NU (NYSE:NU) Releases Quarterly Earnings Results

NU (NYSE:NU) released its earnings results on Thursday. The company reported $0.22 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.23 by ($0.01), FiscalAI reports. NU had a net margin of 18.65% and a return on equity of 31.59%. The company had revenue of $6.26 billion during the quarter, compared to analyst estimates of $5.96 billion.

Here are the key takeaways from NU’s conference call:

• Nu reported record gross revenue of $6.3 billion, up 37% year over year, and record net income of $1.1 billion, up 31%, with a 32% return on equity. It ended the quarter with 143 million customers and an activity rate of 83.6%.
• The credit portfolio grew 33% year over year to $41.6 billion, and recurring risk-adjusted NIM rose to 12.7% excluding one-off items. However, the 90-plus-day delinquency ratio increased to 7.3% from 6.9%, which management attributed partly to portfolio mix and deliberate risk expansion.
• Management lowered its full-year efficiency-ratio outlook to 19%–19.5%, from around 20%, after expenses came in below expectations. It expects the ratio to rise sequentially in Q4 as deferred spending and hiring pick up.
• Growth continued in Mexico and Colombia, while Nu launched U.S. and global account offerings; executives said investment in the new initiatives will be gated by product-market fit, unit economics, and regulatory milestones. The company expects Nu US and Nu Global together to remain within a 100-basis-point efficiency-ratio impact in each of 2026 and 2027.

NU Stock Performance

NYSE NU traded down $0.47 on Thursday, hitting $11.85. 59,466,287 shares of the company’s stock were exchanged, compared to its average volume of 85,730,176. The firm has a market cap of $57.52 billion, a price-to-earnings ratio of 16.00, a P/E/G ratio of 0.51 and a beta of 0.97. The firm’s 50-day moving average price is $13.88 and its two-hundred day moving average price is $14.28. NU has a fifty-two week low of $11.20 and a fifty-two week high of $18.98. The company has a debt-to-equity ratio of 0.35, a current ratio of 0.55 and a quick ratio of 0.55.

Wall Street Analysts Forecast Growth

NU has been the subject of several recent research reports. Needham & Company LLC reaffirmed a “buy” rating and set a $19.00 price target on shares of NU in a report on Monday, September 28th. Susquehanna boosted their price objective on shares of NU from $13.00 to $16.00 and gave the company a “neutral” rating in a research note on Friday, August 14th. Monness Crespi & Hardt began coverage on shares of NU in a research note on Monday, October 26th. They issued a “buy” rating and a $20.00 price objective on the stock. UBS Group upped their price objective on shares of NU from $18.20 to $20.50 and gave the stock a “buy” rating in a research report on Tuesday, October 20th. Finally, Rothschild & Co Redburn set a $19.00 price objective on shares of NU in a research report on Monday, September 28th. Ten analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, NU has an average rating of “Moderate Buy” and an average price target of $18.25.

Insider Activity at NU

In other news, insider Henrique Camossa Sald Fragelli sold 221,707 shares of the firm’s stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $15.81, for a total value of $3,505,187.67. Following the completion of the sale, the insider directly owned 979,446 shares of the company’s stock, valued at $15,485,041.26. This trade represents a 18.46% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Cristina Junqueira sold 25,000 shares of NU stock in a transaction that occurred on Monday, October 5th. The shares were sold at an average price of $15.01, for a total value of $375,250.00. Following the completion of the sale, the chief executive officer owned 4,877,593 shares in the company, valued at approximately $73,212,670.93. This trade represents a 0.51% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 386,707 shares of company stock valued at $6,001,588 over the last three months. Insiders own 1.20% of the company’s stock.

NU Company Profile

Nu Holdings Ltd., which operates under the Nubank brand, is a digital financial services company founded in Brazil in 2013. It provides banking and related services through mobile apps and other digital channels, with a focus on simplifying access to financial products. Its offerings include digital accounts, payment cards, credit products, personal loans, and investment services. The company also provides services to small businesses, with products and availability varying by country. Nu serves customers in Brazil, Mexico, and Colombia.