Circle Internet Group (CRCL) has reported a 17% rise in third-quarter revenue to $864.9 million, supported by ARC token sales and growing use of USDC.
Summary
- Circle reported $864.9 million in Q3 revenue and reserve income, up 17% year over year, while adjusted EBITDA grew 85% to $317 million.
- Its $182 million ARC token presale revenue helped offset lower reserve income as interest rates declined.
- USDC transaction volume climbed 49% to $13.9 trillion, although the stablecoin’s market share fell to 27%.
- Circle Payments Network reached $41.3 billion in annualized payment volume, while Arc launched publicly with more than 100 builders.
- Circle reaffirmed its $400 million agreement to acquire Tazapay and disclosed a workforce reduction of approximately 5%.
In its November 4 earnings release, the stablecoin issuer reported $226 million in net income from continuing operations, up 5% from a year earlier. Adjusted EBITDA reached $317 million, an 85% increase, while USDC onchain transaction volume climbed 49% to $13.9 trillion.
The results cover Circle’s first quarter with its Arc blockchain operating on public mainnet, alongside increased payment activity and new financial partnerships.
Circle reported diluted earnings of $0.84 per share, compared with $0.64 last year. The company maintained its full-year adjusted operating expense forecast of $570 million to $585 million.
Circle Q3 earnings rise despite lower reserve income
Circle’s quarterly results showed that revenue growth did not come primarily from the interest earned on assets backing USDC.
Reserve income fell 8% to $658 million as the average return on those assets declined by 61 basis points to 3.5%. Average USDC circulation increased 8% to $73.3 billion, partially offsetting the effect of lower interest rates.
Other revenue, however, rose to $207 million from $28.5 million a year earlier. The company attributed most of that increase to $182 million recognized from its ARC token presale.
The presale accounted for roughly 21% of total quarterly revenue. Without that contribution, Circle would have reported approximately $683 million in revenue and reserve income, compared with $740 million last year.
Earlier, crypto.news examined Circle’s revenue model, noting how reserve yields and payments to distribution partners affect the income the company retains.
During Q3, distribution, transaction and other costs fell 8% to $412 million. Revenue after those costs reached $453 million, compared with $292 million a year earlier.
Circle’s operating expenses rose 16% to $245 million, partly because of spending on technology infrastructure, administration and marketing.
Arc mainnet launches as Circle expands blockchain services
Circle launched Arc’s public mainnet on September 16, bringing its blockchain for financial applications into operation with native USDC support.
The network started with 11 founding validators and more than 100 institutional and ecosystem builders. Participants included major financial companies involved in payments, custody and blockchain infrastructure.
As previously reported, Arc uses USDC for transaction fees and supports tokenized financial assets.
Circle completed the initial creation of 10 billion ARC tokens, although that does not mean the entire supply has entered public circulation.
The company plans to move toward a proof-of-stake system in 2027, with further work planned on privacy and scalability.
During Arc’s private mainnet phase, developers built more than 1,200 projects. Circle reported a community of over 75,000 Arc House members and 10,000 ambassadors.
CEO Jeremy Allaire said Circle had launched Arc with “more than 100 institutional and ecosystem builders,” providing infrastructure for new financial applications.
Circle Payments Network grows as Tazapay deal moves forward
Circle Payments Network recorded $41.3 billion in annualized payment volume during the quarter, as the company continued developing stablecoin payment services.
The figure represents an annualized transaction rate, not the amount of revenue Circle earned from payments.
The network connects financial institutions and payment providers for cross-border transactions using stablecoins and local banking services.
Circle previously reported $14.7 billion in annualized volume at the end of June, indicating that the latest payment rate was approximately 2.8 times that earlier figure.
The company reaffirmed its agreement to acquire Tazapay, a Singapore-based cross-border payment provider, for approximately $400 million in shares.
Tazapay handles more than $25 billion in annualized payments, operates through over 60 banking and fintech partners, and provides payout services across more than 100 markets.
Around 60% of its transaction volume already involves stablecoins. Circle expects the acquisition to close in 2027, subject to regulatory approval.
Binance investment and workforce cuts accompany expansion
Circle’s quarterly update included Binance’s $100 million equity investment and an expanded five-year partnership promoting USDC across the exchange.
The September investment agreement involved Binance acquiring approximately 1.24 million Circle shares through a private placement.
Circle reported 27% stablecoin market share at September’s end, down 1.83 percentage points from a year earlier.
USDC issuance and redemptions each totaled $104 billion during the quarter, while the number of wallets holding more than $10 USDC reached 7.3 million.
Separately, Circle disclosed that it reduced its workforce by approximately 5% during Q3, recording $9.15 million in restructuring expenses.
The company attributed the reduction to aligning its organization with its operating model and strategic priorities. Charges primarily covered severance payments, employee benefits and related costs.
