Circle earns US$ 226 million, but cuts 5% of its workforce
📋 Summary
Circle reported a profit of US$ 226 million in the third quarter, while USDC’s on-chain volume grew 49% to US$ 13.9 trillion. The company also cut 5% of its workforce, showing that operational expansion is occurring alongside pressure on reserve income.
Circle ended the third quarter of 2026 with net income of US$ 226 million from continuing operations, up 5% from the same period last year. The results were accompanied by stronger growth in USDC usage: the stablecoin’s on-chain transaction volume jumped 49% over 12 months to US$ 13.9 trillion.
Despite the growth, the USDC issuer cut approximately 5% of its workforce and recognized US$ 9.1 million in restructuring expenses. The figures, released Wednesday (4) in a filing with the SEC, show a more profitable company with greater network activity, but one still exposed to falling interest rates on the reserves backing the stablecoin.
Revenue grows, but returns on reserves decline
Total revenue and reserve income came to US$ 865 million for the quarter, a 17% year-over-year increase. Adjusted EBITDA rose 85% to US$ 317 million, while the adjusted margin reached 70% of revenue after distribution costs.
Performance, however, was uneven. Reserve income fell 8% to US$ 658 million after a 61-basis-point reduction in the rate of return on the assets backing USDC. This decline was partially offset by an 8% increase in the average balance of the stablecoin in circulation, which reached US$ 73.3 billion. At the end of the quarter, US$ 73.9 billion in USDC was in the market.
This contrast matters because Circle still earns much of its revenue from interest generated by U.S. Treasury securities and cash held in reserve.
📋 Summary
Circle reported a profit of US$ 226 million in the third quarter, while USDC’s on-chain volume grew 49% to US$ 13.9 trillion. The company also cut 5% of its workforce, showing that operational expansion is occurring alongside pressure on reserve income.
Circle ended the third quarter of 2026 with net income of US$ 226 million from continuing operations, up 5% from the same period last year. The results were accompanied by stronger growth in USDC usage: the stablecoin’s on-chain transaction volume jumped 49% over 12 months to US$ 13.9 trillion.
Despite the growth, the USDC issuer cut approximately 5% of its workforce and recognized US$ 9.1 million in restructuring expenses. The figures, released Wednesday (4) in a filing with the SEC, show a more profitable company with greater network activity, but one still exposed to falling interest rates on the reserves backing the stablecoin.
Revenue grows, but returns on reserves decline
Total revenue and reserve income came to US$ 865 million for the quarter, a 17% year-over-year increase. Adjusted EBITDA rose 85% to US$ 317 million, while the adjusted margin reached 70% of revenue after distribution costs.
Performance, however, was uneven. Reserve income fell 8% to US$ 658 million after a 61-basis-point reduction in the rate of return on the assets backing USDC. This decline was partially offset by an 8% increase in the average balance of the stablecoin in circulation, which reached US$ 73.3 billion. At the end of the quarter, US$ 73.9 billion in USDC was in the market.
This contrast matters because Circle still earns much of its revenue from interest generated by U.S. Treasury securities and cash held in reserve.