Circle Q3 report released: Is there a bigger game ahead?

What are the highlights of stablecoin leader Circle's Q3 financial report?

Written by: KarenZ, Foresight News

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

The following are the main highlights of this financial report:

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

By 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 growth in market share indicates a continuous rise in user trust in USDC.

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

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

More noteworthy is the performance on the profit side. In the third quarter, Circle achieved a net profit of $214 million, a year-on-year increase of 202%. 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 an astonishing rate, reaching $28.518 million, more than 50 times the $547,000 in the same period last year, mainly due to strong growth in subscription services and transaction 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, 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 companies such as 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 excellently, growing over 200% from June 30, 2025 to November 8, 2025, reaching approximately $1 billion. This reflects the potential for integration between digital assets and traditional finance.

6. Outlook for Fiscal Year 2025

Based on the strong Q3 performance and growing market demand, Circle has raised its other income forecast from the original $75 million - $85 million to $90 million - $100 million, mainly due to continued growth in subscription services and transaction income; RLDC profit margin is expected to reach 38% ("revenue - distribution cost" / revenue), at the upper end of previous guidance; adjusted operating expenses are expected to rise 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 transaction income suggests that Circle is trying to break through "single interest dependence," and its income structure is beginning to show signs of diversification.

It is also worth emphasizing that this year is a key milestone for the Circle 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 pure stablecoin issuer to a platform company providing comprehensive financial infrastructure. The steady growth of USDC's scale has laid the foundation for this evolution, while the development of the Arc ecosystem and CPN payment network opens up even greater possibilities for the future. Coupled with the compliance dividends following 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 reveals 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 income generated by 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 transformation toward income diversification still needs time.

A closer look at the financial report shows 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 have also clearly diluted profits. Distribution, transaction, and other costs reached $448 million, up 74% year-on-year, with cost growth outpacing revenue growth. High costs have directly squeezed profit margins. Although net profit has grown significantly, the improvement in profit margin has not matched the pace of revenue growth. From a business logic perspective, these costs are closely related to factors such as partner revenue sharing 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.