"Nu's Q4 results demonstrate a company still in high-growth mode while simultaneously improving profitability. The combination of a 35% adjusted ROE, an 83% customer activity rate across 131 million users, and a 25% FX-neutral rise in monthly revenue per active customer to $15.00 paints a picture of deepening monetization."
"The main watch item heading into 2026 is credit quality: renegotiated loans stand at $3.2B and the 90+ day NPL coverage ratio has declined to 183.8% from 201.9% a year ago. With the Mexico banking license pending and US expansion in early stages, execution risk is real."
"Investors should watch whether Mexico customer growth, currently at 14 million or 15% of the adult population, can accelerate once full banking capabilities are unlocked."
Nu Holdings delivered its strongest quarterly performance in Q4 2025, generating $4.857 billion in revenue with 62.5% year-over-year growth and net income surging 62% to $894.8 million. The company serves 131 million customers across Latin America with an 83% customer activity rate and 35% adjusted ROE. Monthly revenue per active customer increased 25% on an FX-neutral basis to $15.00, indicating deepening monetization. Despite strong results, shares declined 3.03% to $16.65, suggesting investors had already anticipated the growth. Key concerns include credit quality metrics, with renegotiated loans at $3.2 billion and 90+ day NPL coverage declining to 183.8% from 201.9% year-over-year. Mexico banking license approval and US expansion present both opportunities and execution risks for 2026.
#financial-performance #credit-quality-risk #latin-america-expansion #profitability-metrics #banking-license-approval
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]