Should You Grab Nu Holdings Stock Ahead of Q2 Earnings Report?

Nu Holdings Ltd. NU will report its second-quarter 2025 results on Aug. 14, after the bell.

The Zacks Consensus Estimate for earnings for the to-be-reported quarter stands at 13 cents, indicating 8.3% year-over-year growth. The consensus estimate for revenues is $3.66 billion, suggesting 28.3% year-over-year growth.

One estimate for the to-be-reported quarter has moved upward over the past 30 days with no downward revision.

The company has a strong history of earnings surprises. Earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters and matched twice, with an average earnings surprise of 10%.

Q2 Earnings Beat Seems Likely for NU

Our proven model predicts a likely earnings beat for NU this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

NU has an Earnings ESP of +2.63% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Customer Expansion Should be NU’s Driver in Q2

We expect the significant year-over-year improvement in the company’s top line in the to-be-reported quarter to be driven by strong customer growth. The Zacks Consensus Estimate for active customers is pegged at 90 million, suggesting 25.3% year-over-year growth. NU's low-cost operating platform and revenue strength are expected to benefit the bottom line in the quarter.

A Strong Business Model is Crucial for Investment

NU’s digital-first, scalable model is built for efficiency. Its flagship platform, NuBank, has not only disrupted the dominance of traditional banks, particularly in Brazil, but also earned a reputation as one of Latin America’s most trusted financial brands. With ongoing expansion in Mexico and Colombia, NU is positioning itself as a regional powerhouse. Its ability to offer low-cost, user-friendly financial services is unlocking access across underserved markets and fueling further growth.

While Nu continues to surge ahead in Latin America, U.S.-based peers like SoFi Technologies SOFI and Block XYZ are taking different routes to growth. SoFi is focusing on deepening customer relationships through bundled financial services like lending, investing and banking. Its strategy seems to emphasize lifetime value over rapid user expansion. Meanwhile, Block is sharpening its dual ecosystem approach, serving both individual users through Cash App and small businesses via Square.

While both SoFi and Block are evolving steadily, Nu’s pace and scale of customer acquisition in emerging markets underscore a distinct momentum that sets it apart in the global fintech landscape.

Grab NU This Earnings Season

NU is well-positioned for a potential second-quarter earnings beat, driven by strong customer growth, operational efficiency, and a scalable digital-first business model. The company’s platform continues to disrupt traditional banking in Latin America, winning trust and loyalty through low-cost, user-friendly services. Expansion in Mexico and Colombia strengthens its regional leadership while unlocking access to underserved markets. NU’s momentum in rapid customer acquisition sets it apart from global fintech peers, offering a compelling growth trajectory. With a proven record of delivering strong results and a business model built for scale, NU stands out as a Buy opportunity.

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This article originally published on Zacks Investment Research (zacks.com).

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