Circle Q3 Revenue Hits Record as USDC Growth Cools

Circle reported record third-quarter 2026 revenue and reserve income of $865 million, up 17% year over year. The result was boosted by $182 million in one-off ARC token presale revenue; excluding it, other revenue was $25 million and declined year over year. Net profit rose 5% to $226 million, while adjusted EBITDA climbed 85% to $317 million, partly reflecting the presale proceeds. USDC on-chain transaction volume increased 49% year over year to $13.9 trillion, and wallets holding more than $10 in USDC reached 7.3 million. But reserve income fell 8% to $658 million as the average reserve yield eased to 3.5%. Average USDC circulation was up 8% year over year in one reported comparison, but down 4.2% from Q2. Quarter-end circulation was reported at $73.9 billion; it later stood at about $69.8 billion on 2 November, roughly 5.5% below quarter-end. Circle is building recurring payment and distribution revenue. Its payments network reached $41.3 billion in annualised volume, USDC on its own platforms rose to $13.9 billion, and Binance invested $100 million while expanding its partnership with Circle. A proposed Tazapay acquisition, subject to regulatory approval and expected to close in 2027, could expand cross-border payments. Arc’s commercial value remains unproven, and Circle kept its full-year guidance unchanged. For traders, the results show strong stablecoin usage but weaker circulation momentum and pressure on reserve earnings. The durability of recurring payments revenue and a recovery in USDC circulation will matter more than one-off ARC income to Circle’s outlook.