Circle, the company behind the USDC stablecoin, reported total revenue and reserve income of $865 million for the third quarter of 2026, up 17% on a year earlier.
The figures come from Circle’s results release and the matching exhibit filed with the US Securities and Exchange Commission on 4 November. Net income from continuing operations rose 5% to $226 million.
In brief
- Revenue and reserve income rose 17% to $865m; adjusted EBITDA rose 85% to $317m.
- Average USDC in circulation was $73.3bn, up 8%, but the end-of-quarter figure of $73.9bn was flat on a year earlier.
- A footnote discloses a workforce reduction of about 5%; Circle did not say how many people are affected.
What the Circle Q3 results show
Adjusted EBITDA, a measure that strips out items such as interest, tax and depreciation, rose 85% to $317 million. Circle said the rise reflected revenue from the presale of ARC, the token for its Arc blockchain, and lower distribution costs.
The split of revenue matters. Reserve income, the interest Circle earns on the assets backing USDC, fell 8% to $658 million, mainly because of a lower reserve return rate. Other revenue jumped 627% to $207 million, of which $182 million came from the ARC token presale. Revenue less distribution costs, which is what Circle keeps after paying partners that distribute USDC, rose 55% to $453 million, taking that margin to 52%.
Average USDC in circulation during the quarter was $73.3 billion, up 8%. At the end of the quarter there was $73.9 billion in circulation, unchanged on a year earlier. The reserve return rate, the yield Circle earns on the assets backing USDC, was 3.5%, down 0.61 percentage points. USDC onchain transaction volume was $13.9 trillion, up 49%.
Circle’s payments network, CPN, reached $41.3 billion in annualised total payment volume. Circle also signed a definitive agreement to buy Tazapay, a Singapore-based cross-border business payments platform, which it expects to close in 2027 subject to regulatory approval. It said it launched Arc public mainnet on 16 September and completed the genesis mint of 10 billion ARC tokens.
Other highlights in the release include a $100 million equity investment from Binance alongside a renewed partnership, and Samsung Wallet letting eligible US Galaxy users send USDC to bank accounts in more than 60 countries.
“In Q3, we saw continued proof that institutions are building and expanding on USDC,” said Jeremy Allaire, Circle’s co-founder, chief executive and chairman.
The 5% workforce cut
The job cuts are not in the headline highlights. A footnote describes a “workforce reduction of approximately 5% designed to better align our organizational structure with our operating model and strategic priorities”, with restructuring expenses of $9.1 million, mainly cash costs for notice periods and severance. Circle does not give the number of people affected or the headcount the percentage is based on.
Why the Circle Q3 results matter
Circle earns most of its money from interest on the reserves behind USDC, so the two numbers to watch are how much USDC is in circulation and what those reserves yield. This quarter both pointed to pressure: the reserve return rate fell and end-of-quarter circulation was flat on a year earlier, even as average circulation and onchain activity grew. The jump in adjusted EBITDA leans partly on the $182 million ARC token presale, which is not a repeat source of income in the same way reserve interest is.
That helps explain the push into payments. Circle has been setting out how it shares USDC economics with partners, and its chief executive has talked about expanding into about 40 emerging markets. The Tazapay deal fits that plan by adding payment routes in Asia, Latin America and other emerging markets.
The workforce cut, tucked into a footnote, is worth noting for a company still reporting profit growth. Investors and staff will want to know how many roles are affected and where. For background on how Circle has handled questions about USDC backing before, see TSN’s report on its pledge to cover any shortfall in USDC reserves.
Sources
- Circle via Business Wire: Circle Reports Third Quarter 2026 Results (4 November 2026)
- SEC: Circle Internet Group Form 8-K, Exhibit 99.1 (4 November 2026)
Related stories
- Circle Spells Out USDC Partner Economics for the First Half of 2026
- Circle Plans a Push Into About 40 Emerging Markets, CEO Tells Reuters
- Circle Commits to Cover Any Shortfall in USDC Reserves
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