German challenger bank N26 has achieved its first full-year profit, recording net income of €1.6 million in 2025, reversing a €42 million loss in 2024. Revenues rose 13 percent to €501.6 million, driven by higher card transaction volumes, subscription growth, and cost-cutting. Customer deposits exceeded €10.5 billion across 5.6 million paying customers. The milestone comes despite a turbulent year marked by regulatory sanctions, investor disputes, and a leadership overhaul that saw co-founders Maximilian Tayenthal and Valentin Stalf — who established N26 in 2013 — replaced by new CEO Mike Dargan, appointed in December 2025.
In-Depth:
N26, one of Europe’s most well-known challenger banks, has reached its first full-year profit, new figures reveal, 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 stated 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 obtain their income paid into their account.
Direct costs- which relate to money transfers, subscriptions and insurance- were down 17 per cent on the year. N26 stated headcount, which stood at 1,500 at the conclude of 2025, had remained broadly stable. It now employs around 1.600, it stated. Dargan was appointed in December last year, drawing to a close the leadership of co-founders Maximilian Tayenthal and Valentin Stalf, who founded the challenger bank in 2013.
The pair served as its co-CEOs until Stalf stood down as co-CEO in 2025, following a reported dispute with some of N26’s investors over the handling of regulatory issues by the founders. Tayenthal has also stepped away.
Last year, N26 was hit with new sanctions by the German financial regulator relating to compliance issues.
Arnd Schwierholz, CFO, N26, added: “Revenue growth, disciplined cost management, and a diversified earnings profile contributed to the company’s first full year of profitability and continued growth of gross profit.”
