Nu Q1 2025 Earnings Update!
NU Strong Customer Growth, Huge Profits, and Affordable Valuation!
NU 0.00%↑ stock has been punished heavily in the last few months as the weakness of BRL puts pressure on consolidated USD growth, and Trump’s Trade War raises concerns of a weakening economy in Nu’s core markets of Mexico, Brazil, and Colombia.
In the last month, however, BRL has strengthened against USD by 5%, and Trump has caved to pressure and rolled back some tariff measures, sending Nu stock up 23%.
There was quite some optimism going into the earnings, but unfortunately, according to the market, Nu didn’t deliver, sending the stock down 8%!
The market quickly corrected, and Nu, at the time of writing this, is down 2.8%!
So, what caused this panic?
It wasn’t top-line numbers, as total revenue grew 18.7% to $3.45B, slightly beating the analyst estimate of $3.27B.
It wasn’t the number of customers, as Nu added 4.4M customers in Q1 and 19.3M over the past 12 months.
3 Key KPI’s that likely caused this decline were:
1.8% decrease in monthly ARPU.
35.6% increase in interest cost.
17.2% increase in loan loss provision.
However, I find such a reaction from the market foolish and shortsighted.
In this article, I will review Nu’s Q1 2025 financial results. If you are interested, I wrote a full Deep Dive about Nu, which covers all of the most important aspects an investor needs to know about the company.
Let’s jump in.
1. Customer Level Results
2. Brazil
3. Mexico
4. Colombia
5. Deposits and Loan Portfolio
6. Revenue
7. Profitability
8. Conclusion
1. Customer Level Results
Nu continues to onboard customers at an absolutely mindboggling pace.
The number of customers grew by 19.4% Y/Y and 3.9% Q/Q to 118.6M!