We have observed the energetic binary Cygnus X-3 in both quiescent and flar
ing states between 4 and 16 mum using the ISO satellite. We find that the q
uiescent source shows the thermal free-free spectrum typical of a hot, fast
stellar wind, such as from a massive helium star. The quiescent mass-loss
rate arising from a spherically symmetric, non-accelerating wind is found t
o be in the range (0.4-2.9)x10(-4) M-. yr(-1), consistent with other infrar
ed and radio observations, but considerably larger than the 10(-5) M-. yr(-
1) deduced from both the orbital change and the X-ray column density. There
is rapid, large-amplitude flaring at 4.5 and 11.5 mum at the same time as
enhanced radio and X-ray activity, with the infrared spectrum apparently be
coming flatter in the flaring state. We believe that non-thermal processes
are operating, perhaps along with enhanced thermal emission.