Nu Holdings Ltd. (NU) has reported an Average Revenue Per Active Customer (ARPAC) of $11.20 per month, with significantly higher earnings of over $25 from legacy users. This growth signals Nu’s effective cost-efficient model that transforms low-income, first-time digital banking customers into loyal, high-value users. Customers tend to adopt multiple services, enhancing customer lifetime value while reducing churn risk.
Year-to-date, NU’s stock has surged by 28%, outpacing the broader banking industry’s growth of 26%. Currently, it trades at a forward price-to-earnings ratio of 20.21, exceeding the industry average of 9.36. Despite recent earnings estimates declining over the past 60 days, NU maintains a Zacks Rank of #3 (Hold).
