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Nu vs. OppFi: Which Fintech Lender Offers Better Upside Now?
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Key Takeaways
OPFI posted Q3 revenues of $155.1M with strong originations and sharply lower net charge-offs.
OppFi raised its 2025 revenues and adjusted EPS guidance, signaling improving demand and execution.
NU added 4.3M customers and delivered higher margins, stronger asset quality and robust loan growth.
Both OppFi Inc. (OPFI - Free Report) and Nu Holdings Ltd. (NU - Free Report) are fintech companies that specialize in consumer lending for the underserved population and emerging credit markets.
We have analyzed both stocks to determine which offers the most upside.
The Case for OppFi
OPFI experienced a strong third quarter of 2025, marked by top-line growth and profitable expansion in its core operations. With $155.1 million in revenues, OppFi registered 13.5% year-over-year growth. Multiple factors directed this top-line trajectory, including a 12.5% year-over-year hike in net originations. Increasing customer demand was met with an elevated auto approval rate that increased to 79% from the year-ago quarter. Furthermore, the top-line growth can be partly attributed to the consistent rise in scalability in partnerships and direct response programs.
During the said quarter, adjusted net income improved 41.4% year over year to $40.7 million. A combination of strong revenue growth and disciplined expense management enabled the company to acquire this level of profitability. This lofty growth led the bottom line to surge by 39.1% year over year. OppFi’s Model 6, standing at the apex of its credit mitigation strategy, continued to perform well, as evidenced by the net charge-off as a percentage of total revenues taking a nose dive of 430 bps and the net charge-off as a percentage of average receivables falling 480 bps during the nine months ended Sept. 30, 2025.
Management raising 2025 guidance for the top and bottom line again is a waving green flag. During the first quarter of 2025, revenues for the full year were expected to hover within $563-$594 million, which was revised to $590-$605 million during the recently reported quarter. On a similar note, during the third quarter of 2025, adjusted EPS was expected to $1.54-$1.6, which is a significant jump from the first quarter’s $1.18-$1.26. This highlights an anticipation of high demand and operational enhancement boding well with investors.
The Case for Nu Holdings
Nu Holdings displayed a robust third quarter of 2025 performance, with revenues gaining 39% year over year, banking on surging customer demand. The company added 4.3 million new customers during the quarter, increasing the count by 16% year over year. As of September 2025, NU’s customer count in Brazil, Mexico and Colombia stood at 110.1 million, 13.1 million, and 3.8 million, respectively, representing 60%, 14% and 10% of the adult population in these regions. It indicates that the company is a leading digital bank in Latin America and one of the leading fintech platforms globally.
On the profitability front, NU witnessed significant improvement as evidenced by its gross profit of $1.8 billion, increasing 32% year over year. The expansion of its margin to 43.5% highlights consistent revenue growth accompanied by consistent improvement in risk-adjusted performance. The company registered net income of $783 million, up a whopping 41.6% year over year. Management stated that such strong profitability is a result of its business model, which is appealing to the masses and fosters strong engagement that broadens monetization. It is striking how all of this is possible while operating on a low-cost and efficient platform.
Nu Holdings’ strategy to diversify both deposits and credit was successful, with deposits growing 37.1% year over year to $38.8 billion, and the loan portfolio witnessing a 42% year-over-year increase to $30.4 billion. Asset quality improved as evidenced by a 20-basis point decline in the 15 to 90-day Non-Performing Loan ratio from the year-ago quarter, despite sector seasonality. NU’s tech investments are targeted toward AI-backed risk and engagement initiatives to aid long-term productivity. Nu Holdings’ swift scale, geographic leadership, and recurring revenues paint a compelling picture of gains in the long haul.
How Do Estimates Compare for OPFI & NU?
The Zacks Consensus Estimate for OPFI’s 2025 sales and EPS shows year-over-year growth of 13.6% and 65.3%, respectively. Two estimates for 2025 have increased over the past 60 days, with no downward revisions.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NU’s 2025 sales and EPS indicates a year-over-year increase of 35.9% and 31.1%, respectively. Two estimates for 2025 have moved north in the past 60 days, with no southward revision.
Image Source: Zacks Investment Research
OPFI Trades Cheaper Than NU
OppFi is trading at a forward earnings multiple of 5.68 times, lower than its 12-month median of 6.91 times. Nu Holdings’ forward earnings multiple stands at 20.76 times, slightly higher than its median of 20.71. OPFI trades significantly cheaper than NU.
Image Source: Zacks Investment Research
Verdict
OPFI managed to cater to the piling customer demand, leveraging its Model 6. The company’s credit risk mitigation tactics presented positive results as evidenced by the fall in the net charge-off as a percentage of total revenues. Furthermore, management’s heightened expectations of the top and bottom line for the full year have a strong appeal among investors.
NU’s ability to draw in more customers positions it well as a leading digital bank in Latin America. Nu Holdings’ business model, which operates a low-cost platform, deepens customer engagement and expands monetization. Furthermore, the company’s improving asset quality, combined with investments in AI, adds to its long-term growth trajectory.
Both companies are compelling fintech players; however, we consider OPFI to offer a better upside on the grounds that it is trading at a discount compared with NU. OppFi’s underpriced valuation makes it particularly appealing to value investors.
Image: Bigstock
Nu vs. OppFi: Which Fintech Lender Offers Better Upside Now?
Key Takeaways
Both OppFi Inc. (OPFI - Free Report) and Nu Holdings Ltd. (NU - Free Report) are fintech companies that specialize in consumer lending for the underserved population and emerging credit markets.
We have analyzed both stocks to determine which offers the most upside.
The Case for OppFi
OPFI experienced a strong third quarter of 2025, marked by top-line growth and profitable expansion in its core operations. With $155.1 million in revenues, OppFi registered 13.5% year-over-year growth. Multiple factors directed this top-line trajectory, including a 12.5% year-over-year hike in net originations. Increasing customer demand was met with an elevated auto approval rate that increased to 79% from the year-ago quarter. Furthermore, the top-line growth can be partly attributed to the consistent rise in scalability in partnerships and direct response programs.
During the said quarter, adjusted net income improved 41.4% year over year to $40.7 million. A combination of strong revenue growth and disciplined expense management enabled the company to acquire this level of profitability. This lofty growth led the bottom line to surge by 39.1% year over year. OppFi’s Model 6, standing at the apex of its credit mitigation strategy, continued to perform well, as evidenced by the net charge-off as a percentage of total revenues taking a nose dive of 430 bps and the net charge-off as a percentage of average receivables falling 480 bps during the nine months ended Sept. 30, 2025.
Management raising 2025 guidance for the top and bottom line again is a waving green flag. During the first quarter of 2025, revenues for the full year were expected to hover within $563-$594 million, which was revised to $590-$605 million during the recently reported quarter. On a similar note, during the third quarter of 2025, adjusted EPS was expected to $1.54-$1.6, which is a significant jump from the first quarter’s $1.18-$1.26. This highlights an anticipation of high demand and operational enhancement boding well with investors.
The Case for Nu Holdings
Nu Holdings displayed a robust third quarter of 2025 performance, with revenues gaining 39% year over year, banking on surging customer demand. The company added 4.3 million new customers during the quarter, increasing the count by 16% year over year. As of September 2025, NU’s customer count in Brazil, Mexico and Colombia stood at 110.1 million, 13.1 million, and 3.8 million, respectively, representing 60%, 14% and 10% of the adult population in these regions. It indicates that the company is a leading digital bank in Latin America and one of the leading fintech platforms globally.
On the profitability front, NU witnessed significant improvement as evidenced by its gross profit of $1.8 billion, increasing 32% year over year. The expansion of its margin to 43.5% highlights consistent revenue growth accompanied by consistent improvement in risk-adjusted performance. The company registered net income of $783 million, up a whopping 41.6% year over year. Management stated that such strong profitability is a result of its business model, which is appealing to the masses and fosters strong engagement that broadens monetization. It is striking how all of this is possible while operating on a low-cost and efficient platform.
Nu Holdings’ strategy to diversify both deposits and credit was successful, with deposits growing 37.1% year over year to $38.8 billion, and the loan portfolio witnessing a 42% year-over-year increase to $30.4 billion. Asset quality improved as evidenced by a 20-basis point decline in the 15 to 90-day Non-Performing Loan ratio from the year-ago quarter, despite sector seasonality. NU’s tech investments are targeted toward AI-backed risk and engagement initiatives to aid long-term productivity. Nu Holdings’ swift scale, geographic leadership, and recurring revenues paint a compelling picture of gains in the long haul.
How Do Estimates Compare for OPFI & NU?
The Zacks Consensus Estimate for OPFI’s 2025 sales and EPS shows year-over-year growth of 13.6% and 65.3%, respectively. Two estimates for 2025 have increased over the past 60 days, with no downward revisions.
The Zacks Consensus Estimate for NU’s 2025 sales and EPS indicates a year-over-year increase of 35.9% and 31.1%, respectively. Two estimates for 2025 have moved north in the past 60 days, with no southward revision.
OPFI Trades Cheaper Than NU
OppFi is trading at a forward earnings multiple of 5.68 times, lower than its 12-month median of 6.91 times. Nu Holdings’ forward earnings multiple stands at 20.76 times, slightly higher than its median of 20.71. OPFI trades significantly cheaper than NU.
Verdict
OPFI managed to cater to the piling customer demand, leveraging its Model 6. The company’s credit risk mitigation tactics presented positive results as evidenced by the fall in the net charge-off as a percentage of total revenues. Furthermore, management’s heightened expectations of the top and bottom line for the full year have a strong appeal among investors.
NU’s ability to draw in more customers positions it well as a leading digital bank in Latin America. Nu Holdings’ business model, which operates a low-cost platform, deepens customer engagement and expands monetization. Furthermore, the company’s improving asset quality, combined with investments in AI, adds to its long-term growth trajectory.
Both companies are compelling fintech players; however, we consider OPFI to offer a better upside on the grounds that it is trading at a discount compared with NU. OppFi’s underpriced valuation makes it particularly appealing to value investors.
OPFI flaunts a Zacks Rank #1 (Strong Buy) while NU carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.