Circle Q3 Revenue Hits $865M as Firm Cuts 5% of Staff

Circle Internet Group (NYSE: CRCL) beat the Street on November 4 and announced layoffs in the same breath. Q3 2026 revenue and reserve income came in at $865 million, up 17% year-over-year, and the company disclosed a workforce cut of about 5% alongside the results.

The top line beat the analyst estimate of $778 million by more than 11%. Adjusted EPS printed 84 cents against a forecast of 37 cents. Net income from continuing operations rose 5% to $226 million, while adjusted EBITDA jumped 85% to $317 million.

The headline beat has an asterisk

Look at the mix before getting excited. Reserve income, the interest Circle earns on assets backing USDC, fell 8% to $658 million as the reserve return rate dropped 61 basis points to 3.5%. Other revenue hit $207 million, up 627%, and the ARC token presale alone contributed $182 million. Strip that out and the rate-sensitive core is going backwards.

USDC circulation tells the same story. Average circulation was $73.3 billion, up 8%, but end-of-period circulation was $73.9 billion, flat from a year earlier. Circle's stablecoin market share slid 183 basis points to 27%.

Usage is the bright spot. Onchain USDC transaction volume rose 49% to $13.9 trillion, and meaningful wallets climbed 16% to 7.3 million.

Layoffs and departures

Circle recorded a $9.1 million restructuring charge tied to the roughly 5% headcount reduction, covering notice periods, severance and benefits. The company framed the cuts this way:

"designed to better align our organizational structue with our operating model"

Circle, company statement (spelling as published)

This is not the first trim. Circle cut less than 6% of its workforce in December 2024 and made a smaller reduction in July 2023.

Leadership is thinning too. Co-founder P. Sean Neville resigned on September 25, and CFO Jeremy Fox-Geen plans to leave by December 31. Succession is now a watch item.

Arc, Tazapay and guidance

Arc public mainnet launched September 16 with 10 billion ARC tokens minted initially. Circle also agreed to acquire Tazapay, expected to close in 2027 subject to approvals, and Binance announced a $100 million equity investment.

Guidance keeps the 40% multi-year USDC circulation CAGR target. FY2026 other revenue is expected at $310-330 million, and adjusted operating expenses at $570-585 million.

Price action

CRCL closed Tuesday at $75.22, up 4.36%. Pre-market on Wednesday it was lower, though reports differ on the size: down 1.18% at $74.33 in one, down 0.48% at $74.86 in another.

What it means

Circle is leaning on token presale proceeds and transaction volume while reserve income shrinks and share erodes. It is also pushing on distribution: the company recently opened hourly USDC mint and redeem auctions through Circle Match for Circle Mint customers. With a big chunk of the quarter coming from a presale, earnings look less predictable than the headline implies. Traders should watch end-of-period circulation and the reserve rate, not the beat.