Circle's Impressive Q3: $214 Million Profit and 108% Surge in USDC Circulation

Circle Internet Group, Inc. (NYSE: CRCL) has delivered a robust performance in the third quarter of fiscal year 2025, highlighting a remarkable increase in USDC circulation, which has climbed to $73.7 billion—up 108% from the previous year.

Key Takeaways

Circle reported a third-quarter profit of $214 million, a 202% increase year-over-year.
USDC circulation surged to $73.7 billion, up 108%.
Total revenue and reserve income reached $740 million, a 66% increase from the previous year.
Circle is launching the Arc public testnet, attracting over 100 participating companies.
The Circle Payments Network has expanded with 29 institutions, achieving $3.4 billion in transaction volumes.
Management anticipates continued growth and increased operating investments moving into 2026.

Circle Customer Loyalty

This growth in stablecoin usage has propelled total revenue and reserve income to $740 million, reflecting a 66% rise compared to the same quarter in 2024.

Net income soared by 202% to reach $214 million, while adjusted EBITDA increased by 78%, totaling $166 million. This indicates Circle’s growing operational efficiency and scalability. The average USDC in circulation also rose to $67.8 billion, marking a 97% increase year-over-year, despite a slight dip in reserve return rates due to lower yields.

“Circle is witnessing increasing adoption of USDC and our platform in the third quarter as we construct the new Economic OS for the internet,” stated Jeremy Allaire, Co-Founder and CEO of Circle.

He further commented, “As digital dollars integrate with the utility of the internet’s technology, our infrastructure is facilitating global finance to operate with enhanced trust, transparency, and speed.”

Arc Network: Gaining Ground in Finance and Technology

The recent introduction of the Arc public testnet by Circle has engaged over 100 companies in sectors like banking, payments, and digital assets. Launched in late October, this testnet showcases Circle’s vision of a programmable financial infrastructure tailored for institutional use.

Circle is also considering introducing a native Arc token to align incentives for developers and institutions involved in the ecosystem.

“The Arc testnet has been met with exceptional excitement from partners across both traditional and digital finance,” remarked Allaire. “This enthusiasm signifies the formation of a deep and varied ecosystem around open, programmable money.”

Expanding Circle Payments Network

Circle's Payments Network (CPN) is expanding significantly. Currently, 29 financial institutions are enrolled with an additional 55 under review and 500 more in the onboarding process. Operating in eight countries, the network has successfully achieved an annualized transaction volume of $3.4 billion since its launch in May 2025.

This expansion aligns with Circle’s mission to connect digital finance with traditional finance, fostering partnerships with major entities such as Brex, Deutsche Börse Group, Finastra, Fireblocks, Kraken, Itaú Unibanco, Hyperliquid, and Visa.

Additionally, Circle's tokenized money market fund (USYC) has shown substantial growth, expanding over 200% since June, now boasting approximately $1 billion in assets.

Outlook: Maintaining Strong Momentum into 2026

Looking to the future, Circle anticipates ongoing growth across its ecosystem. Management has reiterated its long-term USDC circulation growth goal of 40% CAGR and has adjusted its full-year Other Revenue forecast to between $90 million and $100 million, driven by increased subscription and transaction revenues.

Circle expects a Revenue Less Distribution Costs (RLDC) Margin of about 38%, at the top end of its previous predictions. Furthermore, the company plans to increase its operating investments in response to the rising institutional demand.

“As stablecoins evolve into the essential link within the global digital economy, Circle stands at the forefront of trust, compliance, and scalability,” stated Allaire.