- Circle reported $865 million in revenue and reserve income, including $182 million from its ARC presale.
- Reserve income fell 8% despite higher average USDC circulation.
- A 5% workforce reduction resulted in approximately $9.1 million in restructuring expenses.
Circle earnings rose in the third quarter as ARC token presale revenue helped offset weaker income from USDC reserves. The stablecoin issuer reported $865 million in total revenue and reserve income, up 17% annually. Net income from continuing operations increased 5% to $226 million. The company also disclosed a workforce reduction affecting approximately 5% of employees.
Circle Earnings Reveal ARC Boost as Reserve Income Declines
According to its earnings release, Circle recognized $182 million from the ARC token presale during Q3. That contribution accounted for most of its $207 million in other revenue.
Reserve income declined 8% to $658 million as the reserve return rate fell 61 basis points. Higher average USDC circulation partly cushioned that decline.
The distinction matters when assessing Circle earnings. Presale revenue does not demonstrate recurring growth in reserve income. Excluding the $182 million contribution, total revenue and reserve income would have been approximately $683 million.
Adjusted EBITDA rose 85% to $317 million, supported by presale revenue and lower distribution costs. Distribution, transaction and other costs fell 8% to $412 million, while operating expenses increased 16% to $245 million.
USDC Activity Grows as Circle Cuts Jobs and Expands Payments
Circle earnings also showed stronger USDC usage, despite slower growth in outstanding supply. Average circulation increased 8% to $73.3 billion, while quarterly onchain transaction volume climbed 49% to $13.9 trillion.
Quarter-end circulation remained unchanged annually at $73.9 billion, and stablecoin market share fell to 27%. Transaction volume measures activity rather than the amount of USDC outstanding.
The workforce reduction generated approximately $9.1 million in restructuring expenses, mainly covering severance, notice payments and employee benefits. Circle said the changes aligned staffing with its operating model and priorities.
The Circle earnings outlook retained full-year adjusted operating expense guidance of $570 million to $585 million. Other revenue guidance remained $310 million to $330 million, including recognized ARC presale revenue.
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