u/lil-jables

Q1 2026 revenue exceeded $5B (+50% YoY), ROE hit ~30%, and forward P/E compressed to ~15x with PEG <1, signaling undervaluation relative to growth. The market has not priced in the U.S. entry option (conditional OCC approval) which could unlock millions of Hispanic-American customers within 2 years, nor the product expansion leverage on 135M existing users. Nu Holdings offers a rare combination of high-growth fintech fundamentals (30%+ ROE) at a value multiple, with a regulatory moat and cultural loyalty that insulates competition. Rising expected credit losses (70%+ increase in Q1) could outpace revenue growth; FX volatility in Brazil/Colombia; U.S. regulatory hurdles or execution delays; competitive pressure from SoFi and other neobanks.