NU (NYSE:NU) Announces Quarterly Earnings Results

NU (NYSE:NU) issued its earnings results on Thursday. The company reported $0.22 earnings per share for the quarter, missing analysts’ consensus estimates of $0.23 by ($0.01), FiscalAI reports. NU had a net margin of 18.65% and a return on equity of 31.59%. The firm had revenue of $6.26 billion for the quarter, compared to the consensus estimate of $5.96 billion. During the same period last year, the firm earned $0.16 earnings per share.

Here are the key takeaways from NU’s conference call:

• Nu reported record gross revenue of $6.3 billion, up 37% year over year, and record net income of $1.1 billion, up 31%, with a 32% return on equity. It ended the quarter with 143 million customers and an activity rate of 83.6%.
• The credit portfolio grew 33% year over year to $41.6 billion, and recurring risk-adjusted NIM rose to 12.7% excluding one-off items. However, the 90-plus-day delinquency ratio increased to 7.3% from 6.9%, which management attributed partly to portfolio mix and deliberate risk expansion.
• Management lowered its full-year efficiency-ratio outlook to 19%–19.5%, from around 20%, after expenses came in below expectations. It expects the ratio to rise sequentially in Q4 as deferred spending and hiring pick up.
• Growth continued in Mexico and Colombia, while Nu launched U.S. and global account offerings; executives said investment in the new initiatives will be gated by product-market fit, unit economics, and regulatory milestones. The company expects Nu US and Nu Global together to remain within a 100-basis-point efficiency-ratio impact in each of 2026 and 2027.

NU Stock Performance

NU stock traded up $1.22 during midday trading on Friday, reaching $13.05. The stock had a trading volume of 94,582,335 shares, compared to its average volume of 66,894,711. The firm has a fifty day simple moving average of $13.81 and a two-hundred day simple moving average of $14.25. NU has a 52-week low of $11.20 and a 52-week high of $18.98. The company has a debt-to-equity ratio of 0.35, a quick ratio of 0.55 and a current ratio of 0.55. The stock has a market cap of $63.38 billion, a PE ratio of 17.64, a P/E/G ratio of 0.51 and a beta of 0.97.

Analyst Ratings Changes

A number of research firms recently weighed in on NU. Needham & Company LLC reaffirmed a “buy” rating and issued a $19.00 price objective on shares of NU in a research note on Friday. Wolfe Research lowered their price target on NU from $18.00 to $17.00 and set an “outperform” rating for the company in a report on Tuesday, August 25th. Rothschild & Co Redburn set a $19.00 price target on NU in a research note on Monday, September 28th. Weiss Ratings upgraded shares of NU from a “hold (c)” rating to a “hold (c+)” rating in a report on Monday. Finally, UBS Group upped their price objective on shares of NU from $18.20 to $20.50 and gave the company a “buy” rating in a report on Tuesday, October 20th. Ten equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, NU currently has a consensus rating of “Moderate Buy” and a consensus target price of $18.25.

Latest NU News

Investors following NU have been watching these news items:

• Positive Sentiment: Needham reaffirmed its Buy rating and $19 price target, signaling continued analyst confidence in the shares. Needham rating information
• Neutral Sentiment: CEO commentary that Nu’s new banking status makes its proposition more compelling, along with the company’s global expansion plans, may strengthen its long-term growth opportunity, though execution will take time. Q3 results and CEO comments
• Negative Sentiment: Some coverage flagged rising delinquencies, keeping credit quality a risk to monitor. The reported $0.22 EPS was also one cent below the consensus estimate cited in some reports, despite the revenue beat. Analysis of Nu’s delinquencies

Insiders Place Their Bets

In other news, CEO Cristina Junqueira sold 25,000 shares of the stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $15.01, for a total value of $375,250.00. Following the transaction, the chief executive officer directly owned 4,877,593 shares of the company’s stock, valued at approximately $73,212,670.93. This represents a 0.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 115,000 shares of company stock worth $1,706,400. 1.20% of the stock is currently owned by insiders.

NU Company Profile

Nu Holdings Ltd., which operates under the Nubank brand, is a digital financial services company founded in Brazil in 2013. It provides banking and related services through mobile apps and other digital channels, with a focus on simplifying access to financial products. Its offerings include digital accounts, payment cards, credit products, personal loans, and investment services. The company also provides services to small businesses, with products and availability varying by country. Nu serves customers in Brazil, Mexico, and Colombia.