Cryptoupdated 1h ago2 min read
Circle Reports $865M Q3 Revenue, $226M Net Income After $182M ARC Token Pre-Sale
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Q3 revenue rose to $865 million, up 17% year over year. Net income reached $226 million, up 5%, aided by a $182 million ARC presale.
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ARC presale props up Q3
Circle reported third-quarter revenue of $865 million, up 17%, and net income from continuing operations of $226 million, up 5%, while the USDC stablecoin issuer said the quarter’s results were reinforced by a $182 million ARC token pre-sale.
Circle also said reserve income declined 8% to $658 million as the reserve yield dropped 61 basis points to 3.5%, even as average circulating USDC rose 8% year over year to $73.3 billion.
Circle’s filings showed adjusted EBITDA surged 85% to $317 million, and Circle said it reduced its workforce by about 5% and recorded restructuring costs totaling about $9.15 million.
Circle tied the shift in earnings to its newer business lines, with the ARC public mainnet going live on September 16 and Circle describing ARC as expected to bring security, utility, and governance as the network transitions to proof of stake in 2027.
Jeremy Allaire said, “We launched Arc alongside more than 100 ecosystem institutions and developers. Together, we’re building the financial and economic infrastructure of the Internet, a world where people, businesses, and AI agents transact on the blockchain.”
Yields fall, competition rises
Circle’s management said lower reserve yields weighed on USDC income, with reserve income declining 8% to $657.6 million and the reserve return falling 61 basis points to 3.5%.
Circle also reported that USDC ended September at $73.9 billion in circulation and that its share of the stablecoin market fell to 27%, down 1.83 percentage points.
Circle pointed to competition as Open Standard’s Open USD was live on Solana by Sept. 30, with Coinbase, Mastercard, Shopify, Stripe and Visa as founding partners.
Circle’s earnings disclosures framed the transition as a move from reserve-based returns to payments and blockchain activity, with transaction fees paid in USDC while Arc moves toward proof of stake in 2027.
Jeremy Fox-Geen said on the earnings call that the company expected material CPN revenue in 2027.
What comes next for Circle
Circle said its payments network reached an annualized transaction volume of $41.3 billion in the quarter, and Circle also said it agreed to acquire Tazapay, a Singapore-based payments provider that processes over $25 billion in annualized volume across more than 100 markets. Circle’s strategy commentary emphasized that stablecoin growth, payments, and blockchain applications reinforce one another, with Jeremy Allaire describing the approach as “multiple compounding flywheels on one platform.” Circle also said it was preparing for staking rewards after Arc transitions to proof of stake, which it targets for 2027, while Circle’s newer revenue streams aim to reduce reliance on interest generated from USDC reserves.
“‘This is not just about payments, and it is not just about digital dollars.”
Circle’s results showed how the ARC presale affected the earnings picture, because Circle said that without the ARC token sale, revenue would have fallen from a year earlier. Circle’s disclosures also showed that it was aligning staffing to its operating model and strategic priorities after a reduction affecting approximately 5% of employees, with Circle noting restructuring costs of $9.15 million.