Circle Beats Q3 Estimates, Cuts About 5% of Workforce in AI Push
Summary
- Circle said revenue and reserve income for the third quarter rose 17% from a year earlier to $864.9 million, beating analyst estimates.
- It said $182 million in ARC token presale revenue was fully recognized in the third quarter, pushing most revenue and profitability metrics well above expectations.
- Circle said USDC's average circulating supply in the quarter rose 8% to $73.3 billion, while it maintained full-year guidance and cut about 5% of its workforce to support AI adoption and organizational efficiency.
Forecast Trend Report by Period
Circle Internet Group, the issuer of the USDC stablecoin, reported third-quarter results that topped market expectations, helped by the early recognition of revenue from the presale of tokens for its proprietary Arc network. The company also disclosed that it cut about 5% of its workforce to support AI adoption and improve organizational efficiency.
Bloomberg reported on November 4 that Circle posted third-quarter revenue and reserve income of $864.9 million, up 17% from a year earlier. That exceeded the average analyst estimate of $776.7 million. Net income from continuing operations rose 5% to $226 million, far above the $91.6 million estimate. Earnings per share were 84 cents.
The results included $182 million in revenue from the ARC token presale. The market had expected that revenue to be recognized over the two quarters in the second half, but Circle booked the full amount in the third quarter. Vasundhara Govil of Keefe, Bruyette & Woods said most revenue and profitability metrics came in well above expectations, though the main driver was the timing of the ARC token presale revenue recognition.
USDC's average circulating supply in the quarter rose 8% from a year earlier to $73.3 billion. Circle has been expanding distribution through partnerships with exchanges including Binance and Coinbase, and it maintained its full-year guidance.
The job cuts were carried out in September. Fewer than 70 employees were affected, and restructuring costs totaled $9.1 million, including severance, pay during notice periods and benefits.
Chief Executive Officer Jeremy Allaire said the move was unrelated to conditions in the digital-asset market. It was intended to improve execution across engineering, operations and other functions through the use of AI. Circle spokesperson Stephanie Hsuen said the company had reorganized to sharpen its AI focus and shift to a faster operating structure.
