N26, the Berlin-based digital banking services provider, has reported strong results for fiscal 2025, crossing the €500 million revenue threshold while posting its first full year of net profitability. The performance highlights the company’s improving operational efficiency and progress toward a more sustainable business model.
Digital banking platform N26 pointed out that revenue reached €501.6 million, a 13% increase from €445.4 million in 2024. Gross profit rose faster, climbing 33% to €350.5 million.
The gains came from higher top-line growth paired with lower direct costs and stronger operating leverage as the platform scaled.
The most significant milestone was the shift to positive earnings. Group net income totaled €1.6 million, reversing a €42 million loss from the prior year and delivering a €43.6 million improvement.
This marks digital bank N26’s first complete year of net profitability.
Customer metrics continued to advance. Revenue-relevant customers grew 16% to 5.6 million, reflecting greater focus on high-engagement relationships where N26 serves as the primary bank.
Annual transaction volume increased 14% to €170.7 billion, while customer deposits exceeded €10.5 billion.
The bank maintained a robust liquidity position throughout the year.Earnings diversified across core activities.
Net fee and commission income rose 21% to €184.2 million, accounting for 53% of gross profit.
Growth was supported by stronger subscription performance and higher card transaction volumes.
Net interest income, including treasury and lending activities, jumped 49% to €166.3 million and contributed the remaining 47%, aided by expanding deposit and loan portfolios.
Chief Executive Officer Mike Dargan called crossing half a billion euros in annual revenue a landmark moment that shows the trust placed in N26 by millions of European customers.
He stressed that the platform’s built-in efficiency allows scaling to translate directly into lasting profitability, creating room to reinvest in product innovation and deliver more value across markets.
Chief Financial Officer Arnd Schwierholz has highlighted the strength and scalability of the business model.
He credited revenue growth, disciplined cost control, and a balanced earnings mix for achieving the profitability milestone while continuing to invest in products, technology, and long-term resilience.
Preliminary results for the first quarter of 2026 show continued positive momentum.
Revenue reached €130 million, gross profit €92 million, and group net income €9.8 million.
N26 plans to sustain profitability through 2026, supported by operating leverage and measured investment.
Priorities include deepening customer engagement, increasing adoption of multiple products, and advancing artificial intelligence in customer service, personalization, and internal operations.
The company will also expand its banking, savings, investment, and lifestyle offerings while strengthening governance, efficiency, and risk management.
N26 operates under a full German banking license and serves customers across 24 European markets.
Its results follow a management reporting framework aligned with IFRS principles for consistent performance tracking. The update from N26 indicates that these figures position the digital bank as a maturing player demonstrating that efficient scaling can deliver both business growth and profitability.