Why Is Digital Lender Nu Holdings Stock Rising Premarket Today?

• Its third-quarter revenue of $4.17 billion topped estimates of $4.03 billion, according to Fiscal.ai data.
• Nu, which operates in Brazil, Mexico, and Colombia, added 4.3 million new customers during the quarter, bringing its total customer count to 127 million.
• “In Brazil, we now serve over 60% of the adult population and estimate that we're already the largest player in the SME segment by number of accounts.” — CEO David Velez-Osomo.

Nu Holdings (NU) stock gained over 3% in premarket trading on Friday after the company’s third-quarter earnings topped Wall Street’s expectations.

The Brazilian fintech firm reported net earnings of $783 million, which a higher than the $757 million expected by analysts, according to a Reuters report citing LSEG data. Its third-quarter revenue of $4.17 billion topped estimates of $4.03 billion, according to Fiscal.ai data.

What Drove The Q3 Earnings?

Nu, which operates in Brazil, Mexico, and Colombia, added 4.3 million new customers during the quarter, bringing its total customer count to 127 million. At the same time, customer purchase volume rose to $36.5 billion, from $30.4 billion. Its customer activity rate remained above 83%, similar to the previous quarter.

“In Brazil, we now serve over 60% of the adult population and estimate that we're already the largest player in the SME segment by number of accounts,” CEO David Velez-Osomo said in a call with analysts.

The company said Nu's leading asset quality indicator, the 15-to-90-day delinquency rate for the Brazil Consumer Credit Portfolio, reached 4.2% in the third quarter, slightly below the historical third-quarter seasonality.

Brazil, Mexico Remain Under Focus Despite U.S. Ambitions

In late September, the firm revealed that it applied for a national bank charter with the Office of the Comptroller of the Currency (OCC) of the United States. The move comes amid its efforts to expand beyond its home market in Brazil. It is also awaiting final operational approval for Mexican banking operations.

“Brazil and Mexico remain our core priorities where most of our resources and execution efforts are directed,” Velez-Osomo said. “We also see transformational optionality in the U.S. following our filing for a national bank charter, a step that could unlock new opportunities over time as we remain fully focused on our core markets.”

What Are Stocktwits Users Thinking?

Retail sentiment on Stocktwits about Nu jumped to ‘extremely bullish’ from ‘bullish’ a day ago.

“Nu is so big and popular that it refers to its customer growth by the percentage of each country’s population that operates in. Won’t be long before more than half the population of Mexico and Colombia are NU customers, like it already is in Brazil,” one user said.

Another user praised the management’s execution and hoped the stock would hit $20 by January 2026.

Nu stock has jumped over 50% this year, giving it a market capitalization of nearly $78 billion.

Also See: Red Cat’s Revenue Outlook Just Got Nearly Halved — So What Went Wrong?

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