Nu Holdings Turns Expanding Customer Base Into Profitable Growth

Nu Holdings’ NU accelerating customer count is the foundation of its continued success in Latin America. In the second quarter of 2025, the company reached an impressive 123 million customers across its footprint, with Brazil alone representing 60% of the adult population using its platform.

This expanding customer base is translating into powerful financial performance. Quarterly revenues stood at $3.7 billion, rising 29% year over year. At the same time, gross profit climbed to $1.55 billion, up 14% from last year or 24% on a currency-adjusted basis. Nearly half of that gross profit, 43%, came from credit products, underscoring NU’s strong monetization strategy through lending.

NU delivered $637 million in net income in the second quarter, a 31% increase from a year earlier or 42% on a neutral-currency basis. The dynamic is clear: a rapidly growing customer base fuels top-line expansion, credit operations drive gross profit, and disciplined execution secures bottom-line strength. While Brazil remains the company’s anchor market, Mexico and Colombia are contributing meaningful growth momentum.

NU isn’t just adding customers, it’s converting that growth into sustainable profitability, positioning itself ahead of many fintech rivals. By proving that rapid customer expansion and strong profitability can coexist, NU stands out as a rare digital banking powerhouse: a fintech leader that’s already highly profitable yet still scaling swiftly.

Peer Pressure?

While Nu Holdings 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 54% year to date, significantly outperforming the industry’s 37% growth.

From a valuation standpoint, NU trades at a forward price-to-earnings ratio of 21X, which is well above the industry’s 10X. It carries a Value Score of C.

The Zacks Consensus Estimate for NU’s 2025 earnings remained unchanged over the past 30 days.

NU stock currently carries a Zacks Rank #2 (Buy). 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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