Nu Holdings (NU) Stock Drops 9% Despite Q4 Earnings Beat

TLDR

• Nu Holdings (NU) posted Q4 net profit of $894.8 million, up 50% year-over-year
• Total revenue rose 45% to $4.86 billion; customer base hit 131 million across Brazil, Mexico and Colombia
• Stock dropped 9.55% on Feb. 26, closing at $15.06 despite beating revenue estimates
• Investors flagged concerns over costs, operating expenses, and lack of clear margin guidance
• Nubank received conditional OCC approval in January 2026 for a U.S. national bank charter

Nu Holdings (NU) reported record Q4 2025 earnings on Feb. 25, 2026, but the stock fell 9.55% the following day, closing at $15.06.

The selloff came despite the company posting strong numbers across the board.

Net profit for the quarter came in at $894.8 million, up 50% from $552.6 million in Q4 2024. Revenue hit $4.86 billion, a 45% year-over-year increase, beating analyst estimates of around $4.55 billion.

Nu Holdings Ltd., NU

Return on equity reached 33%, and the efficiency ratio improved to 20%.

Nubank added 17 million customers in the quarter, ending 2025 with 131 million users across Brazil, Mexico and Colombia. That’s 15% growth year-over-year, covering 62% of Brazil’s adult population.

Average revenue per active customer (ARPAC) rose 27% year-over-year to $15, driven by credit, float, and fee income.

The total loan portfolio expanded 40% to $32.7 billion. The over-90-day delinquency rate edged down 0.1 percentage points to 6.6%.

Where Investors Pushed Back

JPMorgan analysts noted the net profit beat was largely due to a lower-than-expected tax rate rather than operational outperformance. That detail gave bears something to work with.

Investors also flagged the absence of clear forward guidance on profitability margins, which added to the pressure on the stock.

After initially jumping 4% right after the results dropped, NU reversed course and fell as much as 9.55% by close on Feb. 26. Post-market trading showed further pressure, with the stock dipping to around $15.07.

CFO Guilherme Lago said the profit increase was driven by customer growth, higher revenue per active customer, and stable costs to serve. CEO David Vélez called 2025 a “fantastic year.”

U.S. Expansion Takes Shape

In January 2026, Nubank received conditional approval from the OCC for a U.S. national bank charter, the first of three regulatory approvals needed. The company has up to 12 months to complete capitalization requirements.

Vélez acknowledged the U.S. market is competitive but said there are opportunities in specific segments.

Management outlined 2026 priorities including advancing Mexico’s banking license, expanding into SME and high-income segments, and embedding AI into operations.

Analyst consensus remains bullish. Twelve-month price targets range from $18.05 to $22.00, implying 20% to 46% upside from current levels. Most ratings are Buy.

The stock’s 52-week range is $9.01 to $18.98, with recent highs near $18.98 in late January 2026. Market cap sits around $78 billion to $80 billion.

Next earnings are expected May 14, 2026, covering Q1 results.

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