Circle, the issuer of the USDC stablecoin, reported third-quarter net income of $226 million from continuing operations, a 5% increase from a year earlier, while cutting approximately 5% of its workforce. The company released its results on Wednesday, November 4, for the quarter ended September 30.

Revenue Rises as ARC Presale Boosts Other Income

Total revenue and reserve income climbed 17% year-over-year to $865 million. Diluted earnings per share reached $0.84, well above the $0.37 analysts had forecast, and adjusted earnings before interest, taxes, depreciation and amortization rose 85% to $317 million.

A private presale of ARC, the token for Circle's Arc blockchain, generated $182 million in revenue, lifting other revenue to $207 million — nearly a quarter of the quarter's total, with the token sale accounting for the bulk of the year-over-year revenue increase. Reserve income, the revenue Circle earns on the assets backing USDC, moved the other way, falling 8% to $658 million as returns on those assets declined, even as the stablecoin's circulation grew. Operating expenses rose 16% year-over-year to $245 million.

Workforce Cuts Bring Restructuring Costs

Circle reduced its workforce by roughly 5% and recorded $9.1 million in restructuring expenses. The company said the changes were intended to align its staff with its operating model and business priorities. The reductions arrive even as Circle widens its footprint, from the newly launched Arc blockchain to a planned payments acquisition.

Circle shares closed Tuesday at $75.22, gaining 4.36%. Early premarket quotes on Wednesday placed the stock at $74.33, down 1.18%. In a related market move, ARK Invest purchased 35,657 Circle shares on November 2 for about $2.6 million. The investment manager also bought Coinbase and Robinhood shares while selling part of its position in Bullish.

USDC Transaction Volume Climbs

USDC recorded $13.9 trillion in onchain transaction volume during the quarter, up 49% year-over-year — far outpacing the 8% growth in average circulation, which rose to $73.3 billion. Circulation stood at $73.9 billion at the end of September.

Circle agreed to acquire Tazapay, a Singapore-based payments firm that handles more than $25 billion in annual payments. The planned deal covers markets including Latin America, where stablecoin payment services face local currency challenges amid a broader regional stablecoin boom. Circle expects the acquisition to close in 2027, subject to regulatory approval — a deal that would extend USDC's reach from trading into payments infrastructure.

On the infrastructure side, Circle launched the Arc public mainnet on September 16 with more than 100 participating institutions and builders, creating an initial supply of 10 billion ARC tokens — the same token whose private presale powered this quarter's other-revenue jump. A network upgrade is planned for 2027.

Binance Investment Extends Partnerships

Binance invested $100 million in Circle and renewed its agreement to expand USDC access. Separately, Ripple and Robinhood plan to offer RLUSD to retail customers before the end of the year, adding another stablecoin distribution arrangement — a reminder that in stablecoins, placement on major exchanges and retail platforms is central to reach.

Circle maintained its full-year forecast for other revenue of $310 million to $330 million, including the ARC token presale revenue. Between that target, the planned 2027 Tazapay closing and Arc network upgrade, and RLUSD's year-end retail debut, the company has laid out a series of concrete milestones for the coming quarters.

Circle disclosed the quarterly results in an official press release. Related coverage: ARK Invest's share purchases, Latin America's stablecoin payments test, and the planned RLUSD retail rollout. This article was originally published on CoinCentral.