Nu Holdings Stock Rises on Q3 Earnings Beat and Latin American Expansion

Nu Holdings Ltd. stock advanced in premarket activity on Friday following the release of its third-quarter financial figures. The digital financial services provider reported gross revenue of $6.3 billion, marking a 37% annual increase and surpassing the $5.82 billion consensus estimate. Earnings per share came in at 22 cents, matching expectations, while net income rose 31% on an FX-neutral basis to reach $1.1 billion.

Growth was supported by an expanding customer base that added 3.7 million accounts during the period, lifting total users to 143 million. Operations in Mexico emerged as a primary driver, with local accounts jumping 27% year over year to 16.6 million after the platform gained its full banking license. Meanwhile, operations in Brazil scaled to 120 million customers, and the Colombian division grew its cardholder count to 3 million, making Nu the largest credit card issuer in that country.

The firm also reported higher lending volumes, with its total credit portfolio climbing 33% to $41.6 billion and total deposits rising 19% to $47.5 billion. Concurrently, the 90-plus-day delinquency ratio ticked up to 7.3% from 6.9% in the prior quarter, though leadership noted the shift partly reflects a larger share of interest-earning balances.

What to watch next: Monitor adoption rates for Nu's newly launched U.S. banking services and multicurrency accounts, alongside credit quality metrics in Latin America.