Bullish Thesis Says Nu Holdings’ Scale and Efficiency Support More Growth

Bullish Case for Nu Holdings

A bullish investment thesis argues that Nu Holdings Ltd. remains an attractive stock, citing the company’s scale, operational efficiency and expansion opportunities. Shares were trading at $14.02 as of March 26, with trailing and forward price-to-earnings ratios of 23.85 and 17.76, respectively, according to Yahoo Finance.

Nu Holdings, known for Nubank, is described as Latin America’s largest digital bank. Founded in 2013 by David Vélez, Christina Junqueira and Edward Wible, the company started with a no-fee credit card and later expanded into savings accounts, personal loans and investments.

Scale and Performance

The thesis highlights Nu’s dominant position in Brazil and its broader reach across Brazil, Mexico and Colombia. The company serves 131 million customers, including 113 million in Brazil alone. In fiscal 2025, it generated $15.8 billion in revenue and $2.9 billion in net income.

Nu’s credit portfolio stands at $32.7 billion, while customer deposits total $41.9 billion. The bullish argument says the company’s advantage comes from structural cost strengths in customer acquisition, servicing, funding and risk management. Those factors helped produce a 21% efficiency ratio, a 30% return on equity and revenue per employee said to be five times higher than peers.

Brazil Strength and Expansion Outlook

The analysis says Brazil’s advanced financial system and instant-payment network Pix have accelerated digital adoption, while credit cards remain important because of interest-free installment plans. Nu is said to hold 25% to 30% of Brazil’s credit card market, supported by strong customer engagement and a Net Promoter Score of around 90.

Its in-house, cloud-based core banking system is presented as a key advantage, enabling the company to scale while keeping service costs low. The thesis says cost to serve is about $0.80 per active customer, roughly 85% below incumbent banks. It also points to prudent asset-quality management, with 90-day-plus nonperforming loan coverage consistently above 200% and risk-adjusted margins that remain attractive despite elevated defaults.

Looking ahead, the bullish view sees Mexico and the U.S. as important growth markets. The argument is that Nu can continue winning customers at low cost, deepen engagement and expand profitability through its scalable platform, giving it room to gain further market share in underbanked regions.

Market Context

The article notes that Nu Holdings was held in 108 hedge fund portfolios at the end of the fourth quarter, up from 99 in the previous quarter. It also notes that the stock had risen about 6.77% since a prior bullish write-up in May 2025, which similarly emphasized the company’s customer growth and monetization across Latin America.