Shares of Nu Holdings cratered 8.3% to $11.91 on June 2, hitting a 52-week low, as investors absorbed a one-two punch: mixed first-quarter earnings and the abrupt departure of the CFO who built the company's Wall Street credibility. BofA Securities piled on, downgrading NU to Underperform and slashing its price target from $16 to $10 , amplifying the selloff.
A Record Revenue Quarter Overshadowed by an Earnings Miss
Nu reported Q1 EPS of $0.18, missing the $0.20 forecast by 10%, even as revenue hit a record $5 billion and net income reached $871 million — up 41% year-over-year. The culprit: a $1.79 billion credit-loss allowance, up 33% quarter-over-quarter, which pushed the risk-adjusted lending margin down a full percentage point to 9.5%. In plain terms, Nu is setting aside more money to cover loans that might not get repaid — and investors are worried the fast-growing loan book is getting riskier.
The CFO Who Steered Nu's IPO Is Walking Away
Rob Livingston, formerly Visa's CFO for North America, takes over on July 13; outgoing CFO Guilherme Lago shifts to a Special Advisor role through August 31.
BofA analyst Mario Pierry called Lago "one of the company's most important executives, overseeing its IPO." Losing the executive who shaped financial discipline during Nu's explosive growth introduces uncertainty at precisely the wrong time — as Nu navigates tougher credit conditions in Brazil while expanding into Mexico, Colombia, and the United States.
The U.S. Push Is the Strategic Bet Behind the Hire
CEO David Vélez said Livingston brings a clear view of the U.S., where Nubank has already received conditional approval for a bank.
Management pledged the U.S. effort will cost less than 1% of operating expenses in 2026 and 2027, with further investment gated to evidence of real traction. That's a disciplined promise — but entering the hyper-competitive American banking market is expensive, and any margin pressure will be magnified under a new finance chief still learning Nu's Latin American engine.
Growth Numbers Still Impressive — If Credit Holds
Nu now serves over 135 million customers, with 115 million in Brazil alone, making it the country's largest private financial institution.
Mexico reached break-even for the first time in Q1, ahead of internal targets. But with the stock down 22% year-to-date and early-stage loan delinquencies rising, the market is demanding proof that growth hasn't come at the cost of credit quality — regardless of who signs the quarterly filings.