Is Nu Stock a Buy Now? Here’s What You Need to Know in 2025

Nu Holdings stock just hit another high—but is the rally sustainable or another case of fintech FOMO?

Breaking Down the Numbers

The Brazilian digital bank keeps posting user growth that traditional lenders can only dream about. While old-school banks push paperwork, Nu slashes onboarding to minutes and bypasses brick-and-mortar costs entirely.

Market Momentum vs. Fundamentals

Sure, the stock's riding the digital banking wave—but remember when every fintech startup was 'the next big thing' until regulators came knocking? Nu's navigating Brazil's complex financial landscape while keeping customer acquisition costs impressively low.

The Crypto Connection

Here's where it gets interesting: Nu's diving deeper into crypto services while traditional banks still treat digital assets like radioactive material. They're not just dipping toes—they're building infrastructure that could make them the region's on-ramp for digital finance.

Bottom Line: Nu's executing where others just talk, but buying at these levels means betting they'll outrun both competition and regulators. Because nothing says 'sustainable valuation' like a stock that's already priced for perfection.

Disrupting finance in Latin America

Nu is an all-digital bank based and Brazil and serving Brazil, Mexico, and Colombia. It reports robust growth every quarter, and it has tremendous growth opportunities.

Image source: Getty Images.

Customers keep coming

Nu added 4.1 million new accounts in the 2025 second quarter, ending the period with 123 million accounts, or 17% more than last year. It has 60% of the adult population in Brazil, 13% in Mexico, and 10% in Colombia.

Revenue increased 40% year over year in the quarter, driven by new additions as well as cross-selling. Average revenue per active customer (ARPAC) ROSE 18% over last year to $12.20 as customers add new and more expensive products, and the longer customers are on the platform, the higher the average, with customers active for 96 months averaging $27.30.

Profits are soaring

Nu is scaling profitably, with its all-online platform leading to lower costs. It has kept its cost to serve stable at around $0.80, and the efficiency ratio is down to 28% from 32% last year. Gross profit increased 78% year over year, and net income increased from $487 million last year to $637 million this year.

Many growth drivers

Nu is still in its early stages, and it has multiple growth drivers that should keep it in growth mode for the foreseeable future.

New customers

Although a majority of the adult population in Brazil is already on the platform, Brazil is the largest country in Latin America, and it adds more new accounts there monthly than in its newer markets. However, those markets are growing faster. It's still a small presence in Mexico and Colombia, with a long growth runway. Credit card accounts increased 11% over last year, for example, but they increased 52% in Mexico and 34% in Colombia.

High-income customers

Nu's low fees attract the mass customer at high rates, but it's making inroads into the affluent population, whose large deposits and high spending are much more lucrative. It has 3 million high-income customers, a 13% increase over last year.

Boosting engagement

It's also benefiting from the cross-selling strategy, which is boosting sales and profits from existing customers. Even though it has 60% of the adult population in Brazil as customers, these customers might also engage with other banks. Management estimates that it only has about 5% of the addressable market for gross profit.

New regions

Nu is already investing in global regions and expanding into new markets in Latin America. There's a long growth runway in launching its successful models into new Latin American countries.

The price is right, in some ways

Nu is in an excellent position to keep growing in multiple ways, and it's cheap by using a P/E ratio on a forward, one-year basis, which is only 15. That's a bargain for a high-growth stock. However, banks are typically assessed with a price-to-book ratio. Nu stock trades at 5.7, which is incredibly expensive.

That's part and parcel of investing in a young stock that's still finding its footing, and it partially explains why the stock has been up and down this year despite its outstanding performance.

Nu can carry a premium valuation because it's growing so quickly. It's likely to keep growing and justify the valuation as it expands and becomes a powerhouse digital bank, and it looks like it's still a buy.