Nu Holdings Ltd. (NU) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock m ...

Core Viewpoint - Nu Holdings has demonstrated strong growth and market interest, particularly after receiving approval to operate a bank in Mexico, leading to a significant stock price increase of 21% in April [1][6]. Group 1: Company Performance - Nu Holdings is an all-digital bank operating in Brazil, Mexico, and Colombia, consistently reporting double-digit revenue growth and increasing profits [2]. - The company has expanded its services beyond its original mission, targeting a wider demographic and successfully attracting an upmarket population through effective cross-selling strategies [3]. - Despite concerns over high inflation and interest rates in Brazil, Nu Holdings has gained renewed market interest as a non-U.S. company amidst tariff worries [5]. Group 2: Market Developments - The approval for a full bank charter in Mexico marks a significant milestone for Nu, transitioning from operating as a Popular Financial Company to a full bank, which enhances its service offerings [6]. - The launch of a high-interest savings account in 2023 resulted in over one million signups within a month, contributing to a customer base exceeding 10 million by the end of 2024, reflecting a 91% increase from 2023 [6]. Group 3: Investment Potential - The current P/E ratio of 31 is considered attractive for a growth stock, although it may appear expensive compared to typical bank stocks [8]. - Nu Holdings is recognized for its high growth potential, making it an opportune time for investors to consider taking or adding to their positions [10].

Core Insights - Nu Holdings has received regulatory approval to transition its Mexico operations into a full-service bank, expanding its banking footprint in Mexico [1][9] - This transition will enable Nu to offer a broader range of financial products and services, enhancing accessibility for unbanked and underbanked citizens in the region [2][12] Company Growth in Brazil - Nubank has significantly disrupted Brazil's traditional banking sector, where five banks previously controlled 80% of financial assets [3] - The company has adopted a digital-only neobank model, reducing operational costs and allowing for customer-friendly offerings such as free accounts and no annual fee credit cards [4] - Nubank has reached 101.8 million customers, representing 58% of Brazil's adult population, and has reduced the unbanked population to just 3% [5] Expansion in Mexico - Nubank is strategically focusing on expanding its operations in Latin America, particularly in Mexico and Colombia, with its customer base in Mexico growing to 10 million, nearly doubling in one year [6] - Currently operating as a Popular Financial Society (SOFIPO), Nu Mexico offers basic financial services but faces limitations that hinder its growth [8][9] - The transition to a full-service bank will allow Nu to offer payroll accounts, mortgage loans, auto loans, and various investment products, addressing the needs of the 51% of the Mexican population that remains underbanked or unbanked [11][12] Financial Performance - Nu has demonstrated solid revenue growth and has achieved positive GAAP earnings per share for eight consecutive quarters [14] - Despite recent market volatility causing a 23% decline from its 52-week high, Nu's growth rate remains significantly higher than that of other banks, justifying its higher valuation multiples [15]

Group 1 - Nu Holdings has demonstrated exceptional growth, doubling its net income to $1.97 billion in 2024 while maintaining strong operating margins and a return on equity (ROE) [1] Group 2 - The operational structure of Nu Holdings is characterized as highly efficient and profitable, contributing to its impressive financial performance [1]

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Investors who allocate capital to the financial services space will likely be familiar with industry heavyweights such as JPMorgan Chase, Bank of America, Visa, Mastercard, and Charles Schwab. I'm sure younger and digitally native companies such as Robinhood Markets and SoFi Technologies come to mind as well.However, you might not know about Nu Holdings (NU 4.43%), a fintech enterprise that's making a splash in Latin America. It has already grown into a sizable business, with a market cap of $55 billion. An ...

Core Business and Growth Potential - Nu Holdings is a digital bank operating in Brazil, Mexico, and Colombia, with a significant opportunity in the Latin American banking sector where many individuals lack basic banking services [3] - The company serves approximately 58% of adults in Brazil and aims to reach a total of 114.2 million customers by the end of 2024 [3][4] - Customer base grew by 22% last year, surpassing 100 million in Brazil and 10 million in Mexico, indicating successful expansion into new markets [4] Revenue Growth - Nu's total revenue surged from $1.7 billion in 2021 to $11.5 billion last year, showcasing explosive growth driven by new customer acquisition and increased usage of services by existing customers [5] - The company has a high long-term growth potential if the current momentum continues [5] Customer Experience and Innovation - Nu emphasizes customer experience, achieving a Net Promoter Score of 84 among high-income customers, which is crucial for a bank in emerging markets [6] - The company is leveraging its digital footprint to explore new services such as e-commerce, travel planning, mobile phone service, and digital payments [7][9] Profitability and Valuation - Nu is profitable, with diluted earnings per share of $0.40 last year, expected to rise to $0.78 by 2026, indicating strong earnings growth alongside revenue [10] - The stock trades at about 27 times last year's earnings, presenting a potentially attractive valuation for long-term investors [12] Market Position and Future Outlook - While replicating Amazon's returns may be challenging due to Nu's current $50 billion market cap, the company's cheap valuation and high growth potential could lead to market-beating returns in the future [13][14]

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of April, 2025 Commission File Number 001-41129 Nu Holdings Ltd. (Exact name of registrant as specified in its charter) Nu Holdings Ltd. (Translation of Registrant's name into English) Campbells Corporate Services Limited, Floor 4, Willow House, Cricket Square, KY1-9010 Grand Cayman, Cayman Islands +1 345 949 2648 (Address ...

Customer Growth and Market Expansion - Approximately 80-90% of new customers were acquired organically each year since inception, primarily through word-of-mouth referrals [204]. - Nu Mexico doubled its customer base to over 10 million in 2024, with a 14 percentage point increase in brand awareness [226]. - The launch of the savings account in Colombia led to a growth from 1 million to 2 million customers in less than 5 months, making it the 4th largest savings account provider in the country [235]. - Nubank expanded its customer base in Colombia from approximately 800,000 in December 2023 to over 1.2 million in December 2024 [253]. - The number of unique customers with accounts in Brazil reached over 199 million as of December 31, 2024, a 2.9% increase from 194 million in 2023, with 47% having an active account [285]. Financial Performance and Revenue - Nubank's revenue for the year ended December 31, 2024, was US$8,409.9 million in Brazil, compared to US$523.1 million in Mexico and US$111.8 million in Colombia, showing significant growth from the previous year [297]. - Customer deposits in Brazil totaled US$387 billion as of December 31, 2024, reflecting a 12% FX-neutral increase from US$374 billion in 2023 [286]. - The average outstanding loans to customers in Brazil reached US$691 billion, with credit cards accounting for 15% of this total [259]. - Nubank's payroll loans in Brazil reached US$122 billion, making it the second largest loan product in terms of credit portfolio [260]. - Nubank's personal unsecured loans achieved a 24% market share in Brazil, with new loan originations growing 32% FX-neutral over 2023 [261]. Market Share and Transaction Volumes - Total Pix transaction volumes reached US$4.9 trillion in 2024, a 54% FX-neutral increase over 2023, with the company holding close to 20% market share in transfer originations [250]. - Nubank's market share in total card transaction volumes in Brazil reached 15% in 2024 [251]. - In Mexico, Nubank grew its credit card customer base to 5.6 million in 2024, a 70% increase from 2023, with 50% of these customers being first-time credit card users [252]. - Nubank's market share in Mexico surpassed 5% in terms of purchase volume according to Banxico statistics [252]. Marketing and Brand Affinity - The company's blog attracted nearly 47 million unique visitors in 2024, covering over 435,000 keywords related to financial education [205]. - The marketing strategy in Brazil resulted in a 10% increase in brand affinity among mass market customers and a 22% increase in client preference compared to December 2023 [212]. - The Ultraviolet brand targeting high-income customers saw an 11 percentage point increase in brand affinity year-over-year [218]. - The influencer program in Brazil generated 156 million impressions and 1.8 million total engagements in 2024 [224]. Regulatory Environment and Compliance - The regulatory environment in Brazil imposes extensive requirements on payment institutions, financial institutions, and securities brokers, ensuring compliance with risk management and anti-money laundering regulations [310]. - Payment institutions in Brazil must segregate prepaid payment account funds from their own assets, holding them in specified instruments to protect against bankruptcy [316]. - The Central Bank of Brazil oversees the activities of financial institutions and regulates the structure and operation of financial markets [349]. - The Anti-Money Laundering Law plays a significant role in regulating banking and payment activities, imposing penalties for illicit activities [420]. Product Development and Innovation - The company launched more than 17 product features in Mexico, enhancing its portfolio value proposition [232]. - Nubank's active insurance policies exceeded two million by December 2024, achieving an annual growth rate of 60% [294]. - The Brazilian e-commerce market reached a gross merchandise volume of almost US$38 billion in 2024, indicating a robust growth environment for Nubank's marketplace initiatives [295]. Risk Management and Capital Requirements - The prudential conglomerate led by Nu Pagamentos is subject to a minimum regulatory capital requirement of US$1.9 billion (R$11.7 billion) as of December 31, 2024 [386]. - The new prudential framework mandates that financial institutions maintain capital ratios based on Total Capital relative to risk-weighted assets, aligning with Basel III standards [379]. - Minimum paid-in capital requirements for payment institutions range from R$1.0 million to R$3.0 million depending on the type of activity [374]. - The transition period for the new provisioning model for expected credit loss will span from 2025 to 2028, allowing for phased incorporation of regulatory capital impacts [373].

Nu Holdings looks grossly undervalued relative to its growth potential.Many hypergrowth stocks stumbled this year as the Trump administration's unpredictable tariffs sparked fresh fears of a recession and drove people back toward more conservative investments. However, investors who can look past those near-term headwinds should be taking the contrarian view and shopping around for some long-term winners.One of those potential winners is Nu Holdings (NU 2.88%), more commonly known as Nubank. It's the larges ...