Brex Targets $5 Billion European Revenue and Profitability Within Two Quarters Following EU License

Brex, the financial technology company specializing in corporate spend management, has secured a Payment Institution (PI) license in the European Union via the Netherlands, marking a significant step in its global expansion strategy. This move, finalized in August 2025, positions Brex to directly issue commercial credit cards and execute payment services across all EU member states. The company aims to unlock up to $5 billion in incremental annual revenue from the region, building on its annualized gross revenue of $700 million reported in August. Profitability is anticipated within the next two quarters.

The European expansion is a calculated effort by Brex to regain market momentum and achieve profitability ahead of a potential Initial Public Offering (IPO). This strategic pivot follows a period of significant retrenchment, including a 20% layoff of its staff in January 2024 and a narrowed product scope. These actions were taken after Brex reached a peak valuation of $12.3 billion in 2022, reflecting a shift in focus towards sustainable growth in a changing economic landscape.

Brex's push into Europe intensifies its competition with rivals like Ramp, which was valued at $5.8 billion in August 2023, a decrease from its prior valuation. The company also directly challenges established incumbents such as American Express in the European market. Regarding the company's financial future, CEO Pedro Franceschi has been quoted stating:

"breakeven is 'inevitable,' despite the company operating at a loss since inception." This strong assertion underscores Brex's commitment to its new financial trajectory.

This strategic shift by Brex reflects a broader industry trend where digital-first banks and fintechs are increasingly prioritizing profitability over growth at all costs, especially as global capital conditions evolve. The B2B payments market, a key focus for Brex, is projected to grow substantially, with some estimates reaching up to $4.19 trillion by 2030. However, the current environment of rising interest rates and tightening venture capital markets could influence growth capital availability and potentially delay IPO timelines across the sector.