Essential Highlights
- Nu Holdings (NU) delivered Q4 net profit of $894.8 million, a substantial 50% increase compared to the previous year
- Total revenue surged 45% to reach $4.86 billion as the customer base grew to 131 million across Brazil, Mexico, and Colombia
- Stock price dropped 9.55% on Feb. 26, closing at $15.06 despite beating analyst revenue estimates
- Investors raised concerns regarding increasing operational expenses and ambiguous margin projections
- In January 2026, the fintech received preliminary OCC authorization to establish a national banking operation in the United States
Nu Holdings (NU) released strong fourth-quarter 2025 financial results on Feb. 25, 2026, but investor sentiment turned negative, pushing shares down 9.55% during the following trading day to close at $15.06.
The negative market response caught many analysts off guard considering the company’s outstanding quarterly performance.
Net profit for the quarter totaled $894.8 million, a significant 50% surge compared to the $552.6 million reported during the same period in 2024. Revenue hit $4.86 billion, demonstrating 45% year-over-year expansion and surpassing consensus estimates of around $4.55 billion.
The digital banking platform posted a return on equity of 33% while successfully improving its efficiency ratio to 20%.
The company continued its impressive user growth trajectory, adding 17 million new customers throughout the quarter. Total customer count reached 131 million by the conclusion of 2025 across Nubank’s three markets—Brazil, Mexico, and Colombia. This figure represented 15% growth annually and captured 62% market penetration among adult Brazilians.
Average revenue per active customer (ARPAC) rose 27% year-over-year to $15, driven by expansion in lending products, interest income on deposits, and various fee-generating services.
The lending portfolio expanded 40% to $32.7 billion in total value. Asset quality metrics remained stable with 90-day delinquency rates declining modestly by 0.1 percentage points to 6.6%.
Factors Behind the Sharp Stock Decline
JPMorgan research noted that the earnings beat resulted largely from favorable tax treatment rather than underlying operational improvements. This interpretation gave bearish investors reason for concern.
Citi analysts praised the “strong quarter on top-line” performance but raised red flags regarding cost of risk metrics and operating expense trajectories that clouded the positive results.
Investor sentiment also soured due to management’s decision not to provide detailed forward guidance on profitability margins, leaving questions about sustainable performance unanswered.
The stock experienced an initial 4% rally immediately after earnings disclosure, but this enthusiasm quickly evaporated. By the end of trading on Feb. 26, NU had plummeted 9.55%. Extended trading hours showed continued softness with the stock trading near $15.07.
CFO Guilherme Lago credited the profit improvement to growing customer engagement, enhanced per-user revenue generation, and disciplined cost management. CEO David Vélez described 2025 as a “fantastic year” for Nubank’s evolution.
Expanding Into the U.S. Banking Market
A major development arrived in January 2026 when Nubank received preliminary approval from the OCC for a U.S. national bank charter—the first of three necessary regulatory approvals. The company now has 12 months to meet capital and operational requirements.
Vélez acknowledged the intense competition within American banking markets but stressed opportunities exist in specific customer niches.
For 2026, management outlined critical strategic objectives: obtaining Mexico’s banking license, broadening offerings for small business clients and high-net-worth individuals, and deploying artificial intelligence capabilities across the platform.
Analyst community sentiment skews optimistic. Twelve-month price targets range from $18.05 to $22.00, implying upside potential of 20% to 46% from present levels. Most ratings fall into Buy categories.
The stock has fluctuated between $9.01 and $18.98 during the past year, with the recent high of $18.98 reached in late January 2026. Market capitalization currently sits between $78 billion and $80 billion.
Management will report first-quarter 2026 results on May 14, 2026.
