Nu Holdings Q2 2026 Earnings Beat Estimates

Nu Holdings Q2 2026 earnings, reported Aug. 13, showed record profitability and an earnings beat as management highlighted expanding margins, stronger unit economics, and customer growth while regulators cleared Nubank México to operate as a full-service bank.

Record Quarter and Profitability

Nu Holdings Ltd. (NYSE: NU) released second-quarter 2026 results for the period ended June 30, posting financial statements and a slide presentation on its investor-relations site. The company reported managerial and IFRS net income between $1.06 billion and $1.10 billion, marking its first quarter above $1 billion. This represented a 49% year-over-year gain on a foreign-exchange-neutral basis and about a 17% sequential increase. Return on equity reached a record 33%.

Gross revenue approached $5.9 billion, up about 39% year-over-year, while gross profit was roughly $2.4 billion to $2.44 billion, rising 43% annually and about 25% sequentially. Credit contributed about 41% of gross profit, fees 25%, and float (interest on deposits and cash balances) 34%, all increasing in absolute terms. Net interest income totaled approximately $3.7 billion, up 9% quarter-to-quarter, while cost of credit fell about 9% sequentially to $1.7 billion amid improvements in early delinquencies.

Margins expanded significantly. Net interest margin grew about 180 basis points sequentially to roughly 22.9%, and risk-adjusted net interest margin reached 12.4%, up 290 basis points from the prior quarter. The efficiency ratio, which measures operating expenses as a percentage of net revenue, stood near 19.5%, close to management’s full-year target.

The jump in profitability and record return on equity indicate a material improvement in Nu’s ability to convert scale into returns, driven by broader margin capture and tighter operating leverage.

Balance Sheet, Customers, and Outlook

Nu’s total credit portfolio reached about $39.4 billion, up 37% year-over-year and 5% sequentially. The portfolio included roughly $26 billion in credit cards, $10.3 billion in unsecured lending, and $3.1 billion in secured lending. Deposits rose about 18% year-over-year to approximately $45.3 billion, increasing 6% sequentially as seasonal first-quarter outflows recovered.

The customer base grew by about 4 million during the quarter to roughly 139 million. Customer activity was near 83.5%, and average revenue per active customer (ARPAC) was reported at about $17.1. Monthly revenue per active user increased 22% year-over-year, while cost per active user remained near $1 per month, highlighting operating leverage.

The combination of rising deposits, deeper engagement, and low per-user costs provides Nu with funding and structural advantages to scale unsecured lending and other higher-return products.

Market data providers characterized the quarter as a beat on both revenue and earnings per share. EPS was reported around $0.22 to $0.24 per share, exceeding a consensus near $0.20, and revenue was described as ahead of analyst estimates.

Management expects to sustain elevated risk-adjusted margins through deeper customer engagement, AI-driven efficiency gains, and a portfolio mix shift toward unsecured lending. Executives also emphasized continued geographic expansion, particularly in Brazil and Colombia.

Regulatory Approval and Strategic Outlook

On July 9, Mexico’s banking regulator, CNBV, authorized Nubank México to operate as an institución de banca múltiple (multiple bank). Nu Holdings announced this final regulatory approval on July 10. Under Mexican rules, Nubank México must begin operating as a bank within 30 days of the authorization, completing its banking license process and enabling a broader rollout of credit, payments, and savings products.

This regulatory milestone, combined with the quarter’s profitability gains and margin expansion, provides management a clearer path to monetize scale while pursuing efficiency targets. The approval also supports Nu’s strategic push to expand its full-service banking operations in Mexico alongside its core franchises in Brazil and Colombia.