Circle Internet Group reported a 17% year-on-year increase in revenue and reserve income for the third quarter of 2026, with the total reaching $865 million, though the headline figure was supported by a $182 million token presale even as income from its USDC stablecoin reserves declined.

Circle, which listed on the New York Stock Exchange in June 2025, is the issuer of USDC, one of the largest dollar-pegged stablecoins, and its earnings remain closely tied to the interest earned on the reserves backing the token — assets held largely in cash and short-term U.S. Treasury instruments — an exposure that leaves results sensitive to movements in interest rates.

Net income from continuing operations rose 5% year-on-year to $226 million for the quarter ended September 30, 2026, while adjusted EBITDA climbed 85% to $317 million, according to the results. Revenue and reserve income increased from $740 million in the same period a year earlier, though the company noted that the headline growth included $182 million from the private presale of ARC, the native token of Circle's Arc blockchain.

Reserve Income Slips as Yields Fall

Reserve income, which accounts for the interest earned on the assets backing USDC, fell 8% to $658 million, reflecting lower reserve yields. It remained the largest component of the quarter's revenue — meaning the period's overall growth leaned heavily on non-reserve sources, most notably the ARC presale.

Despite the softer yield environment, usage of the stablecoin continued to expand during the quarter. Circle's average USDC circulation increased 8% year-on-year to $73.3 billion, while on-chain transaction volume rose 49% year-on-year to $13.9 trillion.

The company also disclosed approximately $9.1 million in restructuring expenses associated with a workforce reduction of about 5%. Circle said the cuts were intended to align its organizational structure with its operating model and strategic priorities.

On the cost side, operating expenses increased 16% to $245 million, while distribution, transaction, and other costs declined 8% to $412 million, primarily reflecting lower distribution payments to the financial and crypto platforms that help circulate USDC.

Circle maintained its full-year 2026 guidance, including projected other revenue of $310 million to $330 million and adjusted operating expenses of $570 million to $585 million.

Expansion Beyond USDC

The results come as Circle pushes deeper into payments infrastructure and blockchain services beyond its core stablecoin issuance business. Key moves include the development of Arc, the company's blockchain network, and a planned acquisition of Tazapay, a Singapore-based cross-border payments platform — two developments to watch as that expansion takes shape.

Taken together, the quarter highlights Circle's continued growth in stablecoin transaction activity alongside its ongoing exposure to interest rates and the costs of distributing USDC through financial and crypto platforms.

Source: BitcoinKE