Key Takeaways
- Nu Holdings (NU) delivered Q4 net profit of $894.8 million, marking a 50% year-over-year surge
- Revenue climbed 45% to $4.86 billion while the customer count reached 131 million spanning Brazil, Mexico, and Colombia
- Shares plummeted 9.55% on February 26, settling at $15.06 even after surpassing revenue projections
- Market participants raised red flags about rising costs, operational spending, and insufficient margin transparency
- The digital bank secured preliminary OCC approval in January 2026 for establishing a U.S. national banking operation
Nu Holdings (NU) unveiled impressive Q4 2025 financial results on February 25, 2026, yet shares tumbled 9.55% during the subsequent trading session, finishing at $15.06.
The sharp decline occurred even as the digital banking giant delivered robust performance metrics throughout its report.
Quarterly net profit reached $894.8 million, representing a 50% jump from the $552.6 million recorded in Q4 2024. Total revenue surged to $4.86 billion, reflecting 45% year-over-year expansion and exceeding Wall Street’s consensus forecast of approximately $4.55 billion.
The company achieved a 33% return on equity while its efficiency ratio strengthened to 20%.
During the quarter, Nubank welcomed 17 million new customers, pushing its total user base to 131 million throughout Brazil, Mexico, and Colombia by year-end 2025. This represents 15% annual growth and penetration of 62% among Brazilian adults.
Average revenue per active customer (ARPAC) climbed 27% year-over-year to $15, fueled by growth in credit products, float income, and fee generation.
The company’s total loan book swelled 40% to $32.7 billion. Meanwhile, loans past due over 90 days improved slightly, declining 0.1 percentage points to 6.6%.
Market Concerns Emerge
JPMorgan research highlighted that the profit beat stemmed primarily from a favorable tax rate rather than core operating improvements. This observation provided ammunition for skeptical investors.
Citi characterized the quarter as showing “strong top-line” performance but noted that risk costs and operating expenditures complicated the overall narrative.
Market participants also expressed frustration over management’s failure to provide explicit forward-looking guidance on profitability margins, contributing additional downward pressure.
Shares initially spiked 4% immediately following the earnings announcement but quickly reversed direction, ultimately dropping 9.55% by the closing bell on February 26. Extended-hours trading showed continued weakness, with the stock hovering near $15.07.
CFO Guilherme Lago attributed the profit expansion to accelerating customer acquisition, enhanced revenue per user, and disciplined cost management. CEO David Vélez described 2025 as a “fantastic year” for the organization.
American Market Entry Progresses
In January 2026, Nubank obtained preliminary authorization from the Office of the Comptroller of the Currency for a U.S. national bank charter, representing the first of three required regulatory clearances. The fintech has a 12-month window to satisfy capitalization mandates.
Vélez recognized the intensely competitive nature of the American banking landscape but emphasized opportunities exist within targeted market segments.
Leadership identified 2026 strategic priorities including securing Mexico’s full banking license, penetrating SME and affluent customer segments, and integrating artificial intelligence throughout its platform.
Wall Street analysts maintain a predominantly optimistic outlook. Twelve-month price objectives span from $18.05 to $22.00, suggesting potential gains of 20% to 46% from prevailing levels. The majority of analyst ratings are Buy.
The stock has traded between $9.01 and $18.98 over the past 52 weeks, with recent peaks approaching $18.98 in late January 2026. Current market capitalization hovers between $78 billion and $80 billion.
The company’s next quarterly report is scheduled for May 14, 2026, when Q1 2026 results will be released.
