Q3 FY2026
Filed Nov 4, 2026Circle reported Q3 2026 total revenue and reserve income of $865 million, up 17% year-over-year, and Adjusted EBITDA of $317 million, up 85% year-over-year.
Revenue and reserve income grew 17%, RLDC increased 55% to $453 million, and Adjusted EBITDA grew 85% to $317 million. Growth was led by $207 million of other revenue, including $182 million from the ARC token presale, while reserve income declined 8% as the Reserve Return Rate fell 61 bps.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Reserve income, Q3 2026GAAP | $657.6M | – | (8%) |
| Other revenue, Q3 2026GAAP | $207.3M | – | 627% |
| Total revenue and reserve income, Q3 2026GAAP | $864.9M | – | 17% |
| Distribution and transaction costs, Q3 2026GAAP | $409.2M | – | – |
| Other costs, Q3 2026GAAP | $2.46M | – | – |
| Total distribution, transaction and other costs, Q3 2026GAAP | $411.6M | – | (8%) |
| Revenue less distribution costs, Q3 2026other | $453M | – | 55% |
| RLDC Margin, Q3 2026other | 52% | – | 1,291bps |
| Compensation expenses, Q3 2026GAAP | $124.1M | – | – |
| General and administrative expenses, Q3 2026GAAP | $59.54M | – | – |
| Depreciation and amortization expenses, Q3 2026GAAP | $34.17M | – | – |
| IT infrastructure costs, Q3 2026GAAP | $17.92M | – | – |
| Marketing expenses, Q3 2026GAAP | $11.32M | – | – |
| Digital assets losses (gains), Q3 2026GAAP | ($2,158) | – | – |
| Total operating expenses, Q3 2026GAAP | $244.9M | – | 16% |
| Operating income from continuing operations, Q3 2026GAAP | $208,334 | – | – |
| Other income, net, Q3 2026GAAP | $19,915 | – | – |
| Net income from continuing operations before income taxes, Q3 2026GAAP | $228,249 | – | – |
| Income tax expense, Q3 2026GAAP | $2,237 | – | – |
| Net income from continuing operations, Q3 2026GAAP | $226.0M | – | 5% |
| Net income attributable to common stockholders, Q3 2026GAAP | $226.0M | – | – |
| Basic earnings per share attributable to common stockholders, Q3 2026GAAP | $0.89 | – | – |
| Diluted earnings per share attributable to common stockholders, Q3 2026GAAP | $0.84 | – | – |
| Adjusted EBITDA (New Definition), Q3 2026non-GAAP | $316.7M | – | 85% |
| Adjusted EBITDA Margin, Q3 2026non-GAAP | 70% | – | 1,117bps |
| Adjusted operating expenses, Q3 2026non-GAAP | $138.8M | – | 13% |
| Total revenue and reserve income, nine months ended September 30, 2026GAAP | $2.26B | – | – |
| Reserve income, nine months ended September 30, 2026GAAP | $1.98B | – | – |
| Other revenue, nine months ended September 30, 2026GAAP | $282.5M | – | – |
| Total distribution, transaction and other costs, nine months ended September 30, 2026GAAP | $1.23B | – | – |
| Total operating expenses, nine months ended September 30, 2026GAAP | $741.8M | – | – |
| Operating income (loss) from continuing operations, nine months ended September 30, 2026GAAP | $287.7M | – | – |
| Net income (loss) from continuing operations, nine months ended September 30, 2026GAAP | $329.5M | – | – |
| Net income (loss) attributable to common stockholders, nine months ended September 30, 2026GAAP | $329.5M | – | – |
| Basic earnings (loss) per share attributable to common stockholders, nine months ended September 30, 2026GAAP | $1.33 | – | – |
| Diluted earnings (loss) per share attributable to common stockholders, nine months ended September 30, 2026GAAP | $1.23 | – | – |
| USDC in circulation, end of period, Q3 2026other | $73.9B | – | 0% |
| USDC in circulation, average of period, Q3 2026other | $73.3B | – | 8% |
| Reserve Return Rate, Q3 2026other | 3.5% | – | (61bps) |
| USDC on Platform, end of period, Q3 2026other | $13.9B | – | 36% |
| USDC on Platform, daily weighted average percentage, Q3 2026other | 18.1% | – | 462bps |
| USDC onchain transaction volume, Q3 2026other | $13.9T | – | 49% |
| USDC Minted, Q3 2026other | $104B | – | 31% |
| USDC Redeemed, Q3 2026other | $104B | – | 54% |
| Stablecoin Market Share, end of period, Q3 2026other | 27% | – | (183bps) |
| Meaningful Wallets, end of period, Q3 2026other | 7.3 | – | 16% |
FY 2026 outlook
- Operating expenses$570-$585M
- NoteUSDC in Circulation, Multi-year through cycle: 40% CAGR
- NoteOther Revenue, FY 2026: $310-$330M
- NoteRLDC Margin, FY 2026: 41.7-43.7%
- NoteGuidance unchanged
- NoteOther Revenue and RLDC Margin guidance includes recognized ARC token presale revenue.
What drove it
- Other revenue increased 627% year-over-year to $207 million, driven by $182 million of ARC token presale revenue.
- Average USDC in Circulation increased 8% year-over-year to $73.3 billion, partially offsetting a 61 bps decline in the Reserve Return Rate.
- Total distribution, transaction and other costs decreased 8% year-over-year, mostly from decreased distribution payments.
- Circle launched Arc public mainnet on September 16 with 100+ institutional and ecosystem builders on day one.
- CPN reached $41.3B in annualized TPV this quarter.
- Circle signed a definitive agreement to acquire Tazapay, with the deal expected to close in 2027 pending regulatory approvals.
Concerns
- Reserve income decreased 8% year-over-year to $658 million, primarily due to the 61 bps decline in the Reserve Return Rate.
- USDC in circulation at period end was $73.9 billion, unchanged year-over-year.
- Stablecoin Market Share was 27% at period end, down 183bps year-over-year.
- Operating expenses increased 16% year-over-year to $245 million, led by higher G&A, D&A, IT infrastructure, and marketing expenses.
- The company recorded restructuring expenses related to a workforce reduction of approximately 5%.
- ARC and the ARC token involve execution, market, operational, legal, regulatory, and structural risks, according to the filing.
What to watch
- FY 2026 Other Revenue guidance of $310-$330M, which includes recognized ARC token presale revenue.
- FY 2026 RLDC Margin guidance of 41.7-43.7%.
- FY 2026 Adjusted Operating Expenses guidance of $570-$585M.
- Reserve Return Rate and its effect on reserve income.
- USDC circulation, which is guided at 40% CAGR on a multi-year through-cycle basis.
- Arc ecosystem adoption and the planned transition to Proof of Stake in 2027.
- Closing of the pending Tazapay acquisition in 2027, subject to regulatory approvals.
Balance sheet and cash flow
- Cash and cash equivalents as of September 30, 2026: $1,699,951.
- Cash and cash equivalents segregated for corporate-held stablecoins as of September 30, 2026: $1,016,461.
- Cash and cash equivalents segregated for the benefit of stablecoin holders as of September 30, 2026: $73,574,857.
- Restricted cash as of September 30, 2026: $2,814.
- Investments as of September 30, 2026: $124,356.
- Digital assets as of September 30, 2026: $130,014.
- Convertible debt, net of debt discount, as of September 30, 2026: —.
- Total assets as of September 30, 2026: $77,725,939.
- Total liabilities as of September 30, 2026: $73,862,051.
- Total stockholders’ equity as of September 30, 2026: $3,863,888.
Analysis
Circle reported Q3 2026 total revenue and reserve income of $864,888, up 17% from $739,759 in Q3 2025. The primary growth contribution was other revenue of $207,264, up from $28,518, which the company said reflected $182 million of ARC token presale revenue. Reserve income declined to $657,624 from $711,241 as the 61 bps decline in the Reserve Return Rate to 3.5% more than offset 8% growth in average USDC in circulation to $73.3 billion.
Underlying distribution economics improved. Total distribution, transaction and other costs declined 8% to $411,634, mostly from decreased distribution payments. Revenue less distribution costs rose 55% to $453 million, and RLDC Margin expanded 1,291bps to 52%. USDC on Platform increased 36% to $13.9 billion, and the daily weighted average percentage reached 18.1%, up 462bps. USDC onchain transaction volume increased 49% to $13.9 trillion.
GAAP operating expenses increased 16% to $244,920, with higher G&A, D&A, IT infrastructure, and marketing expenses partly offset by lower stock-based compensation expense. Adjusted operating expenses rose 13% to $138,817. Despite the higher expense base, operating income from continuing operations increased to $208,334 from $81,020. Net income from continuing operations was $226,012, up 5%, while diluted EPS was $0.84 versus $0.64.
Adjusted EBITDA under the new definition rose 85% to $316,662 from $171,476, and Adjusted EBITDA Margin expanded 1,117bps to 70%. The company attributed the increase to ARC token presale revenue and lower distribution costs, partially offset by increased investment in new-product costs. The quarter also included restructuring expenses tied to a workforce reduction of approximately 5% and acquisition-related costs associated with the pending Tazapay acquisition.
Management left guidance unchanged. FY 2026 other revenue guidance is $310-$330M and explicitly includes recognized ARC token presale revenue. FY 2026 RLDC Margin guidance is 41.7-43.7%, below the Q3 reported 52%, while FY 2026 Adjusted Operating Expenses guidance is $570-$585M. Key operating indicators to monitor are the Reserve Return Rate, USDC circulation, which was flat year-over-year at period end, stablecoin market share, which declined 183bps to 27%, and the commercial adoption of Arc following its September 16 public-mainnet launch.
Management, verbatim
In Q3, we saw continued proof that institutions are building and expanding on USDC. Tereina is bringing USDC and EURC into the SAP ecosystem, Visa took stablecoin prefunding into commercial deployment, and Binance renewed and expanded our partnership.
Jeremy Allaire, Co-Founder, CEO, and Chairman at Circle
We also launched Arc on public mainnet with more than 100 institutional and ecosystem builders, giving them the infrastructure to build the next generation of financial applications. Together, we’re building the financial and economic infrastructure for the internet, and upgrading the system for a world where people, businesses, and AI agents all transact onchain.
Jeremy Allaire, Co-Founder, CEO, and Chairman at Circle
Not in the filing
stated, not guessed- Previous outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- Gross margin was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Capital returns, including share repurchases and dividends, were not reported.
- Segment revenue was not reported.
- A tax-rate metric was not reported.
- Prior-year values for several operating indicators, including USDC in circulation and Reserve Return Rate, were not printed as absolute figures.
- Sequential percentage changes were not reported for the quarterly financial metrics.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.