Nubank Reports Strong Revenue Growth Amidst One-Time Expenses
Brazilian neobank Nubank’s fourth-quarter and full-year earnings results have recently been announced, revealing a robust growth despite slightly falling short of Wall Street forecasts. The neobank’s total credit portfolio saw a significant expansion, bolstered by its AI-powered underwriting. Furthermore, Nubank is looking forward to opening its U.S. banking division in the upcoming fiscal year, subject to the receipt of a full charter approval.
A Look at the Figures
According to the earnings report, Nubank generated around $4.9 billion in revenue for the quarter ending Dec. 31, 2025, marking a 45% year-over-year increase from $3.1 billion in 2024. The full-year revenue for 2025 stood at $16.3 billion, witnessing another 45% surge year over year from $11.7 billion in 2024.
However, the company’s total operating expenses for the year also rose to $2.8 billion, an 11% year-over-year increase from $2.5 billion in 2024. During the company earnings call, Nubank executives highlighted that the Q4 earnings report included multiple one-time expenses. These included $22 million of transition expenses for the company’s 2026 return-to-office decision and a $25 million one-off expense towards a sector-wide deposit insurance fund in Mexico.
The net income for the full year rose to $2.9 billion in 2025, a 37% year-over-year increase from $2 billion in 2024. The earnings per share came to $0.58, marginally below Wall Street analyst consensus estimates of $0.59 per share, as per S&P Capital.
Nubank’s Credit Portfolio Expansion
Nu Holding’s total credit portfolio expanded to $32.7 billion, demonstrating a 40% year-over-year and 11% quarter-over-quarter growth. This expansion was driven by the launch of Nubank’s AI-powered credit underwriting model, nuFormer, in late 2025 for credit underwriting in Brazil. Following the introduction of this model, Nubank observed its largest quarterly gain in credit card market share in 10 quarters.
The successful nuFormer model will also be extended to lending in Brazil and credit cards in Mexico, as reported in Nubank’s earnings statement. Furthermore, starting this quarter, the earnings report will provide a consolidated view of credit quality across the entire Nu platform, as opposed to previous reports that only covered the neobank’s Brazilian operation.
U.S. Expansion on the Horizon
Having established strong customer bases in Mexico and Colombia, Nubank is now looking to expand into the U.S. market. The fintech company received a conditionally approved de novo bank charter from the OCC in January, paving the way for the establishment of a U.S. bank division. Nubank CEO David Velez confirmed that the company is set to lay the operational groundwork for this U.S. expansion in 2026.
Despite the company’s ambitious plans for the U.S., Latin America remains Nubank’s primary growth engine. The U.S. expansion efforts are being led by Nubank co-founder Cristina Junqueira, who is aiming to increase Nubank’s physical presence in the U.S. by setting up additional office spaces and recruiting more staff.
While the company is yet to disclose specific figures regarding its U.S. expansion plans, the parent company Nu Holdings is also set to acquire a banking license in Brazil in 2026. This move will allow the Brazil-based entity to operate as a bank, evolving from its current status as a nonbank fintech.
Analysts’ Take On Nubank’s Performance
Despite the one-time expenses, market analysts have generally responded positively to Nubank’s earnings. Keybank analysts maintain a constructive outlook on the company’s geo growth opportunity and improving credit models as potential sources of additional growth and profitability. However, they also acknowledged that the planned spending for 2026 may moderately impact the neobank’s stock prices in the short term.
Citi analysts also noted the strong quarter by Nubank on the top-line, with an acceleration in loan portfolio growth and net interest income. However, they pointed out that rising costs of risk and operating expenses muddied the picture, with expenses outpacing fees and creating some pressure on earnings before taxes.
Despite the generally positive analysis, Nubank’s stock price experienced a roughly 9% drop as of Thursday afternoon.
To learn more about Nubank’s latest financial report, click here.
