TLDR
- Nu Holdings (NU) delivered Q4 net profit of $894.8 million, marking a 50% year-over-year increase
- Revenue climbed 45% to $4.86 billion; the platform now serves 131 million customers in Brazil, Mexico, and Colombia
- Shares tumbled 9.55% on Feb. 26, finishing at $15.06 even after topping revenue forecasts
- Market participants raised red flags about escalating costs, expenses, and missing margin outlook details
- The digital bank secured preliminary OCC approval in January 2026 to operate a national bank in the United States
Nu Holdings (NU) unveiled impressive Q4 2025 results on Feb. 25, 2026, yet shares plummeted 9.55% in the subsequent trading session, settling at $15.06.
The sharp decline occurred even as the fintech giant delivered solid 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 climbed to $4.86 billion, marking a 45% year-over-year gain and exceeding Wall Street’s consensus estimate of approximately $4.55 billion.
The company’s return on equity hit 33%, while its efficiency ratio showed improvement at 20%.
During the quarter, Nubank brought on board 17 million new customers, concluding 2025 with a total user base of 131 million spread across its three operating markets. This represented 15% annual growth and penetration of 62% among Brazil’s adult population.
Revenue per active customer (ARPAC) increased 27% year-over-year to reach $15, fueled by expanded credit offerings, float income, and fee generation.
The company’s lending portfolio grew 40% to $32.7 billion. Delinquencies beyond 90 days showed modest improvement, declining 0.1 percentage points to 6.6%.
Where Investors Pushed Back
JPMorgan analysts highlighted that the profit beat stemmed primarily from a tax rate that came in below expectations, rather than superior operational execution. This observation gave skeptics ammunition.
Citi described the results as a “strong quarter on top-line” while cautioning that cost of risk and operating expenses clouded the overall picture.
Market participants also expressed frustration over management’s lack of specific forward guidance regarding profitability margins, which contributed to selling pressure.
Following an initial 4% pop immediately after the earnings release, NU reversed direction and declined as much as 9.55% by the Feb. 26 closing bell. After-hours activity showed continued weakness, with shares hovering around $15.07.
CFO Guilherme Lago attributed the profit expansion to customer base growth, improved revenue per user, and controlled per-customer serving costs. CEO David Vélez characterized 2025 as a “fantastic year” for the organization.
U.S. Expansion Takes Shape
In January 2026, Nubank obtained conditional approval from the OCC for a national bank charter in the United States, representing the first of three required regulatory clearances. The fintech now has a 12-month window to satisfy capitalization requirements.
Vélez recognized the challenging nature of the U.S. banking landscape while noting potential opportunities within certain market segments.
Leadership detailed 2026 strategic priorities including securing Mexico’s banking license, expanding services for SME clients and affluent customers, and integrating artificial intelligence throughout operations.
Wall Street sentiment remains predominantly positive. Analyst price targets for the next 12 months span from $18.05 to $22.00, suggesting potential gains of 20% to 46% from current trading levels. The majority of ratings maintain a Buy recommendation.
Shares have traded within a 52-week band of $9.01 to $18.98, with recent peaks approaching $18.98 during late January 2026. The company’s market capitalization currently stands between $78 billion and $80 billion.
The next quarterly report is scheduled for May 14, 2026, covering Q1 performance.
