Circle Revenue and Reserve Income Rise 17% to $865 Million in Third Quarter

Key Facts

Circle reported total revenue and reserve income of $865 million in the third quarter of 2026, up 17% year over year, as business activity and other revenue grew while reserve income declined. Net income from continuing operations was $226 million, up 5% year over year, while adjusted EBITDA rose 85% to $317 million. The figures showed that revenue growth did not come from reserve income alone, as proceeds from ARC token sales offset some of its decline. Average USDC in circulation and on-chain transaction volume also increased during the quarter, alongside total revenue. Chief Executive Jeremy Allaire said the company sees "continued evidence of institutions building and expanding businesses on USDC."

Reserve income was $658 million, down 8% from the same quarter a year earlier. The company attributed the decline to a 61-basis-point drop in the yield on reserves, which reduced income generated by the assets backing the stablecoin. Growth of 8% in average USDC in circulation during the period eased that pressure, but the increase in circulating supply was not enough to offset the effect of lower yields. The divergence reflects the different paths of volume and yield in Circle's business: wider circulation supports the reserve base, while the level of yield affects the revenue generated from it. Total revenue therefore rose despite a decline in its largest single component, with other sources making a clear contribution.

The presale of the ARC token contributed $182 million to quarterly revenue and lifted other revenue to $207 million, a 627% year-over-year increase. That surge in other revenue, alongside reserve income, which fell to $658 million, shaped the quarter's revenue mix. The figures show that ARC's contribution was substantial relative to total other revenue, while the report does not specify how much of that contribution will continue in future periods. The company said revenue recognized from the presale is included in the revenue and margin figures in its fiscal-year guidance. As a result, part of the annual performance picture is tied to token revenue generated in the quarter, rather than growth in reserve income alone.

On the activity front, average USDC in circulation was $73.3 billion in the third quarter, up 8% year over year. On-chain transaction volume for the currency rose 49% to $13.9 trillion, a faster pace than growth in average circulation. The divergence points to an expansion in the currency's use in transactions during the period, alongside an increase in its circulating supply. But growth in transaction volume does not automatically translate into comparable growth in reserve income, which declined as yields fell. In the second quarter, the company reported total revenue and reserve income of $701 million, up 7% year over year, while USDC in circulation at the end of that quarter was $73.3 billion, up 19% year over year.

Circle shares rose 3.26% in premarket trading on November 4 following the results announcement. In the currency market, USDC/USD closed at $1 on November 3, according to EL7 data. Third-quarter results were scheduled for release on November 4, 2026, at 8 a.m. Eastern time. Allaire also said the company had seen institutions continue to expand businesses built on USDC, and pointed to the launch of the Arc network on the public mainnet. The comments place the quarter's performance in the context of broader adoption of the currency and its related infrastructure, while the income figures show that reserve yields remain a factor affecting results.

Circle kept its fiscal 2026 guidance unchanged, setting other revenue at $310 million to $330 million, RLDC margin at 41.7% to 43.7%, and adjusted operating expenses at $570 million to $585 million. The revenue and margin figures include revenue recognized from the ARC token presale, making the token's contribution part of the framework underlying the guidance. The ranges were held after a quarter in which total revenue rose, but reserve income fell year over year as yields declined. The company also reported increases in average USDC in circulation and on-chain transaction volume, two activity indicators distinct from recognized revenue. The announced ranges set out the company's expectations for the rest of the year for other revenue, margin and expenses, with no change to its previous estimates.