Trade Republic Profit Jumps Sevenfold in Final Full Year with German PFOF

Trade Republic reported a net profit of €232.7 million for the financial year ended September 2025, up 569% from €34.8 million a year earlier and the last full-year benchmark before Germany's payment-for-order-flow exemption lapsed. The Berlin-based broker's newly filed financial statements show commission income rose 132% to €732.6 million from €315.6 million, which the company attributed to higher trading volumes, a broader product range and continued international growth.

Interest income slipped 8% to €21.0 million from €23.0 million, as lower rates offset growth in interest-bearing cash reserves and bank balances. Costs increased, but far more slowly than revenue: administrative expenses climbed 87% to €419.8 million from €224.6 million, including higher spending on marketing, technology and outsourced services. The cost-to-income ratio consequently improved to 62% from 83%, while equity rose 41% to €799.3 million from €566.5 million.

Execution model under scrutiny

During the reporting period, all trades were executed through LS Exchange and customers generally paid a fixed €1 third-party-cost fee, with savings-plan executions free. The filings show commission income covered execution-related subsidies — including rebates for routing securities orders to trading partners — alongside customer fees, payment services and other commission items. PFOF rebates formed part of that income, but the statements do not disclose their value, so the portion of the rise from €315.6 million to €732.6 million attributable to routing payments cannot be determined.

Germany's PFOF exemption expired on 30 June 2026, and Trade Republic has since introduced two execution options. Under the standard Best Price model, the company selects the venue based on prices across the relevant exchanges and charges €1 per order. Clients who prefer to choose the venue themselves can use Direct Price, which offers access to 30 exchanges at €2 per order. Management said in the report that it still expects another significant absolute increase in commission income in the following financial year and that it has adapted its strategy accordingly.

The results preceded a €1.2 billion secondary share transaction that valued Trade Republic at €12.5 billion. That deal involved existing shares and did not provide new capital to the company, which reported more than 10 million customers and €150 billion in client assets. Separately, Trade Republic Business III GmbH received approval on 23 January 2026 to operate a multilateral trading facility, although the accounts do not explain its intended role or connect it to the new execution model. The next set of accounts will provide the first evidence of how the post-PFOF setup performs, with only the final three months of that financial year falling after the exemption expired.