Nu (NU) Q1 2025 earnings summary

Executive summary

• Customer base reached 119 million in Q1 2025, with 4.3 million net adds and nearly 100 million monthly active users, activity ratio above 83%.

• Revenues grew 40% year-over-year FX neutral to $3.25 billion, driven by a 62% expansion in the interest-earning portfolio and strong customer engagement.

• Net income rose 74% year-over-year FX neutral to $557 million, with adjusted net income at $607 million; annualized ROE reached 27%.

• Brazil remains the most mature market, with 60% of adults as customers and 30% market share in principality, but only 5% gross profit market share, highlighting significant monetization potential.

• Strategic focus remains on long-term value creation, reinvesting earnings to expand market share and product usage, especially in under-penetrated markets.

Financial highlights

• Credit portfolio reached $24.1 billion in Q1, up 8% quarter-over-quarter and 40% year-over-year FX-neutral; interest-earning portfolio grew 62% to $13.8 billion.

• Net interest income grew 34% year-over-year FX-neutral to $1.84 billion; consolidated net interest margin at 17.5%.

• Gross profit was $1.32 billion, up 32% year-over-year FX-neutral, with gross profit margin at 41%.

• Deposits totaled $31.6 billion, up 48% year-over-year FX-neutral; loan-to-deposit ratio at 44%.

• Total loan originations hit a record BRL 20.2 billion, up 64% year-over-year, with unsecured loans at an all-time high of BRL 17.3 billion.

Outlook and guidance

• Expect continued NIM expansion in Brazil driven by balance sheet re-leveraging and higher loan-to-deposit ratios.

• Investments in Mexico and Colombia deposit franchises will temporarily pressure margins but are expected to drive long-term growth and profitability.

• Risk-adjusted NIMs expected to stabilize or grow in Brazil, with Mexico and Colombia converging toward Brazil's profitability as they mature.

• Focus remains on sustainable, long-term growth over short-term margin optimization.

• Management remains confident in continued growth, citing a long runway for expansion in Brazil, Mexico, and Colombia, and plans to reinvest strategically while maintaining disciplined execution.