Nu Holdings Surpasses 110 Million Customers, Enhances Profitability Model
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 22 2025
0mins
Source: NASDAQ.COM
- Customer Base Expansion: Nu Holdings has surpassed 110 million customers in Brazil, representing about 60% of the adult population, successfully attracting tens of millions through free digital accounts and no-annual-fee credit cards, significantly disrupting the traditional banking landscape.
- Profitability Enhancement: In the third quarter, Nu's average revenue per active customer (ARPAC) reached $13.40, a 20% year-over-year increase, indicating that as customers adopt more products, the company's long-term monetization potential is strengthening.
- Market Expansion Plans: Nu is expanding into Mexico and Colombia, with over 13 million customers in Mexico, representing 14% of the adult population, and plans to acquire a small bank next year to gain legitimate banking status, enhancing market trust and capital access.
- Utilization of Digital Trends: With smartphone adoption in Latin America projected to reach 400 million, Nu leverages its low-cost, digital-first model to meet the growing consumer demand for mobile banking services, further driving the company's growth potential.
Analyst Views on NU
Wall Street analysts forecast NU stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for NU is 17.30 USD with a low forecast of 16.00 USD and a high forecast of 19.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
9 Buy
3 Hold
0 Sell
Strong Buy
Current: 17.610
Low
16.00
Averages
17.30
High
19.00
Current: 17.610
Low
16.00
Averages
17.30
High
19.00
About NU
Nu Holdings Ltd is a Brazil-based holding company, which engages in the provision of digital banking services. The Company offers its customers products across the five financial seasons: spending, saving, investing, borrowing, and protecting. Its spending solutions are designed to help customers pay for goods and services in their everyday lives with a customized credit line or instantly through a mobile phone, while collecting loyalty points and rewards on applicable transactions. Its savings solutions are designed to help customers deposit, manage, and save their money in interest-earning accounts with complementary debit cards. Its investing solutions are designed to help customers invest their money in investment products and services. Its borrowing solutions are designed to provide customers with unsecured loans that are easy to receive, manage, and pay back. Its protecting solutions are designed to help customers secure life insurance and funeral benefits.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
