Circle Internet Q3 revenue beats estimates on ARC token presale
Circle Internet Q3 revenue beats estimates on ARC token presale
Overview
US fintech and stablecoin issuer's fiscal Q3 revenue grew 17%, beating analyst expectations
Net income from continuing operations rose 5% yr/yr to $226 mln
Adjusted EBITDA jumped 85% yr/yr, driven by ARC token presale revenue and lower distribution costs
Outlook
Circle expects FY 2026 other revenue of $310 mln to $330 mln
Company expects FY 2026 RLDC margin at 41.7% to 43.7%
Circle forecasts FY 2026 adjusted operating expenses at $570 mln to $585 mln
Result Drivers
ARC TOKEN PRESALE - Co said revenue growth was driven by $182 mln from ARC token presale
LOWER DISTRIBUTION COSTS - Co said lower distribution payments reduced costs, supporting higher margins
HIGHER OPERATING EXPENSES - Co said operating expenses rose 16% yr/yr due to higher G&A, IT infrastructure, and marketing costs
Company press release: ID:nBw3TCKHva
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Total Revenue and Reserve Income | Beat | $865 mln | $778.12 mln (21 Analysts) |
Q3 EPS |
| $0.84 |
|
Q3 Net Income |
| $226 mln |
|
Q3 Adjusted EBITDA |
| $317 mln |
|
Q3 Adjusted EBITDA Margin |
| 70.00% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 13 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the financial technology (fintech) peer group is "buy"
Wall Street's median 12-month price target for Circle Internet Group, Inc is $100.91, about 34.2% above its November 3 closing price of $75.22
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)