Circle Reports 17% Revenue Surge to $865 Million in Q3, Driven by ARC Token Presale
Circle’s third-quarter revenue and reserve income saw a significant 17% increase, reaching $865 million, according to the company’s latest earnings report. This total was bolstered by $182 million generated from the presale of ARC, the native token of Circle’s Arc blockchain. The presale activity substantially lifted other revenue to $207 million, a sharp rise from $29 million in the same period last year.
Meanwhile, reserve income, which represents the interest Circle earns on the assets backing its stablecoin USDC, experienced a 8% decline, falling to $658 million. Circle attributed this decrease primarily to a 61 basis point drop in its reserve return rate, which settled at 3.5%. The growth in average USDC in circulation, up 8% to $73.3 billion, partially counteracted the impact of the lower return rate.
Net income from continuing operations grew by 5% to $226 million. The company’s adjusted EBITDA climbed an impressive 85% to $317 million, a figure Circle stated was reflective of the presale revenue and reduced distribution costs.
ARC Token Sale Details and Future Commitments
As previously reported, Circle entered into an agreement in May to sell 740 million ARC tokens at $0.30 each, a transaction that raised approximately $222 million from investors, notably led by a16z crypto.
These token agreements include provisions for buyer repayment rights under specific circumstances. Such rights are applicable, among other conditions, if the Arc blockchain has not transitioned to a proof-of-stake system by May 8, 2028. Circle launched the public mainnet for Arc on September 16, with the network currently working towards this proof-of-stake switch planned for 2027.
Financial Outlook and Workforce Adjustments
Circle has maintained its 2026 forecast for other revenue, projecting a range of $310 million to $330 million, which incorporates presale revenue.
A disclosure within the earnings release also revealed a workforce reduction of approximately 5%. This restructuring resulted in $9.1 million in third-quarter charges, primarily for severance and notice-period payments. The company stated that this reduction was implemented to “better align its structure” with its operating model and strategic priorities.
Adjusted operating expenses, excluding restructuring costs and stock-based compensation, rose by 13% to $139 million. Circle has reaffirmed its full-year guidance for this metric, keeping it within the range of $570 million to $585 million.
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