Circle Internet Group (NYSE: CRCL) earns most of its money from interest, so when rates fall, so does its biggest income stream. Its latest results show how it kept profits growing anyway. Th
Circle Internet Group (NYSE: CRCL) earns most of its money from interest, so when rates fall, so does its biggest income stream. Its latest results show how it kept profits growing anyway.
The crypto company is best known for its USDC stablecoin, a digital token designed to hold a steady value of $1. Circle backs each token with cash and short-term U.S. government debt, and earns interest on those holdings. That interest is called reserve income.
The company reported third-quarter net income from continuing operations of $226 million, up 5% from $214.4 million a year earlier, according to its earnings release on Nov. 4.
Total revenue and reserve income rose 17% to $865 million, from $739.8 million.
Both figures came in well ahead of Wall Street’s expectations. Earnings of $0.84 per share were double the $0.42 Wall Street had expected on average, and revenue topped the $788 million forecast by about $77 million.
Related: Inside the five-month plot that led to Binance's $6.3B heist
Reserve income fell 8% YoY to $657.6 million, from $711.2 million.
Two forces pulled against each other. Average USDC in circulation rose 8% to $73.3 billion.
But Circle earned less on each dollar it held. Its average return on reserves fell 0.61 percentage points to 3.5%. The lower rate won out.
Circle made up the difference elsewhere. Other revenue jumped to $207.3 million from $28.5 million.
Most of that, $182 million, came from a one-time presale of ARC, the token for Circle’s new blockchain network, Arc. A presale is an early sale of tokens to buyers before wider release.
Since the event won’t repeat, it gave this quarter an unusual lift. Arc’s main network went live on Sept. 16.
USDC also changed hands far more often. Onchain transaction volume, the total value of USDC moved on blockchains, climbed 49% to $13.9 trillion.
That presale is what pushed Circle past analysts’ forecasts. Without the $182 million, revenue would have come in at about $683 million, below the $788 million expected.
“In Q3, we saw continued proof that institutions are building and expanding on USDC,” said Jeremy Allaire, Circle’s co-founder, chief executive and chairman.
Crypto exchange Binance bought a $100 million stake in Circle and renewed its partnership to promote USDC.
Circle agreed to buy Tazapay, a business-to-business cross-border payments platform. The deal is expected to close in 2027, pending regulatory approval.
Separately, Circle cut about 5% of its workforce this year. It booked $9.1 million in restructuring costs in the quarter, mostly severance and related pay.
The company said the move was meant to “better align” its structure with its strategic priorities.
Circle kept its full-year outlook unchanged. It still expects $310 million to $330 million in other revenue for 2026, a range that includes the ARC presale.
Over the long term, it continues to target 40% average annual growth in USDC circulation.
Investors gave a cooler reception to the numbers. Circle shares were down 2.53% at $73.32 in premarket trading as of 8:02 a.m. ET on Nov. 4, according to TradingView data.
The stock yesterday closed up 4.36% at $75.22.
CRCL is down 6.95% so far this year and 40.18% over the past 12 months, though it has gained 21.40% over the past three months.
Related: Nvidia’s new 51% rule could shut China’s backdoor to AI chips
