Berlin-based N26 achieved its first full year of net profitability in 2025, reporting a net income of €1.6m. This turnaround follows a difficult 2024 where the neobank posted a €42m loss. Revenue grew 13% to reach €501.6m, while gross profit jumped 33% to €350.5m, signaling a shift in the company's financial trajectory.

Investor frustration over regulatory failures led to a leadership shakeup in 2025. Cofounders Valentin Staff and Maximilian Tayenthal were ousted, eventually replaced by CEO Mike Dargan in April 2026. These changes followed years of friction with German regulator BaFin, which previously fined the bank €4.25m and capped customer acquisition over poor money laundering controls.

Recent sanctions now target the company's lending business and limit new business in the Netherlands. Despite these hurdles, the bank is prioritizing risk management and AI integration to maintain its margins. Management intends to drive growth through operating leverage and disciplined investment to avoid returning to the losses seen in previous years.

Compliance remains the primary hurdle for the neobank as it attempts to scale without further regulatory interference. The firm now focuses on strengthening internal operations and customer engagement to protect its current profit margins.