Circle Q3 Revenue Rises 17% to $865M on ARC Token Sale as Reserve Income Falls

Circle’s (CRCL) third-quarter revenue and reserve income rose 17% to $865 million, as per the company’s latest Q3 earnings report.

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%. Average USDC in circulation grew 8% to $73.3 billion, which partly offset the lower rate.

Net income from continuing operations rose 5% to $226 million. Adjusted EBITDA climbed 85% to $317 million.

Adjusted operating expenses, which exclude restructuring and stock-based pay, rose 13% to $139 million. Circle kept its full-year range for that measure at $570 million to $585 million.

Circle Cuts 5% of Staff

A footnote in the release discloses a workforce reduction of about 5%, and that reduction cost $9.1 million in third-quarter restructuring charges, mostly severance and notice-period payments. The reduction was designed to “better align its structure” with its operating model and strategic priorities.

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