Nu Holdings Ltd. (NU) experienced a significant after-hours plunge of 5.11% on Wednesday, following the release of its fourth-quarter and full-year 2025 financial results.

The decline appears to be driven by investor concerns raised during the company's earnings conference call. According to the CFO, Nu Holdings typically sees an uptick in delinquency rates in the first quarter, which may have raised worries about future credit quality. Additionally, the CFO indicated that pressure on the efficiency ratio from strategic investments would last for about four to six quarters, suggesting potential headwinds to near-term profitability despite strong quarterly results.

These comments from company executives seem to have overshadowed the otherwise positive quarterly financial metrics, including a 33% return on equity and $894.8 million in net income for the fourth quarter.