Nu Holdings Stock Bounces Back From Q1 Earnings Sell-Off: What's Going On?

Nu Holdings Ltd. NU shares are trading higher Wednesday, reversing earlier losses following the release of weaker-than-expected first-quarter financial results.

What To Know: The Warren Buffett-backed digital banking company reported earnings of 12 cents per share, missing the consensus estimate of 13 cents. Revenue came in at $3.2 billion, slightly below the $3.23 billion expected by analysts.

Despite the earnings and revenue miss, investors appeared to focus on Nu's strong customer metrics. The company added 4.3 million customers in the quarter, pushing its total customer base to 118.6 million across Brazil, Mexico and Colombia. Monthly average revenue per active customer increased 17% year-over-year, reaching $11.20. At the same time, cost efficiency improved, with average cost to serve per active customer falling to just seven cents.

Net interest income hit a record $1.8 billion, up 34% from a year ago, driven by a 62% expansion in the company's interest-earning portfolio. CEO David Vélez highlighted Nubank's expanding customer activity, noting that the platform saw nearly 99 million monthly active users with an activity rate above 83%.

“Starting 2025 strong, Nubank reached 118.6 million customers, adding over four million in a single quarter, showcasing its powerful platform scalability across Brazil, Mexico and Colombia,” Vélez said.

Shares initially dropped over 5% in after-hours trading on Tuesday following the earnings release, but have since recovered as market sentiment improved, potentially influenced by Susquehanna maintaining a Positive rating and raising its price target from $14 to $15.

The stock's recovery on Wednesday suggests continued confidence in Nu Holdings’ ability to scale and sustain engagement across Latin America.

NU Price Action: Nu Holdings shares were up 2.85% at $13.52 at the time of publication, according to Benzinga Pro.

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