Circle Internet Group (CRCL), issuer of the world’s second-largest stablecoin USDC, reported third-quarter net income of $214 million, a year-over-year increase of 202%, on Wednesday.

Earnings per share (EPS) rose to $0.64, beating expectations of $0.22. Total revenue and reserve income more than doubled to $740 million

The New York City-based company reported earnings before interest, taxes, depreciation and amortization (Ebitda) for the quarter of $166 million, an increase of 78%.

Circle has been at the forefront of the proliferation in the stablecoin sector in the last year, having debuted on the New York Stock Exchange (NYSE) in June. The total USDC in circulation has grown to $73.7 billion as of the end of Q3, 108% higher than a year ago.

The company’s Q3 performance is a marked shift from Q2, when it posted a net loss of $482 million, which Circle attributed to IPO-related non-cash expenses.

Circle also unveiled plans for Arc, a layer-1 blockchain designed to provide stablecoin payments, FX, and capital markets applications last quarter. More than 100 companies have joined Arc’s public testnet, Circle said in its Q3 earnings report.

“Circle continued to see accelerating adoption of USDC and our platform in the third quarter as we build the new Economic OS for the internet,” co-founder and CEO Jeremy Allaire said.

Shares were lower by 4.3% in premarket trading, bringing the monthly decline in the stock.

ClearStreet analyst Owen Lau eyes USDC momentum

ClearStreet analyst Owen Lau said Circle’s results point to “strong execution and continued USDC adoption,” with revenue and profit well above expectations. He attributed the outperformance to a mix of higher revenue and lower expenses, as well as a stronger-than-expected margin on revenue less distribution costs.

Lau also highlighted the company’s improved guidance for full-year 2025, which included higher projected revenue from product lines outside of reserve income — a sign that Circle’s efforts to diversify its business model may be gaining traction.

While operating expenses are expected to rise, Lau noted that the company’s stablecoin ecosystem continues to expand, with initiatives like the Arc blockchain and the Circle Payments Network showing early momentum.

“These efforts help position Circle for longer-term growth and broader use of USDC across financial and enterprise ecosystems,” he wrote.

UPDATE (Nov. 12, 13:05 UTC): Adds paragraphs on growth of stablecoin markets and USDC in circulation, Circle’s Arc update and Allaire quote.

UPDATE (Nov. 12, 13:32 UTC): Adds reaction from Clear Street analyst Owen Lau.

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Author: Jamie Crawley