive Chairman Guus Franke described the first half of 2026 as a significant milestone for the company.

According to Franke, Circle8’s expanded platform has diversified the business, broadened its customer base and established the company at an annualized revenue level exceeding $1.2B.

Circle8 also now has more than 8,300 technology professionals under management, supported by an international footprint and relationships across both public- and private-sector customers.

Management’s next challenge is clear:

Translate this significantly larger revenue and gross-profit base into improved profitability, stronger cash flow and greater operating efficiency.

If Circle8 can execute on that objective, the company’s recent expansion could become considerably more meaningful.

A Major Capital-Structure Catalyst Has Also Emerged

There’s another development traders should be watching.

Following the quarter, Circle8 reached a settlement with SPP Credit Advisors LLC, resolving all outstanding litigation and eliminating the $35M Lyneer merger note and its related conversion rights, eliminating all associated future stock conversion rights and potential equity dilution.

That matters because simplifying the capital structure can remove an important layer of uncertainty surrounding an emerging growth company.

Combined with Circle8’s rapidly expanding revenue base and improving SG&A efficiency, it gives investors another development to monitor as management works to improve the company’s underlying financial performance.

Why CIRC Is on My Radar

Put the pieces together:

• $569.7M in record first-half service revenue
• 176.9% year-over-year first-half revenue growth
• First-half revenue already above the company’s previous $442M full-year record
• Gross profit doubled to $45.2M
• Record Q2 service revenue of $319.8M
• Q2 gross profit increased 108.5%
• SG&A declined to 11.75% of revenue from 18.3%
• Annualized revenue level now exceeds $1.2B
• More than 8,300 technology professionals under management
• The $35M Lyneer merger note and related conversion rights eliminated following the SPP settlement

Any one of these developments would be worth monitoring.

Taken together, they create a much more interesting setup.

Circle8 has dramatically expanded the scale of its business. Now the focus turns to whether management can convert that scale into improved profitability, stronger cash flow and greater operating efficiency.

That makes CIRC one to keep firmly on the radar.

To your success,

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