Key Highlights
- Nu Holdings reported a record $1.06 billion in net profit during Q2 2026, marking its inaugural billion-dollar quarter with a 49% year-over-year increase
- Total revenue surged 39% to $5.88 billion, exceeding Wall Street’s $5.60 billion projection
- NU shares climbed approximately 9.5% in after-hours sessions, trading near $15.25
- Customer base expanded to 139 million across its three operating markets: Brazil, Mexico, and Colombia
- Risk-adjusted net interest margin expanded to 12.4%, compared to 9.9% in the prior year period
The Latin American fintech powerhouse Nu Holdings recorded its most impressive financial performance to date, surpassing the $1 billion net income threshold for the first time in company history. Following Thursday evening’s earnings release, NU stock rallied approximately 9.5% during extended trading hours, reaching around $15.25 per share.
The digital bank posted $1.06 billion in net profit for the second quarter ending in June, representing a 49% year-over-year jump on a currency-neutral basis. The figure exceeded Visible Alpha’s consensus estimate of $967.2 million.
Total revenue increased 39% to reach $5.88 billion, handily surpassing the analyst consensus of $5.60 billion.
Among the quarter’s most impressive metrics was the risk-adjusted net interest margin, which widened to 12.4% in Q2 from 9.9% during the same period last year and 9.5% in the first quarter of 2026.
According to JPMorgan analysts, even optimistic projections had anticipated risk-adjusted NIM hovering around 11%, positioning this outcome as a clear outperformance on all fronts.
Credit Expenses and Asset Quality
The cost of credit decreased to $1.69 billion from the previous quarter’s $1.79 billion. While this figure remains 60% above year-ago levels, the quarter-over-quarter decline helped calm investor concerns that emerged following last quarter’s elevated credit costs.
Early-stage delinquency rates stood at 4.8%, improving from 5% in the first quarter, though up 0.3 percentage points compared to last year. Meanwhile, the non-performing loan ratio for accounts 90-plus days overdue increased by 35 basis points to 6.9%.
Rob Livingston, who assumed the CFO position last month, expressed confidence that margin improvements should persist going forward. He attributed the gains to a combination of seasonal dynamics and Brazil’s Desenrola debt-refinancing initiative, although he clarified that the program represented only approximately 5% of overall credit costs.
The company’s total credit portfolio expanded 37% year-over-year to $39.4 billion, comprising $26 billion in credit cards, $10.3 billion in unsecured loans, and $3.1 billion in secured lending products.
Customer Acquisition and Regional Presence
Nu onboarded approximately 4 million new customers during the second quarter, pushing its total user base to 139 million. Brazil represents nearly 118 million of these customers, with monthly active user rates surpassing 86% for the first time.
The company achieved a significant milestone in Mexico, officially claiming the position of largest digital bank in the nation following its comprehensive bank rollout in August, now serving 16 million Mexican customers. In Colombia, the customer count exceeded 5 million.
Average revenue per active customer reached approximately $17 during Q2, maintaining its upward sequential trajectory.
Nu also showcased its AI model NuFormer, which currently manages more than 60% of customer service interactions in Brazil. The most recent iteration quadrupled both context capacity and inference speed while simultaneously reducing operational costs.
Return on equity concluded the quarter at 33%. Total customer deposits climbed to $45.3 billion, representing an 18% year-over-year increase.
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