Circle Shares Drop as Crypto Selloff Overshadows Q3 Beat
Circle Internet shares fell sharply on November 5 as a broad crypto-stock selloff outweighed its third-quarter earnings beat. Circle reported $865 million in Q3 revenue, including $182 million from a one-time ARC token presale, while its reserve income fell 8% to $658 million. Analysts also focused on weaker core trends and potential fourth-quarter margin pressure from distribution agreements.
Why it matters
Mizuho's Dan Dolev kept an Underperform rating and described the quarter as uneventful, while Wells Fargo expects the renewed Binance contract to pressure fourth-quarter margins. The selloff also weighed on Coinbase, Strategy and Robinhood, showing the immediate market consequence for crypto-linked equities.
Key facts
- 1Circle reported Q3 2026 EPS of $0.84 versus a $0.38 consensus estimate. 247wallst.com
- 2Circle's third-quarter revenue was $865 million, including $182 million from a one-time ARC token presale. finance.yahoo.com
- 3Excluding the presale, Circle's revenue was $683 million, compared with $740 million a year earlier. finance.yahoo.com
- 4Income from the reserves backing USDC fell 8% to $658 million as the reserve return rate declined to 3.5%. finance.yahoo.com
- 5Compass Point upgraded Circle to Buy on November 5 and set a $99 price target. 247wallst.com
- 6Mizuho's Dan Dolev maintained an Underperform rating on Circle and called the quarter uneventful. finance.yahoo.com
Open questions
- The materials report different same-day Circle share declines, with 12% in material 1 and 10% in material 2.
- Material 1 reports $25 million of revenue excluding the token presale, while material 2 reports $683 million on an excluding-presale basis; the materials do not reconcile these figures.
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.