In a recent financial statement on Circle’s (CRCL) third-quarter (Q3) performance, the stablecoin giant saw tremendous increase in key metrics, exceeding Wall Street estimates.
Furthermore, the financial report revealed that “other revenue” climbed to $29 million, exhibiting a notable $28 million increase year-over-year, on the heels of continuous growth in subscription and services revenue, alongside transaction revenue.
Operating Expenses soared to $211 million, increasing by 70% year-over-year, primarily due to elevated compensation expenses, including $59 million allocated to stock-based compensation expenses in Q3.
Adjusted EBITDA also experienced a significant uptick, reaching $166 million, reflecting a 78% year-over-year increase driven by revenue growth from higher USDC in circulation and the inherent operating leverage in Circle’s business model.
Earlier this year, Circle unveiled Arc, a public blockchain tailored for stablecoin transactions, aimed at bolstering cross-border settlements, merchant payments, and decentralized finance integrations.
Looking ahead, the stablecoin issuer said it is contemplating the launch of a native token on the Arc network, an initiative envisioned to enhance network participation, drive adoption, align the interests of Arc stakeholders, and bolster the long-term growth and success of the Arc network.
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… 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.
The firm’s stock, CRCL, which launched earlier this year and trades on the US stock market, is currently trading at $91.57. This represents a notable 7% drop compared to Monday’s trading session.
Featured image from DALL-E, chart from TradingView.com
