Key Notes
- Circle reported $865 million in revenue and reserve income, including $182 million recognized from the ARC token presale.
- USDC transaction volume rose 49%, but reserve income fell 8% as a lower reserve return rate offset growth in circulating balances.
- The Arc launch and planned Tazapay acquisition extend Circle’s payments strategy, while the acquisition remains subject to approvals.
Circle Internet Group (NYSE: CRCL) reported a 17% rise in third-quarter revenue and reserve income to $865 million, but a large ARC token-presale contribution concealed a decline in the interest earned on USDC reserves.
Net income from continuing operations rose 5% to $226 million, while adjusted EBITDA increased 85% to $317 million. The results, released November 4, show a company expanding its payments and blockchain businesses while its largest existing revenue source faces lower yields.
Shares traded at $76.15, up 1.24%, at 20:46 UTC, according to CNBC’s quote data. That was an intraday price, before the regular U.S. session ended.
ARC Token Revenue Changes the Earnings Picture
Circle recognized $182 million from the ARC token presale, accounting for about 21% of reported revenue and reserve income. Other revenue reached $207 million, up 627% from a year earlier, even as subscription and services revenue declined.
Without the presale contribution, the quarterly total would have been about $683 million, roughly 8% below the $740 million reported a year earlier. That calculation is a comparison of the disclosed figures, not an adjusted revenue measure supplied by management.
The distinction is important for shareholders evaluating the pace of the underlying business. A network-token launch can produce substantial recognized revenue in one period without establishing the same earnings contribution in every subsequent quarter.
Circle’s earnings call transcript says the presale totaled $242 million and about 75% was recognized following token minting, delivery and the public mainnet launch. The $182 million is therefore recognized revenue from that transaction, rather than an additional token financing of the same amount.
USDC Usage Grows as Reserve Income Falls
Average USDC in circulation increased 8% to $73.3 billion, and quarterly onchain transaction volume rose 49% to $13.9 trillion. More activity did not translate into higher reserve income, which fell 8% to $658 million.
Circle attributed the decline primarily to a 61-basis-point reduction in its reserve return rate, partly offset by the larger average USDC balance. Its earnings filing separates those reserve economics from the ARC-related increase in other revenue.
That leaves two different measures of progress. Transaction volume indicates how often USDC moves across blockchains; reserve income reflects the balances held and the return earned on their backing assets. Neither the $13.9 trillion in transfers nor the $73.3 billion average circulation represents corporate sales.
Distribution, transaction and other costs declined 8% to $412 million, largely because of lower distribution payments. That helped adjusted EBITDA, alongside ARC revenue. Operating expenses nevertheless rose 16% to $245 million as infrastructure, marketing and other spending increased.
Arc Moves From Launch to a Commercial Test
Circle launched Arc public mainnet on September 16 with more than 100 institutional and ecosystem builders. It also minted the initial supply of 10 billion ARC tokens, designed to support the network’s security, utility and governance as it works toward a proof-of-stake transition in 2027.
For investors, the next question is how network use translates into an ongoing business after the initial token recognition. Circle now has another platform to develop, but the launch figures alone do not establish the size or durability of future network revenue.
The company is pursuing distribution through established partners too. Binance’s $100 million equity investment and renewed USDC partnership were announced in September, as we previously reported. The earnings release recaps that agreement; it is not a newly announced investment on November 4.
Tazapay Adds a Route Into Local Payments
Circle has also signed an agreement to acquire Singapore-based Tazapay, extending its effort to connect stablecoin settlement with local payment networks. The deal is expected to close in 2027, subject to regulatory approvals.
Tazapay brings more than $25 billion in annualized payment volume, over 60 banking and fintech partners, and local payout infrastructure in more than 100 markets, according to Circle. About 60% of its transaction volume already involves stablecoins. Circle’s own Payments Network reached $41.3 billion in annualized volume during the quarter.
We previously reported on Circle’s push into emerging-market payments ahead of the results. The new report puts numbers behind that ambition while exposing the immediate trade-off: USDC usage is growing, but lower reserve yields leave Circle relying more heavily on new businesses to sustain revenue growth.
