Global fintechs report record profits as revenues top $500B

Global fintech companies posted their strongest financial results on record, according to the Global Fintech Report 2026, coauthored by Boston Consulting Group and FT Partners. The report, using 2025 data, finds 74% of the largest public fintech firms were profitable, average EBITDA margins rose 400 basis points to 20%, global fintech revenues exceeded $500 billion and equity funding reached $58 billion, a 53% year-over-year increase. Fintech represented about 4% of the global financial services revenue pool.

Revenue for the sector grew 22% year over year, roughly four times the pace of traditional banks, the report finds.

Authors attribute the results to operating performance rather than easier capital. After a period of retrenchment, many firms adopted more disciplined business models, cut costs, focused product lines and expanded into new markets.

Regulatory changes widened the permitted scope for some fintech activities. Merger and acquisition activity increased, and neobanks added scale and customer reach. Rapid advances in artificial intelligence supported productivity and cost reduction across functions including finance, accounting, customer service and fraud detection.

“A real divide is emerging between fintech companies that have made AI foundational-embedded across finance, accounting, customer service, fraud, and every other function-and those still using it for coding help and a handful of disconnected workflows,” warned Steve McLaughlin, CEO and managing partner at FT Partners. He added that capital alone has not produced a major capability shift and that management decisions and engineering talent are central to sustained change.

Inderpreet Batra, managing director and senior partner at Boston Consulting Group and global leader of BCG’s Payments & Fintech business, wrote that the sector has come through the reset years as a more mature industry, with leading firms now profitable, disciplined and moving into new products and geographies.

The report gives detailed metrics: EBITDA margins rose 400 basis points to 20% in 2025; 74% of the biggest public fintech firms reported profits; global fintech revenues passed $500 billion; and equity funding totaled $58 billion. Results were uneven across regions and business models, with payments and business-to-business platforms showing stronger performance than some other segments.

The report also notes a multi-year correction in financing and valuation that forced startups to prioritize cash flow and unit economics. It finds firms that scaled revenues while controlling costs benefited most, and that embedding AI across core operations and hiring engineering talent increased the chance of sustained efficiency gains.

The Global Fintech Report 2026 describes the sector as moving from recovery to growth driven by performance improvements, dealmaking and technology adoption. The report identifies M&A activity, neobank expansion and the application of AI across finance functions as areas investors and industry observers will monitor to assess whether the recent gains persist.