• In recent results, Nu Holdings reported reaching 135 million customers across Latin America, alongside higher average revenue per active customer and improving margins.
• The combination of rapid customer growth, particularly in Mexico, and rising monetization efficiency highlights how Nu’s digital-only model is scaling across the region.
• Next, we’ll examine how Nu’s accelerating monetization per customer may influence its long-term growth narrative and risk profile.

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Nu Holdings Investment Narrative Recap

To own Nu Holdings, you need to believe its digital-only model can keep adding engaged customers while carefully managing credit risk as it lends more to mass-market borrowers. The latest results, showing 135 million customers and higher revenue per active user, support the near term catalyst of monetization gains, but they also sharpen the key risk that expanding into less mature credit segments could pressure asset quality if conditions worsen.

Among recent announcements, Q1 2026 results stand out in this context, with net interest income of US$3,006.1 million and net income of US$871.4 million year over year. These figures underline how scale and cost efficiency are feeding into profitability, but they also raise the bar for Nu to maintain margins as competition intensifies and credit costs remain a critical swing factor for the story.

Yet behind Nu’s rapid monetization progress, there is a growing concentration in higher risk borrowers that investors should be aware of...

Nu Holdings' narrative projects $33.0 billion revenue and $6.1 billion earnings by 2028. This requires 78.1% yearly revenue growth and a $3.8 billion earnings increase from $2.3 billion today.

Uncover how Nu Holdings' forecasts yield a $19.99 fair value, a 52% upside to its current price.

Exploring Other Perspectives

Some of the lowest estimate analysts were already assuming Nu’s earnings would reach about US$6.3 billion by 2029, yet still saw shrinking margins as expansion into riskier, underserved markets increased the chance of higher credit losses, which shows how differently you and other investors might interpret the new 135 million customer milestone.

Explore 20 other fair value estimates on Nu Holdings - why the stock might be worth over 4x more than the current price!

Reach Your Own Conclusion

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your Nu Holdings research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Nu Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Nu Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.