Nu Holdings Posts $0.1776 EPS Miss, Shares Slide — Nu Stock

Nu stock fell after Nu Holdings reported first-quarter earnings of $0.1776 a share, below the $0.1874 consensus, while revenue came in at $4.97 billion versus $5.06 billion expected. The initial 10% drop followed a report that also came after a 23% share decline since February.

That gap hit a market already weighing the company’s spending and loan quality against its growth pace. Nu still posted 56.39% year-over-year net income growth, but the miss put fresh pressure on investors looking for cleaner execution from a stock trading at 19 times forward earnings.

Credit losses reach $1.72 billion

$1.72 billion in expected credit losses was the sharpest pressure point in the quarter, up from $973.54 million. The move came as the credit portfolio expanded to $37.2 billion, up 40% year over year, showing how fast lending grew even as reserve needs climbed.

$1.21 billion in negative operating cash flow added another complication. Nu also said its efficiency ratio improved to 17.6% from 19.9% last quarter, a sign that operating costs were better controlled even as cash generation weakened in the period.

Nu Holdings still grows fast

135 million customers now use Nu, and Mexico reached break-even while surpassing 15 million customers. The company said its monthly cost-to-serve per active customer was $1.00, and its return on equity was 29%, figures that show the scale behind the company’s push to expand while keeping service costs low.

One part of the quarter softened the blow for the growth story: Nu said its proprietary NuFormer AI models are already making real-time lending decisions in Brazil and Mexico, and it prices and approves personal loans individually in under a second. For investors, the issue now is not whether the platform is growing, but whether that growth can keep outpacing losses, reserve building, and the heavier spending behind it.

Analyst target sits at $19.87

$19.87 is the average analyst target, leaving the stock’s next move tied to whether the revenue miss and rising credit losses prove temporary or become a wider pattern. With shares already down 23% since February and the first reaction marking a 10% drop, the quarter leaves little room for another stumble.