Circle Earnings Rise on ARC Sale as USDC Reserve Income Falls
Circle reported third-quarter revenue and reserve income of $865 million, up 17% year over year, with $182 million from its ARC token presale. Net income rose 5% to $226 million, and diluted earnings per share increased to $0.84 from $0.64. But excluding ARC proceeds, revenue and reserve income would have fallen about 8% to $683 million, while adjusted EBITDA declined 21% to roughly $135 million.
USDC average circulation grew 8%, but Circle’s reserve income fell 8% to $657.6 million as the average reserve return dropped to 3.5%. USDC circulation reached $73.9 billion, while its stablecoin market share slipped to 27%. Circle is pursuing payments and its Arc blockchain as new revenue sources, targeting material payments-network revenue and a proof-of-stake transition in 2027. It also plans job cuts affecting about 5% of employees. The results underline Circle’s effort to reduce reliance on USDC reserve income amid lower yields and rising stablecoin competition.
Neutral
The direct price impact on USDC is likely neutral: Circle’s results do not change USDC’s dollar peg, and circulation continued to grow, although its market share declined. For ARC, the presale supports awareness and project funding, but the summaries provide no evidence of sustained demand or a liquid market, so a clear price direction cannot be inferred. In the short term, traders may focus on the weaker underlying earnings excluding ARC and on falling reserve yields, which could weigh on sentiment toward Circle-related assets. Over the longer term, payments growth and Arc’s planned proof-of-stake transition could create new utility, but both depend on execution and network activity. Lower reserve income and stablecoin competition remain risks; overall, the information points to mixed rather than clearly bullish or bearish price effects.