Nu Holdings Successfully Converts Scale Into Profitable Growth

Nu Holdings NU has reached a level of scale in Latin America that many fintechs can dream of. In the second quarter of 2025, the company counted 123 million customers across its footprint, with Brazil alone accounting for 60% of the adult population using its platform.

Such breadth is translating into powerful financial performance. Quarterly revenues came in at $3.7 billion, rising 29% year over year. At the same time, gross profit surged to $1.55 billion, up 14% versus last year or 24% on a currency-adjusted basis. Nearly half of that gross profit, 43%, was tied to credit products, a reminder that Nu Holdings’ ability to monetize lending remains core to its success.

While many U.S. fintech peers continue to burn cash, Nu Holdings reported $637 million in net income in the second quarter, climbing 31% from a year earlier or 42% on a neutral-currency basis.

The interplay is clear: rapid customer adoption feeds top-line growth, credit drives gross profit, and disciplined execution ensures bottom-line strength. Brazil is the anchor, but Mexico and Colombia are adding meaningful momentum. Nu Holdings isn’t merely scaling; it’s scaling profitably and at a pace that places it well ahead of many fintech rivals.

By demonstrating that growth and profitability don’t have to be mutually exclusive, Nu Holdings is carving out a rare position in digital banking: a fintech giant that’s already highly profitable, yet still in the middle of a steep growth curve.

Peer Pressure?

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.

NU’s Price Performance, Valuation, Estimates

The stock has surged 53% year to date, significantly outperforming the industry’s 40% growth.

From a valuation standpoint, NU trades at a forward price-to-earnings ratio of 21.7, which is well above the industry’s 10.53. It carries a Value Score of C.

The Zacks Consensus Estimate for NU’s 2025 earnings has been on the decline over the past 60 days.

NU stock currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

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