Circle Q3 2026: Revenue Rises 17% to $865 Million on ARC Token Presale as Reserve Income Falls and USDC Supply Stays Flat
Circle reported third-quarter total revenue and reserve income of $865 million on 4 November 2026, including $182 million from the presale of its ARC token, while reserve income fell 8% to $658 million; USDC in circulation was $73.9 billion at 30 September, unchanged from a year earlier, and the company disclosed a workforce reduction of about 5%.
By Elena Marsh, Journalist, Stablecoins
Circle Internet Group reported third-quarter 2026 results on 4 November 2026, with total revenue and reserve income of $865 million, up 17% year over year, and net income from continuing operations of $226 million, up 5%. The growth came from outside Circle's core reserve business: $182 million of the quarter's revenue was recognised from the private presale of ARC, the native token of Circle's Arc blockchain, while reserve income fell 8% to $658 million.
USDC in circulation was $73.9 billion at 30 September, unchanged from a year earlier, and averaged $73.3 billion over the quarter, up 8%. Circle also disclosed a workforce reduction of about 5%, with $9.1 million of restructuring expenses in the quarter.
Where the quarter's revenue came from
Line (Q3 2026) — Amount — Year-over-year change
Reserve income — $658m — -8%
Other revenue (includes $182m ARC presale) — $207m — +627%
Total revenue and reserve income — $865m — +17%
Distribution, transaction and other costs — $412m — -8%
Revenue less distribution costs — $453m — +55%
Net income from continuing operations — $226m — +5%
Adjusted EBITDA (non-GAAP) — $317m — +85%
Circle attributes the fall in reserve income to a 61 basis point drop in its reserve return rate, to 3.5%, which outweighed the 8% rise in average circulation. Distribution, transaction and other costs fell 8%, mostly from lower distribution payments, the company said, which lifted revenue less distribution costs to a 52% margin. Circle says adjusted EBITDA rose 85% because of the ARC presale revenue and lower distribution costs.
Against the second quarter, total revenue and reserve income rose from $701 million to $865 million, while reserve income slipped from $668 million to $658 million, according to Circle's two quarterly releases.
USDC usage and supply
USDC onchain transaction volume was $13.9 trillion in the third quarter, up 49% year over year but below the $14.8 trillion Circle reported for the second quarter. Circulation edged up from $73.3 billion at the end of June to $73.9 billion at the end of September.
Circle's other platform figures for the quarter:
- USDC minted: $104 billion, up 31%; USDC redeemed: $104 billion, up 54%.
- USDC held on Circle's own platform: $13.9 billion at quarter end, up 36%.
- Wallets holding more than $10 of USDC: 7.3 million, up 16%.
- Stablecoin market share: 27% at quarter end, down 183 basis points. Circle calculates this from CoinMarketCap data on US-dollar fiat-backed stablecoins with more than $100 million in circulation and periodic public attestations.
What the numbers say about the business
The quarter shows how much Circle's earnings depend on the size of USDC supply and the level of interest rates. With circulation flat year over year and the reserve return rate lower, reserve income fell, and the headline revenue growth relied on token presale revenue that Circle reports as other revenue. Lower distribution payments did the rest of the work on margins.
Circle left its guidance unchanged: a multi-year target of 40% compound annual growth in USDC circulation through the cycle, other revenue of $310 million to $330 million for 2026 (which includes recognised ARC presale revenue), a 2026 margin on revenue less distribution costs of 41.7% to 43.7%, and adjusted operating expenses of $570 million to $585 million.
Payments network, Tazapay and the job cuts
Circle said its Circle Payments Network (CPN) reached $41.3 billion in annualised total payment volume in the quarter, a run-rate figure reported by the company. At the end of the second quarter, Circle reported CPN at $14.7 billion of annualised volume for the trailing 30 days.
The company has signed a definitive agreement to acquire Tazapay, a Singapore-based B2B cross-border payments platform. Circle expects the deal to close in 2027, pending regulatory approvals. By Circle's figures, Tazapay handles more than $25 billion in annualised payment volume across local payout rails in more than 100 markets, and about 60% of its volume already includes stablecoins. Other quarter highlights Circle listed include Binance's $100 million equity investment and Visa moving Visa Direct stablecoin prefunding to commercial deployment with Inyo Global.
The workforce reduction of approximately 5% was "designed to better align our organizational structure with our operating model and strategic priorities," according to the release. Restructuring expenses were mostly notice-period and severance payments. Circle did not give a headcount figure.
Sources
Primary:
- Circle Internet Group, Circle Reports Third Quarter 2026 Results (Business Wire), 4 November 2026; same release filed with the SEC as Exhibit 99.1
- Circle Internet Group, Circle Reports Second Quarter 2026 Results, 5 August 2026
Context:
- CoinDesk, Circle beats earnings expectations on strong revenue, but cuts 5% of its workforce, 4 November 2026