Nu Holdings Ltd. (NYSE: NU), known globally as Nubank, continues to stand out as one of Latin America’s fastest-growing digital banks. As the company approaches its Q3 2025 earnings announcement, investors are paying attention to its strong growth momentum, improving profitability, and bold expansion strategy, including its recent application for a U.S. national bank charter.
Recent Earnings Performance
In the last quarter, Nubank reported earnings per share (EPS) of $0.14, beating expectations of $0.13 and marking a 7.7% positive surprise. The company’s revenue rose to $3.7 billion, up 40% year-over-year on a foreign exchange-neutral basis. Net income climbed to $637 million, representing a 42% jump from a year earlier. This marks Nubank’s most profitable stretch since its public listing, backed by strong lending activity and healthy customer growth.
Nubank’s gross profit reached $1.55 billion, with margins improving to 42%, a sign of stronger efficiency and cost control. The company’s return on equity (ROE) reached 28%, well above traditional banking averages in Latin America.
User and Market Expansion
The customer base expanded to 123 million users, adding more than 4 million new clients during the quarter. Growth was broad-based, coming from Brazil, Mexico, and Colombia—its three core markets. Nubank’s loan portfolio continued to grow at a steady pace, with credit card and personal lending driving the majority of the gains.
In Mexico, the company received approval from regulators to operate as a full-service bank, which will allow it to offer deposits and lending products under its own license. In the United States, Nubank made headlines by applying for a national bank charter, signaling its intent to enter the U.S. financial market with digital-first services such as credit, savings, and asset management.
Financial Forecast and Outlook
For Q3 2025, analysts expect EPS of $0.15, up 36% year-over-year, and revenue near $4.04 billion, an estimated 37% increase from last year’s period. For the full year, the consensus EPS forecast is $0.56, while 2026 and 2027 projections stand at $0.81 and $1.15, respectively.
This earnings growth outlook suggests a 32% compound annual growth rate (CAGR) in profitability. Analysts also see revenue expanding about 43% annually, supported by Nubank’s growing scale and digital ecosystem.
Analyst Sentiment and Market View
Analyst ratings remain largely positive, with a consensus “Buy” outlook and an average price target of $16.40, reflecting modest near-term upside. Despite global market volatility, Nubank’s fundamentals appear resilient due to its high net interest margins and disciplined credit management.
The company maintains a price-to-earnings (P/E) ratio of 34.35, which, while higher than many traditional banks, aligns with high-growth fintech peers. Its market capitalization stands at $78 billion, highlighting its scale in the financial technology sector.
Business Model Strengths
Nubank’s success lies in its ability to blend technology, efficiency, and customer engagement. Its digital-only approach cuts traditional banking costs, allowing it to serve millions with low fees and instant access to credit. The net interest margin (NIM) climbed to 17.7%, and the efficiency ratio improved to 28.3%, signaling better profitability with controlled expenses.
The company continues to reinvest all profits into product expansion and geographic growth rather than paying dividends, focusing on compounding long-term value. Nubank’s “high” Earnings Quality Ranking for several consecutive weeks reinforces confidence in the consistency of its financial results.
Strategic Moves
A major development was Nubank’s application for a U.S. national bank charter. If approved, it will enable the company to offer regulated financial products directly to U.S. customers, expanding its reach beyond Latin America. Co-founder Cristina Junqueira now leads U.S. operations, aiming to replicate the brand’s successful model in developed markets.
The bank also plans to deepen its footprint in Mexico and Colombia, leveraging digital lending, insurance, and payments ecosystems. With these expansions, Nubank positions itself as not just a Latin American player but an emerging global fintech brand.
Key Risks and Focus Points
Investors should monitor asset quality and loan performance closely, as high credit growth may expose Nubank to market risks. Any rise in default rates or slower customer acquisition could affect profitability. Additionally, regulatory decisions regarding its U.S. charter and Mexico banking license could influence the company’s near-term valuation.
Bottom Line
Nubank enters Q3 2025 earnings with solid momentum, expanding margins, and strong user growth. The company’s financial discipline, strategic expansion into the U.S., and consistent profitability make it one of the most closely watched fintechs globally.
With a growing base of 123 million customers and an annualized ROE of 28%, Nubank continues to set new benchmarks for digital banking success. Investors will be eager to see whether its next report confirms the company’s ability to maintain high growth while scaling responsibly across new markets.
Disclaimer: This article is for informational purposes only and not financial advice. Investors should review official filings and consult financial professionals before making decisions.
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