TLDR
- Q4 net profit reached $894.8 million for Nu Holdings (NU), marking a 50% year-over-year surge
- Revenue climbed 45% to $4.86 billion; the platform now serves 131 million customers in Brazil, Mexico, and Colombia
- Shares declined 9.55% on Feb. 26, finishing at $15.06 even after topping revenue forecasts
- Market participants raised red flags about expense growth, cost trends, and absence of detailed margin projections
- The company secured preliminary OCC approval for a U.S. national bank charter in January 2026
Nu Holdings (NU) unveiled its Q4 2025 financial results on Feb. 25, 2026, delivering impressive metrics that still couldn’t prevent a sharp 9.55% decline in shares the next trading session, with the stock settling at $15.06.
The market reaction stood in stark contrast to the fundamentals presented in the earnings report.
The fintech giant’s quarterly net profit clocked in at $894.8 million, representing a substantial 50% increase from the $552.6 million recorded in Q4 2024. Total revenue surged to $4.86 billion, up 45% compared to the same period a year earlier and surpassing Wall Street consensus estimates of approximately $4.55 billion.
The company’s return on equity reached an impressive 33%, while its efficiency ratio showed improvement, coming in at 20%.
The Latin American digital banking platform welcomed 17 million new customers during the quarter, bringing its total user base to 131 million across its three core markets: Brazil, Mexico, and Colombia. This represented 15% annual growth and translated to penetration of 62% among Brazil’s adult population.
Average revenue per active customer (ARPAC) increased 27% year-over-year to reach $15, with growth fueled by credit products, float income, and various fees.
The company’s total loan book expanded 40% to $32.7 billion. Meanwhile, the delinquency rate for loans overdue by more than 90 days improved slightly, dropping 0.1 percentage points to 6.6%.
Where Investors Pushed Back
Analysts at JPMorgan highlighted that the bottom-line beat came primarily from a favorable tax rate rather than core operational strength, providing ammunition for skeptics.
Citi characterized the results as a “strong quarter on top-line” while expressing concern about cost of risk and operating expense trends that complicated the narrative.
The market also reacted negatively to management’s limited commentary on future profitability margin expectations, creating uncertainty that weighed on sentiment.
After an initial 4% pop immediately following the earnings release, NU shares reversed direction dramatically, tumbling as much as 9.55% by the Feb. 26 closing bell. Extended trading hours showed continued weakness, with the stock hovering around $15.07.
CFO Guilherme Lago attributed the profit growth to expanding customer counts, improved revenue per user, and controlled unit costs. CEO David Vélez described 2025 as a “fantastic year” for the organization.
U.S. Expansion Takes Shape
In January 2026, Nubank obtained preliminary approval 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 requirements.
Vélez recognized the challenging competitive landscape in the U.S. market while expressing confidence in opportunities within certain customer segments.
Leadership highlighted key 2026 initiatives including pursuing a full banking license in Mexico, targeting SME and affluent customer segments, and integrating artificial intelligence throughout the platform.
Wall Street sentiment remains optimistic overall. 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 analysts maintain Buy recommendations.
Shares have traded between $9.01 and $18.98 over the past 52 weeks, with recent peaks near $18.98 occurring in late January 2026. The company’s market capitalization stands between $78 billion and $80 billion.
The next earnings announcement is scheduled for May 14, 2026, when the company will report Q1 results.
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