Nu Holdings Stock Rallies On Mixed Q2 Results: EPS In Line, Revenues Miss

Nu Holdings (NU) reported Q2 2025 earnings per share of $0.13, meeting analyst consensus, while quarterly revenue of $3.66 billion missed estimates despite a significant year-over-year increase. The company demonstrated robust operational growth, adding 4.1 million customers to reach 122.7 million globally and achieving a record Monthly Average Revenue per Active Customer (ARPAC) of $12.2. This operational strength, coupled with a reported near-tripling of quarterly net income over two years, drove NU's stock up 8.33% in after-hours trading.

Analysis

Nu Holdings reported mixed second-quarter 2025 results, meeting EPS consensus at $0.13 but missing revenue estimates with $3.66 billion against a $3.77 billion forecast. Despite the top-line miss, the company demonstrated exceptional operational momentum and fundamental strength, which drove a significant positive market reaction. Key performance indicators were robust, with the customer base growing 17% year-over-year to 122.7 million, fueled by 4.1 million net additions in the quarter. More importantly, monetization is accelerating, as evidenced by the Monthly Average Revenue per Active Customer (ARPAC) reaching a record $12.2, an 18% YoY increase on an FX-neutral basis. This revenue expansion is paired with remarkable cost efficiency, as the Monthly Average Cost to Serve remained stable at a low $0.80. This operating leverage is translating directly to the bottom line, with the CEO highlighting that quarterly net income nearly tripled to $637 million over the last two years. The market clearly prioritized these strong fundamentals over the revenue miss, sending the stock up 8.33% in after-hours trading.

Key Decisions for Investors

• Investors should prioritize the company's key operational metrics, such as the 18% year-over-year growth in ARPAC and strong customer acquisition, over the slight headline revenue miss, as the market's reaction indicates these are the primary drivers of valuation.
• The widening gap between the rising ARPAC of $12.2 and the stable low cost-to-serve of $0.80 demonstrates powerful operating leverage and a clear path to sustained profitability, a key factor to monitor in future quarters.
• Given the strong after-hours stock performance, investors may consider the underlying business momentum to be validated, suggesting that any pullback from the post-earnings high could represent a buying opportunity if the core growth trends remain intact.