Nu Holdings reported third-quarter revenue of $1.7 billion, representing a 42% year-over-year increase driven by record customer additions. The digital bank’s net profit margin reached 18.8% in Q3, up from 12.5% in the same period last year, as scale benefits reduced operating expenses while core lending and card segments delivered stronger spreads across Brazil, Mexico and Colombia.

Despite its robust financial performance, Nu Holdings trades at a forward price-to-earnings ratio of 20.7, below the S&P 500’s multiple of 22.3. With sell-side analysts forecasting compound annual growth rates of 30% for revenue and 37% for earnings per share through 2027, the stock appears undervalued versus both regional banking peers and global fintech competitors.

With 110 million customers in Brazil, 13 million in Mexico and 4 million in Colombia, Nu Holdings has penetrated less than 20% of its combined addressable population of over 300 million. Management plans to enter at least two additional Latin American markets over the next 18 months and is pursuing a U.S. banking license to capture cross-border remittance flows, supporting projections of $10 billion in annual net income by 2030.