Circle, the First Stablecoin Stock, Releases Q3 Financial Report: What Are the Highlights?

Original Title: "Circle Q3 Report Released: Playing a Bigger Game?"

Original Author: KarenZ, Foresight News

Last night, Circle, the leading stablecoin company, released its Q3 financial report, delivering an impressive performance and unveiling a series of ecosystem initiatives. At the same time, Circle revealed progress in building the Arc Network and the CPN payment network.

The following are the key highlights from this financial report:

1. USDC Supply: Up 108% Year-on-Year

As of the end of Q3, USDC’s circulation reached $73.7 billion, a year-on-year increase of 108%, reflecting the overall expansion of the stablecoin market.

Meanwhile, USDC’s market share reached 29%, up 643 basis points from the same period last year. Among many stablecoin competitors, USDC has become the most important player after USDT. This increase in market share indicates that user trust in USDC continues to rise.

2. Net Profit: $214 Million, Up 202% Year-on-Year

This directly drove significant growth in the company’s total revenue and reserve interest income, reaching $740 million, a year-on-year increase of 66%. Of this, reserve interest income contributed $711 million, up 60% year-on-year, becoming the core pillar of revenue, mainly due to the increase in USDC circulation.

Even more noteworthy is the performance on the profit side. Circle achieved a net profit of $214 million in Q3, up 202% year-on-year. This high growth is partly due to business expansion, and also includes tax benefits and a decrease in the fair value of the company’s convertible bonds.

Other income, though smaller in scale, grew at a staggering rate, reaching $28.518 million, more than 50 times higher than the $547,000 in the same period last year, mainly thanks to strong growth in subscription services and trading income.

3. Arc Network: Circle Is Exploring the Possibility of Launching a Native Token on Arc

Circle stated that it is exploring the possibility of issuing a native token on the Arc Network. On October 28, Circle launched the Arc public chain testnet, attracting participation from over 100 companies. These participants include institutions from banking, payments, capital markets, asset management, technology, and various segments of the digital asset ecosystem.

Circle hopes that the Arc token can drive network adoption and further align the interests of Arc stakeholders.

4. CPN Payment Network: Annualized Transaction Volume Reaches $3.4 Billion

Since its launch at the end of May this year, the Circle Payments Network (CPN) has seen 29 financial institutions join, with another 55 under review and 500 preparing to join. Currently, CPN supports fund flows in 8 countries.

Based on the 30-day rolling transaction volume as of November 7, CPN’s annualized transaction volume can reach $3.4 billion, demonstrating strong demand from institutional clients.

In addition, Circle has established new partnerships with Brex, Deutsche Börse Group, Finastra, Fireblocks, Hyperliquid, Kraken, Unibanco Itaú, and Visa, further enhancing USDC’s position in global payments and financial infrastructure.

5. Tokenized Money Market Fund USYC: Scale Reaches $1 Billion

Circle’s tokenized money market fund USYC also performed well, growing over 200% from June 30, 2025, to November 8, 2025, reaching approximately $1 billion. This reflects the potential of combining digital assets with traditional finance.

6. Outlook for Fiscal Year 2025

Based on Q3’s strong performance and growing market demand, Circle has raised its other income forecast from the previous $75 million - $85 million to $90 million - $100 million, mainly due to continued growth in subscription services and trading income; RLDC profit margin is expected to reach 38% ("revenue - distribution cost"/revenue), at the upper end of the previous guidance range; adjusted operating expenses are expected to be raised to $495 million - $510 million, indicating that Circle is increasing its investment.

How to View Circle’s Latest Financial Report?

This financial report demonstrates Circle’s strong position in the stablecoin sector and the initial results of its diversified exploration. This growth is not a single breakthrough, but a multi-dimensional advance, with supply, revenue, profit, and market share all rising.

Although "other income" is still small in base, its growth rate is astonishing. The growth of subscription services and trading income suggests that Circle is trying to break through its "single interest dependency," and its revenue structure is beginning to show signs of diversification.

It is also worth emphasizing that this year is a key milestone for Circle’s ecosystem. The launch of the Arc public chain testnet and the large-scale expansion of the payment network (CPN) reflect that Circle is undergoing an important transformation—from a simple stablecoin issuer to a platform company providing comprehensive financial infrastructure. The steady growth of USDC lays the foundation for this evolution, while the development of the Arc ecosystem and the CPN payment network opens up even greater possibilities for the future. Coupled with the compliance dividends brought by the implementation of the US "GENIUS Act," the entry of traditional financial institutions is becoming a new engine for the growth of USDC circulation.

However, this financial report also exposes potential challenges that Circle must face in its development process.

Despite the rapid growth of "other income," reserve interest income still accounts for nearly 96% of total revenue, meaning the company’s income is highly dependent on interest generated from USDC reserve assets. This single income structure makes it highly sensitive to the interest rate environment. If market interest rates enter a downward cycle in the future, reserve income growth will come under direct pressure, thereby affecting overall profitability. Meanwhile, "other income" currently accounts for less than 4% and has not yet formed an independent profit pillar capable of supporting performance, so the transition to diversified income will still take time.

A closer look at the financial report reveals that the Q3 net profit of $214 million includes a $61 million tax benefit (non-recurring) and a $48 million gain from the decrease in the fair value of convertible debt (non-recurring), together accounting for half of the net profit. Excluding these non-operating gains, the actual operating profit would be significantly lower.

In addition, cost pressures are also clearly diluting profits. Distribution, trading, and other costs reached $448 million, up 74% year-on-year, with cost growth outpacing revenue growth. High costs directly squeeze profit margins. Although net profit achieved substantial growth, the improvement in profit margin has not kept pace with revenue growth. From a business logic perspective, these costs are closely related to factors such as profit sharing with partners and are difficult to reduce quickly in the short term, becoming an important factor restricting profit release.

Meanwhile, Arc is currently only at the testnet stage. Whether it can truly attract enough developers and users to foster a vibrant ecosystem still needs time to be verified.

Overall, this financial report shows the typical characteristics of a company in a rapid growth phase: opportunities and challenges coexist, short-term results are impressive, and the long-term outlook depends on strategic execution and risk management capabilities. As the integration of crypto assets and traditional finance accelerates, and global demand for digital dollars continues to rise, Circle’s story is just beginning.