Nu Holdings Ltd. (NU) saw its stock price plummet 5.02% in after-hours trading on Tuesday following the release of its first-quarter 2025 financial results. The digital banking platform's earnings and revenue fell short of analyst expectations, triggering a sell-off among investors.

The company reported earnings per share (EPS) of $0.12, missing the estimated $0.13, while sales came in at $3.20 billion, below the anticipated $3.23 billion. Additionally, Nu Holdings' adjusted net profit for the quarter stood at $606.5 million, falling short of the $630.5 million forecast in an LSEG poll. These misses appear to be the primary drivers behind the stock's sharp decline.

Despite the negative market reaction, Nu Holdings did report some positive metrics. The company achieved a return on equity of 27% and a gross profit of $1.3 billion for the quarter. Its consolidated loan book reached $24.1 billion, reflecting continued growth. However, investors seem to be focusing on the missed targets and potential concerns about the company's 90-day default ratio in Brazil, which stood at 6.5% for Q1. As the market digests this mixed bag of results, Nu Holdings' stock may face continued pressure in the short term.