Nu Holdings Ltd. Class A (NU)
NYSE:NU
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Nu Holdings
(NYSE:NU)
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Rating:69Neutral
Price Target:
$13.00
▼(-15.25% Downside)
Action:Downgraded
Date:06/03/26
The score is driven primarily by strong financial performance (profitability and cash generation) and a supportive earnings-call outlook on efficiency and operating momentum. This is tempered by weak technicals (price below key moving averages with negative MACD and low RSI) and moderate valuation support (P/E ~18.2 with no dividend yield provided).
Positive Factors
Profitability & Cash Generation
Sustained ~18% net margin with operating and free cash flow both near $3.7B (TTM) indicates earnings reliably convert to cash. This durable cash generation supports reinvestment, provisioning and capital planning, lowering dependence on volatile external funding.
Negative Factors
Rising Reported Debt
A material uptick in reported total debt (~$39.4B TTM) raises refinancing and liquidity risk if market funding tightens. Even with moderate D/E, elevated absolute debt reduces strategic flexibility for acquisitions, buybacks or aggressive provisioning during stress periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability & Cash Generation
Sustained ~18% net margin with operating and free cash flow both near $3.7B (TTM) indicates earnings reliably convert to cash. This durable cash generation supports reinvestment, provisioning and capital planning, lowering dependence on volatile external funding.
Read all positive factors
Nu Holdings Key Performance Indicators (KPIs)
Any
Revenue by Type
Breaks down revenue by different streams, revealing which areas are driving growth and diversification of income sources.
Breaks down revenue by different streams, revealing which areas are driving growth and diversification of income sources.
Data provided by:
The Fly
The FlyNu Holdings (NU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$57.74B
Dividend YieldN/A
Average Volume (3M)58.00M
Price to Earnings (P/E)18.1
Beta (1Y)1.42
Revenue Growth48.56%
EPS Growth46.72%
CountryUS
Employees5,403
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.65
Shares Outstanding3,837,998,500
10 Day Avg. Volume73,650,043
30 Day Avg. Volume57,996,428
Financial Highlights & Ratios
PEG Ratio0.64
Price to Book (P/B)7.17
Price to Sales (P/S)5.10
P/FCF Ratio23.16
Enterprise Value/Market Cap0.82
Enterprise Value/Revenue2.70
Enterprise Value/Gross Profit6.18
Enterprise Value/Ebitda11.44
Forecast
1Y Price Target
$16.84Price Target Upside9.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.86
Revenue Forecast (FY)$21.76B
Nu Holdings Business Overview & Revenue Model
Company Description
Nu Holdings Ltd. operates as a technology-driven enterprise delivering digital financial services, with its primary operations spanning Brazil, Mexico, and Colombia. It supplies a variety of financial instruments, including Nu and Ultraviolet bran...
How the Company Makes Money
Nu Holdings makes money primarily by earning interest and fee income from its consumer finance and banking products delivered through its digital platform. Key revenue streams include: (1) Interest income and related yield on credit: Nu extends re...
Nu Holdings Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 18, 2026
Earnings Call Sentiment Positive
The call emphasized multiple strong operational and financial achievements: record revenue and net income, rapid customer growth and engagement, ARPAC expansion, robust NII and NIM, substantial credit-book growth with attractive unit economics, and measurable AI-driven productivity gains. Management framed higher provisions and allowance builds as expected outcomes of seasonality, portfolio growth and mix (cards and unsecured lending) rather than deterioration in asset quality, reinforced by strong coverage (16.2%) and provisions running ahead of new NPL formation. Near-term headwinds include seasonal delinquency increases, higher upfront provisioning and some timing-driven OpEx normalization, plus deposit seasonality and FGTS-related secured lending impacts. Overall, the positives (record results, scalable margins, AI progress, diversified revenue, strong coverage) materially outweigh the near-term, explainable lowlights.Positive Updates
Record Revenue and Net Income
Consolidated revenue reached a record $5.0 billion (first time), and net income for Q1 2026 was $871 million (quarterly historical high), up 41% year-over-year on an FX‑neutral basis; net income has compounded >80% annually since 2022 (FX‑neutral).
Negative Updates
Higher Provisions and ECL Build
Credit loss allowance (CLA) for the quarter was $1.79 billion, up 33% quarter-over-quarter (FX‑neutral). IFRS ECL allowance increased by $800 million (from $5.3B to $6.1B); portfolio growth contributed $423 million and seasonality $267 million of the build.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Revenue and Net Income
Consolidated revenue reached a record $5.0 billion (first time), and net income for Q1 2026 was $871 million (quarterly historical high), up 41% year-over-year on an FX‑neutral basis; net income has compounded >80% annually since 2022 (FX‑neutral).
Read all positive updates
Company Guidance
Guidance highlights: management expects full‑year 2026 consolidated efficiency of approximately 20% (after a first‑quarter reported efficiency of 17.6% and a core efficiency of 16.6% that excludes return‑to‑office, international and AI investments), with the core efficiency trend continuing to improve; the incremental U.S. OpEx hit is capped at less than 100 basis points of the consolidated efficiency ratio in each of 2026 and 2027 (inside the ~20% envelope). They expect risk‑adjusted NIM (9.5% in Q1, down 100 bps from 10.5%) to move back toward H2‑2025 levels while NIM remains strong (21.1% in Q1) and NII was a record $3.25bn; managerial effective tax rate should converge to ~30–35% for 2026 (IFRS ETR ~15–20%). On credit and balance‑sheet resilience, they reiterated buffers (total coverage ~16.2% of the portfolio, gross CLA vs. new 90+ NPL formation 153.8%), and noted provisioning and CLA builds this quarter were driven by seasonality, growth and mix rather than asset‑quality deterioration.Nu Holdings Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
73
Positive
Cash Flow
77
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.54B | 15.88B | 11.10B | 7.67B | 4.52B | 1.51B |
| Gross Profit | 7.67B | 7.12B | 5.10B | 3.35B | 1.57B | 664.56M |
| EBITDA | 4.14B | 3.97B | 2.87B | 1.60B | 35.27B | -152.82M |
| Net Income | 3.18B | 2.87B | 1.97B | 1.03B | -364.58M | -164.99M |
Balance Sheet | ||||||
| Total Assets | 77.46B | 74.89B | 49.93B | 43.35B | 29.93B | 19.86B |
| Cash, Cash Equivalents and Short-Term Investments | 30.32B | 16.14B | 23.15B | 22.02B | 16.84B | 10.69B |
| Total Debt | 3.17B | 5.21B | 886.53M | 1.17B | 803.16M | 167.92M |
| Total Liabilities | 64.86B | 63.57B | 42.28B | 36.94B | 25.04B | 15.42B |
| Stockholders Equity | 12.59B | 11.29B | 7.65B | 6.41B | 4.89B | 4.44B |
Cash Flow | ||||||
| Free Cash Flow | 1.20B | 3.49B | 2.22B | 1.09B | 641.27M | -2.95B |
| Operating Cash Flow | 1.20B | 3.50B | 2.40B | 1.27B | 755.57M | -2.92B |
| Investing Cash Flow | -336.17M | -342.31M | -330.63M | -177.00M | -127.15M | -154.19M |
| Financing Cash Flow | 2.38B | 2.29B | 727.74M | 425.21M | 654.04M | 3.34B |
Nu Holdings Technical Analysis
Negative
15.34
Price Trends
13.74
Negative
14.92
Negative
15.46
Negative
Market Momentum
-0.55
Positive
37.21
Neutral
30.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NU, the sentiment is Negative. The current price of 15.34 is above the 20-day moving average (MA) of 12.54, above the 50-day MA of 13.74, and below the 200-day MA of 15.46, indicating a bearish trend. The MACD of -0.55 indicates Positive momentum. The RSI at 37.21 is Neutral, neither overbought nor oversold. The STOCH value of 30.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NU.
Nu Holdings Risk Analysis
Nu Holdings disclosed 1 risk factors in its most recent earnings report. Nu Holdings reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nu Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $17.63B | 12.75 | 16.06% | 2.08% | 3.43% | 19.50% | |
71 Outperform | $82.24B | 11.30 | 12.71% | 4.14% | 10.57% | 19.15% | |
69 Neutral | $57.74B | 18.12 | 28.94% | ― | 48.56% | 46.72% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $63.13B | 7.91 | 14.55% | 3.67% | 7.21% | 26.24% | |
64 Neutral | $177.49B | 9.52 | 15.73% | 1.85% | -14.46% | 36.76% | |
62 Neutral | $81.04B | 8.48 | 9.46% | 1.71% | 12.95% | 21.64% |
* Financial Sector Average
NU
Nu Holdings
11.62
-1.14
-8.93%
BCS
Barclays
23.64
6.43
37.38%
EWBC
East West Bancorp
128.09
36.64
40.07%
ING
ING Groep
28.71
8.67
43.24%
NWG
NatWest Group
15.56
2.38
18.05%
SAN
Banco Santander SA
11.92
4.10
52.51%
Nu Holdings Corporate Events
Nu Holdings Names Former Visa Executive Rob Livingston as CFO in Planned Leadership Transition
Jun 1, 2026
Nu Holdings said on June 1, 2026, that it has appointed Rob Livingston as its new chief financial officer, effective July 13, replacing long-time finance chief Guilherme Lago, who will move into a special advisor role. Lago will advise the managem...
Nu Holdings Posts Strong Q1 2026 Profit Growth as Auditor Backs Interim Accounts
May 14, 2026
Nu Holdings Ltd., the Latin America-focused digital banking group behind Nubank, reported unaudited interim results for the three months ended March 31, 2026, showing strong top-line expansion as it continues to scale its app-based financial servi...
Nu Holdings Showcases Q1 2026 Earnings Surge and AI-Driven Expansion in Brazil and Mexico
May 14, 2026
On May 14, 2026, Nu Holdings presented its first-quarter 2026 results, highlighting a rapidly expanding customer base, rising revenue per active client and a sharply more efficient cost structure that has translated into strong earnings growth. Ma...
Nu Holdings Surpasses $5 Billion in Quarterly Revenue as AI-Driven Banking Fuels Q1 2026 Surge
May 14, 2026
Nu Holdings reported first-quarter 2026 results on May 14, highlighting rapid expansion to more than 135 million customers worldwide and cementing its status as Brazil’s largest private financial institution while becoming the third-largest ...
Nu Holdings Posts Strong Q1 2026 Managerial P&L Growth Backed by KPMG Assurance
May 14, 2026
Nu Holdings has released its managerial profit and loss figures for the three-month period ended March 31, 2026, showing strong year-on-year growth in core revenue lines. Total revenue climbed to $5.32 billion from $3.37 billion a year earlier, dr...
Nu Holdings Files 2025 Annual Report on Form 20-F with U.S. SEC
Apr 9, 2026
Nu Holdings Ltd. announced on April 8, 2026, that it filed its Annual Report on Form 20-F with the U.S. Securities and Exchange Commission for the fiscal year ended December 31, 2025. The filing makes the company’s complete audited financial...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.