N26 Hits Major Milestone with First Full Year of Net Profitability and €501M Revenue

Quick Summary

N26 achieved its first full year of net profitability in 2025, reporting a net income of €1.6 million. The digital bank surpassed €501.6 million in revenue, driven by a 16% increase in revenue-relevant customers and strong growth in both fee-based and interest income streams.

How did N26 achieve net profitability in 2025?

Sustainable financial growth was the hallmark of N26's 2025 fiscal year. The bank transitioned from a €42 million loss in 2024 to a €1.6 million net profit, representing a massive €43.6 million year-on-year improvement. This shift was powered by increased operating leverage, where revenue grew by 13% to over €501 million while direct costs were successfully managed. Key performance indicators include:

• Gross profit growth of 33% reaching €350.5 million.
• Customer deposit surge exceeding €10.5 billion.
• Transaction volume increase of 14% to €170.7 billion.

"Surpassing half a billion euros in annual revenue for 2025 is a landmark milestone for N26, demonstrating the growing trust millions of Europeans place in us every day. More importantly, it proves the operating leverage inherent in our platform. As we scale, we do so efficiently, with top-line growth translating directly into sustainable profitability. This financial strength gives us the flexibility to reinvest heavily in product innovation, bringing even more value to our customers across Europe." said Mike Dargan, Chief Executive Officer of N26.

What are the primary drivers of N26's revenue?

The bank's diversified business model ensures stability through two main pillars. Net fee income rose 21% to €184.2 million, fueled by premium subscriptions and card usage. Simultaneously, net interest income jumped 49% to €166.3 million, benefiting from treasury activities and a growing lending portfolio. This balanced earnings profile allows N26 to remain resilient against market fluctuations while maintaining a 5.6 million strong active customer base.

What is the outlook for N26 in 2026?

Early 2026 momentum suggests that N26 is accelerating its profitable trajectory. In Q1 2026 alone, the bank reported €9.8 million net income, already dwarfing the total profit of the previous year. The strategy moving forward focuses on artificial intelligence integration across customer service and internal operations to further boost efficiency. N26 plans to deepen multi-product adoption among its 24 European markets while maintaining strict disciplined investment and financial resilience.

FF NEWS TAKE:

N26 hitting net profitability is a watershed moment for the European neobanking sector. For years, critics questioned if digital-native banks could ever move past the "growth at all costs" phase. By delivering €501.6 million in revenue and a profitable bottom line, N26 has silenced skeptics. This isn't just a win for N26; it's a signal that the challenger bank model is officially mature and commercially viable.