Is Now the Right Moment to Consider Nu Holdings Before Its Feb. 2025 Results?

The Competitive Landscape and Operational Challenges

Before diving into why Nu Holdings (NYSE: NU) might deserve a place in your portfolio, it’s worth examining the headwinds. As a banking provider operating in Latin America, the company confronts multifaceted obstacles. MercadoLibre and Itau Unibanco represent formidable competitors with extensive market presence. Moreover, the macroeconomic environment presents constant threats—fluctuating interest rates, employment shifts, and economic downturns can rapidly alter lending conditions and profitability.

Beyond economic factors, Nu navigates geopolitical complexities specific to its operating region. Currency volatility, unpredictable regulatory shifts, and political uncertainty create an additional layer of risk that domestic U.S. banks rarely encounter. These considerations demand investor caution and thorough due diligence.

A Dominant Force in Latin American Financial Services

Yet Nu’s operational achievements cannot be overlooked. The fintech company operates an internet-native banking model that has resonated powerfully with underbanked and unbanked populations across the region. Through the first nine months of 2025, Nu expanded its revenue by 31% year-over-year, reaching $11.1 billion. The company now serves 127 million customers—a figure that underscores its commanding market position.

What’s particularly striking is the unit economics. Operating costs per active customer averaged just $0.90 monthly during Q3, while monthly revenue per active customer reached $13.40. This substantial spread demonstrates pricing power and operational efficiency. The company captured 60% of Brazil’s adult population as customers, with an additional 17 million users spanning Mexico and Colombia. Net income totaled $2 billion for the nine-month period, showcasing genuine profitability amid rapid expansion.

Strategic Ambitions and Future Direction

Looking ahead, Nu’s leadership has articulated a vision centered on artificial intelligence integration. During the Q3 2025 earnings call, CEO David Vélez emphasized the company’s intention to become “AI-first, which means integrating foundation models deeply into our operations to drive an AI-native interface to banking.” This forward-thinking approach suggests management is positioning the firm for sustained competitive advantage.

The Valuation Case for Entry

One of the more compelling aspects of Nu’s current positioning involves its market valuation. Trading at a forward price-to-earnings ratio of 20.7, the stock presents an attractive entry point relative to growth prospects. Investors gain access to a high-growth fintech operator at a reasonable multiple—a rare combination in today’s market environment.

The momentum has been undeniable. Over the past three years through mid-January, Nu’s share price has surged 350%, reflecting sustained investor confidence in the business model and execution.

Timing the Investment Decision

As the company prepares to release fourth-quarter 2025 earnings before the end of Feb., investors face a decision: wait for updated financial metrics or act on current fundamentals. Delaying until the results announcement would provide visibility into customer additions, revenue performance, deposit trends, and credit quality. Management commentary would also offer strategic clarity.

However, there’s a compelling counterargument. Nu’s trajectory suggests continued strong performance barring a severe economic shock in its core markets. Current metrics already reflect a thriving business expanding rapidly. The valuation alone—particularly the forward P/E multiple—provides sufficient justification for consideration now rather than later.

The choice ultimately depends on individual risk tolerance and investment horizon. For those seeking exposure to Latin American financial technology transformation at a reasonable valuation, the case for positioning ahead of Feb. results appears defensible.