Circle tops Q3 estimates as ARC token presale lifts revenue

Circle (CRCL) reported third-quarter diluted earnings of 84 cents per share, topping the 37 cents consensus estimate. Total revenue and reserve income was $864.9 million, above the $797.7 million consensus estimate, the company said in its press release on Nov. 4.

Shares fell 1.8% in regular trading as of 9:51 a.m. ET, from a regular-session close of $75.22.

Net income from continuing operations was $226 million, up 5% from a year earlier. Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, adjusted for certain items, was $317 million, up 85%.

Here's how the company did:

• Diluted EPS: 84 cents vs. 64 cents a year earlier, against 37 cents expected
• Total revenue and reserve income: $864.9 million vs. $739.8 million a year earlier, against $797.7 million expected
• Net income from continuing operations: $226 million, up 5% from a year earlier
• Adjusted EBITDA: $317 million, up 85% from a year earlier

Reserve income was $658 million, down 8% from a year earlier. The company said the decline was primarily from a 61 basis point drop in its Reserve Return Rate, partially offset by 8% growth in average USDC in circulation.

Other revenue was $207 million, up 627% from a year earlier. The company said $182 million of that came from the ARC token presale.

Average USDC in circulation was $73.3 billion, up 8% from a year earlier. USDC onchain transaction volume reached $13.9 trillion in the quarter, up 49%.

The company said in its filing that net income fell in each of the last three quarters, from $214.4 million in the third quarter of 2025 to $48.2 million in the second quarter of 2026, according to its SEC filings.

2026 guidance

The company left its 2026 guidance unchanged. Other revenue for fiscal 2026 is still expected at $310 million to $330 million, including recognized ARC token presale revenue.

The company also kept its RLDC margin forecast at 41.7% to 43.7% for fiscal 2026 and its adjusted operating expenses forecast at $570 million to $585 million.

For USDC in circulation, the company's multi-year, through-cycle target remains a 40% compound annual growth rate.

Tazapay acquisition

Circle signed a definitive agreement to acquire Tazapay, a Singapore-headquartered B2B cross-border payments platform. The company said the deal is expected to close in 2027, pending regulatory approvals.

The company said Tazapay brings more than $25 billion in annualized payment volume, more than 60 banking and fintech partners, and local payout rails covering more than 100 markets. About 60% of Tazapay's transaction volume already includes stablecoins, the company said.

Costs and workforce cut

Circle recorded $9.1 million in restructuring expenses tied to a workforce reduction of approximately 5%. The company said the cuts were designed to better align its organizational structure with its operating model and strategic priorities.

Adjusted operating expenses were $139 million, up 13% from a year earlier, mainly from higher general and administrative, IT infrastructure and marketing expenses.

Jeremy Allaire, Co-Founder, CEO, and Chairman at Circle, said the quarter showed continued institutional use of USDC. "In Q3, we saw continued proof that institutions are building and expanding on USDC," he said in the release.

The company also said Binance announced a $100 million equity investment in Circle and an expanded strategic partnership to promote USDC on Binance's global platform.