Circle's third-quarter results point to a business that is becoming less reliant on reserve income. The stablecoin issuer reported confidence in both its top line and bottom line, with the ARC token presale boosting revenue and USDC activity deepening onchain. Among the quarter's headline figures: an additional $182 million raised in the ARC token presale, onchain USDC transaction volume up nearly 50% year over year to $13.9 trillion, reserve income down 8%, and USDC's market share closing the period at 27%.

ARC Token Presale Adds $182 Million to Revenue Mix

Circle reported total revenue and reserve income of $865 million in Q3 2026, a 17% increase from a year earlier. Much of that growth came from other revenues, which rose 627% to $207 million. Of that figure, $182 million was allocated to the ARC token presale.

Net income from continuing operations increased 5% from the prior-year level to $226 million. Adjusted EBITDA grew 85% on the year to $317 million, and diluted earnings per share rose to $0.84 from $0.64 a year earlier, according to Circle's Q3 2026 earnings release. The results point to a revenue mix increasingly diversified away from reserve income.

Arc Mainnet Launch Extends Beyond Stablecoin Business

Arc launched on public mainnet on Sept. 16 with more than 100 institutional and ecosystem builders taking part, marking an expansion of the network beyond Circle's core stablecoin operations. Circle also released the initial 10 billion ARC tokens. Security, utility, and governance are the token's principal features as Arc moves toward a proof-of-stake format in 2027, which stands as the network's next major technical milestone.

The token sale provides Circle with an additional income stream beyond the traditional economics tied to USDC's reserves, reinforcing the company's stated shift toward reduced reliance on reserve income.

USDC Onchain Volume Jumps to $13.9 Trillion

Despite weaker economics in the reserve business, USDC activity held up well through the quarter. Average USDC circulation was $73.3 billion, an increase of 8% over a year earlier, while onchain transaction volume climbed 49% to reach $13.9 trillion.

At the end of the quarter, USDC in circulation stood at $73.9 billion. The number of onchain wallet addresses holding more than $10 in USDC increased 16% over the year to 7.3 million, according to Circle — a gauge of how widely the stablecoin is distributed across onchain users, complementing the headline volume figures.

Circle did, however, lose ground on market share, ceding 183 basis points year over year to close the quarter at 27% of the fiat-backed stablecoin market. At that level, the majority of the fiat-backed stablecoin market remains with competing issuers, even as USDC's own onchain activity expanded.

Reserve Income Slips Despite Higher USDC Circulation

Circle's reserves decreased by $8 million to $658 million. The largest source of pressure was the reserve return rate, which fell 61 basis points to 3.5%, a decline tempered somewhat by the rise in USDC circulation. Reserve income nonetheless slipped 8% for the quarter — a dynamic that illustrates the rate sensitivity built into reserve-based earnings, the very exposure that Circle's growing other-revenue lines, including the ARC presale, are reducing.

Distribution, transaction, and other costs decreased 8% to $412 million, helping revenue less distribution costs reach a total of $453 million.

2026 Guidance

Circle has adopted a multi-year target to grow USDC circulation at a compound annual rate of 40% through market cycles. The company also issued 2026 guidance for other revenues of $310 million to $330 million, a range that encompasses amounts from recognized ARC token presale revenue. How circulation tracks against the 40% target, and whether other revenues land within the guided range, will be the key figures to follow as Arc's ecosystem development continues.