20-F: Nu Holdings Ltd. Reports Strong 2025 Financial Performance

Sentiment:

Annual Report 8 April 2026 5:04 PM

Nu Holdings Ltd. announced robust financial results for the fiscal year ended December 31, 2025, with total revenue reaching $15.8 billion and net income growing 45% year-over-year.

Better than expectedTotal revenue increased by 37.0% to $15.8 billion, exceeding expectations.Net income grew by 45.6% to $2.9 billion, demonstrating strong profitability and exceeding prior year performance.Customer base expansion to 131 million, a 15.0% increase, highlights strong market penetration and growth.Deposit growth of 45.3% to $41.9 billion indicates significant customer trust and funding capacity.Monthly ARPAC growth of 23.0% to $13.3 suggests effective monetization of the customer base.The company's ability to grow its loan portfolio by 40.0% while maintaining a stable ECL coverage ratio indicates effective credit risk management.

Summary

Nu Holdings Ltd. reported significant growth in its fiscal year ending December 31, 2025, with total revenue increasing by 37.0% to $15.8 billion.
Net income for the year grew by 45.6% to $2.9 billion, demonstrating strong profitability.
The company's customer base expanded to 131 million, with a notable 15.0% year-over-year increase.
Total deposits grew by 45.3% to $41.9 billion, indicating increased customer trust and funding capacity.
The company's credit card and loan portfolio saw substantial growth, with total portfolio increasing by 40.0% to $32.7 billion.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong positive filing, with significant revenue and net income growth, substantial customer acquisition, and robust deposit growth, indicating effective execution of its business strategy and strong market position.

Positives

Total revenue increased by 37.0% to $15.8 billion.
Net income grew by 45.6% to $2.9 billion.
Customer base expanded to 131 million, a 15.0% increase.
Total deposits grew by 45.3% to $41.9 billion.
Interest income and gains net of losses on financial instruments increased by 39.5% to $13.4 billion.
Fee and commission income increased by 24.1% to $2.3 billion.
Monthly Average Revenue Per Active Customer (ARPAC) increased by 23.0% to $13.3.
The company's credit card and personal loan portfolio grew by 40.0% to $32.7 billion.
The company maintained a strong activity rate of 83.4% among its customers.
Low Cost to Acquire (CAC) was $7.4 per customer, with paid marketing accounting for only 32% of this cost.
Cost to serve per active customer remained low at $0.8.
The company's NPL 90+ days late rate in Brazil was 6.6%, which is noted as being aligned with market averages.
The company received preliminary conditional approval from the OCC for a U.S. national bank charter.

Negatives

Total cost of financial and transactional services provided increased by 46.1% to $9.1 billion.
Interest and other financial expenses increased by 61.5% to $4.6 billion, largely due to increased interest expenses on deposits.
Rewards expenses increased by 101.8% to $138.2 million.
Marketing expenses increased by 22.9% to $302.8 million.
Gross margin decreased to 42.0% from 45.6% in the prior year.
The company recorded a share of loss in associates of $3.7 million.

Risks

Failure to maintain, protect, and enhance the brand and image could harm the business.
Inadequate risk management policies, procedures, and methods, including credit risk management, could adversely affect the business.
International expansion efforts may not be successful or could subject the business to increased risks.
Disruptions or failures in information technology systems could impair the ability to provide services effectively.
Reliance on third-party data centers, service providers, and cloud computing platforms poses risks of disruption.
Use of artificial intelligence could lead to operational or reputational damage, legal and regulatory risks, and additional costs.
Extensive regulation and governmental oversight could lead to costly compliance, substantial liability, and forced changes in business practices.
Changes in tax laws, incentives, benefits, and regulations may adversely affect financial condition and results of operations.
Exchange rate and interest rate instability in operating countries could materially affect economies and the share price.
Disruption or volatility in global financial and credit markets could adversely affect the financial and economic environment.
Government influence over the economy and potential policy changes could harm the business.
Unauthorized disclosure of customer information or failure to comply with privacy laws could harm reputation and business.
Cybersecurity breaches, computer viruses, or system disruptions could expose the company to liability and damage its reputation.
Claims of intellectual property infringement could lead to costly litigation and adverse effects on business.
The company's limited operating history and potential for slowing revenue growth as the business matures are risks.
Fraudulent activities could have a material adverse effect on business, financial condition, and results of operations.
Inability to integrate products with various operating systems and platforms could harm competitiveness.
Failure to operate effectively on mobile platforms could materially adversely affect business, financial condition, and results of operations.
Acquisitions, partnerships, or joint ventures could disrupt business and harm financial condition and results of operations.
Intense competition within the industry may harm business, financial condition, results of operations, and prospects.
Hedging strategies may not prevent losses, and foreign exchange exposure could negatively impact financial condition.
Liquidity and funding risks are inherent, and reliance on short-term deposits could increase funding costs.
Changes in market and economic conditions could adversely affect revenues and the loan portfolio.
The company's holding company structure makes it dependent on the operations of its subsidiaries.
Failure to comply with Mastercard payment scheme requirements could lead to fines, suspension, or termination.
The need for additional capital may not be available on acceptable terms.
The company is subject to regulatory intervention and antitrust litigation.
The company's dual-class capital structure means its shares are not eligible for certain indices.
The company's reliance on its founding shareholder's control could limit shareholder influence.
The company's Memorandum and Articles of Association contain anti-takeover provisions.
The company's operations could be adversely affected by labor actions and disputes.
The company is subject to regulatory and administrative inspections, examinations, and investigations.
The evolving regulatory framework for artificial intelligence could adversely affect business, financial condition, and results of operations.
The company may face restrictions and penalties under the Brazilian Consumer Protection Code.
Changes in international trade policies or the emergence of a trade war may have an adverse effect on business.
If all regulatory approvals are received for U.S. banking operations, the company will be subject to additional supervision and compliance obligations.
Political instability in Brazil, Mexico, and Colombia may adversely affect business, results of operations, and share price.
The company's intellectual property rights are valuable, and any inability to protect them could reduce brand value.

Future Outlook

Nu Holdings Ltd. expects 2026 to be an inflection year, focusing on winning in its core markets (Brazil and Mexico) while building capabilities to evolve into a global digital banking platform. The company plans to deepen leadership in the mass market, expand in SME and high-income segments in Brazil, and advance its banking license in Mexico. Across all markets, the focus remains on product quality, reliability, and platformization. Strategic investments in global product architecture are expected to lead to near-term upward pressure on operating costs, but the company believes its structural drivers of operating leverage remain intact.

Management Comments

We believe Nu is one of the world's largest digital financial services platforms, and one of the leading technology companies in the world, with 131 million customers across Brazil, Mexico and Colombia as of December 31, 2025, a potential unlocked by our member-get-member referral program.
Our business is based on four core principles: (1) having a customer-centric culture; (2) prioritizing human-centric design, products, services and interactions to create extraordinary customer experiences; (3) developing advanced proprietary technologies built from the ground up by some of the best engineering talent from around the world; and (4) leveraging data science and powerful proprietary models that support every aspect of our business.
We believe we have built one of the world's largest digital financial services platforms, based on number of customers, with 131.0 million customers (including both individual consumers and SMEs) across Brazil, Mexico and Colombia as of December 2025.
We believe our model demonstrates distinct self-reinforcing network effects that help compound our growth. As we expand our ecosystem of customers and partners, we generate more data, which enables us to improve our products and services and customer experience. As more existing customers are delighted with their experience, they refer new customers which, in turn, increases the size of our ecosystem.
We expect 2026 to be an inflection year, focused on winning in our core markets while building the capabilities to evolve into a global digital banking platform.

Industry Context

StockSavvy.ai notes that Nu Holdings' performance aligns with broader trends in the digital financial services sector, particularly the increasing adoption of digital banking solutions and payment technologies across Latin America. The company's growth strategy, focusing on customer-centricity, technological innovation, and expanding its ecosystem of financial products, positions it well within a region characterized by underbanked populations and a demand for more accessible and affordable financial services. The company's expansion into new markets and product diversification are key strategies in a competitive landscape.

Comparison to Industry Standards

Nu Holdings' customer acquisition cost (CAC) of $7.4 per customer is noted as one of the lowest among global consumer FinTech companies.
The company's customer-to-employee ratio of approximately 14,314 customers per employee as of December 31, 2025, is significantly higher than the average of incumbent banks in Brazil (around 1,234 customers per employee), indicating superior operational efficiency.
The company's Net Promoter Score (NPS) is stated to significantly exceed that of incumbent banks and other major local financial technology companies.
Nu Holdings' 90-day consumer finance delinquency rate in Brazil of 6.6% is reported as being lower than the industry average for the Brazilian credit card market.
The company's gross margin of 42.0% in 2025, while lower than the previous year's 45.6%, still reflects a strong profitability in a competitive sector.

Corporate Governance

Change Type	Description	Effective Date	Impact Assessment
Audit and Risk Committee Charter	The Audit and Risk Committee operates under a written charter that satisfies applicable SEC rules and NYSE listing standards.		Ensures robust oversight of financial reporting, internal controls, and risk management.
Compensation and People Committee Charter	The Compensation and People Committee operates under a written charter which satisfies applicable SEC rules and NYSE listing standards, subject to exemptions for foreign private issuers and controlled companies.		Oversees executive compensation and human capital management, with some flexibility due to controlled company status.
Controlled Company Status	Nu Holdings Ltd. is a controlled company due to David Vlez Osorno's majority voting power, allowing exemptions from certain NYSE corporate governance requirements.	Ongoing	May afford less protection to shareholders compared to companies fully compliant with NYSE independent director and committee requirements.
Shareholders Agreement Amendment	Shareholders Agreement was last amended on March 11, 2025.	2025-03-11	Potentially impacts the founding shareholder's rights and influence over corporate actions.

Legal Proceedings

A class action lawsuit was filed in September 2023 against Nubank and other financial institutions alleging failures in handling chargebacks following the suspension of services by 123 Milhas. Nubank has submitted its defense and has already fully reimbursed affected customers.
In December 2024, a class action lawsuit was filed against various financial institutions, including Nu Colombia Compaia de Financiament, regarding the alleged failure to automate exemptions for the Financial Movements Tax (GMF). The lawsuit seeks restitution of withheld taxes, with Nu Colombia having filed a motion for dismissal.

Related Party Transactions

Nu entered into a commercial relationship with a company where one of its Directors serves as CEO, receiving a cash incentive for project costs upon satisfaction of certain conditions.

Stakeholder Impact

Shareholders benefit from strong financial performance and growth, but are subject to the controlling influence of the founding shareholder and potential dilution from future share issuances.
Customers benefit from continued product innovation, improved services, and competitive offerings, with a focus on customer experience.
Employees are subject to share-based compensation plans designed to align interests with shareholders and are covered by a comprehensive Insider Trading Policy.
Regulators in Brazil, Mexico, and Colombia will continue to oversee the company's operations, with potential impacts from evolving financial regulations.

Next Steps

Continue to deepen leadership in the mass market in Brazil, expand in SME and high-income segments, and advance the Mexico banking license.
Raise the bar on product quality and reliability across all markets.
Accelerate platformization by developing country-agnostic, reusable infrastructure for more efficient scaling.
Lay the operational groundwork for U.S. market expansion following conditional bank charter approval.
Expand NuFormer, the proprietary AI approach, to lending in Brazil and credit cards in Mexico.
Continue to put AI directly into customers' hands, moving closer to the vision of an AI-powered personal banker.

Key Dates

Date	Description
2013-01-01	Company began its journey with a small team.
2014-01-01	Launched first product, the Nu Credit Card, in Brazil.
2016-02-26	Incorporated in the Cayman Islands.
2017-01-01	Launched NuAccount, a digital financial services solution.
2019-01-01	Introduced personal loans and business checking accounts in Brazil.
2019-01-01	Initiated international expansion by launching credit card products in Mexico.
2020-01-01	Initiated international expansion by launching credit card products in Colombia.
2020-01-01	Ventured into insurance and investments by launching NuLife.
2020-01-01	Acquired Easynvest, a leading retail investments platform in Brazil.
2021-01-01	Completed acquisition of Easynvest and relaunched under Nu Investimentos brand.
2021-01-01	Launched Ultraviolet, a premium metal credit card.
2021-12-09	Went public on the New York Stock Exchange (NYSE) raising US$2.3 billion through its Initial Public Offering (IPO).
2022-01-01	Launched NuPay, an innovative payment solution for online purchases.
2022-01-01	Introduced Money Boxes, a digital savings platform.
2023-01-01	Announced expansion of loan products in Brazil by introducing secured credit products.
2023-01-01	Reached approximately 94 million customers at year-end.
2023-01-01	Launched deposit accounts in Mexico, reaching one million accounts within one month.
2024-01-01	Exceeded the milestone of 100 million customers in Brazil.
2024-01-01	Launched Working Capital, its first credit solution for small and medium-sized companies (SMEs).
2024-01-01	Introduced Nubank+, an evolution of the Nu experience.
2024-01-01	Launched NuTravel, a travel booking solution.
2024-01-01	Introduced NuCel, its Mobile Virtual Network Operator (MVNO) service.
2024-01-01	Reached the milestone of 13 million customers in Mexico.
2024-01-01	Surpassed 4 million customers in Colombia.
2024-07-31	Completed the acquisition of Hyperplane, a U.S.-based AI platform.
2024-09-01	Announced the strategic repositioning of Nucoin as part of a new loyalty program.
2024-09-27	Colombian subsidiary signed a credit facility agreement with DFC for up to US$150.0 million.
2024-12-12	Made a minority investment in Tyme Group Pte Ltd. as lead investor in its series D funding round.
2025-01-01	Continued to execute its long-term strategy, reaching 131 million customers.
2025-01-01	Became the largest private financial institution by number of customers in Brazil, reaching 113 million customers.
2025-01-01	Launched more than 100 new products and features across markets.
2025-01-01	Total deposits increased 29% year-on-year on a FX-neutral basis to US$41.9 billion.
2025-01-01	Interest-earning portfolio expanded 47% to US$18.5 billion on an FX-neutral basis.
2025-01-01	Revenues grew 37% year-over-year to US$15.8 billion.
2025-01-01	Net income grew 45% from 2024 to US$2.9 billion.
2025-01-29	Received preliminary conditional approval from the OCC for a U.S. national bank charter.
2025-03-25	Advanced US$186.4 million to the FGC as part of an emergency recapitalization plan.
2025-09-30	Filed an application with the OCC to establish a de novo national bank, Nubank, N.A.
2026-01-29	Received preliminary conditional approval from the OCC for Nubank, N.A. (In Organization).

Recommendation

buy

The company demonstrates strong financial performance with significant revenue and net income growth, expanding customer base, and robust deposit growth. The strategic focus on innovation, customer experience, and international expansion, coupled with effective risk management and a low cost-to-serve model, positions Nu Holdings for continued success. While risks related to regulation, competition, and macroeconomic factors exist, the company's execution and market position suggest a positive outlook for investors.

Keywords

Nu Holdings, Nubank, Financial Services, Digital Banking, Latin America, Brazil, Mexico, Colombia, Fintech, Credit Cards, Loans, Deposits, Revenue, Net Income, Customer Growth, Form 20-F, SEC Filing

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