NAGA Group reported its first profitable quarter, posting a net profit of €0.5 million as efficiency measures and cost reductions took hold across the business.

The Hamburg-based fintech, which operates the Naga One superapp, recorded group revenue of €14.4 million, down from €16.4 million a year earlier. The company said revenue remained flat year over year after adjusting for foreign exchange effects.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) more than doubled to €2.3 million from €1.0 million in the same quarter last year. The EBITDA margin rose sharply to 15.8% from 6.1% in Q1 2025.

The company swung to a net profit of €0.5 million from a loss of €1.7 million a year earlier. Management said this turnaround reflects operational changes implemented during 2025.

NAGA credited the improved margins to a leaner operating model and a structurally lower cost base. The company highlighted technology-led initiatives, including the use of AI tools in marketing, customer support, and internal operations.

CEO Octavian Patrascu said the company has pursued an “AI-first approach” since early this year. NAGA previously stated that AI now handles roughly two-thirds of chat-based customer support without human involvement and that its marketing team operates with about 20% fewer staff. The company has not independently substantiated these claims.

NAGA Group Reports First Profitable Quarter Results

The improved profitability follows a challenging 2025, when NAGA reported full-year EBITDA of €3.3 million, down from €9.0 million in 2024, citing structural headwinds and higher marketing expenses.

Operational metrics showed mixed trends. NAGA added 87,500 new users during the quarter, up from 73,902 a year earlier. However, new funded accounts fell 19% to 4,903 from 6,088.

The company said higher net deposits, reduced client withdrawals, and increased platform activity partly offset the decline in funded accounts. Management described the shift as an improvement in client quality.

Reported trading volume reached $80.7 billion, compared with €47.3 billion in Q1 2025, though the comparison is affected by a change in reporting currency. NAGA identified March as the strongest month of the quarter, providing momentum into Q2.

NAGA remains significantly smaller than larger listed CFD firms. Competitors reported substantially higher revenues and margins during the same period, highlighting the gap in scale.

The company has yet to return to its 2023 revenue level of around €70 million. Its shares also remain well below their 2021 peak, despite a 10-for-1 reverse stock split completed in December 2025. The stock recently rebounded after hitting an all-time low of €1.31 on April 9.

Management maintained its full-year 2026 outlook, projecting revenue between €68 million and €75 million and EBITDA between €10 million and €15 million. Achieving these targets would mark a significant margin recovery.

NAGA also pointed to a newly signed distribution partnership and ongoing white-label discussions that are not yet reflected in its forecasts.

“Q1 2026 marks an important step forward for NAGA,” Patrascu said in the earnings release.Also, stay updated with the Latest Broker News.