Record Profit Surge: Revolut Doubles Annual Earnings to $1.3 Billion

A significant boost came from a resurgence in cryptocurrency trading, with crypto-related revenues jumping 120% year-over-year.

Fintech juggernaut Revolut has reported a staggering 100% surge in annual profits, doubling its earnings to 1.3 billion dollars.

The company’s stellar performance in 2024 can be attributed to several key factors: a sharp rise in user acquisition, expanding financial services, and a renewed surge in cryptocurrency trading, which ultimately bolstered the bottom line.

Founded in 2015, the British startup has rapidly evolved from a travel card provider into a fully fledged digital banking and investment platform. In 2024, it capitalised on renewed market confidence in digital assets and demand for all-in-one financial services, placing it in a prime position to benefit from the ongoing fintech and crypto revolution.

As it stands, the company boasts over 45 million users globally, having added 12 million in 2024 alone. This incredible feat was driven by a strategic push into emerging markets and enhanced product offerings, such as commission-free stock trading and high-yield savings, which ultimately helped fuel this impressive adoption rate.

Furthermore, while competitors like N26 have struggled to generate consistent profitability despite boasting a similar user base, Revolut's diverse revenue streams have enabled it to achieve substantial earnings.

The company's report highlights that its revenue nearly doubled in 2024, jumping to 3.1 billion pounds (about $4.2 billion) from 1.8 billion pounds in 2023. This was driven by a 120% increase in revenue from cryptocurrency-related activity, outpacing its core banking products.

This new report from FinTech disclosed that its 2024 profits doubled to 1.3 billion dollars, up from 438 million pounds. The company's performance can be linked to its expanding financial services and a strong interest in cryptocurrency trading.

The company's report also revealed that its revenue almost doubled in 2024, increasing to 3.1 billion pounds (about $4.2 billion) from 1.8 billion pounds in 2023. This was driven by a 120% increase in revenue from cryptocurrency-related activity, outpacing its core banking products.

This finding is significant as it highlights the company's ability to generate profit from sources other than traditional banking fees. It seems that the company's strategy of combining banking, investing, and crypto in one app is paying off.

The company's performance also comes in stark contrast to its European competitor, N26, which recently announced that it had become profitable after burning through millions in investor funds over the past few years. The German fintech, which boasts a similar user base to Revolut, said it swung to a small operating profit in the first half of 2024 after posting a loss of 161 million euros ($174.34 million) in 2023.

This finding is in contrast to a report by the Financial Times last year, which stated that N26 was planning to lay off staff and close units in order to become profitable by 2024.

The company's performance also comes amid increased scrutiny from financial watchdogs over fintech firms and their involvement in the crypto industry. Earlier this year, the U.S. Federal Reserve warned that several fintech firms had applied for deposit insurance and were now offering checking and savings accounts, but they might not have the same level of safety as traditional, fully insured banks.

Despite this, Revolut has proactively worked to ensure compliance, securing crypto licenses in several European jurisdictions and enhancing its transparency practices. This forward-thinking approach helped it gain a competitive edge over slower-moving rivals.

Profits and Outlook Point to Sustained Momentum

With net profits reaching $1.3 billion from roughly $630 million the previous year, Revolut has firmly established itself as a fintech leader with a sustainable business model. The doubling of profits reflects operational efficiency and successful revenue stream diversification.

Operating margins improved significantly, thanks partly to automation, improved customer onboarding, and tight cost control. The company's strategy of expanding into new markets and offering a broad range of financial services appears to be paying off in the form of increased user engagement and spending within the app.

The company also hinted at a possible IPO shortly, which could be buoyed by investor optimism surrounding its strong growth fundamentals and global expansion plans. Revolut plans to deepen its offerings in the crypto and AI-powered finance sectors while expanding in Latin America and Southeast Asia.

Analysts suggest that as long as the company maintains its innovative edge and regulatory alignment, its growth trajectory will likely continue. "We’re building a global financial super-app, and this is just the beginning," said Nik Storonsky, CEO of Revolut.