Prediction: 2026 Will Be the Year of Nu Holdings

Core Insights - Nu Holdings (NU) achieved a remarkable 62% return in 2025 and is expected to continue its strong performance into 2026 [1] Valuation - As of January 29, Nu shares are trading at a forward price-to-earnings ratio of 23.4, which is considered a reasonable valuation given its growth prospects [2] Growth Potential - Nu Holdings reported $4.2 billion in revenue for Q3 2025, marking a 42% year-over-year increase, with analysts forecasting a 31% revenue growth for 2026 [3] - The company has a significant customer base in Brazil with 110 million customers, representing over 60% of the adult population, and also has 13 million customers in Mexico and 4 million in Colombia [4] Profitability - Nu's business model, which avoids costly bank branches, has led to a net profit margin of 18.8% in Q3 2025, up from 0.6% in Q3 2022 [5] - The company generates significantly more revenue per customer than it costs to serve them, indicating strong unit economics [6]