Nubank Delivers Record $895M Profit and 33% ROE on 131 Million Customers (NU Q4 2025 Earnings Call)

By Dr. Graph | Updated on Apr 29, 2026 | earnings

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Nubank reported an exceptional fourth quarter for fiscal 2025, marked by record profitability and a massive customer base of 131 million across Latin America. Driven by surging revenues, rising ARPAC, and the strategic deployment of its AI foundation model, the digital banking giant is now laying the groundwork for global expansion following its recent conditional approval for a United States bank charter.

Stellar Growth and Expanding Customer Base

Nubank concluded 2025 with exceptional performance, reaching 131 million total customers after adding 17 million net new users during the year. The digital bank maintained a strong 83% activity rate across its platform. Driven by deeper engagement and cross-selling, the average revenue per active customer climbed to $15, representing a 27% year-over-year increase. This robust customer expansion pushed fourth-quarter revenues to $4.9 billion, a 45% jump from the prior year.

Record Profitability and Credit Portfolio Expansion

Financial metrics underscored the scalability of Nubank's operating model. Fourth-quarter net income surged 50% year-over-year to $895 million, delivering a record-high return on equity of 33%. The total credit portfolio expanded by 40% to $32.7 billion, fueled by strong performance in credit cards and unsecured lending, which surpassed $8 billion in balances. Meanwhile, total deposits grew 29% to $41.9 billion, reinforcing the company's resilient funding base and liquidity position.

Market Leadership and New Reporting Framework

In Brazil, Nubank solidified its position as the largest private financial institution by customer count, reaching 113 million users. The company also introduced a new managerial P&L reporting framework designed to provide greater visibility into value creation across its evolving platform. Additionally, Nubank navigated seasonal credit trends successfully, with management noting stable early-stage delinquencies and a disciplined approach to credit underwriting across all segments.

Global Ambitions and AI Integration

As Nubank transitions toward becoming a global digital banking platform, it secured conditional approval from the OCC for a United States national bank charter. The company also emphasized artificial intelligence as a core strategic pillar. Its proprietary foundation model, nuFormer, is actively powering credit decisioning in Brazil and will expand to Mexico, moving the bank closer to its vision of providing an AI-powered personal banker for every customer.

Frequently Asked Questions

Why did the company introduce a new managerial P&L reporting framework?

The new framework was introduced to provide clearer visibility into margins, operating leverage, and value creation as Nubank scales across multiple products and geographies, though it does not change the underlying IFRS economic reality.

What drove the $25 million extraordinary expense in Mexico during the fourth quarter?

As the largest Sofipo in Mexico, Nubank was required to make a one-time, nonrecurring regulatory contribution to Prosofipo, a sector-wide deposit insurance fund.

How is Nubank utilizing its proprietary AI foundation model, nuFormer?

The nuFormer model is currently in production for credit decisioning in Brazil, where it has helped safely expand credit limits. Management plans to expand its application to lending in Brazil and credit cards in Mexico.