Coincheck Group (NASDAQ:CNCK) reported fiscal year 2026 third-quarter results that management said were pressured by weaker crypto asset prices and reduced trading activity, but still produced core profitability and progress toward a broader global strategy.
Quarter results reflect softer crypto markets
Chief Executive Officer Gary Simanson said global financial markets experienced “outsized volatility” during the quarter, which reverberated across the crypto industry. He emphasized the company’s risk posture, stating that it does not hold crypto assets on its balance sheet except to facilitate customer trading and seeks to take “very limited risk” to the value of any particular crypto asset.
Simanson said results including trading volumes, assets under management and margin were negatively impacted by declines in crypto asset prices compared with the previous quarter, but he described the underlying business as stable. He also pointed to a more diversified revenue mix, including retail trading, staking, an initial exchange offering (IEO), and institutional business tied to the Aplo prime brokerage acquisition.
Revenue up year over year; trading and margin trends mixed
Chief Financial Officer Jason Sandberg provided year-over-year comparisons and said total revenue rose 17% to JPY 143.5 billion ($915 million) from JPY 123.1 billion ($785 million) in the fiscal 2025 third quarter, partially due to additional gross revenue generated by Aplo.
Gross margin—defined as total revenue less cost of sales—fell 20% to JPY 3.8 billion ($24 million), down from JPY 4.8 billion ($31 million) a year earlier. Sandberg attributed the decline mostly to lower marketplace trading volume, partially offset by $2 million of revenue from a successful IEO during the quarter.
Marketplace trading volume decreased 25% year over year to JPY 87.7 billion ($559 million) from JPY 117.4 billion ($749 million). Sandberg said trading volume typically fluctuates with broader crypto market conditions, Coincheck’s own activity levels, and price movements in commonly traded crypto assets.
Adjusted EBITDA decreased 38% year over year to JPY 1,428 million ($9.1 million) from JPY 2,303 million ($14.7 million), which Sandberg also tied mainly to reduced trading volume, partially offset by the IEO revenue. Staking revenue was JPY 777 million ($5 million), down slightly from JPY 794 million ($5.1 million) in the second quarter; Sandberg noted staking did not meaningfully begin until fiscal 2026, so there was no comparable year-ago figure.
Users rose; customer assets down amid price declines
Management highlighted continued user growth in Japan. Simanson said Coincheck, Inc. remained the No. 1 downloaded crypto app in Japan and that verified user accounts increased to 2.5 million in the quarter from 2.4 million in the prior quarter.
Sandberg said verified accounts rose 13% year over year to 2.5 million as of Dec. 31, 2025, up from 2.2 million as of Dec. 31, 2024.
However, customer assets fell with market prices. Sandberg said customer assets decreased 17% to JPY 948.5 billion ($6.04 billion) as of Dec. 31, 2025, from JPY 1,142.2 billion ($7.28 billion) a year earlier, citing substantial price declines in crypto assets such as Bitcoin, Ethereum, and XRP during the December 2025 quarter. He said digital tokens under custody remained “relatively stable” despite the lower asset values.
Profitability, expenses, and liquidity
Net income improved sharply year over year. Sandberg said net income was JPY 405 million ($2.6 million) compared with a net loss of JPY 15 billion ($98.5 million) in the fiscal 2025 third quarter. He said a large portion of the prior-year net loss came from transaction costs, including listing expenses of JPY 17,518 million ($111.7 million), associated with becoming a public company in December 2024. He added that Adjusted EBITDA excludes those transaction costs and listing expenses.
Selling, general and administrative expenses declined to JPY 3.5 billion ($22.4 million) from JPY 6.4 billion ($41 million), largely because the prior-year quarter included public company transaction costs. Sandberg noted the fiscal 2026 third quarter included higher share-based compensation of $2 million and transaction costs related to acquisitions of Aplo SAS and 3iQ Corp, while there were no comparable share-based compensation or similar acquisition expenses in the fiscal 2025 third quarter.
The company ended the quarter with cash and cash equivalents of JPY 10.6 billion ($67.9 million).
3iQ acquisition, CEO transition, and capital markets flexibility
Simanson highlighted several strategic updates, led by the pending acquisition of 3iQ Corp, announced Jan. 8, 2026. He described 3iQ as a “well-known, regulated, highly regarded, profitable business” and said the deal is expected to close before the March 31, 2026 fiscal year-end or early in fiscal 2027’s first quarter.
Simanson also announced a leadership change: he will resign as executive director, CEO and president effective March 31, 2026, and Pascal St-Jean—currently CEO of 3iQ and Coincheck Group’s chief growth officer—will become executive director and CEO effective April 1, 2026.
In addition, Simanson said the company filed a $200 million shelf registration statement on Jan. 2, 2026, which became effective Jan. 13, 2026. He said it provides flexibility to raise capital opportunistically and could enhance the public float, while cautioning there can be no assurance an offering will occur.
St-Jean told investors Coincheck Group is evolving from a national exchange into a “diversified global institutional crypto group,” built around operations in Japan and global institutional expansion. He said the company sees Japan moving toward clearer tax and regulatory treatment of crypto, and described discussions with regulators and large institutions as supportive of that direction, without committing to a date. In the Q&A, Executive Chairperson Oki Matsumoto added that tax reform would be important for retail-focused products such as ETFs, while institutional participation can proceed without such reform, and he said the company is already seeing growing institutional interest.
On M&A, St-Jean said the company’s near-term focus is digesting and integrating recent acquisitions while remaining opportunistic on a case-by-case basis. Matsumoto said the next phase will include a shift from acquisitions toward a range of B2B and B2B2C strategic alliances with large financial institutions and funds.
Asked about Japanese retail customer behavior in the current market, Matsumoto said asset values declined but the number of tokens held “never went down,” describing customers as holding positions and, particularly in altcoins, buying into the market. He also said the absence of tax reform has reduced incentives for customers to sell and realize profits.
About Coincheck Group (NASDAQ:CNCK)
Coincheck Group (NASDAQ:CNCK) is a digital asset platform specializing in cryptocurrency trading and blockchain-based financial services. Headquartered in Tokyo, Japan, Coincheck operates one of the country’s largest cryptocurrency exchanges, offering a suite of services for both retail and institutional clients. Its platform supports spot trading of major digital assets such as Bitcoin, Ethereum and a variety of altcoins, complemented by secure wallet solutions and a range of order types designed to meet diverse trading needs.
Originally established in 2012, Coincheck gained early prominence in Japan’s evolving digital currency market.
