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Mar 31

Nu Q1 2025 Earnings Report

Nu reported strong revenue and customer growth, with record-breaking net income and expansion across Latin America.

Key Takeaways

Nu Holdings posted robust Q1 2025 results with $3.2B in revenue and a net income of $557.2M, driven by rising customer numbers and deeper engagement in Brazil, Mexico, and Colombia.

Customer base grew by 4.3M, reaching 118.6M globally

Net income surged 74% YoY FXN to $557.2M

Revenue hit a record $3.2B, up 40% YoY FXN

Nu Mexico received its banking license in April 2025

Total Revenue
$3.2B
Previous year: $2.46B
+30.1%
EPS
$0.12
Previous year: $0.091
+31.9%
Total Customers
118.6M
Previous year: 99.3M
+19.4%
ARPAC
$11.2
Previous year: $9.57
+17.0%
Customer Deposits
$31.6B
Previous year: $21.4B
+48.0%
Gross Profit
$1.3B
Previous year: $1.72B
-24.3%

Nu

Nu

Forward Guidance

Nu plans to continue scaling across Latin America by leveraging new licenses and maintaining a high-growth customer base.

Positive Outlook

  • Approved for a full banking license in Mexico
  • Continued strong customer acquisition
  • High monthly activity rate at 83.2%
  • ROE at 27%, signaling strong profitability
  • Record unsecured loan originations in Brazil with stable NPLs

Challenges Ahead

  • Gross profit margin declined to 40.6% due to credit loss allowances
  • NIM declined 20 bps QoQ to 17.5%
  • Cost of funding remained high at 90% of interbank rates
  • Impact of rising SELIC rate in Brazil not fully repriced yet
  • Efficiency ratio impacted by a one-off $47M tax-related remeasurement