- Strong Financial Performance: Q4 2025 revenue hit $4.9 billion (45% YoY growth), gross profit reached $2 billion (38% YoY growth), and net income hit $895 million with a record 33% return on equity.
- Customer Growth & Engagement: Added 17 million net new customers in 2025, maintained 83% activity rate, and achieved ARPAC of $15 (9% QOQ, 27% YoY growth).
- Portfolio & Asset Quality: Total portfolio grew to $32.7 billion (40% YoY), deposits reached $41.9 billion (29% YoY), and early-stage delinquencies fell to 4.1% (20 bps decline).
- 2026 Strategic Focus: Priorities include global expansion (U.S. conditional bank charter), AI investments (nuFormer expansion to lending and credit cards), and optimizing secured loan portfolios despite FGTS originations dropping 50% due to regulations.
- Efficiency & Cost Outlook: Efficiency ratio declined to 19.9% (operating leverage), but expected short-term upward pressure (80-100 bps) from AI investments, return-to-office, and globalization efforts, offset by medium-term gains.
Business Highlights
The company added 17 million net new customers in 2025, maintaining an activity rate of 83%. ARPAC reached $15, up 9% quarter-over-quarter and 27% year-over-year. The total portfolio reached $32.7 billion, up 40% year-over-year, with credit cards increasing 12.2% quarter-over-quarter. Deposits reached $41.9 billion, up 29% year-over-year.
Financial Performance
Net interest income increased 13% quarter-over-quarter, driven by portfolio growth and improved funding costs. Risk-adjusted Net Interest Margin (NIM) closed at 10.5%. Asset quality improved, with early-stage delinquencies declining 20 basis points to 4.1%. The company's cost of risk increased in the quarter, but this was entirely attributed to growth and not asset quality deterioration.
Outlook and Valuation
Nu Holdings is expected to continue its growth trajectory, with analysts estimating revenue growth of 22.5% next year. The company's Price-to-Tangible Book Value (P/TBV) ratio is around 6.91, and its Return on Equity (ROE) is 27.81%. The stock's current valuation multiples suggest that the market is pricing in a certain level of growth and profitability. As David Velez noted, "2026 will be an inflection year, with the company transitioning from a Latin American leader to a global digital banking platform."
Investment Thesis
Nu Holdings' strong financial performance, coupled with its expanding customer base and improving asset quality, positions the company for continued growth. The company's focus on investing in AI, expanding its product offerings, and building its presence in new markets is expected to drive future growth. With a solid track record of execution and a clear strategy, Nu Holdings is an attractive investment opportunity in the financial sector.