Coincheck Group NASDAQ: CNCK reported a wider loss and a 43% decline in revenue for its second fiscal quarter as lower trading activity in Japan and an impairment tied to its Aplo subsidiary weighed on results.
The company is beginning to wind down Aplo as a separate European business and plans to use its institutional trading technology in a new product at asset manager 3iQ. Executives also outlined plans to cut costs in existing businesses and use the cash they generate to fund growth.
Chief Executive Officer Pascal St-Jean said the strategy does not assume a recovery in crypto prices or trading volumes. “Every target and every investment I’ll be describing today is built on current market conditions,” he said.
Trading Slump and Aplo Charge Hit Results
Revenue fell to 75.5 billion yen ($480 million) in the quarter ended Sept. 30, 2026, from 133.1 billion yen ($846 million) a year earlier, Chief Financial Officer Jason Sandberg said. The decline was driven mainly by lower marketplace trading volume, partly offset by increases in transaction, institutional and investment management fee revenue.
Marketplace trading volume dropped 56% to 41.5 billion yen ($264 million) from 94.7 billion yen ($602 million). St-Jean said retail crypto trading volumes in Japan remained low and described a broader structural reset in the exchange industry.
Coincheck reported a net loss of 4.14 billion yen ($26.3 million), compared with net income of 355 million yen ($2.3 million) a year earlier. Sandberg attributed the decline primarily to a 2.962 billion yen ($18.8 million) impairment related to Aplo, lower marketplace trading volume and higher selling, general and administrative expenses, partially offset by a net tax benefit.
Adjusted EBITDA was a loss of 4.02 billion yen ($25.6 million), compared with positive adjusted EBITDA of 1.486 billion yen ($9.5 million) a year earlier. Sandberg said the decline was primarily due to the Aplo impairment and a larger operating loss.
Verified accounts rose 18% year over year to 2.87 million, while customer assets fell 26% to 876.9 billion yen ($5.6 billion), primarily because of declines in the market prices of crypto assets including Bitcoin, Ethereum and XRP. Assets under management were 148.8 billion yen ($946 million), up from 128.8 billion yen at March 31, 2026.
Aplo Technology to Support New 3iQ Offering
St-Jean said Coincheck decided not to continue funding Aplo as a standalone business after determining it could not compete on its own in its market. The company plans to combine Aplo’s institutional trading technology with 3iQ’s asset management capabilities to create a separately managed account product for institutions.
Coincheck is targeting a launch in the first half of calendar 2027. St-Jean said the offering is intended to help institutions spread risk across counterparties and custodians and monitor that risk in real time.
Asked about potential savings from the Aplo wind-down, Sandberg said the company did not yet have specific figures. He said Coincheck was retaining approximately half of Aplo’s employees and moving them to work on the separately managed account opportunity.
St-Jean also said Next Finance Tech had been closely integrated with 3iQ, providing staking and on-chain engineering capabilities. All assets on 3iQ’s offshore active platform are now staked through Next Finance Tech, he said.
Japan Products and Cost Priorities
Coincheck’s broader plan has three phases: optimize its core businesses to generate cash, invest in growth in Japan and institutional asset management, and potentially replicate the model in other markets. St-Jean said optimizing the Coincheck exchange in Japan is the company’s top cost priority.
In Japan, Coincheck launched contracts for difference, or CFDs, in September and is rolling them out in a controlled manner, St-Jean said. The company also wants to add leveraged and yield products over time as regulation permits.
St-Jean said Japan’s opportunity will depend partly on regulatory developments and the timing of institutional partnerships. In response to an analyst’s question, he said asset management could open based on current regulatory projections sometime from mid-2027 to early 2028, pending regulation.
The company works with crypto-as-a-service partners including Mercari, KDDI and Credit Saison. St-Jean said user growth through those partners had been strong, although the products currently available through their distribution channels remain primarily focused on spot crypto.
Coincheck ended the quarter with 14 billion yen ($89 million) in cash and cash equivalents. Sandberg said the company would continue evaluating cost optimization opportunities but did not provide projected operating-margin figures.
About Coincheck Group (NASDAQ:CNCK)
Coincheck Group N.V. is a holding company whose principal operating subsidiary is Coincheck, Inc, a Japan-based digital asset exchange. Coincheck provides a platform for customers to buy, sell, and hold cryptocurrencies, as well as related services such as cryptocurrency transfers and digital asset trading. Its offerings have also included non-fungible token (NFT) services and other products connected with the broader digital asset ecosystem.
Coincheck primarily serves customers in Japan and operates under the regulatory framework applicable to Japanese crypto asset exchange service providers.
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