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Up 13% in a Month, NU is Gaining Speed: Should You Jump in Now?
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Key Takeaways
NU stock jumped 13% in one month, far outpacing the fintech industry's 2% gain over the same period.
NU added 4.3M new users in Q1 2025, reaching 118.6M total customers with nearly 100M active monthly users.
Revenues rose 19% YoY as NU maintained strong ARPAC and diversified income from lending, fees, and services.
Nu Holdings Ltd. (NU - Free Report) , one of Latin America's most disruptive digital banking platforms, has recently captivated investors with a sharp 13% rise in its stock price over the past month. This rally notably outpaces the broader industry’s modest 2% growth, signaling renewed confidence in the company’s trajectory.
Image Source: Zacks Investment Research
For investors, this sharp upward momentum demands a closer look: Is this surge sustainable, and should you buy, hold, or wait?
NU’s Turbocharged Growth Backed by Strong Fundamentals
What separates NU from the rest of the fintech pack is not just its breakneck growth, but the consistency and discipline that underpins it. In the first quarter of 2025 alone, NU added a staggering 4.3 million new customers, bringing its total user base to 118.6 million, a year-over-year increase of 19%. Even more impressive is that nearly 100 million of these users are monthly active customers, signaling deep engagement and high retention.
But NU’s story isn’t just about adding numbers. It’s about monetizing them.
NU’s Monetization Engine Remains Resilient
NU’s ability to translate user growth into meaningful revenues stands out in a fintech landscape often dominated by cash-burning expansion. Despite the rapid onboarding of new users, average revenue per active customer (ARPAC) in the first quarter clocked in at $11.2, just slightly below the $11.4 figure reported a year earlier. In an industry where aggressive scaling often dilutes monetization, NU is proving it can grow without sacrificing unit economics.
Total revenues rose 19% year over year, powered by multiple monetization levers: lending products, interchange fees and a growing marketplace services segment. Importantly, NU is not overly reliant on any single revenue stream, which enhances stability in unpredictable macro environments.
This balanced revenue mix, combined with prudent cost control, has helped NU edge closer to sustained profitability—another rarity among growth-stage fintechs.
Operating Model Built for Scale
At the heart of NU’s success is its digital-first, low-cost, highly scalable operating model. Its flagship brand, NuBank, is one of the most widely used and trusted financial services platforms in Brazil. NU’s cloud-native, mobile-first infrastructure allows it to serve customers at a fraction of the cost of traditional banks, giving it an edge in underserved and cost-sensitive markets.
Its model thrives on low customer acquisition costs and high engagement, translating to enviable margins compared to peers. As fintech incumbents wrestle with regulatory hurdles and profitability concerns, NU’s lean model has positioned it as a true standout.
Latin America’s Fintech Juggernaut
NU is now well past the stage of being a “Brazil play.” The company is making substantial inroads in Mexico and Colombia, where traditional banking penetration remains low, and consumer demand for flexible, transparent financial solutions is high.
With over 6 million customers in Mexico and 1.5 million in Colombia, NU is actively replicating its Brazilian success. Its scalable infrastructure and market-tested products give it a strong first-mover advantage in these emerging fintech markets.
Strong Top and Bottom-Line Prospects
The Zacks Consensus Estimate for NU’s 2025 earnings is pegged at 54 cents, indicating 20% growth from the year-ago level. Earnings in 2026 are expected to increase 45% from the year-ago actuals. The company’s sales for 2025 are expected to increase 29% and 28% year over year, respectively, in fiscal 2025 and 2026.
Image Source: Zacks Investment Research
One estimate each for 2025 and 2026 moved north in the past 30 days, versus no southward revision, reflecting analysts’ confidence in the company.
Competitive Landscape: NU vs. U.S. Peers
While NU dominates in Latin America, U.S.-based fintechs like SoFi Technologies (SOFI - Free Report) and Block (XYZ - Free Report) are pursuing different growth blueprints.
SoFi is focused on deepening customer lifetime value by offering a suite of bundled services, ranging from loans and credit cards to investing and high-yield savings. While its integrated ecosystem appeals to financially savvy consumers, SoFi’s model requires greater capital intensity and longer gestation periods before yielding returns.
Block is refining its dual-ecosystem strategy through Cash App and Square, targeting both consumers and small businesses. While its global vision is expansive, Block faces headwinds from macroeconomic volatility, especially in the U.S. and developed markets.
In contrast, NU’s laser focus on hypergrowth in underbanked regions, coupled with financial discipline, allows it to maintain momentum that’s hard to match.
What Should You Do?
The recent surge in NU’s stock is more than just momentum; it reflects a solid growth foundation, strong operating performance and growing investor confidence. For long-term investors seeking exposure to the digital banking revolution in Latin America, NU offers a compelling blend of scale, growth, and operational discipline.
If you already own NU, holding makes sense as the company’s fundamentals remain intact. For those eyeing entry, any minor dip could present a strategic buying opportunity, especially given its growth runway in untapped markets.
Image: Bigstock
Up 13% in a Month, NU is Gaining Speed: Should You Jump in Now?
Key Takeaways
Nu Holdings Ltd. (NU - Free Report) , one of Latin America's most disruptive digital banking platforms, has recently captivated investors with a sharp 13% rise in its stock price over the past month. This rally notably outpaces the broader industry’s modest 2% growth, signaling renewed confidence in the company’s trajectory.
For investors, this sharp upward momentum demands a closer look: Is this surge sustainable, and should you buy, hold, or wait?
NU’s Turbocharged Growth Backed by Strong Fundamentals
What separates NU from the rest of the fintech pack is not just its breakneck growth, but the consistency and discipline that underpins it. In the first quarter of 2025 alone, NU added a staggering 4.3 million new customers, bringing its total user base to 118.6 million, a year-over-year increase of 19%. Even more impressive is that nearly 100 million of these users are monthly active customers, signaling deep engagement and high retention.
But NU’s story isn’t just about adding numbers. It’s about monetizing them.
NU’s Monetization Engine Remains Resilient
NU’s ability to translate user growth into meaningful revenues stands out in a fintech landscape often dominated by cash-burning expansion. Despite the rapid onboarding of new users, average revenue per active customer (ARPAC) in the first quarter clocked in at $11.2, just slightly below the $11.4 figure reported a year earlier. In an industry where aggressive scaling often dilutes monetization, NU is proving it can grow without sacrificing unit economics.
Total revenues rose 19% year over year, powered by multiple monetization levers: lending products, interchange fees and a growing marketplace services segment. Importantly, NU is not overly reliant on any single revenue stream, which enhances stability in unpredictable macro environments.
This balanced revenue mix, combined with prudent cost control, has helped NU edge closer to sustained profitability—another rarity among growth-stage fintechs.
Operating Model Built for Scale
At the heart of NU’s success is its digital-first, low-cost, highly scalable operating model. Its flagship brand, NuBank, is one of the most widely used and trusted financial services platforms in Brazil. NU’s cloud-native, mobile-first infrastructure allows it to serve customers at a fraction of the cost of traditional banks, giving it an edge in underserved and cost-sensitive markets.
Its model thrives on low customer acquisition costs and high engagement, translating to enviable margins compared to peers. As fintech incumbents wrestle with regulatory hurdles and profitability concerns, NU’s lean model has positioned it as a true standout.
Latin America’s Fintech Juggernaut
NU is now well past the stage of being a “Brazil play.” The company is making substantial inroads in Mexico and Colombia, where traditional banking penetration remains low, and consumer demand for flexible, transparent financial solutions is high.
With over 6 million customers in Mexico and 1.5 million in Colombia, NU is actively replicating its Brazilian success. Its scalable infrastructure and market-tested products give it a strong first-mover advantage in these emerging fintech markets.
Strong Top and Bottom-Line Prospects
The Zacks Consensus Estimate for NU’s 2025 earnings is pegged at 54 cents, indicating 20% growth from the year-ago level. Earnings in 2026 are expected to increase 45% from the year-ago actuals. The company’s sales for 2025 are expected to increase 29% and 28% year over year, respectively, in fiscal 2025 and 2026.
Image Source: Zacks Investment Research
One estimate each for 2025 and 2026 moved north in the past 30 days, versus no southward revision, reflecting analysts’ confidence in the company.
Competitive Landscape: NU vs. U.S. Peers
While NU dominates in Latin America, U.S.-based fintechs like SoFi Technologies (SOFI - Free Report) and Block (XYZ - Free Report) are pursuing different growth blueprints.
SoFi is focused on deepening customer lifetime value by offering a suite of bundled services, ranging from loans and credit cards to investing and high-yield savings. While its integrated ecosystem appeals to financially savvy consumers, SoFi’s model requires greater capital intensity and longer gestation periods before yielding returns.
Block is refining its dual-ecosystem strategy through Cash App and Square, targeting both consumers and small businesses. While its global vision is expansive, Block faces headwinds from macroeconomic volatility, especially in the U.S. and developed markets.
In contrast, NU’s laser focus on hypergrowth in underbanked regions, coupled with financial discipline, allows it to maintain momentum that’s hard to match.
What Should You Do?
The recent surge in NU’s stock is more than just momentum; it reflects a solid growth foundation, strong operating performance and growing investor confidence. For long-term investors seeking exposure to the digital banking revolution in Latin America, NU offers a compelling blend of scale, growth, and operational discipline.
If you already own NU, holding makes sense as the company’s fundamentals remain intact. For those eyeing entry, any minor dip could present a strategic buying opportunity, especially given its growth runway in untapped markets.
NU currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.