The Algorithm That Keeps Compounding
TLDR
- Revolut’s 2025 annual report shows £4.5B revenue (+46%), £1.7B pre-tax profit (+57%), 68M users, and 35% ROE — outlier numbers across every fintech benchmark.
Key Takeaways
- Revenue compounded at 76% CAGR since crossing $1B in 2022; 11 product lines each exceeded £100M revenue in 2025.
- No single revenue segment exceeds 22% of total; 76% of revenue is fee-based, the inverse of incumbent banks’ interest-heavy model.
- 68M users is below 15% of Europe’s ~450-500M adult population, with expansion underway in Mexico, Brazil, and a pending US bank charter application.
- Primary account users grew 45% YoY, outpacing overall user growth of 30%; primary users spend and save roughly 2x more than secondary account holders.
- AI-powered customer service (Revolut Assistant) now resolves over 75% of queries; resolution times dropped 40%+ for retail and 50%+ for businesses in 2025.
Why It Matters
- Rule of 75 (revenue growth + net margin) puts Revolut in a tier occupied by almost no fintech at $1B+ revenue scale.
- 35% ROE is 3-4x that of mature incumbent banks, achieved while the company is still considered over-capitalized relative to regulatory minimums.
- Revolut captures roughly 1 in 3 new bank accounts opened in Europe; 1 in 5 working-age European adults already holds an account.
Alex Immerman, Santiago Rodriguez — Andreessen Horowitz · 2026-03-24 · Read the original
