Nu (NU) Q1 2025 earnings summary

Executive summary

• Customer base reached 119 million in Q1 2025, with 4.3 million net adds and activity ratios above 83%; 98.7 million active customers.

• Net income rose 74% year-over-year FX-neutral to $557 million; adjusted net income was $607 million, up 62% year-over-year FXN.

• Revenue reached $3.25 billion, up 40% year-over-year FX-neutral, driven by a 62% expansion in the interest-earning portfolio.

• Strategic focus remains on Brazil, Mexico, and Colombia, with Brazil the most mature market and Mexico and Colombia as key growth frontiers.

• Efficiency ratio improved to 24.7%, a sequential gain of 520 bps and over 740 bps year-over-year; excluding a $47 million one-off, efficiency ratio would be 26.7%.

Financial highlights

• Net interest income reached $1.84 billion, up 34% year-over-year FX-neutral; gross profit was $1.32 billion, up 32% year-over-year FX-neutral.

• Deposits totaled $31.6 billion, up 48% year-over-year FX-neutral; loan-to-deposit ratio at 44%.

• Credit portfolio expanded 40% year-over-year FX-neutral to $24.1 billion; interest-earning portfolio grew 62% to $13.8 billion.

• Gross profit margin was 41%, down from 43% in Q1'24, mainly due to higher credit loss allowances and increased interest expenses.

• Loan originations hit a record BRL 20.2 billion, up 64% year-over-year.

Outlook and guidance

• Management expects continued growth in loan-to-deposit ratios and net interest margins in Brazil, with ongoing investments in Mexico and Colombia to build local deposit franchises.

• Focus remains on deepening customer engagement, cross-sell, and ARPAC expansion, with mature cohorts reaching $26/month.

• No specific guidance on international expansion timing, but long-term focus remains on current core markets.