Circle laid off 5% of employees amid profit growth

The combined revenue and reserve income of Circle increased by 17% year-over-year to $865 million. However, $182 million was recognized as revenue from the pre-sale of the ARC token associated with the Arc blockchain. Without this amount, the total figure would have been around $683 million compared to $740 million a year earlier. Adjusted EBITDA without ARC would have been $135 million compared to $171 million last year.

Income from USDC reserve placements decreased by 8%, from $711 million to $658 million. The average yield on reserves decreased by 0.61 percentage points to 3.5%. This refers to interest income from assets backing the stablecoin, primarily cash and U.S. Treasury securities.

As of the end of September, $73.9 billion USDC was in circulation, almost the same as a year earlier. The average volume for the quarter, on the other hand, increased by 8% to $73.3 billion. The share of USDC in the dollar stablecoin market decreased to 27% according to Circle's methodology.

What is known about the layoffs

The company recorded $9.1 million in restructuring expenses, mainly related to layoff notices, severance payments, and employee payouts. Circle explained the decision as aligning the organizational structure with its strategy and operating model. The company did not attribute the layoffs to the implementation of artificial intelligence.

Total operating expenses increased by 16% to $245 million. The forecast for adjusted operating expenses for the entire year 2026 is maintained in the range of $570–585 million. This is not a forecast of all company expenses.

What Circle is aiming for next

Circle is developing its payment infrastructure: the annual volume of operations of the Circle Payments Network, at the current pace, reached $41.3 billion. The company has also agreed to acquire payment provider Tazapay, but the deal is yet to be closed.

Circle maintains a long-term goal of a 40% average annual growth in USDC supply over several years. Its achievement is not guaranteed. Future results depend on reserve yields, the volume of USDC in circulation, and the ability of new products to generate regular revenue.