Key Takeaways
- Nu Holdings (NU) delivered Q4 net profit of $894.8 million, marking a 50% increase compared to the prior year
- Revenue climbed 45% to reach $4.86 billion; the platform now serves 131 million customers in Brazil, Mexico, and Colombia
- Shares plummeted 9.55% on February 26, finishing at $15.06 even after surpassing revenue projections
- Market participants raised questions about rising costs, expense management, and insufficient margin outlook
- The fintech secured conditional OCC clearance in January 2026 to operate a national bank in the United States
Nu Holdings (NU) unveiled impressive Q4 2025 financial results on February 25, 2026, yet shares tumbled 9.55% during the subsequent trading session, settling at $15.06.
The dramatic decline occurred even as the Latin American fintech giant delivered robust performance metrics.
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, 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 improved to 20%.
The digital banking platform welcomed 17 million new customers during the quarter, concluding 2025 with 131 million active users spanning Brazil, Mexico, and Colombia. This represents 15% annual growth and penetration of 62% among Brazil’s adult demographic.
Average revenue per active customer (ARPAC) increased 27% year-over-year to $15, propelled by credit products, float income, and various fees.
The company’s loan portfolio swelled 40% to $32.7 billion. Meanwhile, the delinquency rate for loans overdue by more than 90 days declined slightly by 0.1 percentage points to 6.6%.
Market Concerns That Triggered the Selloff
JPMorgan research analysts highlighted that the bottom-line beat stemmed primarily from a more favorable tax rate rather than core operational excellence. This observation provided ammunition for skeptical investors.
Citi characterized the results as a “strong quarter on top-line” while expressing concerns about cost of risk and operating expense trends that clouded the overall picture.
Market participants also expressed frustration over management’s failure to provide explicit forward-looking guidance regarding profitability margins, contributing additional downward pressure on the share price.
Following an initial 4% spike immediately after the earnings release, NU reversed direction and declined as much as 9.55% by the closing bell on February 26. Extended-hours trading revealed continued weakness, with shares hovering around $15.07.
CFO Guilherme Lago attributed the profit expansion to customer base growth, improved per-customer monetization, and controlled service delivery costs. CEO David Vélez characterized 2025 as a “fantastic year” for the organization.
American Market Ambitions Progress
During January 2026, Nubank obtained conditional green light from the Office of the Comptroller of the Currency for a U.S. national banking charter, representing the first of three necessary regulatory clearances. The fintech has a 12-month window to satisfy capitalization mandates.
Vélez recognized that the American banking landscape is highly competitive while expressing confidence about opportunities within targeted customer segments.
Leadership articulated 2026 strategic imperatives including obtaining Mexico’s full banking license, penetrating SME and affluent customer segments, and integrating artificial intelligence throughout the platform.
Wall Street sentiment remains predominantly positive. Analyst price objectives for the next twelve months span from $18.05 to $22.00, suggesting potential appreciation of 20% to 46% from present levels. The majority of coverage maintains Buy recommendations.
The equity’s 52-week trading band extends from $9.01 to $18.98, with recent peaks approaching $18.98 during 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, covering Q1 performance.
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