Germany's N26 reports EUR 501.6 million 2025 revenue and first full-year net profit

German neobank N26 has reported full-year 2025 revenue of EUR 501.6 million, up 13% from EUR 445.4 million a year earlier, and group net income of EUR 1.6 million compared with a EUR 42 million net loss in 2024. The result marks the Berlin-based lender's first full year of net profitability.

Gross profit rose 33% to EUR 350.5 million as direct costs fell, which N26 said demonstrated the business's increasing operating leverage. Revenue-relevant customers grew 16% to 5.6 million, while annual transaction volume rose 14% to EUR 170.7 billion. Customer deposits surpassed EUR 10.5 billion.

PROFITABILITY MILESTONE

Chief executive Mike Dargan called surpassing half a billion euros in annual revenue "a landmark milestone for N26". The EUR 1.6 million net profit represents a year-on-year improvement of EUR 43.6 million from the EUR 42 million net loss in 2024.

Net fee and commission income rose 21% to EUR 184.2 million, or 53% of gross profit, driven by subscriptions and card transaction volumes, while net interest income, which includes treasury and lending activities, rose 49% to EUR 166.3 million.

N26 has faced repeated regulatory scrutiny, including a cap on customer growth imposed by the German supervisor BaFin in 2021 and lifted in 2024. Remediation is not complete: in December 2025 BaFin imposed fresh measures, including a special monitor and a ban on new mortgage lending in the Netherlands, citing serious deficiencies in risk and complaint management.

MOMENTUM CARRIES INTO 2026

N26 also disclosed preliminary Q1 2026 numbers, reporting quarterly revenue of EUR 130 million and net income of EUR 9.8 million. First-quarter net income was already above the full-year 2025 figure, and N26 said it expects profitability to be maintained in 2026.

N26 said the 16% rise in revenue-relevant customers to 5.6 million reflected its focus on deepening customer relationships and becoming customers' primary bank.

Chief financial officer Arnd Schwierholz said revenue growth, disciplined cost management and a diversified earnings profile contributed to the first full year of profitability. Preliminary first-quarter gross profit was EUR 92.0 million.