Circle’s Q3 earnings landed November 4 with a headline number the stablecoin issuer was happy to show: $865 million in total revenue and reserve income, up 17% year over year. The less tidy story sits one line below it – the growth is being carried substantially by a token presale rather than the core reserve business.
The company reported net income of $226 million from continuing operations, up 5% year over year, alongside a roughly 5% workforce reduction executed during the quarter.
The ARC effect
Break the quarter apart and the split is stark. Reserve income – the boring, dependable interest money that pays most stablecoin issuers’ bills – came in at $658 million, down 8% year over year as average reserves tracked lower rates. “Other revenue” exploded to $207 million, up 627%, and included $182 million from the ARC token presale.
Strip ARC out and Circle’s underlying growth story looks much flatter. Include it, and you get a 17% top line. Investors will debate which version of the quarter they just bought.
USDC and the reserve squeeze
The underlying network kept expanding: average USDC in circulation reached $73.3 billion, up 8% year over year. That is healthy usage growth – but with reserve income down 8%, it underscores how sensitive Circle remains to the rate environment. More dollars in circulation earn less per dollar when yields fall.
Circle’s guidance framed the rest of 2026 with other revenue of $310 million to $330 million, a reserve income margin of 41.7% to 43.7%, and adjusted operating expenses of $570 million to $585 million – a range consistent with a company actively managing its cost base.
Cutting costs while the base grows
The reported 5% workforce cut lands in that context. It also lands next to a competitive set that is consolidating: Tether posted $1.5 billion of profit for its own third quarter, and issuers across the board are spending heavily on distribution, compliance and new rails like payment stablecoins and tokenized deposits.
For now, Circle enters the post-midterm Washington environment with a growing circulation base, a one-off presale boost to point to, and a clear message to investors: the core business is steady, the costs are coming down, and the next act – ARC – is already generating revenue before it even fully launches.
