Nubank reports 45% revenue increase in latest earnings

• Key insight: Nubank reported strong revenue growth and multiple one-time expenses in its Q4 and full-year earnings report.
• Supporting data: Nu Holding's total credit portfolio expanded 40% year over year and 11% quarter over quarter to $32.7 billion, supported by AI-powered underwriting.
• Forward look: Nubank will be working to open its U.S. banking division over the next fiscal year, pending full charter approval.

Nubank announced its fourth-quarter and full-year earnings results after market close on Wednesday, reporting strong growth but slightly missing Wall Street earnings estimates.

The Brazilian neobank reported approximately $4.9 billion in revenue for the quarter ending Dec. 31, 2025, a 45% increase year over year from $3.1 billion in 2024. Full-year revenue for 2025 was $16.3 billion, also a 45% increase year over year from 2024's $11.7 billion.

Total operating expenses for the year were $2.8 billion, an 11% increase year over year from $2.5 billion in 2024. Nubank executives noted on the company earnings call Wednesday night that the Q4 earnings report included multiple one-time expenses, such as $22 million of transition expenses for the company's 2026 return-to-office decision and a $25 million one-off expense toward a sector-wide deposit insurance fund in Mexico.

Net income for the full year came out to $2.9 billion in 2025, a 37% increase year over year from $2 billion in 2024.

Earnings per share came out to $0.58, slightly under Wall Street analyst consensus estimates of $0.59 per share, according to S&P Capital.

Nu Holding's total credit portfolio expanded 40% year over year and 11% quarter over quarter to $32.7 billion, according to its earnings statement. 

The neobank launched its AI-powered credit underwriting model, nuFormer, in late 2025 for credit underwriting in Brazil. The model boosted Nubank's largest quarterly gain in credit card market share in 10 quarters, according to the company. The nuFormer model will also be expanded to lending in Brazil and credit cards in Mexico, according to Nubank's earnings statement.

A Nubank representative told American Banker that starting this quarter, the earnings report now includes "a consolidated view of credit quality across the entire Nu platform." Previous earnings figures only included the neobank's Brazilian operation.

Nubank has established customer bases in Mexico and Colombia, and the fintech is also moving forward to establish a U.S. bank division after receiving a conditionally approved de novo bank charter from the OCC in January. Since the fourth quarter and fiscal year ended in December 2025, this earnings cycle was not impacted by the U.S. charter approval.

"During 2026, we will lay the operational groundwork for our U.S. opportunity, building on the conditional bank charter approval," Nubank CEO David Velez told investors on the company earnings call Wednesday night. "Latin America remains our primary growth engine."

Nubank co-founder Cristina Junqueira, recently appointed as the CEO of Nu's U.S. bank division, previously told American Banker that she is working on expanding Nubank's physical presence in the U.S. by establishing additional office spaces and hiring more employees. Nubank did not disclose specific figures regarding its U.S. expansion plans in its earnings.

"There are team increases that we're having for the U.S. launch, but I wouldn't say they're expected to be significant in 2026," Velez said on the earnings call.

Although Nubank will be opening a U.S. division operating as a bank under the de novo charter within the next couple of years, the Brazil-based parent company Nu Holdings does not yet have a banking license from Brazil and currently operates as a nonbank fintech. Nubank announced in December that it intends to acquire a Brazil banking license in 2026. Nubank did not comment on the Brazil bank license in its earnings statement or call.

Market analysts viewed Nubank's earnings positively, but acknowledged that upcoming expenses may have a negative short-term impact on the neobank's stock prices.

"We remain constructive on geo growth opportunity and improving credit models as a source of additional growth/profitability," Keybank analysts wrote in a research note. "Messaging on 2026 spend is likely a moderately negative surprise, but incremental operating leverage is still on the table."

Citi analysts wrote in a research note that the bank continues to grow at a strong pace, citing "a strong quarter by Nubank on top-line, with an acceleration in loan portfolio growth and net interest income. However, cost of risk and operating expenses mud[dy] the picture. Expenses outpaced fees, creating some pressures on earnings before taxes."

Nubank's stock price was down by about 9% as of Thursday afternoon.