Circle Q3 Revenue Hits $865M as Firm Cuts Workforce by 5%

Circle Reports Strong Q3 Financial Growth

Circle, the company behind the popular USDCUSDC-0.03% stablecoin, shared its financial performance for the third quarter. Total revenue and reserve income climbed to $865 million.

That figure represents a 17% increase compared to the same period last year. Net income from continuing operations also grew 5% to $226 million.

The company's adjusted EBITDA surged even faster. It jumped 85% year-over-year to reach $317 million.

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ARC Token Presale Boosts Other Revenue Stream

The biggest surprise in Circle's earnings came from non-reserve earnings. Revenue from secondary business lines surged 627% to $207 million.

A key driver of this growth was a $182 million token presale for the new ARC token. This cash boost arrived at a helpful time.

Traditional reserve income dropped 8% to $658 million. That decline occurred because the reserve return rate fell 61 basis points down to 3.5%.

What Is the New Arc Network?

Circle officially launched its Arc network public mainnet on September 16, 2026. The team completed the initial minting of 10 billion ARC tokens.

The ARC token will power security, utility, and governance. The network will fully transition to a proof-of-stake system in 2027.

The presale helps Circle rely less on interest from USDC cash reserves. That creates a cushion if global interest rates fall further.

However, token sales are one-off events. Investors should remember that presale revenues might not repeat regularly in future quarters.

Circle Cuts Headcount by 5%

Circle also confirmed a reduction in its total workforce during the quarter. The company trimmed its overall headcount by about 5%.

Management stated that this move aligns staff roles with their current operating model. It also supports their long-term strategic priorities.

This restructuring cost Circle about $9.15 million. These expenses covered employee severance packages, notice periods, and related benefits.

USDC Circulation and Blockchain Activity

USDC saw steady usage throughout the third quarter. Average circulating supply rose 8% year-over-year to $73.3 billion.

Quarter-end supply stayed mostly flat at $73.9 billion. However, actual transaction activity on blockchains told a busier story.

Onchain transaction volume for USDC jumped 49% to $13.9 trillion. That demonstrates high user engagement across decentralized applications.

Circle processed balanced liquidity requests. The team minted $104 billion in USDC and redeemed $104 billion during the quarter.

USDC held directly on Circle's platform grew 36% to $13.9 billion. Still, Circle's market share among fiat-backed stablecoins dropped to 27%.

That market share shift was down 183 basis points from last year. On the upside, distribution costs fell 8% to $412 million.

This drop in costs helped raise Circle's revenue-less-distribution-cost margin to 52%.

Expanding Beyond Stablecoins Into Commercial Payments

Circle continues to push further into conventional digital payments. Its payment network hit an annualized transaction volume of $41.3 billion.

To speed up expansion, Circle agreed to buy Tazapay. Tazapay is a Singapore-based payment firm handling over $25 billion annually across 100+ markets.

Major industry names are expanding their use of USDC. Corporations like Visa and Binance are actively building products using Circle's tech.

"We launched Arc with more than 100 institutional and ecosystem builders. Together, we’re building the financial and economic infrastructure of the internet, and a world where people, businesses, and AI agents all transact onchain," said Jeremy Allaire, CEO of Circle.

What This Means for the Crypto Industry

The third quarter showed that USDC remains the backbone of Circle. It continues to move massive amounts of value around the world daily.

At the same time, the successful $182 million ARC presale proves Circle can build brand-new revenue streams beyond standard interest.

By streamlining internal teams and buying global payment firms, Circle is preparing for its next phase of enterprise growth.