N26 hits first full-year profit, amid challenging 2025
European fintech challenger N26 has announced its first full-year profit, a significant achievement amidst a turbulent period marked by management changes and regulatory scrutiny. This milestone signals a potential turning point for the digital bank, highlighting its resilience and strategic adjustments in a competitive European market. The company’s profitability comes as European regulators continue to focus on strengthening the financial sector’s stability and compliance. In 2025, N26 reported a net income of €1.6 million, a stark contrast to the €42 million net loss in the previous year, with revenues climbing to €501.6 million, a 13% increase. This turnaround was attributed to a surge in card transaction volumes and subscription growth, coupled with effective cost-cutting measures. Net fee and commission income, a key driver of its gross profit, rose by 21% year-on-year to €184.2 million. The positive results are expected to impact N26's 5.6 million paying customers, with a strategic focus on converting them into primary bank users, where income is directly deposited. This shift is crucial for sustainable growth within the European digital banking landscape. The company also saw its direct costs decrease by 17%, while its headcount remained stable at around 1,600 employees. N26's journey to profitability has occurred under new leadership, with Mike Dargan appointed CEO in December, concluding the era of co-founders Maximilian Tayenthal and Valentin Stalf. This transition followed investor concerns regarding the handling of regulatory issues and sanctions from German financial regulators last year. The company's success in achieving profit underscores the evolving dynamics and opportunities within Europe's digital financial services sector.
Curated and translated by Europe Digital for our multilingual European audience.
Why this matters for European digital sovereignty
European fintech N26 has achieved its first full-year profit, demonstrating resilience and strategic adaptation in a competitive European market. This milestone arrives as the company navigates management changes and ongoing regulatory scrutiny, underscoring a potential turning point for the digital bank. The profitability showcases N26's progress in converting customers and enhancing fee income, crucial for sustainable growth in the European digital banking sector.
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