Financial Data and Key Metrics Changes - Total revenue and reserve income increased by 66% year on year to $740 million in Q3 2025 [10][26] - Adjusted EBITDA grew by 78% year on year to $166 million, with an adjusted EBITDA margin of 57%, reflecting a 737 basis point expansion [10][28] - USDC in circulation reached $73.7 billion, more than doubling year on year [26] Business Line Data and Key Metrics Changes - The amount of USDC in circulation grew 108% year on year, with on-chain transactions using USDC increasing by 580% year on year to $9.6 trillion [9][10] - Circle Payments Network (CPN) saw over 100x growth in monthly total payment volume since its launch, reaching an annualized transaction volume of $3.4 billion [22][23] - Other revenues, primarily from blockchain network partnerships, increased to $29 million, up from less than $1 million in the prior year [27] Market Data and Key Metrics Changes - Circle's market share in stablecoins grew to 29% in Q3, up from 28% in the previous quarter, with stablecoins in circulation growing 59% year on year [12][48] - USDC's share of stablecoin transaction volumes expanded to 40% in Q3, with overall stablecoin transaction volumes growing approximately 130% year on year [12][48] Company Strategy and Development Direction - Circle aims to build a full-stack Internet financial platform, focusing on blockchain networks, digital assets, and application utilities [6][9] - The company is exploring the launch of a native token on the ARC network to drive utility, incentives, and governance [11][20] - Circle continues to expand its stablecoin network and has launched five new chains, bringing the total to 28 supported chains [11][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing growth of the stablecoin market and Circle's ability to maintain its competitive position despite increasing competition [13][14] - The company anticipates meaningful shifts in global money markets and is managing its business for long-term success [29][31] - Management does not provide detailed quarterly guidance but has increased full-year guidance for other revenue to $90 million to $100 million [30][31] Other Important Information - The reserve return rate for Q3 was 4.15%, down 96 basis points year on year, reflecting a decline in SOFA [26] - Circle's tokenized money market fund, USYC, has grown to approximately $1 billion, making it the second largest TMMF in the world [16][98] Q&A Session Summary Question: Insights on Circle Payments Network (CPN) pipeline and monetization - Management highlighted the focus on quality participants for CPN and emphasized that growth is prioritized over immediate monetization [34][38] - Future monetization opportunities may include small fees benefiting the network's efficiency [39][40] Question: Reaction to Federal Reserve's stance on DeFi and Circle's role - Management expressed alignment with the Fed's view and emphasized Circle's leadership in the emerging on-chain financial system [45][46] Question: Market share gains and regulatory clarity impact - Management noted that growth is driven by regulatory clarity and advancements in technology, leading to increased adoption by major financial institutions [49][50] Question: Exploration of a native token for ARC - Management discussed the potential benefits of a native token for governance and stakeholder incentives within the ARC network [56][58] Question: Other revenue growth and transaction revenue decline - Management explained that subscription revenue growth is driven by blockchain partnerships, while the decline in transaction revenue was due to a spike in the previous quarter related to the USYC product [94][96]
Circle(CRCL) - 2025 Q3 - Earnings Call Transcript