Shares of Nu Holdings (NYSE: NU) fell more than 3% in pre-market trading on Wednesday following the release of its first-quarter earnings report, which came in below Wall Street expectations.
The digital banking platform posted earnings per share (EPS) of 12 cents, missing the consensus estimate of 13 cents. Revenue for the quarter rose 19% year-over-year to $3.2 billion, slightly below the analysts’ forecast of $3.23 billion.
Key Q1 Highlights:
- Nu added 4.3 million customers in the first quarter, bringing its global customer base to 118.6 million as of March 31, 2025 — a 19% year-over-year increase.
- Monthly Average Revenue per Active Customer (ARPAC) rose to $11.2, up 5% from the previous quarter and 17% year-over-year on an FX-neutral basis.
- The company maintained low operating costs, with the Monthly Average Cost to Serve Per Active Customer holding below one dollar at seven cents — down 4% from a year ago and 12% lower sequentially.
- Net interest income hit a record $1.8 billion, a 34% increase from the prior year and up 5% sequentially.
CEO David Vélez emphasized the company’s momentum across Latin America, stating,
“Starting 2025 strong, Nubank reached 118.6 million customers, adding over four million in a single quarter, showcasing its powerful platform scalability across Brazil, Mexico, and Colombia.”
Vélez also highlighted stronger customer engagement, noting 98.7 million monthly active users and an activity rate above 83%.
He further pointed out that revenues rose 40% year-over-year on a foreign exchange-neutral basis, driven by a 62% expansion in the interest-earning portfolio.
Nu Holdings counts Warren Buffett among its investors. His company, Berkshire Hathaway (NYSE: BRK.B), holds shares in Nu, giving him exposure to the fast-growing fintech player.
As of the latest update, Nu Holdings (NYSE: NU) shares are down 3.42%, trading at $12.69.
Mark Glenn is a financial journalist and breaking news reporter for ABBO News. Mark is known for his ability to deliver real-time news updates on market developments, mergers and acquisitions, corporate earnings reports, and regulatory changes, helping investors stay informed and make sound financial decisions. Read Full Bio
