TLDR
- Nu Holdings stock surged 10.49% on Friday following strong Q2 2025 earnings results
- Company reported record Q2 revenue of $3.7 billion with net income jumping 42% year-over-year to $637 million
- Customer base grew 17% to 122.7 million globally with Monthly Average Revenue per Customer hitting $12.2
- Goldman Sachs raised price target from $19 to $20 while maintaining Buy rating
- New leadership appointments include Eric Young as CTO and Ethan Eismann as Chief Design Officer
Nu Holdings stock jumped over 10% on Friday after the Latin American fintech giant delivered strong second-quarter results. The stock traded up 10.49% during regular hours following the earnings announcement.
The company posted record quarterly revenue of $3.7 billion for Q2 2025. This represents an 85% annualized growth rate since 2021, showing consistent expansion over multiple years.
Net income reached $637 million in the quarter, marking a 42% increase compared to the same period last year. The company has nearly tripled its quarterly net income over the past two years.
Nu Holdings added 4.1 million new customers during the quarter, bringing its total global customer base to 122.7 million. This represents 17% year-over-year growth in customer acquisition.
The Monthly Average Revenue per Active Customer crossed $12 for the first time, reaching $12.2 in Q2 2025. This metric increased 18% year-over-year on a foreign exchange neutral basis.
Customer engagement remains strong with a monthly activity rate of 83.2%. The company maintained its cost discipline with Monthly Average Cost to Serve per Active Customer staying stable at $0.80.
Strong Performance Across Regions
Nu Holdings operates primarily in Brazil, Mexico, and Colombia. In Brazil, the company now serves over 60% of the adult population with 107.3 million customers.
About 60% of Brazilian customers use Nu as their primary financial relationship. The Brazilian deposit base grew to $27.8 billion during the quarter.
Mexico operations continue expanding with 12 million customers, representing roughly 13% of Mexico’s adult population. Mexican deposits reached $6.7 billion.
Colombia showed the fastest growth with deposits increasing 841% year-over-year to $2.1 billion. The Colombian customer base reached 3.4 million, serving nearly 10% of the country’s adult population.
The company’s credit portfolio expanded across all markets. Active credit customers reached 55 million, up 11% year-over-year.
Mexico’s credit card base grew 52% year-over-year to 6.6 million customers. Colombia’s credit card base increased 34% year-over-year to 1.4 million customers.
Leadership Changes and Analyst Views
Nu Holdings made key leadership appointments during the quarter. Eric Young joined as Chief Technology Officer, bringing experience from Snap Inc., Google, and Amazon.
Ethan Eismann was named Chief Design Officer to focus on enhancing user experience and product design. These appointments signal the company’s commitment to technological innovation.
Goldman Sachs analyst Tito Labarta raised his price target from $19 to $20 while maintaining a Buy rating. Labarta highlighted robust loan growth and stable asset quality as key drivers.
The analyst expects net interest margins to remain stable in Brazil with potential gains in Mexico and Colombia. Lower deposit rates in these markets could reduce funding costs without triggering customer outflows.
Financial Metrics Show Strength
Nu Holdings’ gross profit totaled $1.55 billion in Q2 2025, up 14% sequentially and 24% year-over-year. Gross profit margin improved 160 basis points quarter-over-quarter to 42.2%.
Net interest income reached a new high of $2.1 billion, increasing 33% year-over-year and 11% quarter-over-quarter. The net interest margin rose 20 basis points to 17.7%.
Risk-adjusted net interest margin expanded 100 basis points to 9.2% in Q2 2025. The 15 to 90-day NPL ratio declined 30 basis points quarter-over-quarter to 4.4%.
Total deposits increased 41% year-over-year to $36.6 billion. The cost of funding reached 91% of blended interbank rates for the quarter.
Goldman Sachs kept its 2025 net income forecast at $2.8 billion. The firm maintained its 2026 estimate at $4.5 billion while raising the 2027 forecast 1% to $6.1 billion.
