Circle Reports Third Quarter 2026 Results
Circle Internet Group, Inc. (NYSE: CRCL) today announced results for the third quarter of fiscal year 2026. Financial Highlights (Q3’26 vs. Q3’25) Average USDC in circulation of $73.3 billion inc...
NEW YORK: Circle Internet Group, Inc. (NYSE: CRCL) today announced results for the third quarter of fiscal year 2026.
Financial Highlights (Q3’26 vs. Q3’25)
- Average USDC in circulation of $73.3 billion increased 8% year-over-year; USDC onchain transaction volume in Q3’26 of $13.9 trillion grew 49% year-over-year.
- Total revenue and reserve income in Q3’26 of $865 million grew 17% year-over-year.
- Net income from continuing operations in Q3’26 of $226 million increased 5% year-over-year.
- Adjusted EBITDA in Q3’26 of $317 million grew 85% year-over-year.
Business Highlights
Payments Infrastructure Expansion: CPN hit $41.3B in annualized TPV this quarter and Circle signed a definitive agreement to acquire Tazapay, a Singapore-headquartered B2B cross-border payments platform, to further expand our platform. The deal is expected to close in 2027, pending regulatory approvals.
- Tazapay brings $25B+ in annualized payment volume, 60+ banking and fintech partners, and local payout rails covering 100+ markets. About 60% of Tazapay's transaction volume already includes stablecoins.
- The acquisition deepens Circle's ability to originate and terminate payments across APAC, LATAM, and emerging markets, where demand for USDC-denominated transactions is growing.
Arc Mainnet Launch: Circle launched Arc public mainnet on September 16, the most significant product launch in Circle's history since USDC, with 100+ institutional and ecosystem builders on day one, native USDC integration, a founding validator cohort drawn from the institutions that run global finance. Mainnet is the start of a roadmap centered on proof of stake, privacy, and scalability.
- ARC Token: Circle completed the genesis mint of ARC, a full initial supply of 10 billion tokens, making Circle the first publicly traded company to mint a network token for a new layer-one blockchain. ARC is designed to serve as the native coordination mechanism for security, utility, and governance on Arc as the network works toward a transition to Proof of Stake in 2027.
- Developer Community: Arc's global developer community includes 75,000+ Arc House members and 10,000 Architect ambassadors who built 1,200+ projects on Arc during private mainnet.
Binance announced a $100 million equity investment in Circle Internet Group, Inc. and the expansion and renewal of its strategic partnership to promote USDC across Binance’s global platform, with an emphasis on emerging markets.
Chelsea Football Club (FC) Principal Partnership: Circle became a Principal Partner of Chelsea FC with Circle and USDC brands appearing on the front of Men's, Women's, and Academy shirts starting with the 2026/27 season. The partnership puts USDC in front of hundreds of millions of football fans globally and reinforces the brand's borderless positioning.
Allaria and Circle announced a partnership to expand USDC liquidity and institutional access in Argentina, building on Circle’s growing institutional presence in Argentina and strengthening local liquidity and utility of USDC.
Tereina, a SAP-backed company, and Circle partnered to integrate USDC and EURC into Tereina’s payments infrastructure and enterprise workflows, starting with the SAP Ecosystem behind 84% of Global Commerce.
Samsung Wallet now enables eligible Galaxy users in the U.S. to send money using USDC to qualifying bank accounts in more than 60 countries, with funds delivered in the recipient’s local currency.
Visa moved its Visa Direct stablecoin prefunding from pilots to commercial deployment, with Inyo Global enabling eligible clients to fund cross-border payouts using USDC in near real time across 180+ countries.
Volante Technologies and Circle collaborated to help financial institutions integrate stablecoin payment and settlement capabilities into their existing payment operations.
“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,” said 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.”
Key Financial Results and Operating Indicators
The following table presents our key financial results and operating indicators, as well as the relevant GAAP measures, for the periods indicated:
Key Financial Results | Q3 2026 | YoY Change | |
($ in millions unless noted otherwise) |
|
| |
| Total Revenue and Reserve Income | $865 | 17% |
| Revenue Less Distribution Costs(1) | $453 | 55% |
| RLDC Margin(2) | 52% | 1,291bps |
| Net Income from Continuing Operations | $226 | 5% |
| Net Income from Continuing Operations Margin(3) | 26% | (285bps) |
| Adjusted EBITDA(4) | $317 | 85% |
| Adjusted EBITDA Margin(4) | 70% | 1,117bps |
Key Operating Indicators | Q3 2026 | YoY Change | |
($ in billions unless noted otherwise) |
|
| |
| USDC in Circulation, end of period | $73.9 | 0% |
| USDC in Circulation, average of period | $73.3 | 8% |
| Reserve Return Rate | 3.5% | (61bps) |
| USDC on Platform, end of period | $13.9 | 36% |
| USDC on Platform, daily weighted average percentage | 18.1% | 462bps |
(1) | Revenue Less Distribution Costs (RLDC) is calculated as Total Revenue and Reserve Income less Total Distribution, Transaction and Other Costs. |
(2) | RLDC Margin is calculated as Total Revenue and Reserve Income less Total Distribution, Transaction and Other Costs as a percentage of Total Revenue and Reserve Income. |
(3) | Net Income from Continuing Operations Margin is calculated as Net Income from Continuing Operations / Total Revenue and Reserve Income. |
(4) | Refer to Non-GAAP Financial Measures for further details and for a reconciliation of the GAAP to non-GAAP measures presented. Adjusted EBITDA Margin is calculated as Adjusted EBITDA (New Definition) / Total Revenue and Reserve Income less Total Distribution, Transaction & Other Costs. |
Third Quarter 2026 Financial Highlights and Operating Results
- Reserve Income of $658 million decreased 8% year-over-year, primarily from a 61 bps decline in the Reserve Return Rate, partially offset by 8% growth in average USDC in Circulation.
- Other Revenue of $207 million increased 627% year-over-year from the ARC token presale ($182 million), partially offset by lower subscription and services revenue.
- Total Distribution, Transaction and Other Costs of $412 million decreased 8% year-over-year, mostly from decreased distribution payments.
- Operating Expenses of $245 million increased 16% year-over-year, primarily due to higher G&A, D&A, IT infrastructure, and marketing expenses, partially offset by lower stock-based compensation expense.
- Adjusted Operating Expenses of $139 million increased 13% year-over-year, primarily due to higher G&A, IT infrastructure expenses, and marketing expenses.
- Net Income of $226 million increased 5% year-over-year, primarily due to higher operating income, partially offset by lower other income.
- Adjusted EBITDA of $317 million increased 85% year-over-year reflecting the ARC token presale revenue and lower distribution costs, partially offset by increased investment in costs related to new products.
Other Platform Metrics
| Q3 2026 | YoY Change | |
(USDC related figures in $ billions; meaningful wallets in millions) |
|
| |
| USDC Minted | $104 | 31% |
| USDC Redeemed | $104 | 54% |
| Stablecoin Market Share, end of period(1) | 27% | (183bps) |
| Meaningful Wallets, end of period(2) | 7.3 | 16% |
(1) | Stablecoin market share is defined as the amount of USDC in circulation as a percentage of the total U.S. dollar fiat-backed stablecoins with circulation above $100 million, according to CoinMarketCap, and that have established periodic public attestations. |
(2) | Onchain digital asset wallets that hold more than $10 USDC. |
Guidance
To give investors insight into our business and expectations, management is providing guidance on the Company’s key performance indicators listed below.
Key Indicator | Guidance period | Guidance unchanged |
USDC in Circulation | Multi-year through cycle | 40% CAGR |
Other Revenue | FY 2026 | $310-$330M(3) |
RLDC Margin(1) | FY 2026 | 41.7-43.7%(3) |
Adjusted Operating Expenses(2) | FY 2026 | $570-$585M |
(1) | Revenue Less Distribution Costs (RLDC) Margin is Total Revenue & Reserve Income less Total Distribution, Transaction & Other Costs as a percentage of Total Revenue & Reserve Income. |
(2) | Adjusted Operating Expenses is a non-GAAP financial measure. Refer to Non-GAAP Financial Measures for further details and for a reconciliation of the GAAP to non-GAAP measures presented. |
(3) | Includes recognized ARC token presale revenue. |
Conference Call and Livestream Information
Financial results and business highlights will be discussed during a livestream webcast event at 8 a.m. ET, hosted through Circle’s official channels on YouTube and X. An audio only version of the livestream and all related materials will be hosted on Circle’s Investor Relations website at https://investor.circle.com where a replay of the call and transcript will also be available shortly following earnings.
In addition to filings with the Securities and Exchange Commission, Circle uses its Investor Relations website (https://investor.circle.com), its blog (https://www.circle.com/blog), press releases (https://www.circle.com/pressroom), public conference calls and webcasts, its X feed (https://x.com/circle), its YouTube channel (https://www.youtube.com/@BuildOnCircle), and its LinkedIn page (https://www.linkedin.com/company/circle-internet-financial) as a means of disclosing material nonpublic information, announcing upcoming investor conferences and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor these sites in addition to following Circle’s SEC filings.
Forward-Looking Statements
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. These statements include, but are not limited to, statements regarding our future operating results and financial position; our plans with respect to the anticipated future expenses and investments; expectations relating to certain of our key financial and operating metrics; our business strategy and plans; expectations relating to legal and regulatory proceedings; expectations relating to our industry, the regulatory environment, market conditions, trends and growth; expectations relating to customer behaviors and preferences; our market position; potential market opportunities; and our objectives for future operations. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on management’s expectations, assumptions, and projections based on information available at the time the statements were made. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including, but not limited to: intense and increasing competition from new and existing issuers offering competing products, combined with the rise of yield-bearing digital assets, including TMMFs, that are attractive to digital asset trading participants, may reduce market demand and circulation of Circle stablecoins; stablecoins may face periods of uncertainty, loss of trust, or systemic shocks resulting in the potential for rapid redemption requests (or runs), and extreme scenarios, such as market shocks that affect the value of USDC’s reserves or simultaneous requests to redeem all or substantially all USDC in circulation, or concerns related to Circle stablecoin reserves, may lead to redemption delays and USDC reserves being insufficient to meet all redemption requests; as a relatively new innovation, stablecoins are particularly susceptible to operational challenges and risks, including due to surges in demand; any negative publicity regarding stablecoins or the broader digital asset industry may have an outsized negative effect on consumer confidence; the acceptance of Circle stablecoins could be negatively impacted by disruptions in secondary marketplaces that facilitate the purchase and sale of Circle stablecoins; the GENIUS Act will change the payment stablecoin ecosystem and may affect our business in ways that cannot yet be known; the GENIUS Act amends the U.S. federal securities laws to explicitly exclude from the definition of “security” payment stablecoins issued by PPSIs, which will include USDC, however, until those amendments are effective, we will continue to rely on our conclusion that USDC is not a security under the U.S. federal securities laws; we hold a substantial amount of USDC reserves in the Circle Reserve Fund and thus are subject to risks associated with the issuer, the manager, and the custodian of the Circle Reserve Fund; any significant disruption in our or our third-party service providers’ or partners’ technology could result in a loss of customers or funds and adversely impact our business, results of operations, financial condition, and prospects; our customers’ funds and digital assets may fail to be adequately safeguarded by us or the third-party service providers upon whom we rely; our inability to maintain existing relationships with financial institutions and similar firms or to enter into new such relationships could impact our ability to offer services to customers; we are subject to credit risks in respect of counterparties, including banks and other financial institutions; if we are unable to maintain existing distribution arrangements or enter into additional distribution arrangements on less favorable financial terms, USDC and EURC in circulation and Circle’s financial results may be adversely affected; Arc and the ARC token involve execution, market, and operational risk, including risks relating to launch timing, ecosystem adoption in a competitive blockchain market, technology and cybersecurity vulnerabilities, validator and governance dynamics, token price volatility, and the operational complexity of running the network and related treasury infrastructure; Arc and the ARC token present legal, regulatory, and structural risk, including uncertainty under securities and other financial regulatory regimes, risks arising from token presale and distribution arrangements, potential liability tied to third-party ecosystem participants, conflicts and governance issues during any transition to decentralization, and possible repayment obligations if key launch milestones are not achieved; our products and services may be exploited by our customers, employees, service providers, and other third parties to facilitate illegal activity such as fraud, money laundering, terrorist financing, gambling, tax evasion, and scams; our compliance and risk management methods might not be effective; fluctuations in interest rates could impact our results of operations; we are subject to an extensive and highly evolving regulatory landscape; the regulatory environment to which we are subject gives rise to various licensing requirements, significant compliance costs and other restrictions, and noncompliance could result in a range of penalties, including fines, compliance costs, operational restrictions, reputational damage, and loss of licenses; we are subject to laws, regulations, and executive orders regarding economic and trade sanctions, anti-bribery, AML, and counter-terrorism financing that could impair our ability to compete in international markets or subject us to criminal or civil liability if we violate them; insiders will continue to have substantial control over Circle and limit shareholders’ ability to influence the outcome of key transactions, including a change of control; and our development and use of artificial intelligence in our business could result in reputational harm, competitive harm, and legal liability. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, our actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. For a detailed discussion of the risks, uncertainties, and other factors that could cause our actual results to differ materially from those anticipated or expressed in any forward-looking statements, see the section entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed with the SEC on March 9, 2026 as well as in other filings we may make with the SEC from time to time. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements. Nothing in this communication constitutes an offer to sell or a solicitation of an offer to buy securities or an invitation or inducement to engage in investment activity.
About Circle Internet Group, Inc.
Circle (NYSE: CRCL) is a global financial technology firm that enables businesses of all sizes to harness the power of digital currencies and public blockchains for payments, commerce and financial applications worldwide. Circle is building the world’s largest, most-widely used, stablecoin network, and issues, through its regulated affiliates, USDC and EURC stablecoins. Circle provides a comprehensive suite of financial and technology services that empower enterprises and developers to integrate stablecoins and blockchains into their products, services and business operations.
CIRCLE INTERNET GROUP, INC. – CONDENSED CONSOLIDATED BALANCE SHEETS
(in $ thousands, except share information) |
| September 30, 2026 |
| December 31, 2025 |
|
| (unaudited) |
|
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
| $ 1,699,951 |
| $ 1,526,046 |
Cash and cash equivalents segregated for corporate-held stablecoins |
| 1,016,461 |
| 822,963 |
Cash and cash equivalents segregated for the benefit of stablecoin holders |
| 73,574,857 |
| 75,067,932 |
Accounts receivable, net |
| 67,972 |
| 62,866 |
Stablecoins receivable, net |
| 5,540 |
| - |
Prepaid expenses and other current assets |
| 334,448 |
| 321,660 |
Total current assets |
| 76,699,229 |
| 77,801,467 |
Non-current assets: |
|
|
|
|
Restricted cash |
| 2,814 |
| 2,792 |
Investments |
| 124,356 |
| 84,265 |
Fixed assets, net |
| 21,150 |
| 22,791 |
Digital assets |
| 130,014 |
| 86,515 |
Goodwill |
| 265,742 |
| 265,742 |
Intangible assets, net |
| 446,352 |
| 411,146 |
Deferred tax assets, net |
| 9,079 |
| 11,110 |
Other non-current assets |
| 27,203 |
| 27,379 |
Total assets |
| $ 77,725,939 |
| $ 78,713,207 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
| ||
Current liabilities: |
|
|
|
|
Deposits from stablecoin holders |
| $ 73,451,092 |
| $ 74,912,567 |
Accounts payable and accrued expenses |
| 290,764 |
| 360,609 |
Convertible debt, net of debt discount |
| - |
| 36,821 |
Other current liabilities |
| 73,479 |
| 18,398 |
Total current liabilities |
| 73,815,335 |
| 75,328,395 |
Non-current liabilities: |
|
|
|
|
Deferred tax liabilities, net |
| 27,228 |
| 28,702 |
Other non-current liabilities |
| 19,488 |
| 25,337 |
Total liabilities |
| $ 73,862,051 |
| $ 75,382,434 |
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
Class A common stock ($0.0001 par value; 2.5 billion authorized as of September 30, 2026 and December 31, 2025; 237.1 million and 223.6 million issued and outstanding as of September 30, 2026 and December 31, 2025, respectively) |
| 25 |
| 24 |
Class B common stock ($0.0001 par value; 500.0 million authorized as of September 30, 2026 and December 31, 2025; 19.1 million and 18.7 million issued and outstanding as of September 30, 2026 and December 31, 2025, respectively) |
| 2 |
| 2 |
Class C common stock ($0.0001 par value; 500.0 million authorized as of September 30, 2026 and December 31, 2025; nil issued and outstanding as of September 30, 2026 and December 31, 2025) |
| - |
| - |
Treasury stock at cost (4.5 million and 4.7 million shares held as of September 30, 2026 and December 31, 2025, respectively) |
| (2,607) |
| (2,721) |
Additional paid-in capital |
| 4,823,113 |
| 4,610,216 |
Accumulated deficit |
| (963,211) |
| (1,292,709) |
Accumulated other comprehensive income |
| 5,138 |
| 14,515 |
Total stockholders’ equity attributable to common stockholders |
| 3,862,460 |
| 3,329,327 |
Noncontrolling interests |
| 1,428 |
| 1,446 |
Total stockholders’ equity |
| 3,863,888 |
| 3,330,773 |
Total liabilities and stockholders’ equity |
| $ 77,725,939 |
| $ 78,713,207 |
CIRCLE INTERNET GROUP, INC. – CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in $ thousands, except per share information) |
| Three Months Ended |
| Nine Months Ended | ||||
|
|
|
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