Circle Internet Group (NYSE:CRCL) reported higher third-quarter revenue and adjusted earnings, helped by $182 million in revenue from its ARC token presale, even as circulation of its USDC stablecoin remained flat from a year earlier.
Total revenue and reserve income rose 17% year over year to $865 million, while adjusted EBITDA increased 85% to $317 million. Both figures included the token presale revenue. USDC circulation ended the quarter at $73.9 billion, approximately unchanged from a year earlier and up 1% sequentially.
Allaire also said the GENIUS Act, which he said takes effect in January, would help bring regulated digital dollars into the mainstream by giving institutions greater policy clarity. He described Circle’s strategy as building interconnected networks around USDC, the Circle Payments Network and the Arc blockchain.
Token Presale Lifts Results
Chief Financial Officer Jeremy Fox-Geen said Circle recognized approximately 75% of its $242 million ARC token presale in the third quarter after tokens were minted and delivered and Arc’s public mainnet launched. Excluding ARC, other revenue was $25 million, down 11% year over year and approximately $8 million from the second quarter, as Circle monetized fewer blockchain integrations.
Reserve income fell 8% year over year to $658 million. Fox-Geen said higher average USDC circulation was more than offset by a lower reserve return rate, which declined 61 basis points from a year earlier to 3.54%. Average USDC circulation was $73.3 billion, up 8% year over year but down 4% from the second quarter.
Revenue less distribution costs, or RLDC, rose 55% to $453 million. The RLDC margin was 52.4%, boosted by the ARC presale, which carried no distribution costs. Excluding the presale, the margin was 39.7%, roughly flat year over year and down about 150 basis points sequentially.
Fox-Geen attributed a sequential decline in net reserve margin to the first full quarter of Circle’s Hyperliquid arrangement. He said the fourth quarter would also include a full quarter of Circle’s renewed Binance agreement, which the company expects to weigh on margin. Circle did not disclose the agreement’s detailed economics, but Fox-Geen said it had no upfront costs.
Payments Network and Arc Expand
Circle Payments Network reached $41 billion in annualized payment volume on a trailing 30-day basis at the end of the third quarter, more than 15 times its level a year earlier. Enrolled financial institutions rose more than fourfold to 205. Allaire said annualized volume had surpassed $58 billion as of October 30.
Circle has begun monetizing some CPN flows and expects material revenue from the network in 2027, including from its planned acquisition of Tazapay, Fox-Geen said. Circle agreed to acquire Tazapay for $400 million in Class A common stock and expects the transaction to close in 2027.
Allaire said Tazapay’s bank relationships and payout connections would expand CPN’s access to local-currency payments. Tazapay processes more than $25 billion in annualized payment volume, with about 60% already involving stablecoins, he said.
Arc’s mainnet launched September 16 with 11 founding validators and more than 100 applications, according to Allaire. As of late October, approximately $1.5 billion of USDC, cirBTC and EURC was on Arc, he said, and more than $30 billion of USDC had moved on the network since launch.
Fox-Geen said Circle expects staking rewards to become its primary recurring source of ARC revenue once the network transitions to proof of stake. The company did not provide a transition date on the call.
Guidance and Distribution Plans
Circle maintained its full-year other revenue forecast of $310 million to $330 million, including the $182 million recognized from the ARC presale. It also reaffirmed its full-year RLDC margin guidance of 41.7% to 43.7%. Excluding ARC revenue, Fox-Geen said the company expects the margin near the midpoint of its original 38% to 40% range. Adjusted operating expenses continue to trend toward the high end of its $570 million to $585 million range.
Allaire said Circle would continue investing in distribution partnerships, including its new five-year Binance agreement, which was accompanied by a $100 million equity investment in Circle. Asked about a recent breach, he said Binance remained a strong platform but that Circle would monitor developments closely.
During the call, Allaire thanked Fox-Geen for more than five years as CFO. Fox-Geen said he was excited about his “next chapter.” The call did not specify a departure date or name a successor.
About Circle Internet Group (NYSE:CRCL)
Circle Internet Group, Inc is a global financial technology company focused on digital currencies and blockchain-based payments. The company is best known for issuing USD Coin (USDC), a dollar-backed stablecoin designed to maintain a value of one U.S. dollar and support digital transactions, payments, trading and other financial applications. Circle also issues EURC, a euro-backed stablecoin.
Circle provides infrastructure and services for businesses, financial institutions and developers through products such as Circle Mint, which supports the creation, redemption and transfer of its stablecoins, as well as APIs and developer tools for integrating digital-asset payments and blockchain functionality.
