Circle Internet Group reported stronger third-quarter revenue and profit as transaction activity on its USDC stablecoin increased, but the composition of the results shows that lower interest returns remain a constraint. Total revenue and reserve income reached $865 million, up 17% from a year earlier, while net income from continuing operations rose 5% to $226 million. A large one-time contribution from the private presale of Circle's Arc network token helped offset an 8% decline in reserve income.

USDC activity grew faster than circulation

Average USDC in circulation increased 8% year over year to $73.3 billion and onchain transaction volume rose 49% to $13.9 trillion during the quarter. Quarter-end circulation, however, was unchanged from a year earlier at $73.9 billion. That difference matters: transaction volume can show more use of existing tokens without proving that the supply of USDC or Circle's interest-earning reserve base expanded at the same rate.

Related reporting: Circle launches Arc mainnet with USDC fees and institutional validators

Circle also reported $104 billion of USDC minted and the same amount redeemed during the quarter. The company counted 7.3 million wallets holding more than $10 of USDC, a 16% increase. These issuer-defined operating measures indicate wider activity, but onchain volume can include transfers between exchanges, wallets and automated systems rather than only customer payments or final economic settlement.

Arc presale changed the revenue mix

Reserve income fell 8% to $658 million as Circle's reserve return rate declined by 61 basis points, partly offset by the larger average USDC balance. Other revenue jumped to $207 million from $29 million. Circle attributed $182 million of that total to the private presale of ARC, the native token for its Arc blockchain, which launched on public mainnet in September. Excluding the token-sale proceeds, the quarter's revenue mix would look materially less accelerated.

Adjusted EBITDA rose 85% to $317 million, but that is a company-defined non-GAAP measure and also benefited from the ARC proceeds and lower distribution costs. Circle's own presentation showed adjusted EBITDA of $135 million when the token-sale contribution was excluded. Investors therefore have to separate recurring stablecoin economics from revenue tied to the early financing and launch of a new network.

Profit improved while restructuring continued

Distribution, transaction and other costs declined 8% to $412 million, helping revenue less those costs rise to $453 million. Operating expenses increased 16% to $245 million. Circle recorded $9.1 million of restructuring expense related to a workforce reduction of approximately 5%, which it said was intended to align its organization with its operating model and strategic priorities.

What the results mean for Circle

The quarter shows growing use of USDC alongside continued exposure to interest rates. Falling reserve yields can reduce the income generated by assets backing the stablecoin even when average circulation rises. Arc may broaden Circle's revenue beyond reserves, but the presale is not evidence that token sales will recur at the same level or that the network will achieve sustained commercial adoption. Circle left its multi-year target for 40% compound annual growth in USDC circulation unchanged and kept its 2026 ranges for other revenue, revenue-less-distribution-cost margin and adjusted operating expenses. Those outlook measures include the recognized Arc presale revenue and remain forecasts rather than guaranteed results. Future quarters will need to show whether payments, platform services and Arc activity can produce repeatable revenue while USDC supply and margins respond to changing rates.

Sources

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