Circle announced that its third-quarter revenue rose 17% year over year to $865 million. The increase includes $182 million from the presale of ARC, the native token of Circle’s Arc blockchain, which lifted other revenue to $207 million from $29 million a year earlier.
Reserve income, the interest earned on assets backing USDC, declined 8% to $658 million. Circle attributed the drop to a 61‑basis‑point reduction in its reserve return rate, which fell to 3.5%. Average USDC in circulation grew 8% to $73.3 billion, partially offsetting the lower rate.
Financial performance
Net income from continuing operations increased 5% to $226 million. Adjusted EBITDA rose 85% to $317 million, reflecting the ARC presale revenue and lower distribution costs.
Adjusted operating expenses, excluding restructuring and stock‑based compensation, grew 13% to $139 million. Circle maintained its full‑year range for this measure at $570 million to $585 million.
ARC token presale details
In May, Circle agreed to sell 740 million ARC tokens at $0.30 each, raising approximately $222 million from investors led by a16z crypto. The token agreements grant buyers repayment rights under certain conditions, including if Arc does not transition to a proof‑of‑stake system by May 8 2028. Circle launched Arc’s public mainnet on September 16 and indicated that the network aims to complete the proof‑of‑stake transition in 2027.
Workforce reduction
The company disclosed a reduction of about 5% of its staff, resulting in $9.1 million in restructuring charges, primarily for severance and notice‑period payments. The reduction was described as a step to better align the organization with its operating model and strategic priorities.
Outlook
Circle kept its 2026 forecast for other revenue at $310 million to $330 million, which includes the ARC presale proceeds.
