Is Nu Holdings' Valuation Too Good to Pass Up Before Feb. 25 Results?

Nu Holdings (NYSE: NU) is trading at a forward P/E ratio of just 20.7—a valuation that’s raising eyebrows among investors eyeing the fintech sector. With earnings slated for Feb. 25, the question isn’t whether to wait for clarity, but whether the current pricing already reflects the company’s fundamental strength in Latin America.

The Numbers Paint a Clear Picture

The fintech giant boasts 127 million customers across Latin America, representing a dominant market share that few competitors can match. Over the past 12 months alone, Nu added 17.3 million net new customers, with the Brazilian market accounting for roughly 60% of the country’s adult population.

Financial performance tells an equally compelling story. Through the first nine months of 2025, Nu generated $11.1 billion in revenue—a 31% year-over-year jump. More impressively, the company collected $2 billion in net income during the same period, showcasing profitability that rivals mature financial institutions.

The unit economics are particularly striking. While the monthly cost to serve each customer sits at just $0.90, the average revenue per active customer reaches $13.40. This spread demonstrates why customer acquisition remains a top strategic priority.

Why Waiting Might Be Unnecessary

Yes, Q4 2025 results on Feb. 25 will provide fresh insights into customer growth, revenue trends, net income, deposits, and credit metrics. Management commentary will offer valuable color on the business outlook. But the underlying trajectory appears solid. Barring a major macroeconomic shock in Latin America, the company’s growth momentum should persist.

More importantly, the current valuation may already offer sufficient margin of safety. At 20.7x forward earnings, Nu presents an attractive entry point compared to peers operating in more saturated markets. Investors aren’t overpaying for growth potential.

Strategic Positioning and Risks

Nu’s competitive advantages stem from serving a massive pool of unbanked and underbanked customers across Latin America. Its AI-first strategy—aiming to integrate foundation models deeply into operations—signals forward-thinking management committed to sustainable differentiation.

That said, competition is intensifying. Established players like MercadoLibre and regional banks are increasingly targeting the same demographic. Beyond competitive pressure, Nu faces inherent banking sector risks: interest rate volatility, economic downturns, and employment fluctuations can impact credit quality. Currency fluctuations and political instability in Latin America add another layer of complexity.

The Investment Case

Waiting for Feb. 25 earnings offers marginal benefit given the stock’s strong recent performance—up 350% over three years as of mid-January. The real question is whether current valuations fairly compensate investors for growth and market position. At these levels, the answer leans yes, suggesting early positioning ahead of results makes strategic sense.