Nu Holdings (NU +4.72%) stock has had an incredible rise, and it's up 250% during the past three years. It consistently reports high growth and increasing profit, and it looks like it's just getting started. Let's see where it could be five years from now.
Revenue: Double-digit percentage growth
Nu has only been around for about a decade, but it's been growing by leaps and bounds. Its founders developed it to offer a better experience for Brazilians shut out of the financial system, which has high barriers to entry even for the affluent. Nu offers low-cost, all-digital products, and it's gaining customers even from higher socioeconomic brackets at a fast pace.
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In the 2025 second quarter, it added 4.1 million customers, or 17% more than last year. It ended the quarter with 122.7 million customers in total, including 107 million in Brazil, which is more than 60% of the adult population.
But don't worry about it hitting a ceiling. Not only does it continue to add customers in Brazil at the rate of about a million monthly, it's recording faster percentage growth in Mexico and Colombia, and it's monetizing its existing customer base with more products. It's also considering entering new markets, with an investment in other global digital banks and a recent application for a bank charter in the U.S.
Revenue increased 40% year over year (currency neutral) in the 2025 second quarter, and with all of its varied growth drivers, I anticipate it continuing to keep up double-digit percentage revenue growth in five years.
NYSE: NU
Key Data Points
Profits: Increasing
Nu is a classic case of a company that's scaling profitably. Its business is low-cost to operate, since its investments in research and development and marketing are still much lower than the real estate required for hundreds or thousands of physical bank branches.
As its cross-selling strategy works, customers are purchasing more products, resulting in higher average revenue per active customer (ARPAC), all while its cost to serve remains low. ARPAC increased 18% year over year to $12.20 in the second quarter, while cost to serve declined from $0.90 to $0.80.
As Nu captures greater market share, monetizes its customer base, and enters new markets, profits should keep rising.
Business: Expanding its platform
Nu continues to roll out new products and target new cohorts. It has released several products geared to the higher-spending, wealthier clients, and it recently rolled out a new credit card for users under age 18. Not only does that add a new user base, it targets younger members who will grow with the platform and drive long-term engagement. It's also connected to the user's bank account, linking several products together and lending itself to the cross-selling strategy.
Expect Nu to expand the platform during the next five years and open up new ways to make more money.
Credit: Stronger business
Part of Nu's strong performance is coming from its growing credit portfolio, which increased 40% year over year in the second quarter. Net interest income increased 33% over last year, and loan originations were up 43%.
There has been concern about the macroeconomic situation in Brazil, which is still experiencing high inflation. That's coming through to Nu's platform in higher default rates and lower net interest margin, but the business is growing fast.
In five years, the situation is likely to be improved, and Nu should have an even stronger credit business.
Stock: Outperforming the market
Nu stock is up nearly 50% this year, crushing the market. There's every reason to believe that it can continue to beat the market during the next five years and beyond.
