Key Points
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Net income at the Latin American financial services giant soared 49% year over year in the latest quarter.
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The business generates 17 times as much monthly revenue per customer on average as it costs to serve them.
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Nu expects it will take 12 to 30 months for it to develop and fine-tune its risk models for the U.S. market.
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Nu Holdings (NYSE: NU) has quickly become a financial services leader in Latin America. And now, the business has its sights on global expansion. Nu recently launched limited offerings in the U.S.
This fintech stock, which trades 20% below its record, hit a notable milestone during the second quarter. Nu posted net income of more than $1 billion for the first time. That proves its scale is leading to a lucrative windfall.
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Here’s what investors need to know about the digital banking powerhouse.
The business model is working
Nu reported net income of $1.1 billion in the second quarter. That figure represented a 49% year-over-year jump on a currency-neutral basis. Of course, revenue growth plays a part, with the top line soaring 39%. Nu’s customer base of over 140 million people also gives it tremendous scale.
It only costs the business $1 on average to serve each customer each month. At the same time, it collects $17.10 in revenue per user on a monthly basis. These are stellar unit economics that support the bottom line.
And as these customers start using more of Nu’s offerings, they become more entrenched. That further aids in monetization. It also enables the company to benefit from switching costs, a competitive advantage the banking industry is known for.
The sell-side analyst community is extremely optimistic. According to consensus estimates, the business will register $1.43 in earnings per share in 2028. That would be 147% higher than the total from 2025. Anyone would be bullish with this outlook.
But Nu, after all, is a lender. And this presents credit risk. That exposes the company to macroeconomic conditions.
Welcome to the U.S.
In January, Nu received conditional approval from the Office of the Comptroller of the Currency for a national bank charter expected in 2027. In the meantime, the company has decided to partner with Missouri-based Lead Bank, a digital banking platform that might share the same strengths as Nu, to start offering products and services to U.S. customers.
CEO David Vélez said the relationship with Lead Bank started before Nu even applied for a banking license. On Sept. 10, Nu officially launched a high-yield deposit account that offers fast and free international transfers, a credit card, and a multi-currency digital account called Nu Global.
For the foreseeable future and possibly beyond, though, Nu’s strength will continue to reside in Latin America, particularly in its key markets of Brazil, Mexico, and Colombia. That’s where it still has the biggest opportunity. This means that the U.S. launch, while noteworthy, won’t contribute much to the company’s financial results anytime soon.
CFO Rob Livingston provided context on how long it might take to develop and fine-tune Nu’s credit and risk models. “The actual data richness and building the experience of foundational testing and having the models in place that are specifically tooled for the U.S. market will take somewhere between 12 and 30 months, depending on the degree of maturation of those curves,” he said on the Q2 2026 earnings call.
The U.S. financial services industry is hyper-competitive. There are established money-center banks. There are also tech-enhanced digital pioneers. All have strong name recognition and trust among customers. Nu’s success won’t come easy.
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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nu Holdings. The Motley Fool has a disclosure policy.
