TheBlock
Circle reported $865 million in Q3 revenue and reserve income, up 17% year over year, with net income from continuing operations of $226 million. Adjusted EBITDA rose 85% to $317 million, helped by $182 million in revenue from its ARC token presale and lower distribution costs. A footnote disclosed a workforce reduction of approximately 5%, with $9.1 million in restructuring expenses.
Why it matters
The results show Circle's business expanding beyond reserve income, even as that core revenue source weakened. Reserve income fell 8% to $658 million as the reserve return rate declined by 61 basis points. The ARC presale contributed most of the $207 million in other revenue, a category that totaled $29 million a year earlier, so the quarter's higher EBITDA reflects both token-sale proceeds and lower distribution costs.
Circle said the staff cuts are intended to align its organization with its operating model and strategic priorities. It did not disclose the number of employees affected. Operating expenses rose 16% to $245 million, while distribution, transaction and other costs declined 8% to $412 million.
Market impact
USDC averaged $73.3 billion in circulation during the quarter, up 8% year over year, and onchain transaction volume reached $13.9 trillion, up 49%. Yet quarter-end circulation was $73.9 billion, unchanged from a year earlier, and USDC's stablecoin market share fell to 27%. The figures point to rising transaction activity without growth in quarter-end circulation.
Circle maintained its 2026 guidance, including $310 million to $330 million in other revenue and $570 million to $585 million in adjusted operating expenses. Its Arc public mainnet opened on Sept. 16 with more than 100 institutional and ecosystem builders. Circle said it expects Arc to transition from proof of authority to proof of stake in 2027.
Frequently asked questions
-
What drove Circle's 85% increase in adjusted EBITDA?
Adjusted EBITDA rose to $317 million, supported by $182 million in ARC presale revenue and lower distribution costs, partly offset by spending on new products.
-
Why did Circle's reserve income decline?
Reserve income fell 8% year over year to $658 million as Circle's reserve return rate declined by 61 basis points.
-
How did USDC transaction activity compare with circulation?
Onchain USDC transaction volume rose 49% to $13.9 trillion, while quarter-end circulation was $73.9 billion, unchanged from a year earlier.
-
What did Circle disclose about its workforce reduction?
Circle said it reduced its workforce by approximately 5% and recorded $9.1 million in restructuring expenses. It did not disclose the number of employees affected.
-
What is Circle's plan for Arc after its public mainnet launch?
Arc launched its public mainnet on Sept. 16 with more than 100 institutional and ecosystem builders. Circle expects the network to move from proof of authority to proof of stake in 2027.
CoinDesk
WuBlockchain
CoinTelegraph
CryptoSlate