Zinger Key Points
- Nu Holdings shares dropped over 15% after missing Q4 revenue estimates despite meeting EPS expectations and strong customer growth.
- The company added 4.5 million new customers in Q4, bringing its total to 114.2 million, but the revenue shortfall overshadowed its expansion
- Today's manic market swings are creating the perfect setup for Matt’s next volatility trade. Get his next trade alert for free, right here.
Nu Holdings Ltd. NU shares are trading lower following the company's fourth-quarter revenue miss.
What To Know: The digital banking company reported fourth-quarter revenue of $2.99 billion, falling short of analyst estimates of $3.29 billion. Earnings per share came in at 11 cents, matching expectations.
Despite the revenue miss, Nu Holdings continued to expand its customer base, adding 4.5 million new users in fourth-quarter, bringing its total to 114.2 million, a 22% increase year-over-year. The company also became the third-largest financial institution in Brazil by customer count. CEO David Vélez highlighted advancements in the company's high-income strategy in Brazil, as well as growth in Mexico and new offerings like NuCel and NuTravel.
Nu's interest-earning portfolio reached $11.2 billion by the end of the quarter, with its credit card portfolio growing 28% year-over-year and total deposits surging 55%. However, the revenue miss overshadowed these growth metrics, leading to the stock’s sharp decline.
NU Price Action: Nu Holdings shares were down 15.7% at $11.25 at the time of writing, according to Benzinga Pro.
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