N26, one of Europe’s most well-known challenger banks, has reached its first full-year profit, new figures show, amid a difficult period for the German challenger bank, which saw a management shake-up and investor unrest.
N26 has reported net income of €1.6m in 2025, compared to a €42m net loss in 2024. Revenues came in at €501.6m, a 13 per cent increase on the year previous.
A rise in card transaction volumes, an increase in subscriptions, and cost-cutting were cited as reasons for the improved performance. New CEO Mike Dargan heralded surpassing €500m in revenues as a “milestone” achievement.
N26 said net fee and commission income increased 21 per cent year-on-year to €184.2m, accounting for 53 per cent of gross profit, driven by growth in subscriptions and card transaction volumes. Customer deposits surpassed €10.5 billion in the year.
Like other challenger banks, N26, which has 5.6m paying customers, has a focus on increasing primary bank customers, which can be defined as those who get their income paid into their account.
