Core Insights - Nu Holdings Ltd. (NU) has established a significant presence in Brazil, serving 60% of the adult population, and is now applying its successful model to expand in Mexico, where it has reached approximately 14% of the population as of Q3 2025, surpassing Brazil's 10% at a similar stage in 2019 [1][8] Financial Performance - The company reported record revenues of $4.2 billion in Q3 2025, reflecting a 39% year-over-year increase on a foreign exchange-neutral basis, while maintaining a cost to serve in Mexico under $1, indicating strong operational efficiency [3][8] - The average revenue per active customer (ARPAC) in Mexico reached $12.5 in Q3 2025, which is close to Brazil's levels, supported by a higher income per capita in Mexico, which is 40% greater than that of Brazil [2][8] Market Position and Valuation - NU's stock has increased by 28.8% over the past six months, outperforming the industry average growth of 27.2%, while its peers, BNP Paribas and Bank of Montreal, saw gains of 14.6% and 21% respectively [5] - From a valuation perspective, NU trades at a forward price-to-earnings ratio of 19.14X, which is significantly higher than the industry average of 11.38X and also above BNP Paribas and Bank of Montreal's ratios of 7.47X and 13.63X respectively [9] Growth Strategy - The company's robust ARPAC and operational efficiency underscore its potential for sustained growth in Mexico, with a focus on long-term investment and scaling rather than short-term profits [4]