Circle Beats Q3 Earnings Expectations but Faces Slowing Growth and Rising Regulatory Risks

Circle delivered stronger-than-expected earnings in Q3, but analysts warn that the company’s growth outlook remains uncertain, according to BlockBeats.The stablecoin issuer reported $740 million in revenue for the quarter, with $711 million — nearly 96% — generated from reserve yields. This heavy dependence on interest income has raised concerns that any decline in reserve yields could directly weaken Circle’s profitability.Despite the earnings beat, Circle raised its full-year operating expense forecast, signaling that profit growth may slow in the coming quarters.Regulatory pressure adds further uncertaintyMarket observers say Circle also faces heightened regulatory risks, particularly if stricter rules on stablecoin reserves or asset management are introduced. A tougher regulatory environment could impact future earnings expectations and increase stock price volatility.Analysts note that while Circle’s current profit model is stable, its long-term growth potential is limited, with some investors viewing the company increasingly as a “dollar fund business” rather than a high-growth fintech firm.