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Nu Holdings
(NYSE:NU)
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Rating:72Outperform
Price Target:
$17.00
â–²(12.29% Upside)
Action:Upgraded
Date:08/17/26
NU’s score is driven primarily by solid financial fundamentals (strong profitability/ROE and low leverage) but held back by the latest TTM deterioration in revenue growth and a sharp move to negative operating/free cash flow. Technicals are supportive with improving momentum above key moving averages, and the earnings call was notably constructive with confident guidance and record results, though credit/delinquency and provisioning trends remain important near-term risks. Valuation appears reasonable-to-moderate (P/E ~20.6) without dividend support.
Positive Factors
Regional Scale and Engagement
Nu’s large and highly active customer base creates a durable distribution advantage across Latin America. Greater engagement supports recurring card spend, deposits, lending demand and cross-selling, while scale can spread technology and servicing costs.
Negative Factors
Cash Flow and Growth Volatility
The recent revenue slowdown and sharp cash-flow reversal create a quality-of-earnings risk despite strong reported profitability. If persistent, weaker cash conversion could constrain reinvestment, capital flexibility and the pace of expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Regional Scale and Engagement
Nu’s large and highly active customer base creates a durable distribution advantage across Latin America. Greater engagement supports recurring card spend, deposits, lending demand and cross-selling, while scale can spread technology and servicing costs.
Read all positive factors
Nu Holdings Key Performance Indicators (KPIs)
Any
Revenue by Type
Breaks down revenue by different streams, revealing which areas are driving growth and diversification of income sources.
Breaks down revenue by different streams, revealing which areas are driving growth and diversification of income sources.
Data provided by:
The Fly
The FlyNu Holdings (NU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$70.28B
Dividend YieldN/A
Average Volume (3M)76.03M
Price to Earnings (P/E)19.5
Beta (1Y)1.25
Revenue Growth53.50%
EPS Growth55.50%
CountryUS
Employees8,037
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.74
Shares Outstanding3,807,883,800
10 Day Avg. Volume70,328,543
30 Day Avg. Volume76,032,187
Financial Highlights & Ratios
PEG Ratio0.65
Price to Book (P/B)7.17
Price to Sales (P/S)5.10
P/FCF Ratio23.16
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$17.47Price Target Upside15.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)0.87
Revenue Forecast (FY)$22.85B
Nu Holdings Business Overview & Revenue Model
Company Description
Nu Holdings Ltd. provides digital banking platform in Brazil, Mexico, Colombia, the Cayman Islands, and the United States. The company provides spending solutions comprising Nu credit and prepaid card, a digitally enabled card that acts as a credi...
How the Company Makes Money
Nu Holdings makes money primarily by earning interest income and fee-based revenue from the financial products it offers through Nubank. A major revenue stream is credit: the company earns interest and finance charges on revolving credit card bala...
Nu Holdings Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial performance: record profitability, broad-based portfolio growth, significant margin expansion, and meaningful progress in AI and product initiatives (Mexico banking license, new Croma offering). Headline results were tempered by seasonal delinquency dynamics, continued provisioning for portfolio growth, deposit optimization (notably in Mexico), and higher quarter operating expenses related to timing and investment. Management positioned most negatives as expected, disciplined, and/or strategic (intentional risk expansion, deposit optimization, one-time timing), while emphasizing sustainability of improved unit economics.Positive Updates
Record Net Income
Net income exceeded $1 billion for the first time, reaching $1.1 billion (up 49% year-over-year and 17% quarter-over-quarter) with return on equity at a record 33%.
Negative Updates
90+ Day Delinquencies and Seasonality
90-plus day delinquencies increased 35 basis points to 6.9% quarter-over-quarter, reflecting seasonal migration of early delinquencies into longer buckets.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Net Income
Net income exceeded $1 billion for the first time, reaching $1.1 billion (up 49% year-over-year and 17% quarter-over-quarter) with return on equity at a record 33%.
Read all positive updates
Company Guidance
Management's forward guidance emphasized sustaining operating leverage while continuing to invest: they expect the full‑year efficiency ratio to average about 20% (Q2 efficiency 19.5%), see risk‑adjusted NIM to remain in the same region as Q2's 12.4% (Q2 NIM 22.9%, NII $3.7B), and will cap incremental efficiency spending for U.S. entry at ~100 bps; balance‑sheet optimization (deposits $45.3B, loan portfolio $39.4B, LDR ~35%, cost of deposits ~88% of interbank) should bolster margins, and management reiterated disciplined credit provisioning (allowance $6.6B, coverage of 90+ at 244%, 15–90 day delinquency 4.8%, 90+ at 6.9%) and expects Mexico’s year‑end payment rule changes to accelerate digital adoption — all supporting confidence in sustaining profitability after Q2’s $1.1B net income and 33% ROE.Nu Holdings Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.38B | 15.88B | 11.10B | 7.67B | 4.52B | 1.51B |
| Gross Profit | 8.53B | 7.12B | 5.10B | 3.35B | 1.57B | 664.56M |
| EBITDA | 4.48B | 3.97B | 2.87B | 1.60B | 35.27B | -152.82M |
| Net Income | 3.61B | 2.87B | 1.97B | 1.03B | -364.58M | -164.99M |
Balance Sheet | ||||||
| Total Assets | 82.75B | 74.89B | 49.93B | 43.35B | 29.93B | 19.86B |
| Cash, Cash Equivalents and Short-Term Investments | 9.84B | 16.14B | 23.15B | 22.02B | 16.84B | 10.69B |
| Total Debt | 42.02B | 5.21B | 886.53M | 1.17B | 803.16M | 167.92M |
| Total Liabilities | 69.50B | 63.57B | 42.28B | 36.94B | 25.04B | 15.42B |
| Stockholders Equity | 13.25B | 11.29B | 7.65B | 6.41B | 4.89B | 4.44B |
Cash Flow | ||||||
| Free Cash Flow | -4.22B | 3.49B | 2.22B | 1.09B | 641.27M | -2.95B |
| Operating Cash Flow | -4.27B | 3.50B | 2.40B | 1.27B | 755.57M | -2.92B |
| Investing Cash Flow | -289.89M | -342.31M | -330.63M | -177.00M | -127.15M | -154.19M |
| Financing Cash Flow | 4.49B | 2.29B | 727.74M | 425.21M | 654.04M | 3.34B |
Nu Holdings Technical Analysis
Neutral
15.14
Price Trends
14.04
Positive
13.74
Positive
14.97
Negative
Market Momentum
0.18
Positive
50.96
Neutral
23.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NU, the sentiment is Neutral. The current price of 15.14 is above the 20-day moving average (MA) of 14.42, above the 50-day MA of 14.04, and above the 200-day MA of 14.97, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 50.96 is Neutral, neither overbought nor oversold. The STOCH value of 23.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NU.
Nu Holdings Risk Analysis
Nu Holdings disclosed 1 risk factors in its most recent earnings report. Nu Holdings reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nu Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $70.28B | 19.54 | 30.26% | ― | 53.50% | 55.50% | |
69 Neutral | $35.06B | 7.70 | 13.60% | 7.75% | 32.37% | 27.68% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $20.79B | 16.29 | 21.49% | 5.37% | 3.94% | 3.40% | |
62 Neutral | $21.50B | 29.94 | 11.81% | 5.10% | 20.73% | 27.11% | |
61 Neutral | $3.29B | 16.77 | 8.15% | 1.84% | 5.48% | -32.85% | |
53 Neutral | $7.45B | 65.22 | 1.16% | 3.84% | 3.21% | -89.45% |
* Financial Sector Average
NU
Nu Holdings
14.46
-0.40
-2.69%
BBD
Banco Bradesco SA
3.32
0.46
16.25%
BCH
Banco De Chile
41.45
13.60
48.84%
BSBR
Banco Santander Brasil
5.72
0.76
15.37%
BBAR
Banco BBVA Argentina
15.11
3.10
25.84%
GGAL
Grupo Financiero Galicia SA
44.29
6.28
16.52%
Nu Holdings Corporate Events
Nu Holdings Posts Record Q2 2026 Profit as It Launches Full Digital Bank in Mexico
Aug 13, 2026
Nu Holdings reported second-quarter 2026 results on August 13, 2026, highlighting strong expansion across Latin America and record profitability driven by its digital banking model. The company grew its customer base to about 139 million, with nea...
Nu Holdings Posts Strong Mid-2026 Revenue Growth as KPMG Affirms IAS 34 Compliance
Aug 13, 2026
Nu Holdings Ltd., the parent of digital bank Nubank, operates in the Latin American financial services and fintech sector, providing app-based banking, credit cards, and other consumer financial products designed to challenge traditional banks. It...
Nu Holdings Files Routine August 2026 Form 6-K With SEC
Aug 13, 2026
Nu Holdings Ltd. submitted a Form 6-K report to the U.S. Securities and Exchange Commission for the month of August 2026, fulfilling its obligations as a foreign private issuer under the Securities Exchange Act of 1934. The filing, signed by Inves...
Nu Holdings Posts Strong Q2 2026 Managerial Profit and Secures Limited Assurance on Non-IFRS Metrics
Aug 13, 2026
Nu Holdings reported supplementary managerial results for the three months ended June 30, 2026, showing total revenue of $5.88 billion and net income of $1.06 billion, up from $3.77 billion in revenue and $637 million in net income a year earlier....
Nu Holdings Shareholders Back 2025 Accounts and Re-Elect Board at August 6 AGM
Aug 7, 2026
On August 6, 2026, Nu Holdings Ltd. reported the results of its annual general meeting held that same day, where shareholders approved all items on the agenda with overwhelming majorities. Investors ratified the company’s audited financial s...
Nu Holdings Moves to Secure Brazilian Banking License with Banco Porto Real Acquisition
Jul 20, 2026
On July 20, 2026, Nu Holdings announced it had entered into a share purchase agreement to acquire 100% of Banco Porto Real de Investimentos S.A. in Brazil. The deal is designed to add a full banking license to Nubank’s Brazilian financial co...
Nu Holdings Secures Final Regulatory Nod for Nubank México to Operate as Full-Service Bank
Jul 10, 2026
On July 10, 2026, Nu Holdings announced that its Mexican subsidiary, Nubank México, was notified on July 9 that it has received operations authorization from Mexico’s banking regulator CNBV to begin functioning as a multiple bank. The a...
Nu Holdings Sets August 6 Shareholder Meeting to Approve 2025 Results and Board Slate
Jul 6, 2026
Nu Holdings Ltd. has called an Annual General Meeting of shareholders for August 6, 2026, to be held at its São Paulo headquarters with the option of electronic participation under Cayman Islands law. Shareholders of record in both Class A an...
Nu Holdings Sets August 6 AGM to Ratify 2025 Financial Statements
Jul 6, 2026
Nu Holdings has called its annual general meeting of shareholders for August 6, 2026, in São Paulo, with participation allowed both in person and online, and has made proxy materials available via its investor relations website and the SEC...
Nu Holdings Sets August 6, 2026 Shareholder Meeting to Approve 2025 Accounts and Reelect Board
Jul 6, 2026
Nu Holdings has called its 2026 Annual Meeting of Shareholders for August 6, 2026, to be held in São Paulo and streamed virtually, with proxy materials made available online and voting permitted by mail or electronic means ahead of the meetin...
Nu Holdings Launches US$1 Billion Share Buyback Program
Jun 4, 2026
On June 4, 2026, Nu Holdings announced that its board has approved a share repurchase program authorizing the company or its affiliates to buy back up to US$1.0 billion of its outstanding Class A ordinary shares. The repurchases may be executed in...
Nu Holdings Names Former Visa Executive Rob Livingston as CFO in Planned Leadership Transition
Jun 1, 2026
Nu Holdings said on June 1, 2026, that it has appointed Rob Livingston as its new chief financial officer, effective July 13, replacing long-time finance chief Guilherme Lago, who will move into a special advisor role. Lago will advise the managem...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.