Nu Holdings Ltd. Q4 and Full Year 2025 Financial Summary
Business Context and Reporting Period
This Form 6-K reports the financial results for Nu Holdings Ltd. (NYSE: NU) for the fourth quarter and full year ended December 31, 2025. The results are prepared in accordance with IFRS and include a new Managerial P&L framework introduced in Q4 2025 to better reflect value creation across its multi-country platform. Nu operates as a leading digital financial services platform in Brazil, Mexico, and Colombia.
Key Financial Metrics
- Revenue: Q4 2025 revenue reached $4.9 billion (up 45% YoY); Full Year 2025 revenue was $16.3 billion (up 45% YoY).
- Profitability: Q4 2025 Net Income was $895 million (up 50% YoY); Full Year 2025 Net Income was $2.9 billion (up 51% YoY). Return on Equity (ROE) reached a record 33%.
- Customer Base: Total customers reached 131 million (up 15% YoY), with 17 million net adds in 2025. Monthly Average Revenue per Active Customer (ARPAC) hit $15.
- Balance Sheet: Total deposits grew 29% YoY to $41.9 billion. The total credit portfolio expanded 40% YoY to $32.7 billion.
- Asset Quality: The 15-90 day Non-Performing Loan (NPL) ratio declined to 4.1%, and 90+ day NPLs decreased to 6.6%.
- Efficiency: The Efficiency Ratio improved to 19.9% in Q4 2025. Cost to serve per active customer remained at $0.8.
Material Changes vs. Prior Period
- Revenue Growth: Driven by higher engagement and monetization, revenue grew 45% year-over-year in both Q4 and the full year.
- Profit Expansion: Net income increased 50% in Q4 and 51% for the full year compared to 2024, supported by operating leverage.
- Customer Engagement: ARPAC increased 27% YoY to $15, while the activity rate remained stable at 83%.
- Asset Quality Improvement: NPL ratios improved sequentially, with the 15-90 NPL ratio dropping 20 basis points to 4.1%.
- Market Position: Nu became the largest private financial institution in Brazil by customer count (113 million) and the leading issuer of new credit cards in Mexico.
Guidance, Outlook, and Risks
Management views 2026 as an inflection year focused on winning in core Latin American markets while building capabilities for a global digital banking platform. Strategic priorities include advancing the U.S. strategy (conditional OCC approval received in January 2026), expanding AI adoption (nuFormer model), and deepening SME and high-income segment penetration. Management notes that strategic investments in platformization may create near-term upward pressure on the efficiency ratio, though structural operating leverage remains intact. Risks include standard forward-looking uncertainties regarding market conditions, regulatory changes, and the accuracy of third-party data.
Investor Verification Checklist
- Verify the reconciliation of the new Managerial P&L metrics to IFRS standards in the appendix of the earnings presentation.
- Confirm the status and timeline of the U.S. national bank charter following the conditional OCC approval.
- Monitor the impact of the one-off Prosofipo contribution on the Risk-adjusted NIM in future quarters.
- Assess the sustainability of the 33% ROE as the company scales into new markets and segments.
- Review the detailed breakdown of the $3.0 billion cash and equivalents held at the Nu Holdings level versus operating entities.