Are neobanks profitable? Some now clearly are, including Revolut, Monzo, Starling and Nubank, but profitability is uneven: others reached profit only after years of losses, and several smaller ventures closed.
The latest published results show Revolut with 2025 profit before tax of about 2.3 billion dollars, Monzo with 172.6 million pounds for the year to March 2026, Starling with 217.1 million pounds for the same period, Nubank with net income of about 1.1 billion dollars in the second quarter of 2026 and Chime reporting positive GAAP net income in its Q2 2026 quarter.
Last reviewed: October 2026.
Early neobanks were known for fast customer growth and heavy losses. By late 2026 the answer to are neobanks profitable is more mixed and, for the leaders, much better. This article collects the latest figures from company releases and reports, explains what drove the turnaround, shows why some did not make it and offers a way to judge whether a given neobank is likely to last. All figures are as published by the companies or the cited reports and are rounded; check the originals for detail.
Are neobanks profitable? The scoreboard of latest results
| Company | Period | Reported result |
|---|---|---|
| Revolut | Year to 31 December 2025 | Revenue 6.0bn dollars; profit before tax 2.3bn dollars; net profit 1.7bn dollars; 68.3 million retail customers |
| Monzo | Year to March 2026 | Revenue about 1.7bn pounds; profit before tax 172.6m pounds; 10.4 million monthly active users |
| Starling | Year to 31 March 2026 | Profit before tax 217.1m pounds (down from 223.4m); revenue 887.4m pounds (down from 940.0m) |
| Chime | Q2 2026 | Revenue about 669.8m dollars; GAAP net income about 27.9m dollars; adjusted EBITDA about 101.6m dollars; 10.4 million active members |
| Nubank (Nu Holdings) | Q2 2026 | Net income about 1.1bn dollars; return on equity 33 percent; 139 million customers |
When comparing whether neobanks are profitable, note that these measures differ. Profit before tax, net income and adjusted EBITDA are not interchangeable, and only GAAP net income and profit before tax are comparable to a traditional bank’s earnings.
Are neobanks profitable? How the leaders got there
Monzo reported a loss of 116.3 million pounds for the year ending March 2023, then its first annual profit of 15.4 million pounds for the year ending March 2024. It reached 172.6 million pounds in FY2026, helped by 39 percent revenue growth, business customers up 45 percent and over 1.6 million paid-plan subscribers.
Chime reported a net loss of 203 million dollars in 2023 and 25 million dollars in 2024, on 2024 revenue of 1.67 billion dollars, before reporting GAAP net income of about 27.9 million dollars in Q2 2026 on revenue up 27 percent. Most of its revenue has come from interchange on card spending.
Revolut says 2025 was its fifth consecutive year of net profitability, with revenue spread across card payments, interest income, subscriptions, wealth and foreign exchange.
Starling has been profitable for five consecutive years, although its FY26 profit and revenue were lower than FY25 as reported by the company.
The common drivers are scale, a main-account relationship that increases card spending, interest earned on large balances and extra revenue from subscriptions and other products. To see the revenue lines in detail, read how neobanks make money.
Profit is not guaranteed: neobanks that closed
In Australia, Xinja surrendered its ADI licence in January 2021, and Volt in June 2022, both returning deposits. NAB bought 86 400 in May 2021 for a reported price of around 220 million dollars. These stand-alone neobanks lacked the scale or funding to continue as independent licensed banks. Our Australian overview covers who remains.
Are neobanks profitable without scale and the right rates?
Are neobanks profitable because of rates? Partly. Interest income is a major driver for licensed banks. Revolut reported 1.3 billion dollars of interest income in 2025 against customer balances of 67.5 billion dollars, so changes in central bank rates can move results. Starling’s FY26 decline in revenue and profit is a reminder that earnings can fall as well as rise. Spending-led models like Chime’s depend on card volume and on the interchange rules that apply to the issuing bank.
Signs a neobank is on a sustainable path
- Audited profit, not only adjusted measures such as adjusted EBITDA.
- Primary-account use, not just sign-ups. Chime says nearly two thirds of members consider it their main financial relationship.
- Diverse revenue across interest, card fees, subscriptions and other lines.
- Controlled credit losses if the company lends.
- Regulatory standing: Monzo’s 2025 FCA fine of 21,091,300 pounds shows that compliance failures can be costly even for a profitable firm.
What profitability means for customers
Customers also ask are neobanks profitable because they want stability. A profitable provider is less likely to be forced into sudden product withdrawals, but profit does not replace deposit protection. A profitable neobank can still hold your money in a structure with limited cover, and a loss-making one with a banking licence still offers the national scheme. For safety questions, see are neobanks safe. Profitability may also lead to changes in free features or fees as growth slows.
What this means for you
- Do not judge a neobank by customer numbers alone. Look for profit and how it was measured.
- Check who holds your money and what protection applies, whatever the profit headline says.
- Look at whether free features are being replaced by paid tiers, since this is often a sign of the company seeking margin.
- Keep a second account in case a provider changes terms.
Profit measures explained
- Profit before tax is earnings after operating costs and credit losses but before corporation tax. UK and European banks usually headline this figure.
- Net profit or GAAP net income is what remains after tax, and is the measure most comparable across listed companies.
- Adjusted EBITDA excludes items such as interest, tax, depreciation and often share-based pay. It is a non-GAAP measure and can look healthier than net income. Chime’s Q2 2026 adjusted EBITDA of about 101.6 million dollars compares with GAAP net income of about 27.9 million dollars, which shows the gap.
- Return on equity compares profit with shareholders’ capital. Nubank reported 33 percent for Q2 2026.
Are neobanks profitable beyond the famous names?
The companies above are the largest and best documented, and they are not typical, so the answer to are neobanks profitable gets murkier further down the list. General references on neobanks describe profitability as a recurring concern, since more customers do not automatically produce revenue, and point to competition from other neobanks and upgraded incumbent banks as pressures. Smaller providers often have thinner results, and many are private, so their figures are not public. When a company does not publish audited accounts, treat claims about being profitable with caution and look for regulatory filings or annual reports filed with a national registry. In some countries, licensed banks must publish accounts or prudential disclosures, which gives an independent check.
Finally, remember that a single quarter is a snapshot. Chime’s Q2 2026 profit is encouraging, but one quarter does not establish a trend, while Starling’s FY26 dip shows that even a long record of profit can include a down year.
How to check a profit claim yourself
- Find the original results release or annual report, not a summary of a summary.
- Note the reporting period and currency, since some results are in pounds and others in dollars.
- Check which profit measure is quoted and whether it is audited.
- Compare it with the prior period, and look for one-off items that explain a jump.
Are neobanks profitable yet? A worked example of the path
The leaders’ results make more sense when you see the mechanics. The illustrative figures below describe no real company; they show the typical shape of a neobank profit and loss account over three years.
| Line (example, millions) | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Active customers (millions) | 2.0 | 3.5 | 5.0 |
| Revenue | 120 | 260 | 450 |
| Direct costs (cards, partners, fraud, credit losses) | 55 | 105 | 170 |
| Marketing | 60 | 80 | 90 |
| Staff, technology, compliance | 90 | 120 | 150 |
| Profit before tax | -85 | -45 | 40 |
Three things drive the turn. First, revenue per customer rises as more people make the account their main one and add paid plans. Second, fixed costs such as technology and compliance grow more slowly than revenue. Third, marketing falls as a share of revenue once referrals and brand do more of the work. Consequently, the question are neobanks profitable is largely a question of whether a provider can reach this crossover before its funding runs out, which is exactly what Xinja and Volt could not do.
Why the answer differs by country
- Interchange rules. Card fees are higher in the United States, especially for smaller issuing banks, than in the EU and UK where caps apply. This favours spending-led models in the US.
- Interest rates. Licensed banks in markets with higher rates, such as Brazil, earn more on balances and lending, as Nubank’s return on equity shows.
- Licensing cost. Obtaining and keeping a banking licence demands capital and compliance staff, which delays profit but widens the revenue base later.
- Market size. A provider serving a small population struggles to reach the scale at which fixed costs are covered, one reason the Australian stand-alone neobanks failed.
Common misconceptions about whether neobanks are profitable
- Profit means the company is safe to bank with. Safety depends on licence and deposit protection, not on the income statement.
- Adjusted EBITDA is profit. It excludes real costs such as share-based pay. Always look for the GAAP or statutory figure.
- A loss-making neobank is about to fail. Well-funded firms can run losses for years by design, as Monzo and Chime did before turning profitable.
- One good quarter settles the question. Starling’s FY26 dip shows that results move in both directions.
What changes when a neobank becomes profitable
Profitability usually brings a shift in behaviour that customers notice. Free features migrate into paid tiers, lending and investment products get more prominent, and marketing promotions shrink. In addition, support may improve as compliance and operations teams grow. None of this is bad in itself, but it is worth re-reading the fee schedule each year. For the revenue side of this story, see how a neobank makes money, and for the structural weaknesses that persist even at profitable firms, read the disadvantages of neobanks.
Sources and further reading
- Revolut: 2025 results
- UKTN: Monzo FY2026 results
- Wikipedia: Monzo (earlier profit history)
- Starling: FY26 results
- Chime: Q2 2026 results release (SEC)
- Banking Dive: Chime 2023 and 2024 results
- Nu Holdings: Q2 2026 results
- FCA: Monzo fine (July 2025)
- Mozo: Xinja, Volt and 86 400 history
Frequently asked questions
Are neobanks profitable?
Some are. Revolut, Monzo, Starling and Nubank report profits, and Chime reported positive GAAP net income in Q2 2026, but others have closed or remain unprofitable.
When did Monzo become profitable?
It reported its first annual profit of 15.4 million pounds for the year ending March 2024, after a 116.3 million pound loss the year before.
Is Revolut profitable?
Revolut reported 2025 profit before tax of 2.3 billion dollars and net profit of 1.7 billion dollars.
Is Chime profitable?
Chime reported net losses in 2023 and 2024 and GAAP net income of about 27.9 million dollars in Q2 2026. Check later filings.
Why did Xinja and Volt close?
Both surrendered their licences and returned deposits, in January 2021 and June 2022. Their independent scale and funding did not support continuing.
Does profit make a neobank safer?
It reduces some business risk but does not replace deposit protection, which depends on the licensed entity holding your money.
More questions on whether neobanks are profitable
What is adjusted EBITDA?
A non-GAAP measure that excludes some costs. It is not the same as net income.
Where can I find a neobank’s results?
Company results pages, annual reports and, for listed companies, regulatory filings.
Are neobanks profitable in the United States?
Some are reaching it. Chime reported positive GAAP net income in Q2 2026 after years of losses, driven by interchange on card spending. Many smaller US neobanks are private and do not publish results.
Are neobanks profitable without a banking licence?
They can be. Chime operates through partner banks rather than its own charter and reported a profitable quarter in 2026, mainly from interchange, although licensed banks generally have more revenue lines to draw on.
How long does it take for neobanks to become profitable?
Often many years. Monzo launched in 2015 and reported its first annual profit for the year to March 2024, and Chime was founded in 2012 and reported GAAP profit in 2026. Timelines depend on funding, scale and the revenue model.
General information only, not financial or investment advice. Figures are from company releases and reports and may be rounded or revised.