Circle's $865M Q3 Total Was Lifted by ARC as Reserve Income Fell

What did Circle report for the third quarter of 2026?

For the quarter ended September 30, Circle reported $865 million in total revenue and reserve income, up 17% year over year, and $226 million in net income from continuing operations, up 5%; non-GAAP adjusted EBITDA increased 85% to $317 million. Average USDC circulation reached $73.3 billion, up 8%, while USDC onchain transaction volume increased 49% to $13.9 trillion.

Orbitrum Investor Impact

What drove Circle's 17% revenue growth?

The ARC token presale contributed $182 million to other revenue of $207 million, which increased 627% year over year, while reserve income was $658 million, down 8%. Circle attributed the decline primarily to a 61-basis-point reduction in its reserve return rate to 3.5%, partly offset by higher average USDC circulation. The increase in adjusted EBITDA also reflected ARC presale revenue and lower distribution costs.

Does the $865 million headline indicate stronger recurring USDC earnings?

Not by itself: subtracting the $182 million ARC presale contribution leaves approximately $683 million, compared with $740 million in total revenue and reserve income a year earlier. This is a simple calculation rather than a company-reported financial measure, but it demonstrates that ARC presale revenue more than accounted for the net increase while reserve income declined.

Could Circle's Q3 results strengthen the CRCL investment case?

The 49% increase in USDC transaction volume and 8% growth in average circulation support the case for expanding stablecoin adoption, but declining reserve income and reliance on ARC presale revenue complicate the earnings outlook. CRCL shareholders need to see greater network activity translate into sustainable reserve income and recurring payments revenue rather than relying on token-sale contributions.

What should investors watch next?

Circle maintained its FY2026 guidance, including $310 million to $330 million in other revenue, a 41.7% to 43.7% revenue-less-distribution-costs margin, and $570 million to $585 million in adjusted operating expenses. The other-revenue guidance includes recognized ARC presale revenue, making reserve returns, USDC circulation and growth in non-ARC payments revenue important indicators in the next quarterly results.