Trade Republic filed annual accounts showing €232.7 million in profit for the fiscal year ended September 2025, a nearly sevenfold increase that serves as the final benchmark before Germany's payment-for-order-flow exemption expired.

The figures, drawn from newly filed financial statements, place the Berlin-based neobroker at a crossroads between its commission-driven past and a post-PFOF execution model already in operation.

How much of that revenue came from PFOF?

The headline numbers obscure a critical question for buy-side desks (institutional investors executing orders on behalf of asset managers and funds) studying European retail execution. Commission income rose 132% to €732.6 million, up from €315.6 million the prior year. Administrative expenses climbed 87% to €419.8 million, a slower trajectory that compressed the cost-to-income ratio — operating expenses divided by total revenue — to 62% from 83%.

The firm's non-financial report confirms that PFOF rebates, meaning payments received from trading partners for routing customer orders to them, formed part of commission income during the period. The financial statements disclose no rebate value. It is therefore impossible to determine how much of the €417 million commission jump came from routing payments to execution partners.

Trade Republic attributed the wider increase to "higher trading volumes, an expanded product range and continued international growth."

All trades during the reporting period routed through LS Exchange, a Nordic multilateral facility. Customers generally paid a fixed €1 third-party-cost fee. Savings-plan executions were free.

Interest income declined slightly as lower rates offset growth in interest-bearing cash reserves. The combined revenue lift pushed operating profit to €232.7 million.

What does the new execution structure change for clients?

Germany's PFOF exemption expired on 30 June 2026. Trade Republic responded with two execution models.

Under the standard Best Price option, the firm selects the execution venue based on prices available across relevant exchanges, charging €1 per order. Direct Price offers clients explicit venue selection across 30 exchanges for €2 per order.

The post-ban pricing reflects a deliberate tiering: algorithmic routing for cost-sensitive clients, direct venue access for those willing to pay double. Savings-plan executions remain free under both models.

Separately, Trade Republic Business III GmbH received approval to operate a multilateral trading facility on 23 January 2026. The accounts explain nothing about its intended role or how it fits the execution stack.

What does management signal about the post-ban period?

Management told shareholders it expected "another significant absolute increase in commission income during the following financial year" and had adapted strategy accordingly.

The next reporting cycle provides the first empirical test. Only the final three months of the upcoming fiscal year fall after the exemption expired, leaving the accounts to capture a transitional period rather than a full post-ban year.

A €1.2 billion secondary share transaction (a sale of existing investor stakes, providing no new capital to the issuer) valued the company at €12.5 billion. The firm reported more than 10 million customers and €150 billion in client assets at the period's end.

The revenue split filed this time next year will reveal whether Trade Republic's adapted strategy can sustain commission growth without the routing payments that once padded the line.