Circle Internet Group (NYSE: CRCL) reported third-quarter 2026 revenue of $865 million, marking a 17% increase year-over-year, alongside net income of $226 million and adjusted EBITDA that climbed 85% to $317 million. Average USDC circulation reached $73.3 billion during the quarter, representing 8% annual growth, and the company's shares advanced 4.36% following the results. As the issuer of USDC, Circle reports circulation, minting, and redemption figures alongside its financials because the reserves backing the stablecoin generate its primary revenue stream.

CRCL closed the trading session at $75.22, gaining $3.14, before slipping 0.48% to $74.86 in pre-market trading. The quarterly figures highlighted stronger payment activity, continued infrastructure expansion, and additional revenue generated through the Arc token presale.

Revenue Rises as Other Income Offsets Softer Reserve Returns

Circle generated $865 million in total revenue and reserve income during Q3 2026, up 17% from the prior year. Reserve income declined 8% to $658 million as the reserve return rate fell 61 basis points to 3.5%, although growth in average USDC circulation partly offset the impact of lower returns. Reserve income still accounted for roughly three-quarters of the quarter's total revenue, which is why the direction of the reserve return rate carries substantial weight in Circle's results even when circulation keeps expanding.

Other revenue reached $207 million, a 627% year-over-year increase, with the ARC token presale contributing $182 million to the category while subscription and services revenue declined. As a result, revenue less distribution costs rose 55% to $453 million, representing a 52% margin. Because the company's fiscal 2026 outlook for other revenue includes recognized ARC presale revenue, that $182 million contribution provides a reference point for weighing guidance against underlying subscription and services activity.

Net income from continuing operations increased 5% to $226 million during the quarter, while adjusted EBITDA reached $317 million, up 85% year-over-year, as token presale revenue supported profitability. Operating expenses grew 16% to $245 million, and adjusted operating expenses climbed 13% to $139 million.

USDC Circulation Holds Near $74 Billion as Transaction Activity Accelerates

Average USDC circulation reached $73.3 billion during Q3 2026, an increase of 8% year-over-year, while end-of-period circulation stood at $73.9 billion, unchanged from the previous year. USDC onchain transaction volume expanded 49% to $13.9 trillion.

Circle minted $104 billion in USDC during the quarter, representing 31% annual growth, while redemptions also increased 54% to $104 billion, reflecting elevated activity across the stablecoin ecosystem. The near-equal mint and redemption totals left net issuance roughly flat for the quarter, consistent with end-of-period circulation holding steady. The company reported a 27% stablecoin market share, down 183 basis points from a year earlier — a combination indicating that the broader stablecoin market grew faster than USDC's 8% circulation increase.

The number of meaningful wallets holding more than $10 in USDC increased 16% to 7.3 million. USDC held on Circle's platform reached $13.9 billion, up 36% annually, and the platform's daily weighted average share of USDC circulation climbed 462 basis points to 18.1%.

Payments Expansion Advances Through Arc, Binance and Planned Tazapay Acquisition

Circle broadened its payments infrastructure through a definitive agreement to acquire Tazapay, a Singapore-based cross-border payments platform. The proposed acquisition is expected to close in 2027, subject to regulatory approvals, and brings more than $25 billion in annualized payment volume along with partnerships with over 60 banking and fintech institutions. Regulatory clearance and deal completion in 2027 are the conditions to track before those volumes and banking relationships become part of Circle's operations.

The company launched the Arc public mainnet on September 16, attracting more than 100 institutional and ecosystem builders, and completed the initial mint of 10 billion ARC tokens designated for network security, utility, and governance. Arc's developer community includes over 75,000 members and 10,000 ambassadors, who developed more than 1,200 projects during the private mainnet phase. With the network now public, how that established builder base engages with the open mainnet is a metric to follow in coming quarters.

Binance announced a $100 million equity investment in Circle and renewed its strategic partnership with the company. Circle also expanded USDC payment access through Samsung Wallet, Visa Direct, and several financial technology partnerships, extending stablecoin payment services across international markets and institutional financial networks.

In addition, Circle established a principal partnership with Chelsea Football Club for the 2026/27 season. Allaria partnered with Circle to expand USDC liquidity and institutional access in Argentina, while Tereina, Volante Technologies, and other partners advanced integrations involving stablecoin payments and financial settlement. Spanning consumer wallets, cross-border platforms, exchange backing, and regional liquidity partnerships, the quarter's announcements underscore how broadly Circle is layering payments distribution on top of its reserve-based core.

Circle Maintains 40% USDC Growth Target Through the Cycle

Circle maintained its multi-year USDC circulation growth target at a compound annual growth rate of 40%. For fiscal 2026, the company expects other revenue between $310 million and $330 million, a revenue less distribution costs margin of 41.7% to 43.7%, and adjusted operating expenses between $570 million and $585 million. The other revenue and margin forecasts include recognized ARC token presale revenue. The guidance sets reference points for upcoming quarters: average circulation against the 40% target, other revenue against a range that includes presale-related amounts, and the reserve return rate — which fell 61 basis points to 3.5% this quarter — as the variable shaping reserve income.

These targets reflect Circle's continued investment in payments infrastructure, stablecoin adoption, and blockchain development. The third-quarter results showed higher revenue, stronger adjusted EBITDA, and increased USDC transaction activity, while lower reserve returns and unchanged year-end circulation remained notable financial indicators. Circle's expansion across payments, institutional partnerships, and blockchain infrastructure formed the central focus of its quarterly performance.