Financial Data and Key Metrics Changes - In Q3 2025, the company reported record revenues exceeding $4 billion, driven by strong customer growth and engagement [3][4] - Net income reached $783 million, marking a 39% year-over-year increase, with a return on equity (ROE) of 31% [23] - The cost-to-income ratio improved to 28%, reflecting enhanced operational efficiency [4][22] Business Line Data and Key Metrics Changes - The customer base grew to 127 million, with over 4 million net additions in the quarter, maintaining an activity rate above 83% [3] - Credit portfolio balances reached $30.4 billion, up 42% year-over-year, with secured lending growing 133% and unsecured loans increasing by 63% [15][16] - Loan originations hit a record high of $4.2 billion, up 40% year-over-year [16] Market Data and Key Metrics Changes - In Brazil, the company serves over 60% of the adult population and is the largest player in the SME segment by account numbers [5] - In Mexico, customer growth reached approximately 14% of the adult population, with RPAC levels nearing those in Brazil at $12.5 [6][46] - The cost of funding improved from 91% to 89% of interbank rates, demonstrating effective volume growth and efficiency [18] Company Strategy and Development Direction - The company aims to broaden its product portfolio and deepen customer engagement while executing a disciplined credit strategy [5][6] - A focus on becoming AI-first is emphasized, integrating AI into operations to enhance customer experiences and improve risk management [8][9] - The company is exploring opportunities in the U.S. following its filing for a National Bank Charter, while prioritizing growth in Brazil and Mexico [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the scalability of their model, highlighting strong customer engagement and unit economics [4][5] - The company anticipates continued growth in Mexico, with expectations of meaningful contributions to results in the coming years [6][72] - Management remains cautious about potential regulatory impacts in Mexico, particularly regarding proposed caps on card interchange fees [48][49] Other Important Information - The gross profit reached $1.8 billion, up 32% year-over-year, with a gross profit margin of 43.5% [22] - The liquidity metrics for the consumer credit portfolio in Brazil showed a 15-90 day NPL ratio of 4.2% and a 90-plus-day NPL ratio of 6.8% [20][21] Q&A Session Summary Question: Can you explain the lower provisions this quarter? - Management noted that asset quality has improved, with better-than-expected performance and recovery levels due to reactivating previously defaulted customers [26][27] Question: What explains the NIM contraction? - Management explained that the decline in net interest margin (NIM) was due to a shift towards less risky assets and increased interest expenses in Brazil, despite a decrease in funding costs as a percentage of interbank rates [33][34] Question: How is the rollout of the credit limit increase program performing? - Management indicated that the full effects of the credit limit increase program will materialize over time, with a focus on less risky customers [40][41] Question: What is the impact of the proposed cap on card interchange fees in Mexico? - Management expressed concerns that caps could inhibit financial inclusion and the unit economics of new customers, while remaining engaged in discussions with industry participants [48][49] Question: Will the company provide NPL data for Mexico? - Management confirmed that as Mexico's relevance in the credit portfolio grows, more granular disclosures on asset quality will be provided [52][53]

Core Insights - Nu Holdings Ltd. reported third-quarter earnings that exceeded analyst expectations for both earnings per share and revenue [1][2] Financial Performance - Quarterly earnings were 17 cents per share, surpassing the analyst estimate of 16 cents [2] - Quarterly revenue reached $4.17 billion, exceeding the consensus estimate of $3.8 billion and showing a significant increase from $2.94 billion in the same period last year [2] Stock Performance - Following the earnings report, Nu Holdings stock experienced a decline of 0.71%, trading at $15.70 in extended trading [2] Dividend Information - Nu Holdings pays a quarterly dividend of 39 cents per share, yielding 3.36%, which is higher than the 1.11% yield of the SPDR S&P 500 ETF [3] - The company has increased its dividend payment five times in the past 12 quarters, reflecting an annualized growth rate of 15.26% [3]

Financial Performance - The company's customer base has grown significantly, reaching 127 million in Q3'25[17] - The average revenue per active customer (ARPAC) has increased to $13 in Q3'25[19] - Gross profit reached $1815 million in Q3'25[24] - The company reported a net income of $783 million in Q3'25[26] - The efficiency ratio is 28% in Q3'25[26] Portfolio and Deposits - The total loan portfolio reached $304 billion in Q3'25, with a YoY growth of 42%[58] - Total originations reached $42 billion in Q3'25, with a YoY growth of 40%[63] - Deposits reached $388 billion in Q3'25, with a YoY growth of 34%[65] Brazil vs Mexico - Brazil has 1101 million total customers, representing 61% of the adult population, with an ARPAC of $135[45] - Mexico has 131 million total customers, representing 14% of the adult population, with an ARPAC of $125[45]

Core Insights - Nu Holdings, which operates the Brazilian digital lender Nubank, reported an increase in its third-quarter net income, primarily driven by its operations in Brazil and Mexico, surpassing market expectations [1] Financial Performance - The company experienced growth in net income during the third quarter, indicating strong performance in its Brazilian and Mexican markets [1]

Financial Performance - Total revenue for the three-month period ended September 30, 2025, was $4,172,716, representing a 42% increase from $2,943,188 in the same period of 2024[18] - Net income for the nine-month period ended September 30, 2025, reached $1,976,873, up 39% from $1,419,472 in the prior year[18] - Earnings per share (basic) for the three-month period ended September 30, 2025, was $0.1617, compared to $0.1153 for the same period in 2024, reflecting a 40% increase[18] - The company reported a total comprehensive income for the nine-month period ended September 30, 2025, of $2,808,208, compared to $1,013,767 in the prior year, representing a 176% increase[20] - The company reported a net increase in loss allowance across all stages, with Stage 1, Stage 2, and Stage 3 contributing $23,840, $602,315, and $1,228,580 respectively for the current period[104] Assets and Liabilities - Total assets increased to $68,362,816 as of September 30, 2025, compared to $49,931,214 at the end of 2024, marking a 37% growth[22] - Total liabilities increased to $57,809,276 as of September 30, 2025, up from $42,284,138 at the end of 2024, representing a 36.6% increase[23] - Total equity attributable to shareholders of the parent company rose to $10,551,991 as of September 30, 2025, compared to $7,646,289 at the end of 2024, marking a 38.9% increase[23] - Total financial liabilities at amortized cost increased to $38,775,929 as of September 30, 2025, compared to $28,855,065 as of December 31, 2024, representing a growth of about 34%[156] - The Group's total assets as of September 30, 2025, were valued at US$55,150,087 million, compared to US$40,227,546 million on December 31, 2024, indicating an increase of 37.2%[186] Cash and Cash Equivalents - Cash and cash equivalents as of September 30, 2025, totaled $12,895,785, an increase from $9,185,742 at the end of 2024[22] - Cash flows generated from operating activities for the nine-month period ended September 30, 2025, amounted to $2,669,433, compared to $1,028,947 in 2024, reflecting a significant increase[28] - Cash and cash equivalents at the end of the period reached $12,895,785, up from $7,645,754 at the end of September 2024, representing a 68.5% increase[29] Credit Loss and Allowances - Credit loss allowance expenses for the nine-month period ended September 30, 2025, were $2,963,219, compared to $2,364,628 in the same period of 2024, reflecting a 25% increase[18] - The company reported a credit loss allowance expense of $3,304,609 for the nine-month period ended September 30, 2025, up from $2,569,667 in 2024, indicating a 28.6% increase[28] - The total credit loss allowance increased to $1,380,214 as of September 30, 2025, compared to $752,611 in the previous year, reflecting a net increase of $627,603[120] Operating Expenses - The company’s total operating expenses for the nine-month period ended September 30, 2025, were $1,887,914, slightly up from $1,861,827 in the prior year[18] - Total transactional expenses for the three-month period ended September 30, 2025, increased to $104,990 million, up 76.4% from $59,454 million in the same period of 2024[69] - Customer support and operations expenses for the three-month period ended September 30, 2025, totaled $(174,843) million, a decrease from $(349,262) million in the same period of 2024[73] Interest Income and Expenses - Interest income and gains net of losses on financial instruments for the nine-month period ended September 30, 2025, were $9,438,357, up from $7,137,362 in the same period of 2024, a 32% increase[18] - Interest expense on deposits for the nine-month period ended September 30, 2025, was US$2,770,941, an increase of 64.4% from US$1,687,921 in 2024[68] - Total interest income and gains net of losses on financial instruments for the three-month period ended September 30, 2025, reached US$3,577,478, a 44.7% increase from US$2,473,807 in the same period of 2024[65] Future Plans and Expectations - The company plans to expand its portfolio of credit and other financial products in Mexico following the regulatory approval to convert Nu Mexico Financiera into a bank[32] - The company plans to continue expanding its operations in Brazil, Mexico, and Colombia through existing product lines and new product introductions[34] - The company expects seasonality effects to become more pronounced in future periods, particularly benefiting from higher purchase volumes in the fourth quarter due to the holiday season[36] Taxation - The company’s Brazilian operations are subject to a statutory corporate income tax rate of 40%, which exceeds the new QDMTT standards of 15%[44] - The income tax expense for the nine-month period ended September 30, 2025, was $813,851 million, compared to $608,276 million for the same period in 2024, indicating a year-over-year increase of approximately 33.8%[200] Derivatives and Financial Instruments - The Group's total notional amount of derivative financial instruments increased significantly from $2,167,022 million to $5,439,601 million, indicating a growth of approximately 150.5%[140] - The fair value of total assets related to derivatives rose from $75,464 million to $287,731 million, marking an increase of approximately 280.5%[145] - The total fair value of derivative financial instruments was US$293,347 million as of September 30, 2025, compared to US$75,464 million at the end of 2024, reflecting a significant increase of 287.5%[190]

Core Viewpoint - Growth investors are increasingly focused on stocks with above-average financial growth, but identifying such stocks can be challenging due to their inherent risks and volatility [1] Group 1: Company Overview - Nu Holdings Ltd. (NU) is currently highlighted as a recommended growth stock by the Zacks Growth Style Score system, which evaluates a company's real growth prospects beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong potential for growth investors [2] Group 2: Earnings Growth - Historical EPS growth for Nu is 192%, but the projected EPS growth for this year is 25.2%, significantly higher than the industry average of 11.1% [4] Group 3: Asset Utilization - Nu's asset utilization ratio (sales-to-total-assets ratio) is 0.24, indicating that the company generates $0.24 in sales for every dollar in assets, compared to the industry average of 0.05, showcasing superior efficiency [5] Group 4: Sales Growth - The company's sales are expected to grow by 32.2% this year, while the industry average is stagnant at 0%, positioning Nu favorably in terms of sales growth [6] Group 5: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Nu, with the Zacks Consensus Estimate for the current year increasing by 1.2% over the past month, which is a favorable indicator for stock price movements [8][7] Group 6: Conclusion - Nu has achieved a Zacks Rank of 2 and a Growth Score of A, suggesting it is a potential outperformer and a solid choice for growth investors [10]

Core Insights - Nu Holdings Ltd. (NU) is set to report its third-quarter 2025 results on November 13, with earnings expected to grow by 25% year-over-year to 15 cents and revenues projected at $4 billion, indicating a 37.2% year-over-year growth [1][8]. Financial Estimates - The Zacks Consensus Estimate for the current quarter (Q3 2025) is $4.04 billion in revenue, with a range between $4.02 billion and $4.05 billion [2]. - For the current year (2025), the revenue estimate stands at $15.22 billion, reflecting a year-over-year growth of 32.15% [2]. - The earnings per share (EPS) estimate for Q3 2025 is 15 cents, with a year-over-year growth of 25% from 12 cents in the previous year [3][8]. Customer Growth and Market Position - The anticipated revenue growth is attributed to strong customer expansion and increased market adoption of NU's services [12]. - NU's digital-first, scalable business model has disrupted traditional banking, particularly in Brazil, and is gaining traction in Mexico and Colombia, positioning the company as a regional leader in Latin America [13][16]. Competitive Landscape - NU's growth strategy contrasts with U.S.-based peers like SoFi Technologies and Block, which focus on deepening customer relationships and dual ecosystem approaches, respectively [14][15]. - NU's rapid customer acquisition in emerging markets highlights its distinct momentum in the global fintech landscape [15]. Investment Potential - The company is viewed as a compelling investment opportunity ahead of its earnings report, driven by an expanding customer base, rising engagement, and a strong market presence [16]. - NU's low-cost, scalable digital banking model supports profitability while enhancing financial inclusion in emerging markets, reinforcing its potential for long-term value creation [16][17].

Nu Holdings will increase the number of days most of its workers must come into the office, a push to speed up decision-making as headcount and business prospects expand. https://t.co/IeY6jDG1ix ...

Industry Overview - Fintech is transforming the global financial landscape by embedding financial services into everyday experiences, enabling programmable money, and leveraging AI for personalized interactions and risk management [1] - The rise of embedded finance integrates payments, lending, insurance, and investments into non-financial platforms, reducing distribution costs and enhancing customer loyalty [2] - Open banking and open finance empower customers with control over their data, fostering faster onboarding and customized products [2] - Programmable money powered by stablecoins and real-time payment rails is revolutionizing treasury, payroll, and cross-border transfers through instant settlement [2] - AI is becoming the new operating system for the financial industry, driving decision-making in underwriting, cybersecurity, and compliance [3] Future Trends - The future financial system will be open, data-permissioned, AI-native, and instant in settlement, with long-term winners being fintechs and incumbents that master interoperability and trusted customer relationships [4] - Stocks like Upstart Holdings, Affirm Holdings, and Nu Holdings are gaining investor attention as they adapt to these trends [4] Company Insights: Upstart Holdings, Inc. (UPST) - Upstart is an AI-driven fintech that uses machine learning to evaluate non-traditional data points for lending, allowing broader loan approvals while maintaining strong credit performance [6][7] - The company acts as an intermediary, earning revenues through referral fees, loan servicing fees, and income from loan sales and securitization [7] - Upstart's direct-to-consumer platform enables individuals to apply for loans directly, leveraging automation and data analytics to disrupt traditional lending [8] - The Zacks Consensus Estimate for UPST's 2025 sales and EPS implies year-over-year growth of 51.4% and 930%, respectively [9] Company Insights: Affirm Holdings, Inc. (AFRM) - Affirm operates in the Buy Now, Pay Later (BNPL) and embedded finance space, allowing consumers to split purchases into installments at the point of sale [10] - The company uses data-driven underwriting and real-time credit assessment to manage risk dynamically [11] - Affirm differentiates itself by focusing on larger-ticket purchases and flexible repayment options, supported by a robust capital model [12] - The Zacks Consensus Estimate for AFRM's fiscal 2026 sales and EPS implies year-over-year growth of 23.9% and 473.3%, respectively [14] Company Insights: Nu Holdings Ltd. (NU) - Nu Holdings targets underserved and digitally native consumers in Latin America with a suite of app-based services across lending, banking, and investing, amassing 123 million customers as of June 30, 2025 [15][16] - The company has reduced operational costs while boosting efficiency and accessibility, promoting financial inclusion in underserved markets [16] - Nu's diversified revenue streams from lending, interchange fees, and marketplace services offer resilience and scalability [17] - The Zacks Consensus Estimate for NU's 2025 sales and EPS implies year-over-year growth of 32.2% and 24.4%, respectively [19]

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