Nu Holdings shares drop after Q1 beats revenue estimates but raises concerns on margins and US expansion costs.

Nu Holdings reported a strong Q1 with revenue of $5.32 billion, up 42% year-over-year, surpassing estimates and hitting a record quarterly revenue. Net income rose 41% to $871 million, and the company added 4 million customers, reaching over 135 million globally. Despite these gains, shares fell nearly 10% due to worries about profit margins, slower customer growth, and increased spending on US market expansion. CEO David Vélez emphasized AI as a core focus, aiming to rebuild banking around AI while cautiously testing US growth opportunities.