Nu Holdings (NU) Earnings Date & Reports

Key Takeaways

• Nu Holdings reported second-quarter 2026 net income of $1.1 billion, its first quarter above $1 billion, up 49% year over year on a foreign-exchange-neutral (FXN) basis.
• Gross revenue reached nearly $5.9 billion, up 39% year over year on an FXN basis, while reported revenue of $5.88 billion came in above the roughly $5.39 billion consensus estimate.
• Adjusted earnings per share (EPS) of $0.20 were essentially in line with consensus expectations near $0.20.
• The customer base grew by about 4 million during the quarter to 139 million globally, with Brazil nearing 118 million customers.
• Net interest margin (NIM) expanded to 22.9%, and risk-adjusted NIM climbed to 12.4%, while the efficiency ratio normalized to 19.5%.

Earnings Context and Why It Matters

Nu Holdings, the parent of Nubank, entered this report under scrutiny after its first-quarter 2026 results missed some Wall Street expectations. The second quarter matters because it tests whether the company can keep scaling customer acquisition while converting engagement into stronger profitability. With roughly 30% of Brazilians now using Nu as their primary bank and expansion underway in Mexico and Colombia, investors are focused on margin trends, credit quality, and operating leverage. The report also reflects a broader strategic shift from pure user growth toward deepening relationships and cross-selling higher-margin products, making these results an important signal for the digital bank's next phase.

Reported Results

Nu reported second-quarter 2026 net income of $1.1 billion, up 17% sequentially and 49% year over year, marking the first time quarterly profit has exceeded $1 billion. Gross revenue reached nearly $5.9 billion, up 39% year over year on an FXN basis. Reported revenue of $5.88 billion topped the consensus estimate of about $5.39 billion, while adjusted EPS of $0.20 was essentially in line with expectations. Net revenue surpassed $4 billion for the first time, reaching $4.1 billion, up 8% from the prior quarter.

Profitability strengthened across key metrics. Net interest income (NII) rose 9% sequentially to $3.7 billion, and NIM expanded 180 basis points to 22.9%. Cost of credit declined 9% sequentially to $1.7 billion, helping risk-adjusted NIM climb 290 basis points to 12.4% from 9.5% in the first quarter. Gross profit reached $2.4 billion, up 43% year over year and 25% sequentially. Return on equity (ROE) hit a record 33%, while the efficiency ratio rose to 19.5% from 17.6% in the first quarter, which management attributed to timing shifts and continued international investment.

On the balance sheet, the credit portfolio reached $39.4 billion, up 37% year over year on an FXN basis, and total deposits reached $45.3 billion, up 18% year over year. Customer engagement improved as average revenue per active customer (ARPAC) rose to about $17 and the monthly activity rate reached 83.5%. Asset quality showed a mixed seasonal pattern: the 15–90 day non-performing loan (NPL) ratio improved 16 basis points to 4.8%, while the 90+ day NPL ratio increased 35 basis points to 6.9%.

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Market Reaction and Investor Sentiment

Nu shares closed at $13.93 on August 13, up 2.7% from the prior close of $13.56, and continued higher in after-hours trading, reaching about $15.14 according to Investing.com coverage. The positive tone reflected investor focus on record profitability, margin expansion, and continued customer growth rather than the expected normalization in the efficiency ratio. The stock remains below its 52-week high of $18.98, and sentiment heading into the print had shown some caution after the first-quarter miss, with several EPS estimates trimmed in the preceding 60 days. The after-hours move suggests the market read the second quarter as evidence that the earlier stumble was temporary and that the company's profitability trajectory remains intact.

Forward Outlook and Key Factors to Monitor

Management reiterated its expectation for a full-year efficiency ratio of about 20%, implying that the second-quarter level, rather than the unusually low 17.6% reported in the first quarter, is the more representative run rate. Executives also indicated that risk-adjusted NIM should remain around the current 12.4% level for the foreseeable future, supported by the mix shift toward unsecured lending and the seasonal normalization of credit costs.

The company's recent strategic moves broaden the watchlist. Nu launched its bank in Mexico earlier in August, becoming the largest digital bank in the country with 16 million customers, and is adding a full banking license in Brazil. The rollout of Croma for higher-income Super Core customers and the use of NuFormer, the company's AI foundation model for financial behavior, are longer-term catalysts for cross-selling and efficiency.

Key risk factors to monitor include the 90+ day NPL ratio, which rose 35 basis points to 6.9% as early delinquencies migrated, and competitive pressure in Brazil's digital financial market. Deposit growth, funding costs, and the pace of international investment will also shape how quickly the company can sustain operating leverage while funding expansion.

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