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Nu Holdings' Relentless Customer Surge Redefines Fintech Growth

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Key Takeaways

  • Nu Holdings added 4.3M customers in Q1 2025, reaching 118.6M, up 19% year over year.
  • NU posted $11.2 in ARPAC, nearly matching last year despite rapid market expansion.
  • NU's shares are up 17% YTD but lag the industry; forward P/E stands at 18.68 compared with industry's 9.36.

Nu Holdings Ltd. (NU - Free Report) is not just growing, it is accelerating growth at a remarkable pace. In the first quarter of 2025 alone, the digital banking powerhouse added a staggering 4.3 million customers, bringing its total to 118.6 million. That is a 19% year-over-year leap and proof that NU’s grip on Latin America's financial future is tightening with force.

This impressive customer growth is fueling real financial momentum. Nu’s average revenue per active customer (ARPAC) was a solid $11.2, only slightly down from last year’s $11.4, a testament to the ability to sustain strong monetization even as it rapidly expands into new markets. With nearly 100 million monthly active users on the platform, NU is proving that it can grow at scale while continuing to unlock meaningful revenue opportunities across the ecosystem.

In a sector where many fintechs chase growth without profit clarity, Nu is showing that customer expansion and financial discipline can coexist. While continuing to innovate and diversify offerings, the company is not only expanding reach but also cementing itself as a long-term player in the digital finance revolution sweeping across emerging economies.

Peer Pressure?

While Nu continues to surge ahead in Latin America, U.S.-based peers like SoFi Technologies (SOFI - Free Report) and Block (XYZ - Free Report) are taking different routes to growth. SoFi is focusing on deepening customer relationships through bundled financial services like lending, investing and banking. Its strategy seems to emphasize lifetime value over rapid user expansion. Meanwhile, Block is sharpening its dual ecosystem approach, serving both individual users through Cash App and small businesses via Square.

While both SoFi and Block are evolving steadily, Nu’s pace and scale of customer acquisition in emerging markets underscore a distinct momentum that sets it apart in the global fintech landscape.

NU’s Price Performance, Valuation, Estimates

The stock has surged 17% year to date, significantly underperforming the industry’s 25% growth.

 

Zacks Investment ResearchImage Source: Zacks Investment Research

From a valuation standpoint, NU trades at a forward price-to-earnings ratio of 18.93, which is well above the industry’s 9.36. It carries a Value Score of D.

Zacks Investment ResearchImage Source: Zacks Investment Research

The Zacks Consensus Estimate for NU’s earnings has been on the decline over the past 60 days.

 

Zacks Investment ResearchImage Source: Zacks Investment Research

NU stock currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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