Circle’s ARC token sale lifts earnings as lower yields weigh on USDC income
Circle’s third-quarter revenue and reserve income rose 17% to $865 million, with diluted EPS increasing to $0.84. A $182 million ARC token presale drove the growth: excluding it, revenue would have fallen about 8% year over year and adjusted EBITDA would have dropped 21%. Income from USDC reserves fell 8% to $657.6 million as the reserve return declined to 3.5%, despite an 8% rise in average USDC circulation. Circle is seeking new revenue through its payments network and Arc blockchain, while anticipating payments revenue in 2027 and staking rewards after Arc’s planned shift to proof of stake. USDC ended September at $73.9 billion in circulation, with a 27% market share. Circle also disclosed a workforce reduction affecting about 5% of employees.
