Circle raised its full-year 2026 other revenue guidance to $310 million to $330 million on Aug. 5, doubling the midpoint from $160 million to $320 million, citing proceeds from its ARC Token presale.
The stablecoin issuer’s Q2 earnings revealed $242.25 million in estimated gross proceeds from two ARC Token closings. The revised guidance represents a 100% increase in the midpoint but Circle did not disclose how much of the new range is attributable to ARC Token revenue versus other sources.
Q2 results showed USDC redemptions exceeded mints by $4 billion, reflecting net customer outflows. Circle redeemed $87 billion in USDC during the quarter while minting $83 billion. Quarter-end USDC circulation stood at $73.3 billion, up 19% year over year.
Other revenue in Q2 totaled $33.6 million, up 41% year over year. This category includes subscription and services revenue alongside ARC Token presale proceeds. Circle’s reserve income climbed to $667.7 million, a 5% increase year over year, though reserve yield fell 66 basis points to 3.5%.
ARC Token and Accounting Treatment
The $242.25 million in ARC Token proceeds differs from recognized revenue. Purchase agreements for the token carry repayment rights under specified circumstances, meaning Circle’s accounting treatment may defer recognition of the full amount. Circle did not explain these circumstances or clarify when ARC Token revenue will be recognized relative to Arc’s scheduled Sept. 16 public mainnet launch.
The stablecoin market expanded to $312 billion in total supply during Q2. Circle’s revised guidance assumes ARC Token revenue will contribute materially to full-year other revenue, but the company provided no breakdown between ARC Token and traditional subscription and services lines.
Context on Prior Guidance
In May 2026, Circle had guided other revenue to $150 million to $170 million for the full year. The Aug. 5 revision to $310 million to $330 million reflects the ARC Token presale impact and stronger-than-expected quarterly performance in the other revenue category.
Reserve yield compression, driven by the Federal Reserve’s maintenance of its target range at 3.50% to 3.75% in both April and June, pressured Circle’s return on reserves. Despite the 66 basis point decline year over year, absolute reserve income grew on higher average USDC balances. Quarterly average USDC balance reached $76.5 billion.
