# Circle Reports $865M Q3 Revenue Amid Workforce Reduction and Token Presale Stablecoin issuer Circle balances record revenue growth with strategic restructuring and new token initiatives. - **Source:** [Bitcoin News](https://brifing.si/source/d8aeaf1e-9839-4dad-9d25-7a6bf3fbeef8) - **Published:** 2026-11-04 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/fee4d70d-f9e8-48eb-bb8c-472941887029 ## Strong Q3 Financial Performance Circle reported third-quarter revenue of $865 million, marking a 17% increase compared to the previous year. Net income rose 5% to $226 million, while adjusted EBITDA saw a significant jump of 85% to reach $317 million. These results demonstrate the company's ability to maintain profitability despite shifting market conditions and reserve income fluctuations. ## ARC Token Presale Impact The company generated $182 million through an ARC token presale, which was instrumental in offsetting an 8% decline in USDC reserve income. This revenue stream, classified under other income, surged 627% to $207 million. The ARC network mainnet launched on September 16, initiating the distribution of 10 billion tokens for future governance. ## Reserve Income Challenges Reserve income fell to $658 million as the reserve return rate dropped 61 basis points to 3.5%. This decline highlights the company's vulnerability to interest rate changes, which previously served as a primary revenue driver. Consequently, Circle is actively seeking to diversify its income sources to mitigate dependence on traditional interest-based earnings. ## Strategic Workforce Restructuring Circle reduced its total workforce by approximately 5% during the third quarter to align staffing with its current operating model. This restructuring resulted in $9.15 million in charges, covering severance packages, employee benefits, and notice-period compensation. The move reflects a broader effort to prioritize strategic initiatives while maintaining operational efficiency across the organization. ## USDC Market Dynamics Average USDC circulation grew 8% year over year to $73.3 billion, though quarter-end supply remained stable at $73.9 billion. Onchain transaction volume climbed 49% to $13.9 trillion, with $104 billion minted and redeemed. Despite this volume, USDC's share of the fiat-backed stablecoin market declined 183 basis points to 27% compared to last year. ## Operational Cost Management Distribution and transaction costs decreased by 8% to $412 million, contributing to a revenue-less-distribution-cost margin of 52%. This improvement in cost efficiency supports the company's bottom line as it scales its payments network. The network reached $41.3 billion in annualized transaction volume, underscoring the growing utility of USDC in institutional and enterprise payment ecosystems. ## Expansion Through Acquisitions Circle agreed to acquire Tazapay, a Singapore-based payments provider that processes over $25 billion in annualized volume across 100 markets. This acquisition is expected to bolster Circle's global payment infrastructure. CEO Jeremy Allaire emphasized that institutions are increasingly integrating USDC, citing commercial deployments with major entities like Visa and various enterprise payments providers. ## Future Strategic Outlook The ARC network is positioned to support security and utility as it transitions toward proof of stake in 2027. While USDC remains the foundation of the business, the aggressive push into new crypto revenue streams marks a shift in strategy. Investors must now evaluate the long-term repeatability of token-sale income versus traditional reserve returns. ## Sources covering this story - https://news.bitcoin.com/stablecoins/circle-q3-revenue-865m-usdc-issuer-cuts-workforce/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._