Coincheck Group NV Q4 FY2026 earnings call

Strategic Restructuring

• Shift from a holding company of independent businesses to a unified synergistic platform serving both retail and institutional crypto clients globally
• Three core strategic pillars: 1) Japan Retail (anchor of trust, liquidity, users and brand); 2) Institutional platform (bridge to higher quality revenue and broader strategic relevance); 3) On-chain innovation (driver of long-term future growth)
• Three phased rollout: Phase 1 (prove model via integration, institutional traction, Japan platform deepening, and growing recurring non-trading revenue); Phase 2 (scale proven model, cross-sell, improve revenue mix and operating leverage); Phase 3 (expand proven model to new global markets, deepen monetization)

Market Position & Operational Wins

• Maintained position as the #1 downloaded crypto app in Japan for 7 consecutive years, with defensible consumer leadership in the highly regulated, trust-sensitive market
• Gained immediate institutional credibility and AUM base via the acquisition of 3iQ, whose clients include major Canadian banks and an Abu Dhabi sovereign wealth fund
• Closed two new high-profile strategic partnerships: 1) 3iQ was selected as sub-advisor for a new multi-crypto ETF from Dynamic Funds (a Scotiabank subsidiary) listed on CBO Canada; 2) Announced a strategic partnership and 14.9% equity investment in CoinCheck Group from KDDI, one of Japan's largest telecom firms, with a business alliance for mutual customer referral and a joint venture for new on-chain product development
• 2.5 million verified accounts as of March 31, 2026, up 10% YoY; AUM of 12.88 billion yen driven by the 3iQ acquisition
• Growing pipeline of institutional partnership opportunities aligned with the new unified platform strategy

The transcript does not break out financial performance for separate product segments. Only consolidated company-level results are provided: Q4 FY2026 total revenue 11.97 billion yen (up 4% YoY), full year FY2026 total revenue 48.02 billion yen (up 25% YoY). Q4 FY2026 adjusted revenue 0.29 billion yen (down 18% YoY), full year adjusted revenue 1.31 billion yen (down 8% YoY). Q4 FY2026 net loss 0.12 billion yen (vs net profit 0.0642 billion yen YoY), full year FY2026 net loss 0.18 billion yen (vs net loss 1.435 billion yen YoY). Q4 FY2026 adjusted EBITDA loss 86.3 million yen (vs profit 71.9 million yen YoY), full year adjusted EBITDA 0.17 billion yen (down 61% YoY).

• Management maintained the original regulatory timeline provided by Japanese authorities: new FIEA crypto regulation will take effect in 2027, followed by crypto and crypto ETF tax reform starting in 2028. The timeline may be compressed if legislative progress accelerates.
• Management expects revenue quality to improve over time as the mix shifts toward higher-margin institutional and platform-style recurring revenue (staking, custody, asset management, lending) while retail leadership in Japan is maintained and grown.
• No formal numerical financial guidance was provided; management noted that visible financial benefits of platform integration and new partnerships are already beginning to appear in revenue diversification, with larger contributions expected as initiatives progress.

• Forward-looking statements are not guarantees of future performance, and actual results may differ materially from expectations due to unforeseen factors, consistent with disclosures in the company's SEC filings.
• Crypto marketplace trading volume is inherently volatile, fluctuating based on broader industry conditions, crypto asset prices, and overall market activity, which directly impacts core revenue.
• Customer asset values are tied to volatile crypto market prices; customer assets declined in FY2026 primarily due to price drops in major assets including Bitcoin and XRP.
• The realization of growth opportunities from new regulatory and tax reform in Japan is dependent on final government action, which may differ from current expectations.

Q: What is the legislative timeline for Japanese crypto tax reform, will crypto ETFs launch earlier, and how is CoinCheck positioned for this opportunity?

A: Management confirms the official timeline has new crypto regulation in 2027 and tax reform for crypto ETFs starting in 2028, though the timeline may compress if progress speeds up. CoinCheck is already prioritizing partnership and market positioning this year in preparation for regulatory changes, and is at the forefront of industry discussions with large institutions and regulators. The company is positioned to serve both retail and institutional clients for upcoming crypto ETF opportunities in Japan.

Q: When will the new unified platform strategy show tangible financial results, and can you elaborate on your on-chain innovation plans?

A: Revenue diversification is already visible: staking and investment management fee revenue from the 3iQ acquisition is already contributing to the revenue mix, and internal integration of acquired technology has started to improve margins. On-chain innovation includes a joint venture with KDDI to develop mass-market Web3 self-hosted wallets for Japanese consumers, plus efforts to bring global on-chain projects and new services (including tokenization and on-chain trading products) to Japan, to position the company for future demand.

Q: What is the scope and economic structure of the KDDI partnership, and what should we expect for account growth going forward?

A: The partnership has two phases: immediate cross-referral of KDDI's millions of retail customers to CoinCheck's existing platform (phase 1, launching immediately), and a joint venture to develop new on-chain products together (phase 2). Specific economic terms are not public at this stage; KDDI's 14.9% equity stake is a standard structure for large strategic distributor partners. Management expects these B2B2C distribution partnerships (including prior deals like AmeriCoin) to drive material account growth, and continues to maintain organic retail marketing efforts while prioritizing partnership development.