Nu Holdings Q1 Revenue Up 42% to $5.32B, Shares Fall 9.5%
Nu Holdings posted Q1 revenue of $5.32 billion, up 42% year-over-year, and record net interest income of $3.25 billion while serving 135 million customers globally. Shares plunged 9.51% in after-hours trading on concerns over compressed margins, slower customer growth and higher U.S. expansion costs.
1. Q1 Financial Highlights
Nu Holdings delivered Q1 revenue of $5.32 billion, marking a 42% increase year-over-year, alongside record net interest income of $3.25 billion. The digital bank expanded its customer base to 135 million users, reflecting solid uptake across Latin America and accelerating adoption of its mobile platform.
2. Market Reaction and Key Drivers
Despite outperforming revenue estimates, the stock fell 9.51% in after-hours trading as investors flagged margin compression due to rising funding costs and intensifying competition. Slower-than-expected customer additions in key markets and elevated operating expenses contributed to concerns over near-term profitability.
3. U.S. Expansion and Margin Outlook
Nu Holdings has stepped up spending on U.S. market entry, investing in marketing, hiring and infrastructure, which weighed on margins this quarter. Management maintains that these investments will support long-term growth, but near-term margin pressure is likely until scale efficiencies are realized.