Circle's third-quarter revenue and reserve income rose 17% to $865 million, helped by presale revenue from its ARC token. Reserve income itself fell 8%, and the company disclosed a workforce reduction of about 5%.
Circle (CRCL) reported third-quarter revenue and reserve income of $865 million, up 17%, in its latest earnings report. The total included $182 million from the presale of ARC, the native token of Circle's Arc blockchain. As a result, other revenue reached $207 million, compared with $29 million a year earlier.
Reserve income falls as rates drop
Reserve income, the interest Circle earns on the assets backing USDC, fell 8% to $658 million. Circle said the decline came mainly from a 61 basis point drop in its reserve return rate, to 3.5%. However, average USDC in circulation grew 8% to $73.3 billion, which partly offset the lower rate.
Meanwhile, net income from continuing operations rose 5% to $226 million. Adjusted EBITDA climbed 85% to $317 million, which Circle said reflected the presale revenue and lower distribution costs.
ARC presale carries repayment rights
The company agreed in May to sell 740 million ARC tokens at $0.30 each, a sale that raised about $222 million from investors led by a16z crypto. The token agreements give buyers repayment rights in specified cases. Those rights apply, among other cases, 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 the release says the network is working toward that switch in 2027. The stablecoin issuer also kept its 2026 forecast for other revenue, which counts presale revenue, at $310 million to $330 million.
Circle cuts about 5% of staff
A footnote in the release discloses a workforce reduction of about 5%. The reduction cost $9.1 million in third-quarter restructuring charges, mostly severance and notice-period payments. According to the release, the cut was designed to "better align its structure" with its operating model and strategic priorities.
Source: CryptoPotato
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