Shares of Nu Holdings Ltd. (NU) plummeted 7.30% during Thursday's intraday session, extending losses from after-hours and pre-market trading.

The sharp decline follows the release of the company's fourth-quarter and full-year 2025 financial results. Investor sentiment turned negative due to cautionary comments from management during the accompanying earnings conference call. The Chief Financial Officer warned that the company typically experiences a seasonal increase in delinquency rates during the first quarter, raising concerns about future credit quality. Additionally, the CFO indicated that pressure on the efficiency ratio from ongoing strategic investments is expected to last for approximately four to six quarters, suggesting potential headwinds to near-term profitability.

These warnings from executives overshadowed the company's reported strong quarterly performance, which included a 50% year-over-year increase in net profit and a record-high return on equity of 33%.