NAGA Group Returns to Profit in Q1 2026 as AI Strategy and Cost Cuts Boost Margins

The NAGA Group reported its first profitable first quarter on Thursday, posting a net profit of €0.5 million as the Hamburg-based multi-asset fintech behind the Naga One superapp said cost discipline and operational efficiency improvements began to take effect.

Group revenue reached €14.4 million, down from €16.4 million a year earlier. However, the company noted that revenue was flat year over year when excluding foreign exchange impacts. EBITDA more than doubled to €2.3 million from €1.0 million in Q1 2025, while the margin rose to 15.8% from 6.1%. The company’s net profit of €0.5 million marked a turnaround from a €1.7 million loss in the same period last year.

Management attributed the improvement to a leaner operating model with a structurally lower cost base, supported by technology initiatives including AI-driven tools across marketing, customer support and internal processes. CEO Octavian Patrascu said the company has been moving toward an “AI-first approach” since the start of the year.

NAGA previously said that AI now handles roughly two-thirds of its chat-based customer support without human involvement, and that its marketing department operates with around 20% fewer staff than before.

Operationally, the company reported 87,500 new user registrations in Q1 2026, up from 73,902 a year earlier. However, new funded accounts declined to 4,903 from 6,088. NAGA said the drop was partly offset by higher net deposits, lower client withdrawals and stronger platform activity.

Reported trading volume reached $80.7 billion during the quarter. The company said March was the strongest month for trading activity, giving the business positive momentum heading into Q2.

Despite the improvement, NAGA remains much smaller than major listed CFD brokers. London-listed Plus500 reported Q1 2026 revenue of $242.1 million and EBITDA of $95.7 million with a 40% margin during the same period.

For the full year 2026, NAGA maintained its guidance for revenue between €68 million and €75 million and EBITDA between €10 million and €15 million. The company also noted a newly signed distribution partnership and ongoing white-label discussions that are not yet reflected in its current projections.

CEO Octavian Patrascu said the first quarter results represent “an important step forward for NAGA” as the company continues to implement its strategic changes.