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Is Nu Holdings Stock a Smart Buy Before Q3 Earnings Report?

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Key Takeaways

  • Nu Holdings will report third-quarter 2025 results on Nov. 13, after the bell.
  • Earnings are expected to rise 25% year over year to 15 cents on $4 billion in revenues.
  • NU's growth is fueled by strong customer expansion and a low-cost digital platform.

Nu Holdings Ltd. (NU - Free Report) will report its third-quarter 2025 results on Nov. 13, after the bell.

The Zacks Consensus Estimate for earnings for the to-be-reported quarter stands at 15 cents, indicating 25% year-over-year growth. The consensus estimate for revenues is $4 billion, suggesting 37.2% year-over-year growth.

 

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One estimate for the upcoming quarter has increased over the past 30 days, with no downward revisions.

 

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The company has a strong history of earnings surprises. Earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters and matched twice, with an average earnings surprise of 6.9%.

 

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Q2 Earnings Beat Seems Unlikely for NU

Our proven model does not conclusively predict an earnings beat for NU this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

NU has an Earnings ESP of 0.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Customer Expansion Should be NU’s Driver in Q3

We expect the significant year-over-year improvement in the company’s top line in the to-be-reported quarter to be driven by strong customer growth and expanding market adoption. NU's low-cost operating platform and robust revenue strength are expected to benefit the bottom line in the quarter.

A Strong Business Model is Crucial for Investment

NU’s digital-first, scalable model is built for efficiency. Its flagship platform, NuBank, has not only disrupted the dominance of traditional banks, particularly in Brazil, but also earned a reputation as one of Latin America’s most trusted financial brands. With ongoing expansion in Mexico and Colombia, NU is positioning itself as a regional powerhouse. Its ability to offer low-cost, user-friendly financial services is unlocking access across underserved markets and fueling further growth.

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.

Grab NU This Earnings Season

NU remains a compelling buy ahead of its third-quarter earnings. The company’s expanding customer base, rising engagement levels and strong market presence across Latin America continue to drive sustainable growth. NU’s low-cost, scalable digital banking model enables it to maintain profitability while rapidly increasing financial inclusion in emerging markets. With continued momentum in Mexico and Colombia, coupled with robust brand loyalty in Brazil, NU is well-positioned to capture long-term value. Its focus on innovation, customer-centric services and operational efficiency reinforces its potential to outperform peers and deliver consistent shareholder returns.


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