Circle Internet Group — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue and reserve income reached $865 million in Q3 2026, a 17% increase year-over-year.
• Net income from continuing operations was $226 million, up 5% year-over-year.
• Adjusted EBITDA totaled $317 million, representing an 85% year-over-year growth.
• Reserve income was $658 million, a decrease of 8% year-over-year, driven by a 61 basis point decline in the reserve return rate to 3.5%, partially offset by 8% growth in average USDC in circulation.
• Other revenue was $207 million, surging 627% year-over-year, primarily due to $182 million generated from the ARC token presale.
• Total distribution, transaction, and other costs were $412 million, down 8% year-over-year.
• Operating expenses increased 16% year-over-year to $245 million, driven by higher general and administrative, depreciation and amortization, IT infrastructure, and marketing expenses, partially offset by lower stock-based compensation.
• Adjusted operating expenses were $139 million, an increase of 13% year-over-year.
• Revenue Less Distribution Costs (RLDC) margin was 52%, an improvement of 1,291 basis points year-over-year.
• Adjusted EBITDA margin was 70%, an improvement of 1,117 basis points year-over-year.
• Net income margin was 26%, a decrease of 285 basis points year-over-year.
• Average USDC in circulation was $73.3 billion, up 8% year-over-year; end-of-period circulation was $73.9 billion.
• USDC onchain transaction volume was $13.9 trillion, up 49% year-over-year.
• USDC minted was $104 billion (up 31% YoY) and redeemed was $104 billion (up 54% YoY).
• Meaningful wallets reached 7.3 million, up 16% year-over-year.
• Stablecoin market share was 27% at period end, down 183 basis points year-over-year.
• Cash and cash equivalents were $1.7 billion as of September 30, 2026, compared to $1.5 billion as of December 31, 2025.
• Total assets were $77.7 billion as of September 30, 2026, compared to $78.7 billion as of December 31, 2025.
• Total liabilities were $73.9 billion as of September 30, 2026, compared to $75.4 billion as of December 31, 2025.
• Convertible debt was eliminated in Q3 2026, having been $36.8 million at the end of 2025.

Guidance and Future Outlook:

• Management provided multi-year guidance for USDC in circulation to achieve a 40% CAGR through the cycle.
• Full-year 2026 Other Revenue guidance is $310 million to $330 million, which includes recognized ARC token presale revenue.
• Full-year 2026 RLDC Margin guidance is 41.7% to 43.7%.
• Full-year 2026 Adjusted Operating Expenses guidance is $570 million to $585 million.
• The Arc network is targeting a transition to Proof of Stake in 2027.
• The acquisition of Tazapay is expected to close in 2027, pending regulatory approvals.

Business Segments and Product Lines:

• Circle launched the Arc public mainnet on September 16, featuring native USDC integration and a founding validator cohort from global finance institutions.
• Circle completed the genesis mint of the ARC token, issuing a full supply of 10 billion tokens as the native coordination mechanism for the Arc network.
• The Arc developer community includes over 75,000 Arc House members and 10,000 Architect ambassadors who built over 1,200 projects during the private mainnet phase.
• Circle's Payments Infrastructure segment saw CPN hit $41.3 billion in annualized Total Payment Volume (TPV).
• Circle signed a definitive agreement to acquire Tazapay, a Singapore-headquartered B2B cross-border payments platform with over $25 billion in annualized payment volume and 60+ banking and fintech partners.
• Tazapay's transaction volume already includes stablecoins for approximately 60% of its activity.
• Tereina, a SAP-backed company, integrated USDC and EURC into its payments infrastructure and enterprise workflows.
• Samsung Wallet enabled eligible Galaxy users in the U.S. to send USDC to qualifying bank accounts in over 60 countries.
• Visa moved its Visa Direct stablecoin prefunding from pilots to commercial deployment, enabling near real-time cross-border payouts across 180+ countries.
• Volante Technologies collaborated with Circle to integrate stablecoin payment and settlement capabilities for financial institutions.
• Allaria partnered with Circle to expand USDC liquidity and institutional access in Argentina.

Market and Competitive Landscape:

• USDC onchain transaction volume grew 49% year-over-year to $13.9 trillion.
• The company highlighted growing demand for USDC-denominated transactions in APAC, LATAM, and emerging markets.
• Competition is noted as intense and increasing from new and existing issuers offering competing products, including yield-bearing digital assets like TMMFs.
• Stablecoin market share decreased 183 basis points year-over-year to 27%.

Risks and Challenges:

• Risks include potential redemption runs, systemic shocks affecting reserve values, and negative publicity impacting consumer confidence.
• Regulatory risks involve the GENIUS Act, evolving licensing requirements, and compliance costs associated with anti-money laundering and sanctions laws.
• Arc and the ARC token carry execution, market, operational, and regulatory risks, including token price volatility and governance dynamics.
• Technology risks include potential disruptions from third-party service providers or cybersecurity vulnerabilities.
• Credit risks exist regarding counterparties, including banks and financial institutions.
• Insiders maintain substantial control over the company, potentially limiting shareholder influence on key transactions.
• Use of artificial intelligence poses potential reputational, competitive, and legal liabilities.

Management Commentary and Tone:

• Jeremy Allaire, Co-Founder, CEO, and Chairman, stated that Q3 demonstrated continued institutional building and expansion on USDC.
• Management highlighted the commercial deployment of stablecoin prefunding by Visa and the integration of USDC/EURC into the SAP ecosystem by Tereina as proof of institutional adoption.
• The tone emphasized building financial and economic infrastructure for the internet, enabling transactions by people, businesses, and AI agents onchain.
• Management noted that the Arc mainnet launch provides infrastructure for the next generation of financial applications.

Other Key Points:

• Binance announced a $100 million equity investment in Circle and expanded its strategic partnership to promote USDC globally.
• Circle became a Principal Partner of Chelsea Football Club, with Circle and USDC brands appearing on Men's, Women's, and Academy shirts for the 2026/27 season.
• A workforce reduction of approximately 5% was executed to align organizational structure with operating models, resulting in $9.1 million in restructuring expenses.
• Circle made a charitable contribution of Class A common stock shares to the Circle Foundation.
• The company reported $182 million in revenue from the ARC token presale within the Other Revenue line item.
• The acquisition of Tazapay is expected to deepen Circle's ability to originate and terminate payments across emerging markets.