NU (NYSE:NU) Posts Quarterly Earnings Results, Beats Estimates By $0.01 EPS

NU (NYSE:NU) announced its earnings results on Wednesday. The company reported $0.19 EPS for the quarter, topping the consensus estimate of $0.18 by $0.01, Zacks reports. The company had revenue of $4.86 billion for the quarter, compared to analysts’ expectations of $4.55 billion. NU had a net margin of 18.19% and a return on equity of 32.08%.

Here are the key takeaways from NU’s conference call:

• Nu delivered strong scale and profitability in Q4 — 131 million customers (+17M), ARPAC of $15, revenues of $4.9 billion (+45% YoY), net income of $895 million and a record 33% ROE.
• AI and international expansion are strategic priorities — the foundation model nuFormer is in production for credit decisioning, Pix with AI surpassed 10M MAUs, and Nu received conditional OCC approval for a U.S. national bank charter, positioning the firm to scale beyond Latin America.
• The company introduced a new Managerial P&L and reporting framework (reconciled to IFRS and backfilled to 2021) to show internal economics and comparability, but these managerial measures are not IFRS and may affect cross-company comparisons.
• While the efficiency ratio improved to 19.9% under the new methodology, management expects near-term upward pressure from deliberate investments (return-to-office provisions ~80–100 bps impact, AI/R&D hiring, and U.S. buildout) plus one-off items (Prosofipo ~$25M, return-to-office ~$22M) that could weigh on margins.
• Capital and liquidity remain strong with total capital of $8.9 billion (about $3.0B at holding level) and available funding of ~$38.8B (~2x net credit portfolio), giving headroom to scale credit and fund growth initiatives.

NU Trading Down 9.5%

NU opened at $15.07 on Friday. The company’s 50 day moving average is $17.17 and its 200-day moving average is $16.08. The company has a market cap of $72.62 billion, a P/E ratio of 25.98, a PEG ratio of 0.54 and a beta of 1.08. NU has a 1-year low of $9.01 and a 1-year high of $18.98. The company has a current ratio of 0.56, a quick ratio of 0.56 and a debt-to-equity ratio of 0.29.

Key NU News

Here are the key news stories impacting NU this week:

• Positive Sentiment: Strong quarter: record Q4 revenue of about $4.86B (+62.5% YoY) and net income of $894.8M (+50% YoY); EPS $0.19 topped consensus — evidence of durable top?line growth and improving profitability. Nu Holdings Ltd. Reports Fourth Quarter and Full Year 2025 Financial Results
• Positive Sentiment: Customer expansion remains strong: active customers rose ~15% to ~131M, supporting future lending/revenue opportunities across Brazil, Mexico and Colombia. Nubank Profits Jump as Customer Base Grows 15%
• Neutral Sentiment: Valuation and strategic progress: analysts note strong NII and FY results but say the stock already priced in much of the expansion; company also flagged progress toward U.S. banking charter ambitions. These items are strategic/longer?term and may not move price immediately. A Look At Nu Holdings (NYSE:NU) Valuation After Strong 2025 Results And U.S. Banking Charter Progress
• Neutral Sentiment: Short interest fell: short positions declined ~15.7% in February to ~91.9M shares (~1.9% of shares sold short), days?to?cover ?1.9 — reduces near?term short?squeeze potential but is a modest market structure datapoint. Source: market data
• Negative Sentiment: Market reaction and investor concerns: despite the beats, the stock dropped (including an after?hours fall) as investors questioned rising costs, credit risk and whether growth/margin improvement is fully sustainable — commentary suggests much of the good news was already priced in, and valuation appears stretched to some investors. Nu stock down despite record quarterly revenue

Institutional Trading of NU

Hedge funds and other institutional investors have recently modified their holdings of the stock. EverSource Wealth Advisors LLC boosted its holdings in shares of NU by 63.5% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,768 shares of the company’s stock valued at $52,000 after acquiring an additional 1,464 shares in the last quarter. Jump Financial LLC raised its position in NU by 541.8% in the second quarter. Jump Financial LLC now owns 185,434 shares of the company’s stock valued at $2,544,000 after purchasing an additional 156,539 shares during the last quarter. WINTON GROUP Ltd boosted its stake in shares of NU by 38.5% during the second quarter. WINTON GROUP Ltd now owns 37,156 shares of the company’s stock valued at $510,000 after purchasing an additional 10,332 shares in the last quarter. AXA S.A. grew its holdings in shares of NU by 1.4% during the second quarter. AXA S.A. now owns 192,311 shares of the company’s stock worth $2,639,000 after purchasing an additional 2,682 shares during the last quarter. Finally, Nebula Research & Development LLC increased its stake in shares of NU by 63.7% in the second quarter. Nebula Research & Development LLC now owns 19,937 shares of the company’s stock valued at $274,000 after buying an additional 7,760 shares during the period. Institutional investors own 84.02% of the company’s stock.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the company. KeyCorp upped their target price on NU from $15.00 to $19.00 and gave the company an “overweight” rating in a research report on Friday, November 14th. JPMorgan Chase & Co. upped their price objective on shares of NU from $17.00 to $18.00 and gave the stock an “overweight” rating in a research report on Thursday, November 20th. Itau BBA Securities reissued an “outperform” rating on shares of NU in a report on Tuesday. Weiss Ratings upgraded shares of NU from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, February 18th. Finally, UBS Group increased their price target on shares of NU from $16.00 to $18.40 and gave the stock a “neutral” rating in a research report on Thursday, December 4th. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $18.34.

About NU

Nu Holdings Ltd (NYSE: NU), commonly known by its consumer brand Nubank, is a Latin American financial technology company that provides digital banking and financial services through a mobile-first platform. The company’s core offerings include no-fee digital checking accounts, credit cards, personal loans, payments and transfers, and a range of savings and investment products. Nubank emphasizes a streamlined customer experience delivered via its smartphone app, combined with data-driven underwriting and automated customer service tools.

Founded in 2013 by David Vélez, Cristina Junqueira and Edward Wible, Nu grew rapidly by targeting underbanked and digitally savvy consumers in Latin America with low-fee, transparent products.