Circle reported a 17% increase in third-quarter revenue, reaching $865 million. The growth was driven by the presale of ARC, the native token of Circle’s Arc blockchain, which contributed $182 million. Other revenue rose to $207 million from $29 million a year earlier, reflecting the impact of the ARC presale.
Reserve income, which comes from the interest earned on assets backing USDC, fell 8% to $658 million. Circle attributed the decline to a 61 basis point drop in its reserve return rate, to 3.5%. The average USDC in circulation grew 8% to $73.3 billion, partially offsetting the lower rate.
Net income from continuing operations rose 5% to $226 million, while adjusted EBITDA climbed 85% to $317 million. Circle noted that the presale revenue and lower distribution costs contributed to the increase. The company had previously agreed to sell 740 million ARC tokens at $0.30 each, raising about $222 million from investors led by a16z crypto.
The token agreements include repayment rights for buyers in certain cases, such as if Arc has not switched to a proof-of-stake system by May 8, 2028. Circle launched Arc’s public mainnet on September 16 and stated that the network is working toward the switch in 2027.
Circle also disclosed a workforce reduction of about 5%, incurring $9.1 million in third-quarter restructuring charges. The reduction was aimed at aligning the company’s structure with its operating model and strategic priorities. Adjusted operating expenses, excluding restructuring and stock-based pay, rose 13% to $139 million, with the full-year range kept at $570 million to $585 million.