Circle Tops Earnings on Strong Revenue, Slashes 5% of Workforce
Circle beats earnings expectations on strong revenue, but cuts 5% of its workforce
Circle Internet Group, the New York-based company behind the USDC stablecoin, cut about 5% of its workforce in the third quarter, according to a disclosure included in the footnotes of its earnings materials.
The reduction came during a profitable quarter in which Circle reported revenue growth and a modest rise in earnings. Total revenue and reserve income increased 17% year-over-year to $865 million, while net income from continuing operations rose 5% to $226 million.
Circle recorded a $9.1 million restructuring charge tied to the workforce reduction. The company said the move was “designed to better align our organizational structure with our operating model and strategic priorities.” The charge covered notice-period pay, severance, and benefits.
The results underscore a key dynamic in Circle’s business model: while revenue rose overall, the company is managing shifting cost and income drivers as it invests in new initiatives.
On expenses, operating costs climbed 16% to $245 million, driven by higher general and administrative spending, depreciation, IT, and marketing. At the same time, distribution costs fell 8% to $409 million. Distribution costs are the fees Circle pays partners—such as Coinbase—for support in holding and distributing USDC.
Circle also highlighted that a one-off item contributed meaningfully to the quarter’s top line. The company booked $182 million from a presale of ARC, the token associated with its Arc blockchain, which launched on September 16.
Excluding ARC and other non-interest revenue items, reserve income was lower year-over-year, reflecting pressure on Circle’s core earnings engine: interest earned on the cash and U.S. Treasuries backing USDC. Circle has previously described this reserve income as the primary source of revenue for the business.
The workforce cut arrives as Circle continues work across several parallel efforts, including building Arc, integrating an asset acquisition completed in January, and preparing to absorb Tazapay.
