Trade Republic's annual profit rose almost sevenfold to €232.7 million as commission income more than doubled. The figures provide the final full-year benchmark before Germany’s payment-for-order-flow exemption expired. According to Trade Republic’s newly filed financial statements for the year ended September 2025, commission income rose because of higher trading volumes and a broader product range. Costs also rose, but much more slowly than revenue, driving a sharp improvement in profitability.Profit Reaches €232.7 Million Commission income rose 132% to €732.6 million, while interest income declined slightly as lower rates offset growth in interest-bearing cash reserves and bank balances. Operating costs also increased, but more slowly than income. Administrative expenses rose 87% to €419.8 million, including higher spending on marketing, technology and outsourced services. Consequently, the cost-to-income ratio improved to 62% from 83%.The results preceded a €1.2 billion secondary share transaction that valued Trade Republic at €12.5 billion. The transaction involved existing shares and did not provide new capital to the company, which reported more than 10 million customers and €150 billion in client assets. The Commission Engine Behind the Profit Trade Republic’s non-financial report describes the execution model operating during the period: all trades were conducted through LS Exchange, while customers generally paid a fixed €1 third-party-cost fee. Savings-plan executions were free. The financial statements show that commission income covered execution-related subsidies, customer fees, payment services and other commission items. Those subsidies included rebates received for routing securities orders to trading partners. PFOF rebates formed part of Trade Republic’s commission income during the period, but the financial statements do not disclose their value. It is therefore impossible to determine how much of the increase from €315.6 million to €732.6 million came from routing payments.Trade Republic attributed the wider increase to higher trading volumes, an expanded product range and continued international growth.The Post-PFOF Test Begins After Germany’s PFOF exemption expired on 30 June 2026, Trade Republic introduced two execution options. Under the standard Best Price model, the company selects the execution venue based on prices available across the relevant exchanges and charges €1 per order. Clients who want to choose the venue themselves can use Direct Price. This option provides access to 30 exchanges and costs €2 per order. Finance Magnates previously examined the new structure. Despite the approaching ban, management said in the report that it expected another significant absolute increase in commission income during the following financial year and had adapted its strategy accordingly. Separately, Trade Republic Business III GmbH received approval to operate a multilateral trading facility on 23 January 2026. The accounts do not explain its intended role or connect it to the new execution model. The next accounts will provide the first evidence of how the new model performs, although only the final three months of that financial year fall after the German PFOF exemption expired.This article was written by Tanya Chepkova at www.financemagnates.com.