diff --git a/VERSION b/VERSION
index b7276283..4a788a01 100644
--- a/VERSION
+++ b/VERSION
@@ -1 +1 @@
-3.6.2
+3.6.3
diff --git a/changelog.md b/changelog.md
index 3d79eeaa..528d3692 100644
--- a/changelog.md
+++ b/changelog.md
@@ -1,5 +1,11 @@
 # IsoQuant changelog
 
+## IsoQuant 3.6.3, 13 January 2026
+
+- Fix penalty score for terminal exon elongation when selecting similar isoforms for inconsistent reads [#270](https://github.com/ablab/IsoQuant/issues/270).
+
+- Fix `transcript_model_grouped_counts` output format [#275](https://github.com/ablab/IsoQuant/issues/275).
+
 ## IsoQuant 3.6.2, 15 November 2024
 
 - Fixes linear grouped counts output [#258](https://github.com/ablab/IsoQuant/issues/258).