Circle’s third-quarter earnings benefited from a $182 million contribution from the presale of its ARC token, helping cushion a decline in income from reserves backing its USDC stablecoin. Without the presale revenue, the company’s total revenue and reserve income would have fallen from a year earlier.

Diluted earnings per share were $0.84, compared with $0.64 a year earlier and analysts’ expectations of $0.42. Total revenue and reserve income rose 17% to $865 million. Adjusted EBITDA increased 85% to $317 million, but would have been about $135 million without the ARC contribution, down 21% from a year earlier.

Income from USDC reserves came under pressure as yields declined. Average USDC circulation grew 8% year over year, but Circle’s reserve return fell 61 basis points to 3.5%, and reserve income decreased 8% to $657.6 million. USDC circulation stood at $73.9 billion at the end of September, while its share of the stablecoin market slipped 1.83 percentage points to 27%.

The results reflect Circle’s effort to expand beyond returns earned on stablecoin reserves. Its payments network, launched in May 2025, connects financial institutions settling cross-border payments using stablecoins. Arc, Circle’s blockchain for financial applications, went live on public mainnet on Sept. 16, 2026. Transactions on the network are paid for in USDC.

Circle plans for ARC to support network security and governance as Arc moves toward proof of stake, which the company targets for 2027. A transition could bring staking rewards, though that revenue depends on the network’s development. Circle is also beginning to charge for some payments-network activity. Chief Financial Officer Jeremy Fox-Geen said the company expects material revenue from its Circle Payments Network in 2027.

Competition in stablecoins is also growing. Open Standard’s Open USD was live on Solana by Sept. 30, with Coinbase, Mastercard, Shopify, Stripe and Visa among its founding partners. The model shares reserve earnings with partners after a management fee.

Circle shares were down 0.84% at $74.59 at 16:05 UTC on Nov. 4, according to Yahoo Finance. The company also disclosed a workforce reduction affecting about 5% of employees, saying it was intended to align its organization with its operating model and strategic priorities.

Sources: Cointelegraph.