Nu Holdings (NU) Stock Drops 9% Despite Strong Q4 Earnings
Nu Holdings (NU) reported a record Q4 2025 net profit of $894.8 million, marking a 50% year-over-year increase. Revenue surged 45% to $4.86 billion, surpassing analyst estimates of $4.55 billion. The customer base expanded to 131 million across Brazil, Mexico, and Colombia, reflecting 15% annual growth.
Despite these robust metrics, the stock plummeted 9.55% on February 26, closing at $15.06. Investor concerns centered on rising operating costs and the absence of clear margin guidance. Nu Holdings' return on equity stood at 33%, with an efficiency ratio improvement to 20%.
In a strategic move, Nubank secured conditional OCC approval for a U.S. national bank charter, effective January 2026. The selloff highlights market skepticism even as the fintech firm demonstrates accelerating monetization and scale.
