Nu .(US:NU) ZACKS·2026-01-15 17:26Core Insights - Nu Holdings Ltd. (NU) is leveraging AI to enhance risk mitigation and achieve efficient scalability, with CEO David Velez-Osomo highlighting an AI-first approach as key to low-cost product scalability and unlocking new revenue streams [1][9] Financial Performance - The company has experienced a sequential revenue growth of 14% in the third quarter of 2025, alongside a 19% increase in net income and a 200 basis points expansion in margins [2][3][9] - Monthly average revenue per active customer has reached $13.4, with a monthly activity rate of 83% [4] Customer Growth - Nu Holdings added 4.3 million customers in the third quarter of 2025, bringing the total customer count to 127 million, demonstrating the effectiveness of the AI-first strategy [4][9] AI Implementation - The company is utilizing AI for risk mitigation through the development of nuFormer, which enhances understanding of customer needs and allows for personalized recommendations without increasing risk [5][9] - The AI-first strategy is positioned as a digital banking moat, enabling the company to set benchmarks for data-driven financial offerings in the fintech market [6] Market Position and Valuation - NU's stock has increased by 20.2% over the past six months, compared to the industry's growth of 26.8% [7] - The company trades at a forward price-to-earnings ratio of 19.27X, which is above the industry average of 11.16X and higher than peers Credicorp and Itau Unibanco [11] - The Zacks Consensus Estimate for EPS for 2025 is set at 60 cents, with a recent upward revision of 3.4% [14]