SKN | Circle Beats Q3 Earnings Expectations as USDC Activity Surges, Despite 5% Workforce Reduction

Key Points:

• Circle reported $865 million in third-quarter revenue and reserve income, up 17% year-over-year and above analysts’ expectations of approximately $778 million.
• USDC onchain transaction volume increased 49% to $13.9 trillion, while average USDC in circulation reached $73.3 billion, an 8% annual increase.
• Despite stronger financial results, Circle reduced its workforce by approximately 5%, recording $9.1 million in restructuring expenses as it adjusts its organizational structure.

Circle Internet Group, the issuer of the USDC stablecoin, exceeded analysts’ third-quarter earnings and revenue expectations as transaction activity across its digital-dollar network accelerated. However, the company also disclosed a 5% workforce reduction, highlighting the operational adjustments taking place as stablecoin adoption expands and competition intensifies across digital payments and blockchain infrastructure.

Strong Earnings Reflect Expanding USDC Activity

For the third quarter of 2026, Circle reported $865 million in total revenue and reserve income, representing 17% growth from approximately $740 million a year earlier. The result exceeded the analyst revenue estimate of $778 million by more than 11%. Net income from continuing operations increased 5% year-over-year to $226 million, while diluted adjusted earnings reached $0.84 per share, substantially above the consensus estimate of $0.37.

Adjusted EBITDA also demonstrated significant improvement, rising 85% to $317 million. These results indicate that Circle is generating stronger operating performance while expanding its stablecoin-related infrastructure. Nevertheless, the composition of revenue deserves attention because not all of the quarter’s growth came from recurring stablecoin operations.

USDC Transaction Volume Reaches $13.9 Trillion

One of the quarter’s most important indicators was the increase in USDC onchain transaction volume to $13.9 trillion, up 49% year-over-year. Average USDC in circulation reached $73.3 billion, an 8% increase, while the amount outstanding at the end of September stood at $73.9 billion.

The transaction figures suggest that USDC is supporting a growing range of blockchain-based financial activities, including payments, trading and transfers between digital-asset platforms. For institutional participants, expanding transaction activity reinforces the importance of stablecoins as settlement infrastructure rather than simply instruments used to maintain exposure to the cryptocurrency market.

However, Circle’s reserve income moved in the opposite direction. It declined 8% to $658 million, primarily because the reserve return rate fell by 61 basis points, partially offset by growth in average USDC circulation. This illustrates how Circle’s earnings remain sensitive to interest-rate conditions and the yield generated by assets backing its stablecoin.

Arc Presale Boosts Revenue as Circle Expands Its Infrastructure

Circle’s other revenue increased sharply to $207 million, compared with approximately $29 million in the third quarter of 2025. A major contributor was the private presale of the native token associated with its Arc blockchain, which generated approximately $182 million in recognized revenue.

The Arc development reflects Circle’s broader ambition to expand beyond stablecoin issuance into blockchain infrastructure and financial applications. The company also highlighted the public mainnet launch of Arc and its agreement to acquire Singapore-based cross-border payments platform Tazapay, subject to regulatory approvals. These initiatives could diversify its business, although the contribution from a token presale should be distinguished from recurring operating revenue.

Workforce Reduction Signals Organizational Restructuring

Alongside the earnings announcement, Circle disclosed a reduction of approximately 5% of its workforce, describing the move as an effort to align its organizational structure with its operating model and strategic priorities. The company recorded $9.1 million in restructuring expenses, primarily associated with severance, notice periods and employee benefits.

The workforce adjustment came despite higher revenue and profitability. Operating expenses increased 16% year-over-year to $245 million, reflecting higher general and administrative expenses, depreciation and amortization, IT infrastructure and marketing costs. Circle’s restructuring therefore points to an effort to manage its cost structure while investing in new infrastructure and business lines.

Looking ahead, investors will be monitoring USDC circulation, transaction activity, reserve yields and the contribution of newer initiatives such as Arc and Tazapay. Circle’s latest results demonstrate strong demand for its stablecoin infrastructure, but its future earnings trajectory will depend on balancing network growth with interest-rate sensitivity, operating costs and the development of recurring revenue streams. The workforce reduction adds another dimension to that transition: growth in digital-asset activity does not necessarily translate into uninterrupted expansion of corporate headcount