Nu Holdings Stock Presses Higher—Breakout on Deck?
Written by Chris Markoch. Published 11/17/2025.
Key Points
- Nu Holdings delivered strong Q3 earnings with rising ARPAC, record ROE, and customer growth reaching 127 million.
- High engagement, expanding credit portfolios, and improving efficiency ratios signal continued profitable scale for NU stock.
- With bullish technical indicators and a consensus price target of $17.33, NU stock may be positioned for a breakout above its all-time high.
On two separate occasions in the last month, Nu Holdings Ltd. (NYSE: NU) stock reached a new all-time high (ATH). Both times, sellers rushed in and squelched the rally. Despite a muted post-earnings reaction, the third attempt may give the stock the boost it needs to push past previous resistance at the ATH.
After an initial downturn, NU stock was up a little more than 1% in early trading the day after the report. Investors may have hoped for a stronger pop, but the muted response likely reflects broad bearish sentiment in the market—especially toward a digital bank and financial services company that is highlighting an AI-first approach.
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Post-earnings price action often tracks the mood of the broader market. Investors were clearly in a selling mood the day Nu released results, so a blowout would have been required to spark a strong rally. Given those conditions, NU trading flat in early action can be seen as a positive outcome.
The report was strong by most measures. Nu posted earnings per share (EPS) of $0.17 on revenue of $4.17 billion, beating estimates of $0.15 EPS on $3.96 billion in revenue.
Those results were also impressive year-over-year: EPS rose 54% from $0.11 in November 2024, and revenue climbed 41% from $2.94 billion a year earlier.
Nu's Flywheel Strategy Continues to Deliver Profitable Scale
The results highlight Nu's ability to scale while expanding profitability through its flywheel model.
Nu's core banking flywheel—more customers, higher revenue per customer, and a lower cost to serve—was on full display. Active customers rose to 127 million, a 17% year-over-year increase, and engagement remains exceptionally high.
The company reported an 83% activity rate, meaning the vast majority of customers generate revenue every month. An activity rate at this level is unusual for a digital bank, indicating Nu isn't just adding accounts; it's consistently monetizing them.
With most of its 127 million users generating revenue monthly, Nu benefits from predictable growth, greater operating leverage, and a customer base that is stickier than many fintech peers.
Monetization is also deepening: average revenue per active customer (ARPAC) rose to $13 from $11 a year ago. That was supported by a credit portfolio that expanded 42% on an FX-neutral basis, led by secured lending.
Deposits grew 34% year-over-year, providing a healthy funding base and a conservative loan-to-deposit ratio of just 46%.
Nu also demonstrated solid credit discipline. Both 15–90 day and 90+ day delinquency ratios tracked in line with historical seasonality, and coverage ratios remain well above 200%. An improving efficiency ratio of 27.7% helped drive a record 31% return on equity (ROE) and nearly $783 million in net income.
NU Stock Is Signaling a Reversal
The NU chart showed a bullish setup heading into the report. The relative strength index (RSI) had pulled back into oversold territory, and the MACD line was stabilizing after a multi-week downtrend—conditions that often precede a momentum shift.
The strong report may provide the fuel to push NU higher, but short-term bearish momentum still needs to be overcome. The prior ATH near $16.50–$17 was supported by a volume surge that has been absent in recent sessions.
A meaningful pickup in buying volume will be a key signal that the stock is ready to retake—and potentially hold—a new high.
Investors should also watch analyst reaction. The NU Holdings analyst forecasts on MarketBeat show a consensus price target of $17.33, roughly a 10.9% upside from the stock's close on Nov. 13. As analysts weigh in, the shares could move sharply higher.
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