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Nu Q1 2025 Earnings Review!
Guest post by Ray Myers from Global Equity Briefing!
Ray Myers
May 14, 2025
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Hey fellow investors,
Today’s newsletter was written by my good friend Ray Myers, who runs the Global Equity Briefing newsletter. We share the same principles of high-quality, long-term growth—and today, we’re bringing you an update on Nubank’s most recent earnings results. Enjoy!
George
Nu Bank’s stock has been punished heavily in the last few months as the weakness of BRL puts pressure on consolidated USD growth, and Trump’s Trade War raises concerns of a weakening economy in Nu’s core markets of Mexico, Brazil, and Colombia.
In the last month, however, BRL has strengthened against USD by 5%, and Trump has caved to pressure and rolled back some tariff measures, sending Nu stock up 23%.
There was quite some optimism going into the earnings, but unfortunately, according to the market, Nu didn’t deliver, sending the stock down 8%!
The market quickly corrected, and Nu, at the time of writing this, is down 2.8%!
So, what caused this panic?
It wasn’t top-line numbers, as total revenue grew 18.7% to $3.45B, slightly beating the analyst estimate of $3.27B.
It wasn’t the number of customers, as Nu added 4.4M customers in Q1 and 19.3M over the past 12 months.
3 Key KPI’s that likely caused this decline were:
1.8% decrease in monthly ARPU.
35.6% increase in interest cost.
17.2% increase in loan loss provision.
However, I find such a reaction from the market foolish and shortsighted.
In this article, I will review Nu’s Q1 2025 financial results. If you are interested, I wrote a full Deep Dive about Nu, which covers all of the most important aspects an investor needs to know about the company.
Let’s jump in.
