TLDR
- Nu Holdings (NU) delivered Q4 net profit of $894.8 million, representing a 50% increase year-over-year
- Total revenue climbed 45% to reach $4.86 billion; customer count reached 131 million throughout Brazil, Mexico and Colombia
- Shares declined 9.55% on Feb. 26, settling at $15.06 even after surpassing revenue projections
- Market participants raised questions about cost structure, operating expenses, and absence of detailed margin outlook
- Nubank secured conditional OCC approval in January 2026 to operate a U.S. national bank charter
Nu Holdings (NU) delivered record Q4 2025 financial results on Feb. 25, 2026, yet shares tumbled 9.55% the subsequent trading day, settling at $15.06.
Nu Holdings, $NU, Q4-25.
Record scale. Record profits.
📊 Adj. EPS: $0.18 🟢
💰 Revenue: $4.9B 🟢
📈 Net Income: $894.8MNet income surged 50% YoY with ROE at 33% and ARPAC up 27% YoY to $15.00.
131M customers and accelerating monetization. pic.twitter.com/zo0QkuzFuH— EarningsTime (@Earnings_Time) February 25, 2026
The decline occurred even as the company delivered impressive performance metrics throughout the quarter.
The company’s net profit for the quarter reached $894.8 million, climbing 50% from $552.6 million during Q4 2024. Revenue touched $4.86 billion, representing a 45% year-over-year climb and surpassing analyst projections of approximately $4.55 billion.
Return on equity achieved 33%, while the efficiency ratio showed improvement to 20%.
Nubank brought on 17 million customers during the quarter, closing 2025 with 131 million users throughout Brazil, Mexico and Colombia. This represents 15% growth year-over-year, reaching 62% of Brazil’s adult population.
Average revenue per active customer (ARPAC) climbed 27% year-over-year to $15, propelled by credit, float, and fee income streams.
The company’s total loan portfolio grew 40% to reach $32.7 billion. The over-90-day delinquency rate decreased 0.1 percentage points to 6.6%.
Where Investors Pushed Back
JPMorgan analysts observed the net profit beat stemmed primarily from a lower-than-anticipated tax rate rather than operational outperformance. This observation provided ammunition for skeptical investors.
Citi characterized the quarter as “strong on top-line” while highlighting cost of risk and operating expenses as factors clouding the overall picture.
Market participants also expressed concern over the company’s lack of specific forward guidance regarding profitability margins, contributing additional pressure on shares.
Following an initial 4% surge immediately after the earnings release, NU changed direction and declined as much as 9.55% by the Feb. 26 close. Post-market activity revealed continued pressure, with shares moving to approximately $15.07.
CFO Guilherme Lago attributed the profit expansion to customer growth, elevated revenue per active customer, and consistent costs to serve. CEO David Vélez characterized 2025 as a “fantastic year.”
U.S. Expansion Takes Shape
During January 2026, Nubank obtained conditional approval from the OCC for a U.S. national bank charter, representing the first of three regulatory approvals required. The company has a 12-month window to fulfill capitalization requirements.
Vélez recognized the U.S. market presents significant competition while emphasizing opportunities exist within particular segments.
Management detailed 2026 priorities encompassing advancement of Mexico’s banking license, expansion into SME and high-income segments, and integration of AI throughout operations.
Analyst sentiment stays favorable. Twelve-month price projections span from $18.05 to $22.00, suggesting 20% to 46% potential appreciation from present levels. Most ratings remain Buy.
The stock’s 52-week trading range spans $9.01 to $18.98, with recent peaks approaching $18.98 during late January 2026. Market capitalization stands between $78 billion to $80 billion.
The company’s next earnings announcement is scheduled for May 14, 2026, covering Q1 performance.
