Circle, the issuer of the USDC stablecoin, announced its third-quarter financial results. The company reported $740 million in revenue and reserves. This figure surpasses analyst forecasts and includes the Circle Q3 2025 revenue. Jeremy Allaire, Co-founder and CEO of Circle, highlighted the increasing adoption of USDC and its platform.
The financial results show a 66% year-over-year growth. Analyst forecasts were notably more conservative. The Zacks consensus estimate, based on four analysts, stood at $708.92 million. Furthermore, the consensus forecast for earnings is currently at 17 cents per share. This figure was revised upward by 5 cents in the last 30 days. Analysts now anticipate Circle will achieve total revenue of $2.68 billion this year. This quarterly report significantly exceeds market expectations.
The strong financial performance coincides with key strategic milestones. In October, Circle launched the public testnet for Arc. This is its new Layer 1 blockchain. Allaire highlighted the successful launch of Arc in his press release. He mentioned the project has had “remarkable initial momentum.” More than 100 high-profile companies participated in the test. These include giants like BlackRock, Visa, Goldman Sachs, and AWS, as well as exchanges Coinbase and Kraken.
Will the Arc Network Drive Circle’s Growth Beyond Its Strong Revenue?
Despite the positive Circle Q3 2025 revenue, the stock market’s initial reaction was negative. The company reported its results on Wednesday before the market opened. Circle’s shares (CRCL) fell in pre-market trading to $94.04. This followed a 5.57% drop during Tuesday’s session, closing at $98.30. However, the company’s main asset, USDC, shows clear strength. Its market capitalization has grown steadily. It increased from $61 billion at its IPO in June to nearly $76 billion currently.
This positive third-quarter report contrasts with the second quarter. Q2 presented mixed results, with a revenue increase but a net loss of $4.48 per share. It was during that period that the plans for Arc were unveiled. The network is designed to be optimized for stablecoin-centric applications. It will use USDC for gas and include an integrated currency engine. Additionally, Circle has indicated it is “exploring the possibility” of launching a native Arc token, marking the next step in its ecosystem expansion.
