Circle's revenue rose 17%, but without a $182 million token presale it fell about 8%

Circle Internet Group, the issuer of the USDC stablecoin, reported third-quarter total revenue and reserve income of $865 million, up 17% from a year earlier, in its earnings release filed with the SEC. CoinDesk's headline says the results beat estimates. The filing is where the detail is, and it tells a different story from the 17%. Shares were at $76.87 at 1:26 PM ET, up 2.2%, per Nasdaq quote data.

The number behind the number

Circle's core business is interest. It holds the reserves behind every USDC and keeps the yield. That line, reserve income, was $658 million, down 8% from a year ago. The company attributes the drop to a 61 basis point decline in the reserve return rate, to 3.5%, partly offset by an 8% rise in average USDC in circulation.

The growth came from somewhere else. Other revenue was $207 million, up 627%, and the company says $182 million of it came from the presale of its new ARC token. Take that out and revenue is about $683 million against $740 million a year ago, a fall of roughly 8% (our arithmetic). The presale is a one-off sale of a new asset, not recurring income from USDC.

Source: Circle Q3 2026 release. Adjusted EBITDA is a non-GAAP measure defined by the company, and the company says its rise reflects the ARC presale revenue and lower distribution costs.

USDC itself did not grow

USDC in circulation at the end of the quarter was $73.9 billion, unchanged from a year earlier. The average for the quarter, $73.3 billion, was up 8%. The company says its stablecoin market share fell 183 basis points to 27%.

Activity is growing faster than the balance. On-chain USDC transaction volume was $13.9 trillion, up 49%. But USDC redeemed was $104 billion, up 54%, while USDC minted was $104 billion, up 31%. In plain terms, redemptions grew faster than new issuance, which left the supply flat. Circle's stated multi-year goal is 40% annual growth in USDC in circulation, and it left that guidance unchanged.

Costs, the layoff and the deal

Operating expenses were $245 million, up 16%. The release footnotes a workforce reduction of approximately 5%, with restructuring charges that include severance. Circle did not give a headcount in the release. It also signed a definitive agreement to acquire Tazapay, a Singapore-based business-to-business cross-border payments platform, with closing expected in 2027 pending regulatory approvals. Circle says Tazapay handles more than $25 billion in annualized payment volume. Its own payments network hit $41.3 billion in annualized volume this quarter.

Full-year guidance was unchanged: other revenue of $310 million to $330 million (which includes the presale), a revenue-less-distribution-costs margin of 41.7% to 43.7%, and adjusted operating expenses of $570 million to $585 million.

Who it hits

For traders, the filing shows how exposed Circle is to short-term interest rates: a 61 basis point lower reserve return rate cut more from income than 8% more average USDC added. Rates and stablecoin supply both have to move for the core business to grow. For business owners who accept or send stablecoin payments, especially cross-border, the Tazapay and payments-network figures are the part to watch, because that is where Circle says volume is growing. The stock is 42.1% below its March 18 peak, and the 52-week range runs from $49.90 to $140, per Nasdaq.

Related: crypto news, Circle's CFO departure.

Sources: Circle Q3 2026 results (SEC EDGAR); CoinDesk; Nasdaq quote data. This is market information, not investment advice.