Circle Internet Q3 earnings beat, as USDC coin transaction volume climbs

[USDC technology. USDC logo on coins. Cryptocurrency exchange concept. Making payments using USDC technology. Buying cryptocurrency for fiat dollars. Blue background with stablecoins. 3d rendering.]
Gri-spb

Circle Internet (CRCL [https://seekingalpha.com/symbol/CRCL]) turned in better-than-expected Q3 top and bottom lines, and now expects its full-year revenue less distribution cost("RLDC") margin to be at the high end of its previous guidance range. The stablecoin technology company, though, also expects its operating expenses to rise from its previous outlook.

Circle Internet (CRCL [https://seekingalpha.com/symbol/CRCL]) stock dropped 5.4% in Wednesday premarket trading.

The fintech behind USCoin (USDC-USD [https://seekingalpha.com/symbol/USDC-USD]) now expects full-year other revenue [https://seekingalpha.com/pr/20303251-circle-reports-third-quarter-2025-results]of $90M-$100M (vs. the Visible Alpha consensus of $84M), up from its prior guidance of $75M-$85M (midpoint $80M). RLDC margin is anticipated to be ~38% vs. its previous outlook of 36%-38%, and adjusted operating expenses are expected to be $495M-$510M, compared with its earlier view of $475M-$490M.

USDC in circulation is still expected to rise 40% CAGR through the cycle.

Q3 USDC (USDC-USD [https://seekingalpha.com/symbol/USDC-USD]) on-chain transaction volume jumped to $9.6T, vs. $5.9T in Q2 and $1.4T in last year’s Q3. The number of meaningful wallets rose to 6.3M from 5.7M in the previous quarter and 3.6M in the year-ago quarter.

USDC in circulation rose to $73.7B at quarter end from $61.3B in Q2 and $36B in Q3 2024. The current quarter beat the Visible Alpha consensus of $72.4B.

"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," said Co-Founder and CEO Jeremy Allaire.

Q3 GAAP EPS of $0.64, beating the average analyst estimate of $0.18, swung from -$4.48 in Q2 and $0.00 in last year's Q3.

Q3 total revenue and reserve income of $740M, beating the average analyst estimate of $700M, increased from $658M in the prior quarter and $446M a year ago. Total distribution, transaction, and other costs rose to $447M from $407M in Q2 and $257M in last year’s Q3.

RLDC margin of 39% compared with 38% in the prior quarter and 42% a year ago.

Other revenue of $29M, topping the Visible Alpha estimate of $21M, climbed from $24M in Q2 and $1M in Q3 2024.

Q3 adjusted EBITDA of $166M, vs. the Visible Alpha estimate of $130M, rose from $126M in the previous quarter and $93M a year ago.

Q3 adjusted operating expenses of $131M grew from $128M in Q2 and $97M in Q3 2024.

GAAP operating expenses of $211M sank to $577M in the previous quarter and jumped from $124M in last year’s Q3. Compensation expenses of $129M, exceeding the Visible Alpha estimate of $125M, dropped from $503M in Q2 and climbed from $65M in Q3 2024.

Conference call [https://investor.circle.com/overview/default.aspx] at 8:00 AM ET.

Earlier, Circle Internet Group GAAP EPS of $0.64 beats by $0.46, revenue of $740M beats by $40.43M [https://seekingalpha.com/news/4520362-circle-internet-group-gaap-eps-of-064-beats-by-046-revenue-of-740m-beats-by-4043m]

MORE ON CIRCLE INTERNET GROUP, INC.

* Circle's Valuation Comes Full Circle [https://seekingalpha.com/article/4841015-circle-valuation-comes-full-circle]
* Circle: Disrupting The Digital Payment System [https://seekingalpha.com/article/4831364-circle-disrupting-digital-payment-system]
* Circle: Enormous Risk Undermines Long-Term Potential [https://seekingalpha.com/article/4830132-circle-enormous-risk-undermines-long-term-potential]
* Cathie Wood trims Bitcoin bull case as stablecoins take over some of its role [https://seekingalpha.com/news/4518260-cathie-wood-trims-bitcoin-bull-case-as-stablecoins-take-over-some-of-its-role]