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Circle reported a 17% rise in third-quarter revenue and reserve income as transfers of its USDC stablecoin expanded sharply, but a token presale helped lift the headline result while income from reserves fell. The company also cut 5% of its workforce.
Circle shares traded down 2.59% at $73.27 in premarket trading at 7:53 a.m. Eastern Wednesday, according to Nasdaq. That is a later snapshot than early reports of a post-results share gain, and it can change before the 9:30 a.m. opening.
Total revenue and reserve income reached $865 million, while net income from continuing operations rose 5% to $226 million, Circle said in its earnings release. Adjusted earnings were 84 cents a share, CoinDesk reported. Adjusted figures exclude some costs included in standard accounting profit.
More USDC transfers do not mean the same growth in reserves
USDC onchain transaction volume rose 49% to $13.9 trillion during the quarter. Average USDC in circulation increased a more modest 8% to $73.3 billion. Transaction volume counts transfers over time; it is not the amount of money backing the stablecoin or new customer money deposited with Circle.
For businesses considering stablecoins for supplier payments or cross-border transfers, the growth shows more activity on the network. It does not by itself establish that a particular payment route is cheaper or faster than a bank transfer. Fees, conversion costs, local payout access and the recipient’s needs still determine the practical benefit.
Reserve income fell 8% to $658 million. Circle attributed the decline mainly to a 61-basis-point drop in the return earned on reserves, partly offset by the larger average amount of USDC outstanding. That distinction matters for shareholders: more tokens in use do not automatically produce faster income growth when the reserve return is lower.
ARC presale lifts revenue as Circle cuts jobs
Other revenue rose to $207 million, including $182 million from the private presale of ARC, the native token of Circle’s Arc blockchain. The token-sale contribution helped lift the overall revenue result, so the 17% increase should not be read as growth solely from recurring reserve income.
Adjusted EBITDA rose 85% to $317 million. Circle said the increase reflected ARC token presale revenue and lower distribution costs, partly offset by spending on new products.
CoinDesk reported that Circle reduced its workforce by 5%, recording a $9.1 million restructuring charge. The company described the change as a way to align its organization with its operating model. Stronger revenue and a workforce reduction can occur together; the results do not mean every part of the business is expanding at the same pace.
Tazapay deal is agreed, not completed
Circle said it signed a definitive agreement to acquire Singapore-based business-payments platform Tazapay. The transaction is expected to close in 2027, subject to regulatory approvals. Tazapay is not yet a completed acquisition that can simply be folded into Circle’s existing operating figures.
The company also highlighted Arc’s September 16 public mainnet launch and Binance’s announced $100 million equity investment. Those initiatives broaden Circle’s ambitions beyond issuing USDC, but investors still have to separate new-product and token-sale income from the reserve earnings at the center of the stablecoin business.
For USDC users, Circle’s quarterly profit is not an interest payment to token holders. For shareholders, the next question is whether payment activity and new services can build lasting income as reserve returns change. The company is scheduled to discuss its results in an 8 a.m. Eastern webcast Wednesday.
JBizNews Desk | New York
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