Why Revenue Durability Now Matters Most for Nu Holdings' Investors

Nu Holdings’ NU strongest differentiator at this stage of its growth cycle is its rising revenue durability, the company’s ability to convert a massive customer base into recurring, multi-product income streams that are less sensitive to macro volatility. In the third quarter of 2025, the company kept up its solid growth momentum, increasing its customer base to 127 million, adding more than 4 million new users, and sustaining an activity rate above 83%.

While earlier phases of Nubank’s story centered on explosive user growth, the most significant shift today is the deepening monetization of those users through payments, credit, savings, insurance and broader financial services. This increasing mix of predictable, repeatable revenues positions Nu Holdings for steadier performance even when credit conditions tighten or FX volatility resurfaces in Latin America.  The company’s revenues increased 39% year over year on a currency-neutral basis in the third quarter, reaching $4.2 billion.

A critical driver of this durability is the company’s disciplined expansion of high-engagement products. Instead of pushing riskier credit to inflate near-term profits, Nu Holdings continues to build revenues around everyday transactions, low-cost deposits and cross-sell adoption. These streams compound with scale and provide a cushion against quarterly fluctuations that often disrupt legacy banks. As more customers adopt two, three or four products, the company’s average revenue per active user improves, thereby strengthening its long-term visibility.

What makes the model more compelling is the way Nu Holdings’ cost structure enhances incremental margins. Since the platform’s technology-driven architecture does not require large physical infrastructure, each additional product adopted by existing users flows more efficiently into operating leverage. In a market where traditional banks face rising compliance and structural expenses, Nu Holdings’ revenue durability stands out as a strategic advantage that can sustain premium valuation multiples and support consistent shareholder returns over the next phase of growth.

Peer Lens: Block, SoFi Technologies

Block XYZ remains an important comparison because its ecosystem shows what Nu Holdings could become at scale. Block, through Cash App and Square, maintains a multi-product financial platform that grows wallet share as users adopt more services. The pattern mirrors how Block expanded beyond payments into credit and deposits, reinforcing the link between user engagement and durable revenue.

SoFi Technologies SOFI provides another relevant benchmark as a digital-first institution that strengthened its results by broadening its financial suite. SoFi demonstrated that cross-selling loans, deposits, and investment tools can turn a fast-growing user base into a stable revenue engine. SoFi shows how diversified, low-friction product expansion can convert scale into consistent, defensible revenue momentum.

NU’s Price Performance, Valuation, Estimates

The stock has surged 47% over the past year, compared with the industry’s 46% growth.

From a valuation standpoint, NU trades at a forward price-to-earnings ratio of 21.55X, which is well above the industry’s 10.71X. It carries a Value Score of D.

The Zacks Consensus Estimate for NU’s 2025 earnings has been on the rise 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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