Nu Q2 2026 Earnings: Net Income Reaches a Record $1.1 Billion

Nu Holdings (NYSE: NU) reported Q2 2026 gross revenue of nearly $5.9 billion, up 39% year over year on an FX-neutral basis, while net income reached a record $1.1 billion, up 49%, for the quarter ended June 30, 2026. Credit portfolio growth, a shift toward unsecured lending, and lower seasonal credit costs supported wider margins, although late-stage nonperforming loans increased.

Core Financial Results

Nu’s results were prepared under IFRS and supplemented by managerial measures. Gross profit rose faster than revenue, while net income increased 17% sequentially and exceeded $1 billion for the first time in the company’s history.

The main quarterly figures show improved profitability and credit economics:

Unless otherwise noted, the growth rates reported by Nu are on an FX-neutral basis. The company did not disclose EPS in the supplied release.

Business and Geographic Performance

Nu added approximately 4 million customers during the quarter, bringing its global customer base to 139 million. Average revenue per active customer reached approximately $17 and increased sequentially, while the monthly activity rate rose to 83.5%.

Brazil remained Nu’s largest market, with almost 118 million customers and an activity rate above 86% for the first time. The company is also expanding beyond the mass market through Ultravioleta for high-income customers and Croma, which launched after quarter-end in July for its Super Core segment.

Mexico reached 15.8 million customers at quarter-end and 16 million in July, while Colombia surpassed 5 million. Management said Mexican customer cohorts are monetizing earlier than comparable Brazilian cohorts did at the same stage, with ARPAC of $12.3 versus $5.6 in Brazil. Nu completed its transition to a full digital bank in Mexico with an August launch after the quarter ended.

Profitability and Balance Sheet

The efficiency ratio increased to 19.5% from 17.6% in Q1 2026, reflecting real estate and marketing expenses that shifted into the second quarter, as well as continued international expansion investment. Despite the sequential increase, the ratio remained below the 21.3% reported in Q2 2025.

Nu’s total credit portfolio grew 37% year over year and 5% sequentially to $39.4 billion. Credit cards accounted for $26.0 billion, unsecured lending for $10.3 billion, and secured lending for $3.1 billion.

Deposits rose 18% year over year and 6% sequentially to $45.3 billion, recovering from seasonal outflows in Q1. Mexico’s deposits declined modestly under a deliberate funding-optimization strategy, but its loan-to-deposit ratio remained at 35%. Consolidated deposit costs were equivalent to 88% of interbank rates, three percentage points below the prior-year level.

Unsecured Credit and Seasonal Normalization Lifted Margins, but Late-Stage Delinquencies Rose

Portfolio expansion and a greater mix of unsecured lending helped net interest income and net interest margin increase. At the same time, the normal second-quarter improvement in early delinquencies reduced the cost of credit, allowing risk-adjusted net interest margin to rise from 9.5% in Q1 to 12.4%.

The 15-to-90-day nonperforming loan ratio improved by 16 basis points to 4.8%, with most of the improvement attributed to seasonality. That benefit was partly offset by Nu’s intentional expansion into higher-risk, higher-return customer segments.

The 90-plus-day nonperforming loan ratio moved in the opposite direction, rising 35 basis points to 6.9% as first-quarter early delinquencies migrated into later stages. Credit’s contribution to gross profit consequently recovered to 41%, while fees contributed 25% and deposit float contributed 34%; all three increased in absolute dollar terms.

Management Perspective

Management is using its expanding customer relationships and transaction data to support underwriting and cross-selling. Nu said customers who use it as their primary bank have delinquency levels roughly half the portfolio average, which it views as both a credit and growth advantage.

NuFormer, the company’s financial-behavior foundation model, is now in production for Brazilian and Mexican credit cards and Brazilian unsecured lending. Small-business and Colombian card applications are being tested, while AI agents already handle more than 60% of customer support conversations in Brazil at or above what the company describes as human parity.

Recent Insider Transactions

The supplied insider data classified 4,556,037 shares across two transactions as purchases and 321,000 shares across two transactions as sales during the latest six-month period. That produced a net increase of 4,235,037 shares, equal to 4.5% of reported insider holdings of 98.84 million shares.

Only four detailed transactions were included in the supplied data rather than ten:

Stock awards and derivative conversions are not equivalent to open-market purchases, so the reported net-share increase alone does not establish insiders’ view of the company’s valuation or outlook.

Risks Investors Should Monitor

• Credit quality after risk expansion: Nu is intentionally entering higher-risk, higher-return segments and increasing its unsecured exposure. The rise in 90-plus-day delinquencies shows why credit costs and loan seasoning remain important indicators.
• Operating efficiency pressure: The efficiency ratio worsened sequentially as delayed marketing and real estate expenses arrived alongside international investment. Continued spending could limit operating leverage if revenue and engagement do not grow at a similar pace.
• Mexico funding execution: The deliberate reduction in Mexican deposits is lowering funding costs while liquidity remains ample. Investors should monitor whether that balance can be maintained as Nu expands lending and full-bank services in the country.

Summary

Nu’s Q2 2026 results combined rapid customer and credit growth with record net income and wider risk-adjusted margins. Seasonal credit normalization provided a meaningful benefit, but the increase in late-stage delinquencies and higher sequential spending complicate the picture. The next key indicators are the performance of newer higher-risk credit cohorts, operating efficiency, and whether Nu can translate its expanding Mexican banking capabilities into sustainable activity and monetization.