Nu Holdings (NYSE: NU), Latin America’s leading digital banking platform, continues to post remarkable growth figures that are turning heads in global financial markets.
The company added 4 million customers last quarter, bringing its total user base to 139 million, with 118 million of those located in its home market of Brazil.
Despite carrying a market capitalization of $71 billion, Nu remains relatively unknown among U.S. investors, though its disruptive impact on Latin American finance is impossible to ignore.
Revenue reached $5.9 billion in the second quarter, representing a 39% increase year over year on a currency-neutral basis, driven primarily by continued customer growth.
Beyond raw user additions, Nu is demonstrating stronger monetization of its existing base, with monthly average revenue per active customer rising 22% year over year to $17.10 in Q2.
A critical part of Nu’s growth story is the massive underbanked population across Latin America, with 35% of its Mexican customers having never previously held a bank account.
Additionally, 52% of Nu’s customers in Mexico never had a line of credit before joining the platform, illustrating the scale of the untapped opportunity the company is addressing.
Net income surged 49% to nearly $1.1 billion, exceeding $1 billion for the first time ever, while the net profit margin improved to 18.1% from 16.4% in the second quarter of 2025.
Operating efficiency continues to improve dramatically, with the efficiency ratio falling to 20% in the second quarter, down sharply from 50% four years ago, as the business benefits from growing scale.
Nu’s deposit base has grown from $18 billion in Q2 2023 to $45.3 billion today, providing substantial funding capacity for its lending operations while benefiting from high customer switching costs.
The cost to serve each customer remains just $1 per month on average, representing only 5.8% of the monthly average revenue per active customer, a ratio that underscores the business model’s leverage.
Despite its strong fundamentals, NU shares traded 23% below their January peak as of August 18, having fallen 14% in 2026 alone, even as the stock has climbed more than 80% over the past 36 months.
At a forward price-to-earnings ratio of approximately 20, Nu appears reasonably valued relative to its growth trajectory, suggesting the market may not be fully pricing in its long-term potential.
Risks remain, however, including operating in Latin American markets where currency volatility, commodity-dependent economies, and political instability can create unpredictable conditions for lenders.
Nu’s $39 billion credit portfolio also warrants scrutiny, with 66% in credit cards and 26% in unsecured loans, and non-performing loans sitting at 6.9% as of June 30, a figure that has steadily climbed in recent years.
