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 and represents a significant milestone for the company after years of operating losses.

Gross profit rose 33% to EUR 350.5 million, reflecting an improving revenue mix and continued discipline on unit economics. Revenue-relevant customers grew 16% to 5.6 million, while annual transaction volume rose 14% to EUR 170.7 billion. Customer deposits exceeded EUR 10.5 billion at year-end, providing a substantial funding base for the bank's continued growth and lending activities.

PROFITABILITY MILESTONE

Reaching full-year net profitability is a significant milestone for N26, which has spent much of the past decade absorbing losses as it built out its European footprint and product range. The narrow EUR 1.6 million net profit is modest in absolute terms, but the swing from a EUR 42 million loss in 2024 highlights the operating leverage that the neobank is beginning to generate on its cost base as it scales.

The 33% increase in gross profit outpacing 13% revenue growth points to margin expansion, with a growing share of income coming from higher-margin activities such as interchange on card spending, subscription revenue from premium account tiers and interest income on customer deposits held at central banks and in high-quality liquid assets.

N26 has spent the past two years working through operational and regulatory demands, including caps on customer onboarding imposed by the German supervisor BaFin that were subsequently lifted. The completion of those remediation programmes has allowed the bank to focus on commercial growth and to demonstrate that its business model can generate profits at scale, a proposition the sector as a whole has struggled to prove consistently.

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. The figures suggest that the profitability turn achieved in 2025 has continued into the current financial year, with the first-quarter result already ahead of the full 2025 net income figure and signalling further scaling of profits over the balance of the year.

Customer growth remains a key operational metric for the group. Revenue-relevant customers, N26's preferred measure of engaged users, rose to 5.6 million in 2025, giving the bank a substantial base across its European markets. Deposits above EUR 10.5 billion underscore the trust customers place in the digital-only lender to hold their primary balances rather than treating the account as a secondary payments wallet.

The results position N26 as one of a small group of European neobanks demonstrating that direct-to-consumer digital banking can generate durable profits at scale. The company said the 2025 figures reflected the outcome of multi-year investments in product, risk and compliance, and provided a platform for continued growth in subsequent periods across the group's principal European markets. The disclosed EUR 130 million revenue and EUR 9.8 million net income figures for the first quarter of 2026 also provide investors with a data point on how the improved trajectory is translating into current-period earnings.