Circle Beats Q3 Estimates, Cuts 5% of Workforce in AI Shift

Circle, 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 tied to its Arc network. The company also disclosed that it cut about 5% of its workforce as part of an AI rollout and a broader efficiency drive.

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.

Results included $182 million in revenue from the presale of ARC tokens. 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 were well above expectations, with the main driver being the timing of the ARC token presale revenue.

USDC's average circulating supply in the quarter rose 8% from a year earlier to $73.3 billion. Circle is 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 charges 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. He said it was intended to improve execution across engineering, operations and other functions through the use of AI. Circle spokesperson Stephanie Hsu said the company made the organizational changes to sharpen its AI focus and shift to a faster operating structure.