Circle Internet Group (NYSE:CRCL) reported a surge in revenue and profit for the third quarter, but its shares fell about 7% to $91 amid investor caution over rising expenses and ongoing investments.
For Q3, the financial technology company that provides digital payments reported total revenue and reserve income of $740 million, up 66% from a year earlier and above Wall Street estimates of roughly $700 million.
Net income reached $214 million, a 202% increase from Q3 2024, while adjusted EBITDA rose 78% to $166 million.
Earnings per share came in at $0.64, far higher than the $0.22 analyst estimate.
Reserve income alone totaled $711 million, driven by a 97% increase in average USDC in circulation, partially offset by a 96 basis-point decline in the reserve return rate.
Other revenue, including subscription, services, and transaction revenue, grew to $29 million, up $28 million from a year ago.
However, operating expenses climbed 70% year-over-year to $211 million, largely due to higher compensation and $59 million in stock-based compensation.
Adjusted operating expenses rose 35% to $131 million, reflecting higher cash compensation and increased headcount.
Circle also raised its full-year adjusted operating expense guidance to $495 million to $510 million, signaling ongoing investment in growth and platform development.
“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,” Circle CEO Jeremy Allaire said in a statement.
“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.”