Nu Holdings Ltd. Class A (NU)
NYSE:NU
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Nu Holdings
(NYSE:NU)
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Rating:70Neutral
Price Target:
$16.50
▲(16.61% Upside)
Action:DowngradedDate:02/28/26
Score is driven primarily by strong financial performance (profitability and cash flow) and a constructive earnings-call outlook with solid operating momentum and capital/liquidity. Offsetting factors are a weak technical trend (below key moving averages with negative MACD) and only moderate valuation support at a ~25 P/E, plus balance-sheet uncertainty tied to the reported 2025 debt jump and missing leverage ratios.
Positive Factors
Cash Generation
Nu’s material improvement in operating and free cash flow — roughly matching net income in 2023–2025 — indicates durable cash conversion. Strong FCF provides internal funding for product rollout, capital for regulatory requirements and cushions credit volatility, supporting sustainable execution over the next several quarters.
Negative Factors
Balance Sheet Uncertainty
A step-change in reported debt in 2025 creates ambiguity around leverage and funding structure, especially given zeroed leverage ratios. This uncertainty complicates assessment of credit risk, refinancing needs and capital allocation and may constrain strategic flexibility over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Nu’s material improvement in operating and free cash flow — roughly matching net income in 2023–2025 — indicates durable cash conversion. Strong FCF provides internal funding for product rollout, capital for regulatory requirements and cushions credit volatility, supporting sustainable execution over the next several quarters.
Read all positive factors
Nu Holdings (NU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$68.71B
Dividend YieldN/A
Average Volume (3M)63.66M
Price to Earnings (P/E)28.2
Beta (1Y)1.46
Revenue Growth30.94%
EPS Growth40.87%
CountryUS
Employees5,403
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.18
Shares Outstanding3,833,073,000
10 Day Avg. Volume58,958,480
30 Day Avg. Volume63,664,748
Financial Highlights & Ratios
PEG Ratio0.64
Price to Book (P/B)7.17
Price to Sales (P/S)5.10
P/FCF Ratio9.52
Enterprise Value/Market Cap1.39
Enterprise Value/Revenue6.20
Enterprise Value/Gross Profit14.43
Enterprise Value/Ebitda24.22
Forecast
1Y Price Target
$20.08Price Target Upside41.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)0.87
Revenue Forecast (FY)$21.08B
Nu Holdings Business Overview & Revenue Model
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 NuAccoun...
How the Company Makes Money
Nu Holdings generates revenue through multiple key streams, primarily from its financial products and services. The company earns interest income from loans and credit products, including personal loans and credit card balances. Additionally, Nu c...
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 Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 14, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive operating performance: robust customer growth, significant revenue and profit expansion, improving monetization (ARPAC), large credit and deposit growth, strong capital/liquidity buffers, and tangible AI/product progress. Near‑term headwinds and noise include regulatory changes to FGTS that reduced secured originations, several one‑time charges (Prosofipo, return‑to‑office provisions), and expected short‑term pressure on the efficiency ratio from deliberate investments in AI, global expansion and office reopening. Asset quality trends are broadly stable but subject to normal seasonality and higher provisions driven by growth. Overall, positive fundamentals and strategic positioning outweigh the manageable and largely explicit near‑term challenges.Positive Updates
Strong Customer Growth and Engagement
Total customers reached 131 million, +17 million net adds in 2025; activity rate at 83%, supporting scale and engagement metrics across markets.
Negative Updates
FGTS Regulatory Headwind to Secured Lending
New FGTS regulations (effective Nov 1, 2025) reduced FGTS originations by ~50–60%, acting as a headwind to secured loan originations; management estimates sequential portfolio growth would have been ~13–14% (vs ~11% reported) excluding FGTS impact.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Customer Growth and Engagement
Total customers reached 131 million, +17 million net adds in 2025; activity rate at 83%, supporting scale and engagement metrics across markets.
Read all positive updates
Company Guidance
The company guided that 2026 will be an “inflection year” focused on three pillars—winning in core markets, laying foundations for international expansion (conditional OCC U.S. national bank approval in January) and scaling AI (nuFormer in production, Pix with AI >10M MAU)—while acknowledging near-term investments will pressure efficiency but drive medium‑term returns; key metrics cited to support that plan include 131M customers (‑17M net adds in 2025) with an 83% activity rate (Brazil: 113M customers, 86% activity), ARPAC of $15 (+9% QoQ, +27% YoY), Q4 revenues $4.9B (+45% YoY), gross profit nearly $2B (+38% YoY), net income $895M (+50% YoY) and ROE 33%, a total credit portfolio $32.7B (+40% YoY) (credit cards +12.2% QoQ; unsecured lending >$8B with $4B originations in Q4; secured lending +3.8% QoQ), total deposits $41.9B (+29% YoY) with cost of deposits at 87% of the interbank rate, risk‑adjusted NIM 10.5%, consolidated 15–90 day NPLs 4.1% and 90+ NPLs 6.6% (coverage strong), CLA/avg credit ~3.9%, managerial efficiency ratio under the new methodology at 19.9% (but management expects 80–100bps impact from return‑to‑office and some upward pressure from AI and globalization investments over the next 4–6 quarters), and robust capital/liquidity (total capital $8.9B; $3.6B covering regulatory requirements; $2.2B excess capital at operating entities; $3.0B unrestricted at Nu Holdings; available funding $38.8B, ~2x net credit portfolio of $19B).Nu Holdings Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
58
Neutral
Cash Flow
86
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 15.88B | 11.10B | 7.67B | 4.52B | 1.51B |
| Gross Profit | 7.12B | 5.10B | 3.35B | 1.57B | 664.56M |
| EBITDA | 3.97B | 2.87B | 1.60B | 35.27B | -152.82M |
| Net Income | 2.87B | 1.97B | 1.03B | -364.58M | -164.99M |
Balance Sheet | |||||
| Total Assets | 75.02B | 49.93B | 43.35B | 29.93B | 19.86B |
| Cash, Cash Equivalents and Short-Term Investments | 14.35B | 23.15B | 22.02B | 16.84B | 10.69B |
| Total Debt | 37.76B | 886.53M | 1.17B | 803.16M | 167.92M |
| Total Liabilities | 63.70B | 42.28B | 36.94B | 25.04B | 15.42B |
| Stockholders Equity | 11.29B | 7.65B | 6.41B | 4.89B | 4.44B |
Cash Flow | |||||
| Free Cash Flow | 8.50B | 2.22B | 1.09B | 641.27M | -2.95B |
| Operating Cash Flow | 8.51B | 2.40B | 1.27B | 755.57M | -2.92B |
| Investing Cash Flow | -18.21B | -330.63M | -177.00M | -127.15M | -154.19M |
| Financing Cash Flow | 15.15B | 727.74M | 425.21M | 654.04M | 3.34B |
Nu Holdings Technical Analysis
Negative
14.15
Price Trends
15.89
Negative
16.27
Negative
15.27
Negative
Market Momentum
-0.44
Negative
43.87
Neutral
60.26
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 14.15 is below the 20-day moving average (MA) of 14.22, below the 50-day MA of 15.89, and below the 200-day MA of 15.27, indicating a bearish trend. The MACD of -0.44 indicates Negative momentum. The RSI at 43.87 is Neutral, neither overbought nor oversold. The STOCH value of 60.26 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $165.75B | 10.97 | 13.89% | 1.85% | -15.34% | 16.71% | |
71 Outperform | $74.86B | 11.24 | 12.46% | 4.14% | 2.20% | -0.17% | |
70 Outperform | $15.00B | 11.73 | 15.77% | 2.08% | 3.87% | 14.61% | |
70 Neutral | $68.71B | 28.20 | 28.67% | ― | 30.94% | 40.87% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $73.93B | 9.29 | 9.41% | 1.71% | 17.50% | 49.25% | |
58 Neutral | $60.53B | 4.48 | 14.33% | 3.67% | 7.43% | 30.31% |
* Financial Sector Average
NU
Nu Holdings
14.15
4.43
45.58%
BCS
Barclays
21.80
9.27
73.97%
EWBC
East West Bancorp
108.99
38.52
54.67%
ING
ING Groep
26.56
10.57
66.13%
NWG
NatWest Group
15.29
5.16
51.00%
SAN
Banco Santander SA
11.41
5.81
103.86%
Nu Holdings Corporate Events
Nu Holdings Gains Clean Audit Opinion on 2025 IFRS Financials
Feb 25, 2026
Nu Holdings has released its audited consolidated financial statements for the year ended December 31, 2025, supported by an unqualified opinion from KPMG Auditores Independentes. The auditor concluded the group’s financial position and perf...
Nu Holdings Posts Record 2025 Profit as Latin American Digital Banking Scale Fuels Global Push
Feb 25, 2026
Nu Holdings reported strong fourth-quarter and full-year 2025 results on February 25, 2026, highlighting rapid customer growth to 131 million, deepening engagement and solid asset quality. The company maintained an 83% activity rate and kept avera...
Nu Holdings Q4 2025 Results Showcase Profit Surge and Latin American Scale-Up
Feb 25, 2026
On February 25, 2026, Nu Holdings reported its fourth-quarter 2025 results, highlighting the continued scale-up of its digital banking platform, which reached 131 million customers and covered 62% of Brazil’s adult population, with an 83% ac...
Nu Holdings Secures KPMG Limited Assurance on 2025 Managerial P&L as Revenue and Profit Surge
Feb 25, 2026
Nu Holdings reported that independent auditor KPMG has provided limited assurance on the company’s process for compiling and presenting its Managerial Profit and Loss Reconciliation Report for the three- and twelve-month periods ended Dec. 3...
Nu Holdings Wins Conditional U.S. Approval to Launch Nubank, N.A.
Jan 29, 2026
On January 29, 2026, Nu Holdings announced it has received conditional approval from the U.S. Office of the Comptroller of the Currency to form a new national bank, Nubank, N.A., a key step in its long-term strategy to expand operations and produc...
Nubank to Seek Banking License in Brazil by 2026
Dec 3, 2025
On December 3, 2025, Nubank announced its intention to obtain a banking license in Brazil in 2026, aligning with regulatory requirements set by the Central Bank and the National Monetary Council. This move will not affect the company’s opera...
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.