Following the release of preliminary first half 2026 results in early August, Hamburg based social trading focused broker NAGA Group AG (ETR:N4G0) has reported positive consolidated net income for the first time in a first half in the Company’s history.

NAGA Group, which just raised $8 million from strategic investors Presto and MDream, said that the final, unaudited half-year results outperform the preliminary results published in August and underscore the effectiveness of the company’s consistent focus on long-term customer value, more efficient distribution channels, and a profitable, cash-generative business model. For the second half of the year, NAGA expects a significant acceleration in revenue momentum while maintaining operational discipline.

Revenues

The deliberate focus on long-term customer value rather than pure acquisition volume shaped revenue development in the first half of the year. Consolidated revenue amounted to EUR 27.7 million (H1 2025: EUR 32.3 million). The number of newly funded clients was 35% below the prior-year level, while the share of revenue generated through proprietary, more controllable channels – including digital marketing, influencer partnerships, and organic reach – increased from 36% to 53%. Average trade volume more than doubled year-on-year. While net deposits remained stable year-on-year in the first half, they increased by 39% in the second quarter compared with the first quarter.

EBITDA and Net Profit

Against this backdrop, EBITDA increased by 51% to EUR 4.5 million (preliminary: EUR 4.4 million; H1 2025: EUR 3.0 million), while the EBITDA margin improved to 16.3% (preliminary: 15.9%; H1 2025: 9.3%). This development reflects the targeted focus on more efficient distribution channels and a leaner, AI-enabled operating model. Marketing and branding expenses were reduced by 26% to EUR 11.2 million (H1 2025: EUR 15.0 million), bringing the marketing ratio down to 40.2% (H1 2025: 46.5%). Personnel, technology, and other operating expenses decreased by approximately 20% to EUR 11.0 million (H1 2025: EUR 13.7 million).

With EBIT of EUR 2.5 million (H1 2025: EUR -1.3 million) and consolidated net income of EUR 1.1 million (preliminary: EUR 0.9 million; H1 2025: EUR -2.6 million), NAGA returned to profitability at both the EBIT and consolidated net income levels. Earnings per share amounted to EUR 0.05 (H1 2025: EUR -0.11). Both quarters of the first half generated positive consolidated net income.

Strategic focus

The strategic focus was also reflected in the quality of the customer base. Customer Lifetime Value increased by 32% to EUR 2,757 per customer, while customer acquisition cost remained broadly stable at EUR 1,117 (H1 2025: EUR 1,099). As a result, Customer Lifetime Value represented 2.5 times customer acquisition cost (H1 2025: 2.2 times). At the same time, the withdrawal rate – the proportion of customer deposits subsequently withdrawn – declined from 43% to 28%.

Cash flow

The improved earnings performance was also reflected in operating cash flow, which increased to EUR 4.6 million (H1 2025: EUR 0.2 million), representing approximately 102% of EBITDA. Key drivers were profit before tax of approximately EUR 1.2 million and non-cash depreciation and amortization of approximately EUR 2.0 million. Cash flow from investing activities amounted to EUR -2.1 million (H1 2025: EUR -2.5 million), reflecting continued investment in technology and platform development. Cash flow from financing activities was positive at EUR 0.7 million (H1 2025: EUR 1.2 million), as proceeds from borrowings of EUR 1.8 million exceeded loan repayments, lease payments, and interest payments totaling EUR 1.1 million.

Financial position

Taking into account foreign exchange effects of EUR -0.6 million, cash and cash equivalents increased to EUR 10.5 million as of 30 June 2026 (31 December 2025: EUR 7.9 million). Positive financing activities and the increase in short-term borrowings to EUR 9.8 million (31 December 2025: EUR 7.6 million) contributed to the increase in total assets. Equity increased to EUR 79.0 million (31 December 2025: EUR 78.0 million); as total assets increased at a faster rate, the equity ratio stood at 83.4% (31 December 2025: 85.0%).

Octavian Patrascu, CEO of The NAGA Group AG said,

“Since the merger, we have consistently developed NAGA into a more scalable and profitable multi-asset fintech group. The first profitable first half in our Company’s history demonstrates that the integration, stronger operational discipline, and our focus on quality growth are delivering results. With positive performance at both the EBIT and consolidated net income levels, high cash conversion, and significantly more efficient distribution channels, we have created a solid foundation to accelerate growth in the second half of the year.”

FY 2026 guidance unchanged

The Management Board confirms its guidance for FY 2026 and continues to expect consolidated revenue of EUR 68 million to EUR 75 million and EBITDA of EUR 10 million to EUR 15 million.

NAGA Group’s full H1 2026 report can be downloaded here.

About NAGA

NAGA is a publicly listed German fintech group operating a multi-asset SuperApp that unifies trading, stock and ETF investing, crypto, social trading, and neo-banking in one platform. Powered by proprietary technology and advanced social features, including autocopy trading, NAGA serves a global community of over 2.5 million registered users across more than 100 countries, supported by 10 local offices and multiple regulatory licenses. The platform features an integrated VISA card with fiat and crypto conversion, dynamic social feeds, and a comprehensive product suite designed to make financial markets accessible to everyone.