Nubank posts record $895M Q4 net income despite 12.7% YTD stock drop, efficiency ratio hits 19.9%.

Nubank reported a strong Q4 2025 with $895 million in net income and a record full-year net income of $2.9 billion, driven by a highly efficient digital banking model with an efficiency ratio dropping to 19.9%. The bank serves 131 million customers across Latin America and recently received conditional approval for a U.S. national bank charter, enabling expansion into the U.S. market. Despite solid financials and bullish sentiment on Reddit, Nubank's stock trades down 12.7% year-to-date, partly due to valuation concerns as it trades at a higher P/E ratio than the industry average. The company's future growth hinges on its ability to convert operational efficiency into U.S. customer acquisition.