TLDR
- Circle reported third-quarter net income of $226 million, representing a 5% annual increase.
- Total revenue and reserve income rose 17% year-over-year to $865 million.
- Circle generated $182 million in revenue from the private presale of its ARC token.
- The company reduced its workforce by approximately 5%, recording $9.1 million in restructuring expenses.
- USDC onchain transaction volume increased 49% to $13.9 trillion during the third quarter.
- Circle launched the Arc public mainnet on September 16 with more than 100 institutional and ecosystem participants.
Circle reported $226 million in third-quarter net income from continuing operations, up 5% from a year earlier, while cutting jobs. The USDC stablecoin issuer released its results Wednesday, November 4, for the quarter ended September 30.
Circle Revenue Rises as ARC Sales Grow
Total revenue and reserve income climbed 17% to $865 million. Diluted earnings reached $0.84 per share, above analysts’ $0.37 forecast. Adjusted earnings before interest, taxes, depreciation and amortization rose 85% to $317 million.
A private presale of ARC, the token for Circle’s Arc blockchain, brought in $182 million. Other revenue increased to $207 million. Meanwhile, reserve income fell 8% to $658 million as returns on assets backing USDC declined.
Workforce Cuts Bring Restructuring Costs
Circle reduced its workforce by approximately 5% and recorded $9.1 million in restructuring expenses. The company said the changes aimed to align its staff with its operating model and business priorities.
ARK Invest purchased 35,657 Circle shares on November 2, worth about $2.6 million. The investment manager also bought Coinbase and Robinhood shares while selling part of its Bullish position.
Circle shares closed Tuesday at $75.22, gaining 4.36%. Early Wednesday premarket quotes placed the stock at $74.33, down 1.18%. The company reported operating expenses of $245 million, an annual increase of 16%.
USDC Transfers Grow as Payments Expand
USDC recorded $13.9 trillion in onchain transaction volume during the quarter, up 49% year-over-year. Average USDC circulation increased 8% to $73.3 billion. Circulation stood at $73.9 billion at September’s end.
Circle agreed to acquire Singapore-based payments firm Tazapay, which handles over $25 billion in annual payments. The planned deal covers markets including Latin America, where stablecoin payment services face local currency challenges.
Circle launched the Arc public mainnet on September 16 with more than 100 participating institutions and builders. It created the initial supply of 10 billion ARC tokens, with a network upgrade planned for 2027.
Binance Investment Adds to Partnerships
Binance invested $100 million in Circle and renewed its agreement to expand USDC access. Separately, Ripple and Robinhood plan to offer RLUSD to retail customers before year-end, adding another stablecoin distribution arrangement.
Circle expects the Tazapay acquisition to close in 2027, subject to regulatory approval. It maintained its full-year forecast for other revenue of $310 million to $330 million, including ARC token presale revenue.
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