TL;DR:
Circle’s Profit: Net income from continuing operations reached $226 million, up 5% year over year, while a 5% workforce cut carried a $9.1 million restructuring charge.
Earnings beat: Adjusted EPS was 84 cents versus the 37-cent forecast, and revenue of $778 million beat estimates by more than 11%, with total revenue and reserve income at $865 million.
Quarter highlights: USDC onchain volume rose 49% to $13.9 trillion, the ARC presale brought in $182 million, and the quarter included Arc’s mainnet debut, the Tazapay deal, and Binance’s $100 million investment.
Circle reported $226 million in net income from continuing operations for the third quarter, a 5% rise from a year earlier, and disclosed a 5% cut to its workforce . The results were announced on Wednesday. The New York-based stablecoin issuer tied the layoffs to a $9.1 million restructuring charge and said the move was meant to fit its organizational structure to its operating model. The charge was recorded in the third-quarter earnings.
Earnings Beat Forecasts
Circle’s adjusted earnings per share came in at 84 cents , well above the 37 cents analysts expected, a 127% difference. Revenue of $778 million beat estimates by more than 11% . Total revenue and reserve income rose 17% to $865 million. The company credited part of that gain to a 49% increase in onchain transaction volume for its USDC token , which reached $13.9 trillion. USDC is the company’s flagship token. Circle also said $182 million of revenue came from the private presale of ARC, the native token of its Arc blockchain.
Quarter Highlights and Market Reaction
Circle pointed to the public mainnet launch of Arc , its agreed purchase of Singapore payments network Tazapay, and a $100 million investment from Binance as key moments in the quarter . The Tazapay deal was described as an agreed acquisition. The company’s stock moved lower in pre-market trading . CRCL shares traded 1.18% lower at $74.33 after rising 4.36% to $75.22 on Tuesday. The pre-market move came after Tuesday’s gain.
Circle’s results landed as investors weighed the cost of its restructuring against the stablecoin business’s growth . The workforce reduction, first disclosed with the quarterly report, is expected to carry a $9.1 million charge. Circle said the layoffs were designed to better align its organizational structure with its operating model.
For the quarter, Circle’s revenue and reserve income reflected both USDC activity and the ARC presale . Circle’s profit growth came even as it booked restructuring costs. The market reaction left CRCL slightly down before the opening bell. Circle did not provide further detail on the job cuts in the provided update. The update did not include additional figures on the size of the workforce or the timing of the job cuts .
