Circle reported record quarterly revenue of $864.9 million. But one detail means this figure deserves a closer look.
Circle’s Q3 results:
- Revenue and reserve income: $864.9 million, up 17% YoY.
- Net income: $226 million, up 5%.
- Adjusted EBITDA: $317 million, up 85%.
At first glance, this was a very strong quarter.
But $182 million, or about 21% of revenue, came from the ARC token presale.
Excluding that amount:
- Revenue was about $683 million, down 7.7% YoY.
- Adjusted EBITDA was about $135 million, down roughly 21.5%.
Meanwhile, reserve income fell 8% YoY, and average USDC in circulation declined 4.2% QoQ.
This doesn’t mean Circle’s business is failing. But it does show that record revenue doesn’t necessarily reflect the health of its core growth.
When evaluating a stablecoin company, do you look at total revenue or the quality of its revenue sources?
#usdc
Circle’s Q3 results:
- Revenue and reserve income: $864.9 million, up 17% YoY.
- Net income: $226 million, up 5%.
- Adjusted EBITDA: $317 million, up 85%.
At first glance, this was a very strong quarter.
But $182 million, or about 21% of revenue, came from the ARC token presale.
Excluding that amount:
- Revenue was about $683 million, down 7.7% YoY.
- Adjusted EBITDA was about $135 million, down roughly 21.5%.
Meanwhile, reserve income fell 8% YoY, and average USDC in circulation declined 4.2% QoQ.
This doesn’t mean Circle’s business is failing. But it does show that record revenue doesn’t necessarily reflect the health of its core growth.
When evaluating a stablecoin company, do you look at total revenue or the quality of its revenue sources?
#usdc
