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1. Company Snapshot

1.a. Company Description

Nu Holdings Ltd.operates as a digital financial services platform and technology company primarily in Brazil, Mexico, and Colombia.It offers Nu credit and debit cards; Ultraviolet credit and debit cards; and mobile payment solutions for NuAccount customers to make and receive transfers, pay bills, and make everyday purchases through their mobile phones.


The company provides savings solutions, such as Nu Personal Accounts, a digital account solution that supports all personal finance activities, from daily purchases and money transfers to savings; and Nu business accounts designed specifically for entrepreneur customers and their businesses.In addition, it offers NuInvest, an investment product that provides equity, fixed-income, options, and ETF products, as well as multimarket funds with curated asset allocations based on the customer's risk profile and financial position; personal unsecured loans; in-app ‘buy now pay later' solution for Nu card customers to pay credit and debit purchases, and banking payment slips over time in up to twelve installments; and NuInsurance protecting solutions to help its customers secure life insurance and funeral benefits.The company was founded in 2013 and is headquartered in Sao Paulo, Brazil.

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1.b. Last Insights on NU

Nu Holdings' recent performance is driven by strong user growth, resilient monetization, and scalable operations. The company's Q2 earnings report demonstrated solid growth, with 29% revenue growth, $637M net income, and 123M customers. Analysts are optimistic about its earnings prospects, with several firms raising their price targets. Nu Holdings' expansion into new markets and its dominance in Latin American digital banking with 123M customers are key growth drivers. Its pure-play digital banking exposure and superior growth rates make it an attractive investment opportunity.

1.c. Company Highlights

2. Nu Holdings' Q3 2025 Earnings: Strong Growth and Improving Asset Quality

Nu Holdings delivered a robust Q3 2025 performance, with revenue reaching a record $4 billion, driven by ARPAC expansion to $13 and customer growth. The company's net income was $783 million, with a record ROE of 31%, up 39% year-over-year on an FX-neutral basis. The gross profit grew 32% to $1.8 billion, with a gross profit margin of 43.5%. Earnings per share (EPS) came in at $0.17, beating estimates of $0.16. The company's financial performance was characterized by strong customer growth, with the customer base expanding to 127 million, and an activity rate above 83%.

Publication Date: Nov -15

📋 Highlights
  • Customer Growth:: Reached 127 million customers (+4 million net additions Q3 2025), with sustained 83%+ activity rate.
  • Revenue & Profitability:: Record $4 billion revenue, $783 million net income, and 31% ROE (up 39% YoY FX-neutral).
  • Credit Portfolio Expansion:: Portfolio grew 42% YoY to $30.4 billion; loan originations hit $4.2 billion (+40% YoY).
  • Margin & Efficiency:: Gross profit surged 32% to $1.8 billion (43.5% margin), efficiency ratio dropped to 27.7%.
  • Asset Quality:: 15-90 day NPLs at 4.2% (improving), 90+ day NPLs at 6.8%, with robust coverage ratios and AI-driven credit modeling.

Credit Portfolio and Asset Quality

The credit portfolio reached $30.4 billion, up 42% year-over-year on an FX-neutral basis, driven by record loan originations of $4.2 billion. The 15-90 day NPL ratio was 4.2%, and the 90+ day NPL ratio was 6.8%. Asset quality has improved due to intensified efforts to reactivate customers in Brazil who had defaulted a few years ago, with materially improved recovery levels. The company's risk-adjusted margin expanded to 9.9% from 9.2%, driven by lower cost of risk.

Segment Performance

In Mexico, ARPAC of $12.50 is driven mostly by interest-related income, with fees, including interchange, accounting for a smaller portion. Asset quality in Mexico has performed well, with growth accelerating at a 50-70% annualized rate. The company is excited about Mexico's potential, with the business posting compelling unit economics, including higher ROA and ROE than Brazil.

Valuation and Outlook

Nu Holdings trades at a P/TBV of approximately 7.97, considering the company's strong growth prospects and improving asset quality, the valuation appears reasonable. Analysts estimate next year's revenue growth at 29.4%. The company's focus on credit underwriting and risk management is expected to maintain a stable cost of risk. With a ROE of 31% and a net interest margin expansion potential, the company's prospects appear bright.

Regulatory Environment

The company is concerned about the proposed cap on interchange fees and its potential impact on financial inclusion. The change in Brazil's mortgage market doesn't seem to be a priority, but the FGTS loan regulation change may decrease originations. The company is bullish on private payroll loans in the medium and long term but is cautious about cost of risk.

3. NewsRoom

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Nubank Seeks Banking License in Brazil to Comply With New Rule on Branding

Dec -03

Source: pymnts.com

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Nubank Intends to Obtain Banking License in Brazil in 2026

Dec -03

Source: businesswire.com

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5 Amazing Growth Stocks to Buy Before 2026

Nov -30

Source: fool.com

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Nu vs. OppFi: Which Fintech Lender Offers Better Upside Now?

Nov -26

Source: zacks.com

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Nu Holdings: Positioned For Outperformance

Nov -25

Source: seekingalpha.com

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2 Great Stocks Howard Marks' Oaktree Bought in Q3

Nov -25

Source: 247wallst.com

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Touchstone Emerging Markets Growth Fund Q3 2025 Portfolio Review

Nov -25

Source: seekingalpha.com

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AXQ Capital LP Acquires Shares of 19,838 Nu Holdings Ltd. $NU

Nov -25

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (25.00%)

6. Segments

Banking

Expected Growth: 25.0%

Nu Holdings' Banking segment is poised for growth driven by increasing adoption of digital banking, low fees, and user-friendly interfaces. Expansion in Brazil and globally, coupled with rising demand for mobile banking, loans, and credit products, are key fundamental drivers. Partnerships and innovative product offerings will likely fuel growth.

7. Detailed Products

NuAccount

A digital account that allows users to manage their finances, track expenses, and set budgets.

NuCard

A debit card that offers cashback rewards, no foreign transaction fees, and real-time spending updates.

NuInvest

A investment platform that allows users to invest in a diversified portfolio with low fees and no minimum balance.

NuCredit

A credit card that offers flexible repayment terms, no annual fees, and credit score tracking.

NuBusiness

A business banking platform that offers cash flow management, invoicing, and payment tracking.

8. Nu Holdings Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes is moderate for Nu Holdings Ltd. as there are some alternatives to digital banking, but they are not yet widely adopted.

Bargaining Power Of Customers

The bargaining power of customers is low for Nu Holdings Ltd. as customers have limited options for digital banking and are likely to stick with the company due to its strong brand reputation.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low for Nu Holdings Ltd. as the company has a strong negotiating position due to its large customer base and established relationships with suppliers.

Threat Of New Entrants

The threat of new entrants is high for Nu Holdings Ltd. as the digital banking industry is attractive and has low barriers to entry, making it easy for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry is high for Nu Holdings Ltd. as the digital banking industry is highly competitive, with many established players and new entrants vying for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 17.37%
Debt Cost 9.52%
Equity Weight 82.63%
Equity Cost 9.52%
WACC 9.52%
Leverage 21.02%

11. Quality Control: Nu Holdings Ltd. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
HSBC

A-Score: 8.0/10

Value: 7.7

Growth: 7.3

Quality: 6.3

Yield: 8.8

Momentum: 9.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
NatWest

A-Score: 7.3/10

Value: 8.0

Growth: 5.6

Quality: 6.8

Yield: 8.1

Momentum: 9.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
CIBC

A-Score: 6.9/10

Value: 5.2

Growth: 5.2

Quality: 5.2

Yield: 8.0

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Wells Fargo

A-Score: 6.1/10

Value: 5.9

Growth: 5.2

Quality: 5.7

Yield: 4.0

Momentum: 8.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
UBS

A-Score: 5.2/10

Value: 4.2

Growth: 4.0

Quality: 3.9

Yield: 5.6

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Nu

A-Score: 5.0/10

Value: 0.8

Growth: 9.0

Quality: 7.6

Yield: 0.0

Momentum: 6.0

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

16.7$

Current Price

16.7$

Potential

-0.00%

Expected Cash-Flows