Circle Surprises With Q3 Profits, But Growth Uncertain Amid Regulatory Risks

Despite exceeding analyst expectations for Q3 earnings, Circle’s future prospects remain unclear as its growth slows and regulatory uncertainty looms. The stablecoin issuer achieved $740 million in revenue during the quarter, with a majority of this ($711 million) coming from interest-based reserve yields. However, analysts are concerned about the dependence on interest income, which could significantly impact profitability should reserve yields decline. Circle subsequently raised its full-year operating expense forecast, suggesting that profit growth may slow in upcoming quarters.