Coincheck swings to loss as crypto slump weighs on trading volumes

Coincheck Group (NASDAQ:CNCK) reported a net loss for its fiscal fourth quarter, as a downturn in cryptocurrency prices and a sharp pullback in retail trading activity offset gains in its institutional business.

The Tokyo-based digital asset exchange, which listed on the Nasdaq following its merger with a blank-check firm, posted a net loss of ¥1.2 billion ($7.6 million) for the quarter ended March 31, 2026, reversing a profit from a year earlier.

The loss was exacerbated by ¥792 million in specific charges, including severance costs related to the departure of the company’s former CEO, professional fees for an abandoned transaction, and software impairment costs.

Despite the quarterly swing, the full-year net loss narrowed significantly to ¥1.8 billion, compared with a ¥14.4 billion loss in fiscal 2025 that was weighed down by heavy merger-related expenses.

Total revenue for the quarter rose 4% to ¥119.7 billion ($752 million), largely supported by institutional trade execution and counterparty transactions.

However, the company's "Adjusted Revenue"—which more closely tracks its core exchange operations—fell 18% to ¥2.9 billion.

Marketplace trading volume, a key metric for retail engagement, plummeted 29% to ¥65.7 billion as market volatility discouraged individual traders.

The value of customer assets held on the platform dropped 15% year-over-year to ¥728.1 billion ($4.6 billion).

While the actual quantity of tokens held by users remained stable, the valuation was dragged down by price declines in major assets, including Bitcoin and XRP.

Amid the retail headwinds, Coincheck saw growth in its diversification efforts.

Staking revenue rose by ¥622 million during the quarter, and the company reported assets under management (AUM) of ¥128.8 billion.

Verified accounts also grew by 10% to over 2.5 million, suggesting that while existing users traded less frequently, the platform continues to expand its reach.

Adjusted EBITDA for the quarter was negative ¥864 million, down from a positive ¥719 million in the prior-year period.

For the full year, adjusted EBITDA fell 61% to ¥1.7 billion, reflecting the compressed margins inherent in a lower-volume environment and rising administrative costs.