Why Nu Holdings Deserves Your Attention Before the Q4 Earnings Drop

The Latin American Fintech Revolution Has a Leader

Nu Holdings (NYSE: NU) has carved out an undeniable position in one of the world’s most underserved markets. As of late September, the digital banking platform was serving 127 million customers across Latin America—a staggering 17.3 million net additions in just 12 months. To put this in perspective, these customers represent roughly 60% of Brazil’s adult population, with another 17 million spread across Mexico and Colombia combined.

The numbers tell a compelling story about market opportunity. Nu’s revenue surged 31% year-over-year, reaching $11.1 billion for the first nine months of 2025. More impressively, the company generated $2 billion in net income during the same period—a testament to a business model that actually works at scale.

The Unit Economics Are the Real Story

What separates Nu from typical fintech players is its operational efficiency. The company spends just $0.90 monthly to serve each customer, yet extracts $13.40 in average revenue per active user. That 15x spread between cost and revenue explains why customer acquisition remains a strategic priority and why profitability emerged so quickly.

This isn’t luck—it’s execution. The underlying infrastructure supporting 127 million customers had to be built correctly from day one. And the focus now is amplifying what’s already working. CEO David Vélez recently outlined an ambitious direction: becoming “AI-first” by integrating foundation models into core banking operations. This positions Nu as an AI-native platform rather than a traditional bank experimenting with artificial intelligence.

Competition and Macro Headwinds Are Real Concerns

Success in Latin America doesn’t happen in a vacuum. MercadoLibre and Itau Unibanco—both formidable financial institutions—have already noticed the same opportunity that Nu capitalized on. As the region develops economically, expect additional competitors to enter the fray. Nu will need to maintain operational excellence to protect its market share.

The macro environment introduces another layer of risk. Banking fundamentals mean interest rate movements, employment shifts, and economic slowdowns can rapidly impact loan portfolios. For a platform serving customers relatively new to formal financial services, credit quality becomes mission-critical. Currency fluctuations and political instability across Latin America add further complexity—challenges that U.S.-based financial firms simply don’t face.

The Valuation Argument Works Now—Don’t Wait for Feb. Results

The February 25 earnings release will provide updated metrics: customer counts, revenue trajectories, net income, deposit levels, and credit loss provisions. Management guidance will also offer clarity about trajectory. Many investors assume waiting for this data point makes sense.

But here’s the counterargument: Nu’s business fundamentals remain intact regardless of what Q4 2025 numbers reveal. The company has demonstrated consistent execution, and barring a major regional economic shock, this momentum should persist. More importantly, the valuation already reflects an attractive entry point. At a forward P/E of 20.7, the market isn’t pricing in the full upside potential for a fintech player dominating an underbanked population with 127 million customers already on the platform.

The question isn’t whether to wait until late Feb.—it’s whether the current risk-reward setup justifies action today.