Nu Holdings Ltd.

Nu's NIM engine is grounded in $41.9 billion in deposits and an 83% monthly activity rate across 131 million customers as of FY2025, providing recurring banking relationships. Unlike subscription software, NIM is sensitive to credit cycles, and forward revenue visibility depends on sustained loan quality rather than contracted forward streams.

Nu offers credit cards, personal loans, payroll loans, savings accounts, investments, insurance, and the NuCel MVNO, but all products serve the same retail financial-services end market in the same three countries. Consumer credit and NIM remain the dominant revenue driver, and product breadth does not reduce correlated EM credit cycle exposure.

Brazil represents roughly 85% of Nu's 131 million customers and a broadly proportionate share of deposits ($33.2 billion of $41.9 billion total in Q4 2025), consistent with a single-country concentration. Mexico and Colombia are meaningful growth vectors but remain immaterial to consolidated economics in FY2025.

Nu's branchless digital model delivered consistent operating leverage from FY2022 through FY2025, with the efficiency ratio reaching a record 19.9% in Q4 2025 and a per-customer monthly cost of $0.80. Adding customers and products requires minimal incremental infrastructure, making the model structurally suited to scale NIM and fee income without proportional cost growth.

Banking relationships are inherently recurring, and Nu's 100%-CDI savings yield anchors strong deposit retention across $41.9 billion in deposits (FY2025). Revenue quality is constrained by the dominance of NIM from unsecured consumer credit, where realized returns depend on credit quality rather than contractually fixed fees.