Should You Buy, Sell, or Hold Nu Holdings Now That Its Earnings Are Out?

Should You Buy, Sell, or Hold Nu Holdings Now That Its Earnings Are Out?

Ryan Vanzo, The Motley Fool

Sun, August 23, 2026 at 4:45 PM GMT+3 3 min read

• NU +1.23%
• NVDA -2.91%

Nu Holdings (NYSE: NU) has been an incredible long-term success story. Founded in 2013, the online-only bank now has nearly 140 million customers across just three countries: Brazil, Colombia, and Mexico. Year-over-year revenue growth has consistently been in the double digits, sometimes exceeding 100%.

Some analysts worry that the fintech's biggest days of growth are behind it. After all, the competition is catching on to Nu's asset-light business model. But a few key figures from the company's recent quarterly earnings announcement suggest that the fintech stock remains a long-term buy.

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1 Reason Nu Holdings stock remains my top fintech stock

As I detailed earlier this month, Nu is facing increased competition, but its competitive advantages continue to give it a durable edge. In recent years, competing banks have acquired more customers, but at the expense of declining credit quality and rising deposit costs. Meanwhile, Nu has been able to maintain high revenue and customer growth without sacrificing borrower quality or net interest margins.

This quarter, the company posted a consolidated cost of deposits of 88% the interbank rate, three percentage points lower than a year ago. Its efficiency ratio (a measure of how well the bank is managing operating costs) and asset quality metrics also improved.

In total, investors are seeing no indication that Nu's competitive advantages are waning. In fact, investors should come away with greater confidence in the durability of Nu's business model, as many of its key metrics continued to improve despite intensifying competitive headwinds.

Trading at less than 20 times earnings despite a durable business model and rapid revenue and profit expansion continues to make Nu stock my top fintech stock on the market today.

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Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nu Holdings. The Motley Fool has a disclosure policy.

Should You Buy, Sell, or Hold Nu Holdings Now That Its Earnings Are Out? was originally published by The Motley Fool