Nu Holdings Surges 10% in Pre-Market Trading Amid Mixed Earnings

Nu Holdings shares surged 10% in pre-market trading, despite mixed Q2 earnings. The company's customer base rose 17% YoY to 122.7 million, and revenue came in at $3.66 billion, missing estimates. Nu Holdings owns Brazil-based Nubank and launched its cryptocurrency arm, Nubank Cripto, in 2022. Warren Buffett's Berkshire Hathaway exited its position in Nu Holdings earlier this year.

Nu Holdings Ltd. (NYSE: NU) saw its shares rise by 10% in pre-market trading on July 2, 2025, despite mixed second-quarter (Q2) earnings. The company reported a 17% year-over-year (YoY) increase in its customer base, reaching 122.7 million, and revenue of $3.66 billion, which fell short of analysts' expectations. Despite the revenue miss, the company's strong customer growth and other financial metrics have buoyed investor confidence.

The company's Q2 results highlight its robust growth trajectory. Nu added 4.1 million new customers, expanding its customer base by 17% YoY. This growth is particularly notable in Brazil, where Nu is the third-largest financial institution by number of customers, according to the Brazilian Central Bank. The company's customer base in Brazil reached 107.3 million as of June 30, 2025, representing over 60% of Brazil’s adult population.

Revenue for the quarter came in at $3.66 billion, a 40% YoY increase, but it missed analysts' estimates of $3.8 billion. Gross profit totaled $1.55 billion, up 14% sequentially and 24% YoY, reflecting the company's ability to expand its net interest income (NII) and maintain stable credit allowances. The company's net interest margin (NIM) also improved, rising by 20 basis points to 17.7%.

Nu's asset quality indicators also showed improvement. The 15 to 90-day non-performing loan (NPL) ratio declined by 30 basis points (bps) QoQ to 4.4%, while the 90+ NPL ratio increased by 10 bps to 6.6%. These metrics reflect the company's ongoing efforts to manage risk and maintain a healthy balance sheet.

The company's international expansion continues to be a key driver of growth. In Mexico, Nu's customer base reached 12 million, and in Colombia, it reached 3.4 million. These expansions, along with the launch of Nu's cryptocurrency arm, Nubank Cripto, in 2022, have positioned Nu as a multi-product, multi-segment, and multi-geo growth engine.

Despite the revenue miss, Nu's strong customer growth and financial performance metrics have reassured investors. The company's ability to maintain a low-cost operating platform, with a monthly average cost to serve per active customer of $0.80, and its focus on asset quality and risk management have contributed to its success.

References:

[1] https://finance.yahoo.com/news/nu-holdings-ltd-reports-second-211400931.html