Circle reports $865 million in Q3 revenue and reserve income, discloses 5% workforce reduction

Circle posts $865 million in third-quarter revenue and reserve income

Circle Internet Group, the company behind the USDC stablecoin — a token designed to keep a steady value, often linked to the U.S. dollar — reported $865 million in total revenue and reserve income for the third quarter, up 17% from a year earlier, in its earnings release on Wednesday.

Net income from continuing operations was $226 million, compared with $214.4 million in the same quarter last year. Adjusted EBITDA was $317 million, up from $171.5 million reported for the prior-year quarter.

The main numbers for the quarter

• Total revenue and reserve income: $865 million, up 17% year over year. Circle reported $701 million in the second quarter of this year.
• Net income from continuing operations: $226 million, compared with $214.4 million a year earlier.
• Adjusted EBITDA: $317 million, up from $171.5 million.
• Reserve income: $658 million, down 8% year over year.
• Other revenue: $207 million, including $182 million recognized in the quarter from the ARC token presale. Other revenue had totaled $29 million in the third quarter of 2025.

Costs, presale revenue and the workforce reduction

Operating expenses rose 16% year over year to $245 million, which Circle attributed to higher administrative, IT infrastructure, and marketing costs. Distribution, transaction, and other costs fell 8% to $412 million, mostly due to lower distribution payments.

Circle agreed to sell a total of $242.2 million worth of ARC tokens in the presale at $0.30 per token and a $3 billion fully diluted valuation. The company attributed the 85% increase in adjusted EBITDA to the presale revenue and lower distribution costs, partly offset by spending on new products.

A footnote to the earnings tables disclosed that Circle had reduced its workforce by approximately 5%, with $9.1 million in associated restructuring expenses, mainly for notice period and severance payments, employee benefits, and related costs. Circle said the reduction was designed to "better align our organizational structure with our operating model and strategic priorities," but did not give a headcount. Circle had approximately 1,100 employees worldwide at the end of 2025, according to its annual report.

Circle maintained its full-year 2026 guidance, including $310 million to $330 million in other revenue and $570 million to $585 million in adjusted operating expenses.

USDC activity and the Arc launch

Reserve income fell as its reserve return rate declined by 61 basis points, the firm said. USDC averaged $73.3 billion in circulation during the third quarter, an 8% increase from a year earlier. Onchain USDC transaction volume reached $13.9 trillion for the quarter, up 49% year over year. USDC circulation stood at $73.9 billion at quarter-end, unchanged from a year earlier, while Circle's stablecoin market share fell to 27%.

Circle opened Arc's public mainnet — the live version of its blockchain, a shared digital ledger — on Sept. 16, with more than 100 institutional and ecosystem builders on the network at launch. It also minted the initial supply of 10 billion ARC tokens, which the firm said was a technical milestone, not a commitment to launch them publicly. It expects Arc to move from proof of authority to proof of stake in 2027. Circle had previously named BlackRock, DTCC, and Visa among founding validators for Arc.

Deals and what Circle expects next

In September, Circle agreed to acquire Tazapay, a Singapore-based payments firm with more than $25 billion in annualized payment volume. Circle expects the acquisition to close in 2027, subject to regulatory approvals. Circle Ventures had led Tazapay's $36 million Series B extension in March. Binance also bought $100 million worth of Circle shares in September and signed a new five-year USDC agreement.

Sources

• The Block

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