Circle posts $865M Q3 revenue as USDC circulation hits $73.3B

What happened

Circle Internet Group reported third-quarter revenue and reserve income of $864.9 million, a 17% increase from the same period a year earlier, according to its November 4 earnings release covered by Crypto.news and Blockonomi. Net income from continuing operations came to $226 million, up 5%, and adjusted EBITDA rose 85% to $317 million. Diluted earnings were $0.84 per share, compared with $0.64 a year earlier.

The quarter included $182 million recognized from Circle's ARC token presale, which the company said accounted for most of the jump in other revenue to $207 million from $28.5 million. Without that contribution, revenue and reserve income would have been about $683 million, below the $740 million reported a year earlier, according to Crypto.news.

Reserve income, the interest earned on assets backing USDC, fell 8% to $658 million as the average return on those assets dropped 61 basis points to 3.5%. Average USDC circulation rose 8% to $73.3 billion, partly offsetting the lower yield. End-of-period circulation was $73.9 billion, unchanged from a year earlier, Blockonomi reported.

USDC onchain transaction volume climbed 49% to $13.9 trillion, while Circle's stablecoin market share stood at 27% at the end of September, down 1.83 percentage points year over year. CRCL shares rose 4.36%, or $3.14, to close at $75.22, then fell 0.48% to $74.86 in pre-market trading, per Blockonomi.

Why it matters

The results show Circle's revenue mix shifting as falling interest rates weigh on the reserve income that has historically driven its business. The ARC token presale supplied roughly a fifth of quarterly revenue, and other revenue rose sharply, while reserve income declined. Revenue less distribution, transaction and other costs reached $453 million, up from $292 million a year earlier, a 52% margin, according to Blockonomi.

Payment activity also drew attention. Circle Payments Network recorded $41.3 billion in annualized payment volume, compared with $14.7 billion at the end of June, Crypto.news reported. The figure reflects an annualized transaction rate rather than revenue earned from payments. Arc, Circle's blockchain for financial applications, launched its public mainnet on September 16 with native USDC support, 11 founding validators and more than 100 institutional and ecosystem builders.

What the data shows

Operating expenses rose 16% to $245 million, while adjusted operating expenses climbed 13% to $139 million. Distribution, transaction and other costs fell 8% to $412 million. Circle minted $104 billion in USDC during the quarter, up 31%, and redemptions also totaled $104 billion, up 54%. Wallets holding more than $10 in USDC reached 7.3 million, a 16% increase, and USDC on Circle's platform reached $13.9 billion, up 36% annually.

Circle maintained its full-year adjusted operating expense forecast of $570 million to $585 million. It guided fiscal 2026 other revenue to $310 million to $330 million and a revenue-less-distribution-costs margin of 41.7% to 43.7%, both including recognized ARC presale revenue. The company kept its multi-year USDC circulation growth target at a 40% compound annual growth rate, Blockonomi reported.

Background

Circle has been expanding its payments and infrastructure footprint alongside its stablecoin business. It reaffirmed a roughly $400 million all-share agreement to acquire Tazapay, a Singapore-based cross-border payment provider that handles more than $25 billion in annualized payments and works with over 60 banking and fintech partners. The deal is expected to close in 2027, subject to regulatory approval. Binance also made a $100 million equity investment in Circle through a private placement of about 1.24 million shares and expanded a five-year partnership promoting USDC, according to Crypto.news.

The company disclosed a workforce reduction of about 5% during the quarter, recording $9.15 million in restructuring expenses tied mainly to severance and employee benefits. It attributed the cut to aligning its organization with its operating model and strategic priorities. Circle also completed the initial creation of 10 billion ARC tokens, though the company said that does not mean the full supply is in public circulation, and it plans to move toward proof-of-stake in 2027.

What to watch

Investors may focus on whether reserve income stabilizes as interest rates move, and on how much of future revenue depends on one-time items such as the ARC presale. The Tazapay acquisition's regulatory review and 2027 closing timeline, the planned shift of Arc toward proof-of-stake, and the pace of Circle Payments Network volume are also points to track in coming quarters.

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