News about Nu Holdings

The article predicts a $1,000 investment in Nu Holdings could be worth $2,939 by 2030, a 194% return. The forecast assumes consensus EPS growth of 35% a year from 2025 through 2028, another 35% gain in 2029 to $1.94 EPS, and a P/E ratio rising 27% from 18.6 toward the S&P 500's 23.6. Nu had 139 million customers as of June 30, and its shares traded 17% below their peak as of Oct. 13. The author also flags risks, including slowing growth, a mature position in Brazil, intense competition in the U.S. and credit risk in a recession. Still, the author considers Nu a high-caliber long-term candidate, noting that $1,000 would buy about 64 shares at $15.58.

Nu Holdings serves nearly 139 million customers across Brazil, Mexico and Colombia and posted $1.1 billion in net income in Q2 2026, its first quarterly profit above $1 billion. The author says the three metrics to watch are average revenue per active customer (ARPAC), which rose to about $17 from $13 a year earlier; return on equity, at 33% annualized versus 28% a year earlier; and the 90+ day non-performing loan ratio. That NPL ratio rose to 6.9% from 6.5% in Q1 as the credit portfolio grew to $39.4 billion from $27.3 billion, which the company attributed largely to the seasonal migration of earlier delinquencies. Investors should watch whether ARPAC keeps rising, ROE stays strong and credit risk stays under control as lending expands.

Nu Holdings generated more than $1 billion in net income in the second quarter of 2026, up 49% year over year on a foreign-exchange-neutral basis, while revenue rose 39% to $5.9 billion. The company added roughly 4 million customers in the quarter, bringing its total to 139 million across Brazil, Mexico, and Colombia. The article argues the bigger driver is monetization: monthly ARPAC reached about $17 in Q2, up from $8 in Q2 2022, as customers use the platform for more products. It warns that profits can fluctuate with credit losses, as the 90-plus-day non-performing loan ratio rose to 6.9% in Q2 from 5.8% in Q2 2023, though the ratio has moved up and down over time, including around 7% in Q3 2024. The key question for investors, it says, is whether Nu can sustain its profitability while growing its loan book and taking on more credit risk.