A Brazilian digital bank, often called Nubank, built entirely around a smartphone app. It offers a purple credit card—nicknamed the 'roxinho' (little purple one) in Brazil—along with savings accounts and loans, used by tens of millions of customers. Founded in 2013 by Colombian-born David Vélez and co-founders Cristina Junqueira and Edward Wible, it took its name from the Portuguese word 'nu,' meaning naked, to signal no hidden fees.
20-F · Fiscal year ended Dec 31, 2025 · SEC filing ↗
Nu Holdings' net income rose 46% to $2.9B in FY2025, but gross margin contracted 3.6 points as deposit costs and credit provisions grew faster than revenue.
Profitability kept climbing, but the cost of funding it rose faster. rose 37% to $15.8B and reached $2.9B, yet contracted to 42.0% as interest expenses on deposits rose 66% and credit loss provisions grew 33%. The company enters 2026 with $15B in cash and a new U.S. bank charter in sight, but the trade-off between growth and funding costs is now the central tension.
Key takeaways
rose 46% to $2.9 billion, as a 37% increase in to $15.8 billion outpaced a 12% rise in operating expenses, improving the to 17.5% from 21.3%.
contracted to 42.0% from 45.6%, because interest expenses on deposits rose 65.5% and expected credit losses grew 32.7%, together growing faster than the 37% increase.
The customer base grew 15% to 131.0 million, with Brazil reaching 113 million, Mexico 14 million, and Colombia surpassing 4 million, while Monthly ARPAC rose 23% on an to $13.30.
What changed
The Mexico banking license, flagged as critical in FY2024, remained pending through FY2025; the company did not report receiving it, and the filing continues to list it as a regulatory risk.
The credit loss allowance ratio, which declined to 13.5% in FY2024 as credit quality improved, was not reported for FY2025, but the 32.7% increase in expected credit losses against a growing portfolio suggests the ratio may have stabilized or moved modestly.
The pace of customer growth in Mexico and Colombia, flagged as a watch item, continued: the combined base rose from 12.5 million to over 18 million, with Mexico reaching 14 million and Colombia surpassing 4 million.
What to watch
Whether the Mexico banking license is granted in 2026, and if so, the pace at which deposit-gathering accelerates in that market and begins to lower the blended cost of funding.
The trajectory of as Brazil's interest rate cycle evolves — specifically whether loan repricing can outpace the rise in deposit costs and stabilize the margin above 40%.
The U.S. bank charter's final approval and the company's initial capital allocation and product strategy for that market, given the operational complexity of entering a developed-market banking system.
Section summaries
Risk Factors
Key risks include brand/reputation damage, credit/risk management failures, regulatory changes in Brazil/Mexico, and cybersecurity threats.
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Brand and reputation are critical; failure to maintain trust or effective marketing could significantly harm customer acquisition and market share.
Inadequate risk management, particularly flawed credit scoring models or counterparty defaults, could lead to substantial financial losses.
reached $3.5 billion, and cash and equivalents ended the year at $15.0 billion, up from $9.2 billion, supported by $2.3 billion in financing inflows including new borrowings.
The credit loss allowance-to-portfolio ratio was not explicitly stated, but the filing notes expected credit losses grew 32.7%, a slower pace than the 57.4% increase in loan interest income, suggesting portfolio yield growth offset rising credit costs.
The company received conditional approval for a U.S. national bank charter in early 2026, adding a new geography to its expansion roadmap alongside the still-pending Mexico banking license.
The impact of Brazil's interest rate cycle on , flagged in FY2024, materialized in FY2025 as deposit interest expenses rose 65.5%, compressing by 3.6 points even as the loan portfolio repriced higher.
A new risk factor emerged: the company disclosed it had applied for and received conditional approval for a U.S. national bank charter, introducing a new regulatory and operational dimension not present in prior filings.
The credit loss allowance ratio as the loan book seasons in Mexico and Colombia, where credit histories are shorter and the portfolio is growing from a small base.
Extensive and evolving Brazilian financial regulations, including potential caps on credit card fees/interest and new naming rules requiring a banking license, may increase costs and limit operations.
International expansion, notably the pending Mexican banking license and new U.S. bank application, subjects the business to heightened regulatory, operational, and political risks.
Heavy reliance on third-party data centers, cloud platforms, and the Mastercard payment scheme creates vulnerability to service disruptions and compliance risks.
Concentrated voting power (74.4%) with founder/CEO David Vélez limits shareholder influence on corporate matters.
Nubank is a digital financial services platform serving 131M customers across Brazil, Mexico, and Colombia with products spanning spending, saving, investing, borrowing, and protecting.
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The company operates through a self-reinforcing model, acquiring customers primarily via word-of-mouth referrals and cross-selling products across its 'Five Financial Seasons' ecosystem.
In Brazil, Nubank is the largest private financial institution by customer count with 113M customers, while in Mexico it has 14M and is a leading new credit card issuer, and in Colombia it surpassed 4M customers.
The product suite includes credit and prepaid cards, digital accounts (NuAccount), personal and secured loans, an investment platform (Nu Investimentos), insurance brokerage, and a growing marketplace with travel (NuTravel) and mobile services (NuCel).
Nubank's competitive advantages are built on its proprietary cloud-based core banking platform (NuCore), an advanced data science credit engine (NuX), and a low-cost operating model that it claims is approximately 85% lower than incumbents in Brazil.
The company is pursuing growth by deepening engagement in its core markets, expanding its product platform, and exploring new geographies, having received conditional approval for a U.S. national bank charter in early 2026.
Nubank faces a concentrated competitive landscape dominated by large incumbent banks in Latin America but believes it is well-positioned due to its customer-centric culture, technology, and data advantages.
Total revenue rose 37% to $15.8B in FY2025, driven by loan and credit card interest income growth, while net income increased 46% to $2.9B.
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Total grew 37.0% to $15.8 billion, primarily from a 57.4% surge in loan interest income and a 20.9% increase in credit card interest income, reflecting portfolio expansion.
increased 26.1% to $6.6 billion, but contracted to 42.0% from 45.6% as interest expenses on deposits rose 65.5% and expected credit losses grew 32.7%.
The customer base expanded 15.0% to 131.0 million, with rising 23.0% on an FX-neutral basis to $13.3, driven by higher credit limits and product adoption.
Operating expenses grew only 12.0% to $2.8 billion, improving the operating expense ratio to 17.5% of total from 21.3%, demonstrating .
Cash and cash equivalents reached $15.0 billion, supported by $3.5 billion in and $2.3 billion from financing activities, including new borrowings.
Management expects 2026 to be an inflection year, prioritizing core markets and platformization, with strategic investments potentially pressuring near-term operating costs.