Circle Internet Group said on Wednesday that it closed the third quarter of fiscal 2025 with a dramatic jump in stablecoin activity that powered its top and bottom lines. USDC in circulation reached $73.7 billion at quarter-end, up 108% year-over-year, while total revenue and reserve income came in at roughly $740 million, growth of 66% from the year-ago period.
The company posted net income of $214 million and adjusted EBITDA of $166 million, marking striking improvements across profitability metrics as demand for tokenized dollar liquidity accelerated. Circle said reserve income for the quarter totaled $711 million, a 60% increase year-over-year, driven mainly by a near doubling in average USDC in circulation; that strength was partly offset by a 96-basis-point decline in the reserve return rate.
Other revenue climbed to $29 million, reflecting stronger subscription, services, and transaction revenues, even as total distribution, transaction and other costs rose to $448 million due to higher distribution payments tied to larger USDC balances and strategic partner activity. Operating expenses were higher as well, $211 million for the quarter, driven in part by increased compensation, including $59 million of stock-based compensation.
Leaning into Growth and Platform Building
Beyond the financials, Circle highlighted a flurry of commercial momentum. The company officially launched the Arc public testnet on October 28, with more than 100 companies from banking, capital markets, payments, fintech and technology participating in the initial build and testing phase. Circle described Arc as a Layer-1 blockchain designed for programmable financial infrastructure and said it is considering a native token for the network to help incentivize participation and align long-term stakeholders.
Circle also reported tangible progress on its payment rails and partnerships. The Circle Payments Network now supports flows across eight countries, with 29 financial institutions enrolled, 55 more undergoing eligibility reviews, and roughly 500 in the pipeline; activity on CPN has ramped quickly since its late-May launch, with trailing-30-day annualized transaction volume of about $3.4 billion as of November 7.
The company pointed to new and expanded collaborations with a string of financial and technology firms, Brex, Deutsche Börse Group, Finastra, Fireblocks, Hyperliquid, Kraken, Unibanco Itaú and Visa among them, showing a broader push to weave digital dollars into traditional rails and services.
“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. The launch of the Arc public testnet met with extraordinary enthusiasm from partners across traditional and digital finance – evidence of the deep and diverse ecosystem forming around open, programmable money,” said Jeremy Allaire, Co-Founder, Chief Executive Officer, and Chairman at Circle.
He added, “As digital dollars become integrated with the technological utility of the internet, Circle’s infrastructure is helping global finance move with greater trust, transparency and velocity. With growing circulation, accelerating commercial partnerships and expanding collaboration across industries, we’re proud of the tangible progress toward a more open and efficient global financial system.”
Looking ahead, Circle raised its outlook for non-reserve revenue to a range of $90 million to $100 million, and expects its RLDC margin to land at about 38%. At the same time, management lifted its guidance for adjusted operating expenses to $495 million–$510 million for the year, pointing to investments in platform development, global partnerships, and higher payroll taxes tied to option exercises. The update signals that Circle is choosing to lean into growth and platform building even as it absorbs higher near-term spending.
Taken together, the quarter paints a picture of a company benefitting from sharply higher demand for tokenized dollar liquidity while simultaneously rolling out infrastructure products aimed at embedding those digital dollars across finance. Circle’s results underline how quickly stablecoin activity and programmable payments are drawing interest across traditional and crypto native firms, and how that interest is translating into meaningful revenue and profit gains for the issuer of one of the market’s largest dollar-pegged tokens.
