To The Moon

$Nu Holdings Ltd.(NU)$  

NU has just delivered its Q3 2026 earnings, and the bigger investment story is becoming increasingly compelling.

Despite some mixed headline earnings comparisons, NU continues to demonstrate something investors should pay attention to: exceptional customer growth combined with increasingly powerful profitability.

Let’s break down the results, the market reaction and the catalysts that could shape NU’s next chapter.

📊 Q3 2026: THE NUMBERS THAT MATTER

NU delivered another record quarter:

💰 Revenue: $5.82 billion, up approximately 40% year over year on a reported basis.

📈 Gross revenue: $6.26 billion, up 37% on an FX-neutral basis.

🔥 Net income: $1.09 billion, up 31% year over year.

🏦 Gross profit: $2.60 billion, up 35%.

💎 Return on equity: 32% — an impressive level of profitability.

🌎 Customers: 142.6 million, adding 3.7 million during the quarter.

💳 Credit portfolio: $41.6 billion, up 33%.

💵 Deposits: $47.5 billion, up 19%.

⚙️ Efficiency ratio: 19.3%, improving from 20.3% a year earlier.

The standout figure for me is the $1.09 billion quarterly profit.

NU is no longer simply a fast-growing fintech promising future profitability. It is already generating substantial earnings while continuing to expand its customer base.

📉 MARKET REACTION: WHY INVESTORS ARE PAYING ATTENTION

The initial market reaction was positive, with shares climbing approximately 3.8% following the results.

Interestingly, the headline earnings comparisons were not universally impressive.

Adjusted EPS came in at $0.22 against one widely reported consensus of $0.23, while reported revenue of $5.82 billion also came in slightly below some analyst estimates.

So why the positive reaction?

I believe investors are looking beyond a small quarterly earnings shortfall and focusing on three bigger developments:

1. Record quarterly profitability and 32% ROE.

2. Continued customer acquisition and strong revenue monetisation.

3. Improving operating efficiency and a more attractive full-year efficiency outlook.

However, there is one important warning.

The 90-day-plus non-performing loan ratio increased from 6.9% to 7.3%. Credit quality will need close monitoring as NU expands its lending operations.

The market appears willing to reward growth, but NU must prove that it can maintain profitability without sacrificing lending discipline.

🚀 FIVE UPCOMING CATALYSTS THAT COULD DRIVE NU HIGHER

1. 🇺🇸 US EXPANSION — A POTENTIALLY HUGE LONG-TERM OPPORTUNITY

NU has officially launched Nu US, with availability across all 50 states.

Its offering includes a 3.5% APY account, fee-free international transfers and a cashback credit card.

The US market is extremely competitive, so success is far from guaranteed.

However, even a relatively small foothold in the world’s largest financial services market could eventually become meaningful.

2. 🇲🇽 MEXICO — THE NEXT MAJOR GROWTH ENGINE

Mexico could become one of NU’s most important expansion opportunities.

The company added 870,000 customers during its first quarter operating as a bank, reaching 16.6 million customers.

Banking status provides greater deposit protection and opens the door to additional financial products.

The opportunity is to replicate elements of its Brazilian success in a market with considerable room for digital banking penetration.

3. 🌎 COLOMBIA — BUILDING A REGIONAL BANKING EMPIRE

NU now has 6.1 million customers in Colombia, with customer growth of 62% year over year.

It has also become the country’s largest credit card issuer by number of cardholders.

Continued expansion in Colombia could diversify revenue and reduce dependence on Brazil.

4. 💵 NU GLOBAL — A NEW INTERNATIONAL REVENUE OPPORTUNITY

Nu Global launched in October as a stablecoin-based multi-currency account and already serves customers in 37 countries.

This is particularly interesting because it potentially extends NU beyond traditional domestic banking.

The longer-term opportunity includes international payments, multi-currency financial services and greater customer engagement.

The key question is whether NU can turn this early adoption into meaningful recurring revenue.

5. 📅 DECEMBER 8 — INVESTOR DAY

This is an important date to watch.

NU has announced its Investor Day for December 8, 2026.

Investors will be looking for additional clarity around its long-term growth strategy, international expansion, profitability targets and capital allocation.

Any convincing evidence that the US and international operations can become meaningful contributors could strengthen the long-term investment case.

⚠️ WHAT COULD GO WRONG?

The opportunity is substantial, but investors should not ignore the risks:

• Rising loan delinquencies and potential credit losses.

• Competition from established banks and fintech companies.

• Currency volatility across Latin America.

• Regulatory uncertainty in new markets.

• The cost of expanding internationally before new operations become profitable.

NU’s ability to maintain its 30%+ ROE while expanding into new markets will be particularly important.

🎯 MY INVESTMENT TAKEAWAY

I believe NU deserves attention as one of the more interesting long-term fintech growth stories.

What makes the company compelling is the combination of three powerful characteristics:

1. SCALE: Nearly 143 million customers across its established Latin American markets.

2. PROFITABILITY: More than $1 billion in quarterly net income and 32% ROE.

3. OPTIONALITY: New growth opportunities through the US, Mexico, Colombia and Nu Global.

The December 8 Investor Day could be the next major event that changes how investors value this business.

My biggest question is no longer whether NU can grow.

It is whether management can successfully transform a dominant Latin American digital bank into a genuinely international financial services platform while preserving its exceptional profitability.

If it succeeds, today’s business could look considerably smaller than the opportunity ahead.

I’m watching customer monetisation, credit quality, US expansion and the next efficiency improvements very closely.

What do you think?

Is $NU potentially one of the most attractive long-term fintech growth opportunities, or is the international expansion introducing too much risk?

@Tiger_comments @TigerStars @TigerClub