Nu Holdings Powers Ahead As Strong Customer Spend, Margin Gains Drive Outlook

Nu Holdings Ltd. NU shares are trading higher on Friday.

The firm’s second-quarter earnings of 13 cents per share came in line with analyst estimates, while revenue came in at $3.66 billion, missing expectations.

The company’s customer base rose 17% year-over-year to 122.7 million. The Monthly Average Revenue per Active Customer crossed the $12 mark for the first time, reaching $12.2 in the second quarter of 2025, up 18% year-over-year.

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Goldman Sachs analyst Tito Labarta reiterated the stock’s Buy rating and raised the price forecast from $19 to $20.

Labarta remains upbeat on Nu Holdings following its second-quarter results, highlighting robust loan growth and stable asset quality as key drivers that could fuel further risk-adjusted net interest margin (NIM) expansion and profitability gains.

Labarta noted that Nu Holdings expects Brazil’s NIMs to stay largely stable, with potential gains in Mexico and Colombia.

The company expects funding costs in Brazil to remain stable, noting that recent deposit growth stems from stronger customer engagement.

Lower deposit rates in Mexico and Colombia, along with product enhancements such as the Oxxo partnership, are seen further reducing funding costs without triggering significant outflows.

Labarta said management expects this step to boost NIMs in Mexico and Colombia, with the impact showing in the third quarter of 2025 as funding cost changes take effect.

Labarta kept the 2025 reported net income forecast at $2.8 billion, as reduced provisions are offset by lower fees and higher costs, and now assume a slightly stronger average BRL of 5.58 versus 5.52.

The 2026 estimate remains $4.5 billion, while the 2027 forecast rises 1% to $6.1 billion.

Price Action: NU shares are trading higher by 10.07% to $13.22 at last check Friday.

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