To The Moon

$Nu Holdings Ltd.(NU)$ bank has just released its third quarter earnings on 13 Nov 2025. Here’s the skinny. Q3 2025 Earnings. Nu Holdings demonstrated robust financial performance in Q3 2025, continuing its trajectory of combining (a) massive customer growth, with (b) surging profitability. The results reinforced its standing as a leading global digital financial services platform. Customer base Customer Base : grew to 127 million from Q3 2024’s 110 million. That’s a +15.45% YoY growth; nothing short of spectacular. (see above) Revenue Revenue : came in at over $4.2 billion vs market estimates of $3.8 billion vs Q3 2024’s $2.94 billion. That’s a +39%YoY increment on an FX-neutral (FXN) basis. (see above) Earnings per share (non GAAP) Earnings per share (non-GAAP) : came in at $0.16 vs market estimates of $0.15 vs Q3 2024’s $0.12. That’s a +33.33% YoY increase. Net Income Net Income : came in at a record $783 million vs Q3 2024’s $563 million. That’s +39% YoY FXN. It highlights strong scalability & disciplined monetization. (see above) Gross Profit Gross Profit : was $1.82 billion vs Q3 2024’s $1.35 billion; that’s a +34.81% YoY FXN. Other Performance Metrics. Annualized ROE : Came in at 31%, a repectable ROE number, demonstrating high-profit efficiency. Efficiency Ratio : Came in at 27.7%. It is an improved cost-to-income ratio, confirming operating leverage and a low-cost platform. (see above) NU’s efficiency ratio has been improving since Q2 2022, peaking in Q1 2025 (24.7%). More importantly, NU’s Efficiency ratio has fluctuated, dipping to a low of 27% in Q1 2025 before culminating at its highest reported level in Q3 2025. Average ARPAC ARPAC measures how effective NU has been, selling more products or services to existing customers. For Q3 2025, crossed the $13 mark for the first time at $13.40. Cost to Serve : Cost to serve (per active customer) is the average amount NU spends each month on transactions & customer support to maintain one active user on its platform. For Q3 2025, it stood $0.90, firmly remaining below $1.00. Being a digital bank (without bricks & mortar shops) enables NU to track it’s operational efficiencies using metrics, not easily available to the Big Boys, while leaning towards keeping costs at a low, enabling profit maximization simultaneously. Valuation and Sector Echelon The record profitability and efficiency metrics strongly position NU to rise higher in the financial sector, where it competes with traditional banks and operates with the economics of a technology company. The low Cost-to-Serve ($0.90) and industry-leading 31% Annualized ROE are critical facts that propel its valuation. NU is successfully executing its strategy of gaining high-quality customers at low cost and then monetizing them deeply (as seen in the rising ARPAC). This compounding effect justifies a premium valuation compared to legacy financial institutions. Overvalued or Undervalued? Based on market analysis following the Q3 2025 release, below are the 2 school of thoughts: Undervalued Argument: Some financial models suggest NU is significantly undervalued. For example, one analysis found an intrinsic value of $25.16 against a then-current price around $17.25, indicating it was undervalued by approximately 31%. Premium Valuation Context: The stock still trades at a premium multiple, such as a Forward P/E around 29.31x. This multiple reflects expectations of high future growth, meaning any slowdown in customer or revenue growth could quickly compress the valuation. Coming To America. The probability of NU securing a license to operate fully in the US is currently indeterminate but should be viewed as a long-term strategic option rather than an immediate certainty. Regulatory process for securing a US National Bank Charter is complex, time-consuming, and subject to intense scrutiny. Meaning the timeline and probability of success are uncertain, even for a company with NU's financial strength. The company has explicitly stated its focus on the US market is viewed as "transformational optionality" following its filing for a National Bank Charter. This indicates a formal step toward future expansion. In the meantime, NU continues to dedicate most of its resources and execution efforts toward solidifying its core markets: Brazil and Mexico. Technical Analysis. As of 28 Nov 2025 What does NU’s technical analysis says ? (1) Moving Average (ma). NU’s ma showed a bullish signal as its price was trading above its 20-day, 50-day, and 200-day ma. With the 20-day ma crossing above the longer-term ones, indicating positive momentum. (2) Relative Strength Index (RSI). Different reports of NU’s 14-day RSI to be within a range of “in the high 60s to low 70s”. This indicates strong, positive momentum. At the same time, it also suggests near-term overbought conditions. It means in the short term there is risk of a pullback or consolidation even as the medium- and long-term trend remains constructive. My viewpoints : (mine only) Personally, I view NU as a Buy/Long-term Hold because its financial results for Q1 thru Q3 2025 prove its digital banking model is scalable, highly efficient, and profitable. NU has consistently beat revenue and earnings expectations, confirming its strong growth despite economic changes in Latin America. Although the stock is currently viewed as “expensive” (premium valuation), its solid performance and high Return on Equity (ROE) suggest it is undervalued based on its future earnings potential and significant growth opportunities. Its only main risks to watch are (a) short-term stock price swings and (b) potential regulatory changes, that in all fairness may affect existing commercial banks as well. I cannot wait for the day when NU receives its banking license to enter the US market (fingers crossed). That is when the potentials as the world’s most efficient digital bank will fly sky-high. Remember to check out my other posts. (See below). Help to Repost ok, Thanks. Due to creative differences and bias, I will scale back my posting. My 2,430 ‘timeless’ posts remain available (for now) for those who value fundamentals as Mr Buffett had pointed — invest in businesses, not pick stocks. To new subscribers, no flashy screens to entice blind investing. I aim to share on how to fish, not fish for you. I’m grateful to share what I know. In the alternate moo moo universe, where I am valued & appreciated, I will still be sharing. Good luck on your i-journey. Must Read: Click on below titles to access. Repost to share, Like as encouragement ok. Thanks. Goldman Says US Market Sell-Off Far From Over ? NIO Trims Losses in Q3, Beat Expected. Buy ? GOOG : A 'Must' Buy, now and into 2026 ! 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