Nu Holdings has more than doubled its customer base from 53.9 million at the end of 2021 to 127.0 million by Q3 2025, with its activity rate rising from 76% to 83%. Over the same period, average revenue per active customer nearly tripled from $4.50 to $13.40, while the average monthly cost to serve each active customer remained stable at $0.90. Between 2021 and 2024, Nu’s top line expanded at a compound annual growth rate of 89%, and the company turned GAAP-profitable in 2023, with earnings per share almost doubling in 2024 despite challenging macroeconomic conditions in Latin America.

As Nu accelerated its expansion in Mexico and Colombia, gross margin dipped from 46% in Q3 2024 to 43.5% in Q3 2025, and net interest margin fell from 18.4% to 17.3% over the same period. Higher funding costs and credit allowances in these newer markets, combined with growth in secured lending and payroll-backed loans, weighed on net income growth, which slowed from 63% year-over-year in Q3 2024 to 41% in Q3 2025 even as revenue growth stabilized above 40%.

Nu secured a full banking license in Mexico and has applied for one in Brazil, positioning it to comply with evolving fintech regulations and to roll out new services. The company is also pursuing a U.S. bank charter to support potential entry into the American market. These regulatory milestones should enhance Nu’s credibility, expand its addressable market in Mexico and Colombia, and deepen its product penetration through features like crypto trading and e-commerce financial tools.

Analysts forecast Nu’s full-year revenue and earnings per share to grow by 36% and 46%, respectively, with a three-year CAGR of 30% for revenue and 37% for EPS through 2027. At roughly 20 times next year’s earnings estimates, Nu’s valuation appears reasonable given its growth profile and margin stability. Should macroeconomic headwinds in Latin America ease and customer growth remain on track, the stock could attract renewed investor interest ahead of its February earnings release.