Stablecoin issuer Circle's revenue in the third quarter increased by 66% to $740 million, with profits significantly exceeding expectations, and the circulation of USDC stablecoins doubled year-on-year | Earnings report insights

Stablecoin issuer Circle has demonstrated strong growth momentum against the backdrop of a recovery in the cryptocurrency industry, benefiting from increased reserve return rates and expanded market share.

On November 12, Circle's latest financial report revealed that its third-quarter revenue exceeded market expectations, with earnings performance far surpassing forecasts, achieving earnings per share of 64 cents, more than three times the analysts' expectations. The circulation of its issued USDC stablecoin grew by over 100% compared to the same period last year.

Core Financial Metrics

Third-quarter earnings per share were 64 cents, 220% higher than the analysts' consensus estimate of 20 cents.

Total revenue and reserve income reached $740 million, exceeding the expected $707.3 million.

Adjusted EBITDA was $166 million, higher than the market expectation of $132.5 million, with an adjusted EBITDA margin of 57%.

The net profit from continuing operations was $214 million, indicating strong profitability in core business.

The reserve return rate was 4.2%, slightly above the analysts' expectation of 4.06%.

The significant growth in USDC circulation has become a key factor driving Circle's revenue growth. The company's stablecoin circulation more than doubled compared to last year, reflecting sustained market demand for regulated stablecoins.

The market share of the USDC stablecoin rose to 29% at the end of the quarter, with a circulation of $73.7 billion, second only to Tether in the stablecoin market.

This performance continues the strong momentum since Circle's listing. After going public in June this year, the company's stock price surged, benefiting from the heightened enthusiasm for stablecoins ahead of the signing of the first federal stablecoin regulatory framework in the U.S. in July.

Circle also raised its full-year performance guidance, increasing the expected range for other income from $75 million to $85 million to $90 million to $100 million. The company expects the full-year RLDC margin to reach 38%, higher than the previous expectation range of 36% to 38%.

After the announcement of Circle's third-quarter results, its pre-market stock price initially rose over 4%, but then quickly turned to decline, dropping over 3% at one point.

Continued Growth in Stablecoin Business Scale

In the third quarter, Circle's USDC stablecoin minting volume reached $79.7 billion, with an average circulation of $67.8 billion, slightly above the market expectation of $67.5 billion. By the end of the quarter, USDC circulation reached $73.7 billion, showing growth compared to the previous quarter.

USDC's market share reached 29% at the end of the third quarter, exceeding the market expectation of 28.6%, indicating the company's continued consolidation of its position in the highly competitive stablecoin market.

As a bridge connecting traditional finance and the cryptocurrency ecosystem, the expansion of stablecoins directly reflects the activity level of the digital asset market.

Upgraded Full-Year Performance Guidance

Based on the strong third-quarter performance, Circle has raised its full-year other income expectation from $75 million to $85 million to $90 million to $100 million, with the median exceeding the previous expectation of $84.7 million The company has raised its expected RLDC profit margin from a range of 36% to 38% to 38%.

Circle expects its adjusted operating expenses for the year to be between $495 million and $510 million, indicating that the company is maintaining cost control while expanding its business scale. The revised guidance reflects management's confidence in the performance for the fourth quarter and the entire year