Nu Holdings Ltd. Q4 2025 Results Summary
Business Context and Reporting Period
This Form 6-K filing summarizes Nu Holdings Ltd.'s financial results for the fourth quarter ended December 31, 2025, presented on February 25, 2026. Nu operates as a digital banking platform across Brazil, Mexico, and Colombia, with strategic priorities focused on scaling its retail banking franchise, expanding internationally (including a conditional US national bank charter approval in January 2026), and integrating AI into credit decisioning and customer experiences. The company introduced a new "Managerial P&L" framework in Q4 2025 to better reflect value creation across its multi-product platform, which is fully reconciled to IFRS.
Key Financial Metrics
- Revenue: Total revenue reached US$4.86 billion, representing a 30% year-over-year (YoY) growth on an FX-neutral basis.
- Profitability: Net income was US$895 million (YoY +50% FXN). Adjusted Net Income was US$943 million. Return on Equity (ROE) was 33%, with Adjusted ROE at 35%.
- Gross Profit: Total gross profit was US$1.96 billion, driven by credit, fees, and float income.
- Efficiency: The Efficiency Ratio improved to 19.9% (down from 22% in Q4 2024), reflecting continued operating leverage.
- Credit Portfolio: Total portfolio grew to US$32.7 billion (+40% YoY FXN). Non-performing loans (NPLs) 15-90 days improved to 4.1%.
- Deposits: Total deposits reached US$41.9 billion (+29% YoY FXN), with a cost of deposits at 87% of the interbank rate.
- Liquidity & Capital: The company reported a strong capital position with US$3.6 billion in capital excess above regulatory requirements. Available funding stood at US$38.8 billion against a net credit portfolio of US$19.0 billion.
- Customer Base: Total customers reached 131 million, with 113 million active customers (86% activity rate). Average Revenue Per Active Customer (ARPAC) was US$15.
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased by 30% YoY (FXN), with Credit Income growing 23% and Fee Income growing 11%.
- Profit Expansion: Net income surged 50% YoY (FXN) to US$895 million, outpacing revenue growth due to operating leverage.
- Portfolio Quality: The 15-90 day NPL ratio improved to 4.1% from 4.2% in Q3 2025 and 4.5% in Q4 2024, indicating stable credit quality despite portfolio expansion.
- Cost Management: Operating expenses grew 12% YoY (FXN), but the Efficiency Ratio declined to 19.9%, demonstrating that revenue growth outpaced cost increases.
- Reporting Framework: The company transitioned to a Managerial P&L presentation, reclassifying certain IFRS line items (e.g., moving transaction costs and revenue-based taxes to the gross profit calculation) to enhance comparability.
Guidance, Outlook, and Risks
Outlook & Strategy: Management outlined three strategic priorities for 2026: strengthening the retail banking franchise in Brazil, Mexico, and Colombia; building foundations for global expansion (specifically the US); and embedding AI as a structural advantage. The company aims to scale its model globally while maintaining Latin America as its primary growth engine.
Risks & Contingencies: The filing includes standard forward-looking statement disclaimers, noting that actual results may differ due to risks including regulatory changes, economic conditions, and foreign exchange volatility. The company highlighted that the US expansion is subject to conditional approval and ongoing regulatory engagement. Additionally, the presentation notes that non-IFRS measures are not substitutes for IFRS financials and should be viewed in conjunction with them.
Investor Verification Checklist
- Verify the reconciliation of the new "Managerial P&L" metrics to IFRS standards in the appendix to ensure comparability with historical data.
- Confirm the status of the US national bank charter approval and the timeline for operational launch.
- Monitor the trend of the Cost of Deposits relative to interbank rates (currently 87%) to assess funding stability.
- Review the specific composition of the US$151 million secured loan portfolio purchase mentioned in Q4 2025.
- Assess the impact of foreign exchange rates on reported US$ figures, as the company operates primarily in BRL, MXN, and COP.