Circle Q3 Revenue Rises to $865M on ARC Token Presale Despite Reserve Drop
Key Summary
Circle reported a 17% rise in third-quarter revenue to $865M, bolstered by $182M from ARC token presales. Reserve income fell 8% to $658M due to lower return rates, while the firm enacted a 5% workforce reduction costing $9.1M in restructuring expenses.
Key Bullets
- Circle reported third-quarter revenue of $865M supported by $182M from ARC token presales despite falling reserve yields.
- Reserve income dropped 8% to $658M due to a 61 basis point decline in the reserve return rate to 3.5%.
- Average USDC in circulation climbed 8% to reach $73.3B during the reported financial period.
- The stablecoin issuer executed a 5% workforce reduction incurring $9.1M in restructuring and severance charges.
Circle Reports Q3 Revenue Surge
Stablecoin issuer Circle posted a third-quarter revenue increase of 17% to reach $865M, according to financial disclosures released by the firm. The top-line expansion leaned heavily on token sales rather than core interest yields from the assets backing its USDC stablecoin. Total revenue figures incorporated $182M stemming directly from the presale of ARC, the native asset tied to the Arc blockchain network. That specific capital injection pushed total other revenue to $207M from the $29M recorded during the same period a year prior.
Net income derived from continuing operations climbed 5% to settle at $226M. Adjusted EBITDA registered an 85% jump to $317M, which corporate leadership attributed to the ARC token sale proceeds combined with lower distribution outlays. Financial reports confirmed that average USDC in circulation expanded 8% to $73.3B, cushioning the blow from declining yields.
Reserve Yields Contract Across Balances
Reserve income generated from the interest earned on assets backing USDC dropped 8% down to $658M. Public disclosures pointed to a 61 basis point contraction in the reserve return rate, which slid to 3.5% across the quarter. While circulating stablecoin volume grew, lower macroeconomic return rates compressed interest margins.
Corporate guidance for 2026 other revenue remained anchored within a range of $310M to $330M. That projection incorporates the ongoing accounting recognition of the ARC token presale agreements executed earlier in the fiscal year.
ARC Presale Contingencies and Staff Cuts
Disclosures filed by the company detail agreements involving the sale of 740M ARC tokens at $0.30 each. That initial round secured $222M from institutional participants led by a16z crypto. Contract terms provide buyers with distinct repayment rights if the Arc network fails to transition toward a proof-of-stake architecture by May 8, 2028. Arc mainnet deployment occurred on September 16, and network developers target the consensus switch for 2027.
Financial statements also revealed a 5% workforce reduction. Restructuring charges associated with the headcount reduction tallied $9.1M, primarily covering severance obligations and notice-period payments. Adjusted operating expenses rose 13% to $139M, while full-year operational cost projections remained steady between $570M and $585M.
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