Revenue growth is decelerating from hyper-pace but remains robust at 36.6% year-over-year, while net interest margin compression to 3.4% suggests rising funding costs may offset the benefits of a higher-rate environment.
Nu Holdings Ltd. (NU) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Net Interest Income | 8.99B | 7.45B | 6.8B | 4.4B | 2.01B | 679.4M | 167.85M | 228.15M | 116.14M |
| NII Growth % | 82.85% | 9.61% | 54.36% | 119.34% | 195.45% | 304.78% | -26.43% | 96.45% | - |
| Net Interest Margin % | 10.87% | 9.95% | 13.61% | 10.16% | 6.71% | 3.42% | 1.65% | 3.38% | 4.17% |
| Interest Income | 14.47B | 12.03B | 9.63B | 6.44B | 3.56B | 1.05B | 382.92M | 337.85M | 161.55M |
| Interest Expense | 5.48B | 4.58B | 2.83B | 2.04B | 1.55B | 367.34M | 215.08M | 109.7M | 45.42M |
| Loan Loss Provision | 5.37B | 4.18B | 3.17B | 2.29B | 1.4B | 480.64M | 169.49M | 175.18M | 118.63M |
| Non-Interest Income | 4.91B | 3.85B | 1.47B | 1.23B | 963.89M | 465.8M | 192.07M | 131.38M | 91.83M |
| Non-Interest Income % | 35.32% | 34.07% | 17.82% | 21.83% | 32.44% | 40.67% | 53.37% | 36.54% | 44.16% |
| Total Net Revenue | 13.9B | 11.3B | 8.27B | 5.63B | 2.97B | 1.15B | 359.92M | 359.53M | 207.97M |
| Revenue Growth % | 50.93% | 36.64% | 46.83% | 89.56% | 159.45% | 218.19% | 0.11% | 72.88% | - |
| Non-Interest Expense | 4.14B | 3.25B | 2.31B | 1.81B | 1.88B | 834.73M | 383.61M | 313.65M | 122.75M |
| Efficiency Ratio | 29.78% | 28.75% | 27.88% | 32.1% | 63.11% | 72.89% | 106.58% | 87.24% | 59.02% |
| Operating Income | 4.38B | 3.87B | 2.8B | 1.54B | -308.9M | -170.16M | -193.18M | -129.3M | -33.4M |
| Operating Margin % | 31.54% | 34.23% | 33.8% | 27.33% | -10.4% | -14.86% | -53.67% | -35.96% | -16.06% |
| Operating Income Growth % | - | 38.4% | 81.62% | 598.24% | -81.53% | 11.91% | -49.4% | -287.08% | - |
| Pretax Income | 4.39B | 3.87B | 2.8B | 1.54B | -308.9M | -170.16M | -193.18M | -129.3M | -33.4M |
| Pretax Margin % | 31.61% | 34.27% | 33.8% | 27.33% | -10.4% | -14.86% | -53.67% | -35.96% | -16.06% |
| Income Tax | 774.61M | 996.75M | 823.09M | 508.55M | 55.73M | -4.83M | -21.69M | -36.77M | -4.82M |
| Effective Tax Rate % | 17.63% | 25.74% | 29.45% | 33.04% | -18.04% | 2.84% | 11.23% | 28.44% | 14.43% |
| Net Income | 3.61B | 2.87B | 1.97B | 1.03B | -364.58M | -164.99M | -171.49M | -92.53M | -28.58M |
| Net Margin % | 25.95% | 25.39% | 23.85% | 18.3% | -12.27% | -14.41% | -47.65% | -25.74% | -13.74% |
| Net Income Growth % | 56.83% | 45.47% | 91.37% | 382.66% | -120.97% | 3.79% | -85.33% | -223.73% | - |
| Net Income (Continuing) | 3.62B | 2.88B | 1.97B | 1.03B | -364.63M | -165.33M | -171.49M | -92.53M | -28.58M |
| EPS (Diluted) | 0.74 | 0.58 | 0.40 | 0.21 | -0.08 | -0.04 | -0.04 | -0.02 | -0.01 |
| EPS Growth % | 60.87% | 45% | 90.48% | 369.23% | -117.88% | 3.76% | -85.07% | - | - |
| EPS (Basic) | - | 0.59 | 0.41 | 0.22 | -0.08 | -0.04 | -0.04 | -0.02 | -0.01 |
| Diluted Shares Outstanding | 4.9B | 4.91B | 4.89B | 4.86B | 4.68B | 4.61B | 4.61B | 4.61B | 4.61B |
Quick answers to the most common questions about buying NU stock.
For fiscal year 2025, Nu Holdings Ltd. (NU) reported total revenue of $11.30B. This represents a 5333.5% increase compared to $208.0M in 2018.
Nu Holdings Ltd. (NU) is profitable, generating $2.87B in net income for the fiscal year ending 2025 with a net profit margin of 25.4%.
Nu Holdings Ltd. (NU) reported an operating income of $3.87B, resulting in an operating profit margin of 34.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Nu Holdings Ltd. (NU) generated $7.12B in gross profit for the year, representing a gross profit margin of 63.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Regulatory interest rate caps
NII Growth Decelerates from Hyper-Pace
Net interest income growth decelerated to 35.2% year-over-year in Q2 2026, a significant slowdown from the 98.7% growth seen in Q1 2024, suggesting the initial hyper-growth phase from loan book expansion is maturing into a more sustainable, albeit still robust, trajectory.
The sequential deceleration in NII growth, from 43.8% in Q1 2026 to 35.2% in Q2 2026, indicates the base effect of a rapidly expanding loan book is beginning to moderate. This trend implies that future NII growth will be increasingly dependent on net interest margin management and cross-selling higher-yield products rather than pure volume expansion. Investors should monitor whether this deceleration is a natural maturation or an early sign of market saturation in core credit products.
NIM Compression Amidst Funding Cost Pressures
Net interest margin compressed to 3.4% in Q2 2026 from 3.8% in Q2 2024, a 40 basis point decline that appears to reflect rising funding costs as the company scales its deposit base, potentially offsetting the benefits of a higher-rate environment.
The sustained NIM compression, despite a generally favorable rate cycle in Brazil, suggests that the cost of attracting and retaining deposits is rising as Nu competes for funding. This trend warrants close monitoring, as a continued decline in NIM could erode the profitability advantage derived from its low-cost-to-serve model. The stability of NIM at 3.4% over the last three quarters may indicate a new equilibrium, but it remains below the 3.7-3.8% levels seen in early 2024.
Operating Leverage Drives Margin Expansion
The efficiency ratio improved to 31.7% in Q2 2026 from 28.8% in Q2 2024, demonstrating strong operating leverage as revenue growth of 36.6% significantly outpaced the growth in operating expenses, a key indicator of the scalability of its digital platform.
The improvement in the efficiency ratio, despite a slight uptick from Q1 2026's 28.2%, confirms that Nu's fixed-cost technology infrastructure is being leveraged effectively across a growing customer base. This operating leverage is the primary driver of the expansion in operating margin to 34.2%, as reported in recent context. The sustainability of this trend is critical, as any significant increase in spending for international expansion or new product development could quickly reverse these gains.
Provisioning Volatility Masks Underlying Credit Quality
Provision for credit losses fluctuated significantly, from $1.7B in Q1 2026 to $1.5B in Q2 2026, a pattern that may reflect the front-loading of expected credit losses under IFRS 9 rather than a deterioration in actual loan performance.
The volatility in provision expense, which spiked to $1.7B in Q1 before declining, is characteristic of IFRS 9 accounting during periods of rapid loan growth. This front-loading of provisions can obscure the true trajectory of credit costs, making it essential to analyze provision coverage ratios and 90-day NPL trends alongside the absolute expense. The provision expense remains a significant variable cost, consuming approximately 27% of total revenue in Q2 2026, and its trajectory is the single most important factor for near-term earnings predictability.
Fee Income Surge Distorts Underlying Revenue Mix
Non-interest income surged to 28.4% of total revenue in Q2 2026, up from 17.6% in Q2 2024, but this appears heavily influenced by a one-time event in Q4 2025 where fees constituted 63.5% of revenue, suggesting potential volatility in this income stream.
The dramatic spike in fee income in Q4 2025, followed by a normalization, indicates that a significant portion of non-interest income may be transactional or event-driven rather than recurring. This volatility introduces uncertainty into the revenue mix and suggests that the core, recurring fee base from wealth management or subscriptions may be smaller than headline figures imply. Investors should seek clarity on the composition of fee income to assess its sustainability and dependency risks.
Q4 2025 Anomaly Challenges Earnings Quality
The anomalous Q4 2025 quarter, where non-interest income represented 63.5% of total revenue and NII growth turned negative at -30.5%, presents a significant analytical challenge to the sustainability of the reported earnings trajectory and revenue mix.
This quarter stands as a stark outlier, breaking the established pattern of NII-driven growth and raising questions about the quality and repeatability of the revenue stream. The subsequent reversion to a more typical mix in 2026 suggests a non-recurring event, but the lack of clear disclosure on its nature means investors cannot fully assess whether it represents a strategic shift, an accounting adjustment, or a one-time gain. This event warrants further investigation as it materially distorts trend analysis and could indicate hidden volatility in the company's core earnings engine.