Nu Holdings Ltd. Q1 2026 Financial Summary
Business Context and Reporting Period
Nu Holdings Ltd. (NYSE: NU) reported financial results for the first quarter ended March 31, 2026. The company, a leading digital financial services platform, operates primarily in Brazil, Mexico, and Colombia. As of March 2026, Nu serves over 135 million customers globally. The filing highlights a strategic focus on AI transformation, with proprietary models (NuFormer) deployed for credit decisioning and an AI Private Banker serving over 15 million monthly active users.
Key Financial Metrics
| Metric | Q1 2026 | Q4 2025 | Q1 2025 |
|---|---|---|---|
| Total Revenue | $5,315.5 million | $4,857.3 million | $3,372.7 million |
| Net Income | $871.4 million | $894.8 million | $557.2 million |
| Gross Profit | $1,877.7 million | $1,961.1 million | $1,327.5 million |
| Net Interest Income (NII) | $3,250 million | $2,900 million (approx) | N/A |
| Return on Equity (ROE) | 29% | 33% | 27% |
| Efficiency Ratio | 17.6% | 19.9% | 21.4% |
| Risk-Adjusted NIM | 9.5% | 10.5% | 9.3% |
| Total Deposits | $42.4 billion | $41.9 billion | $31.6 billion |
| Total Credit Portfolio | $37.2 billion | $32.7 billion | $24.1 billion |
| Loan-to-Deposit Ratio | 58.3% | 49.1% | 48.5% |
| NPL 15-90 Days | 5.0% | 4.1% | 4.8% |
| NPL 90+ Days | 6.5% | 6.6% | 6.4% |
Note: Growth rates in the source text are presented on an FX neutral (FXN) basis unless otherwise noted. Revenue surpassed $5 billion for the first time.
Material Changes vs. Prior Periods
- Revenue Growth: Total revenue increased 42% year-over-year (YoY) and 7% quarter-over-quarter (QoQ) on an FX neutral basis, driven by higher engagement and monetization.
- Profitability: Net income rose 41% YoY to $871 million, though it declined 5% QoQ due to elevated credit loss allowances.
- Asset Quality: The 15-90 day Non-Performing Loan (NPL) ratio increased to 5.0% (up 89 bps QoQ), attributed to typical Q1 seasonality and intentional expansion into higher-risk segments. The 90+ day NPL ratio improved slightly to 6.5%.
- Efficiency: The Efficiency Ratio improved to 17.6% from 19.9% in Q4 2025, driven by ARPAC outperformance.
- Market Position: Mexico reached break-even and became the third-largest financial institution in the market with 15 million customers. Brazil surpassed 115 million customers.
Guidance, Outlook, and Risks
- Efficiency Ratio Outlook: Management expects the full-year efficiency ratio to land roughly in line with the 2025 year-end level, as return-to-office costs scale and investments in international expansion and AI infrastructure continue.
- US Expansion: Nu is pursuing a disciplined, capital-efficient entry into the United States. Maximum investment is expected to remain below 100 basis points on the consolidated efficiency ratio for 2026 and 2027, contained within the ~20% efficiency ratio range.
- AI Strategy: The company is rebuilding banking around AI, with NuFormer models in production for credit cards in Brazil and Mexico and unsecured lending in Brazil. AI capabilities are driving credit portfolio expansion with resilience.
- Risks: The filing includes standard forward-looking statement disclaimers regarding risks such as market conditions, regulatory changes, and the accuracy of third-party data. Specific risks related to credit quality seasonality and the execution of international expansion are noted.
Investor Verification Checklist
- Seasonality Impact: Verify the extent to which the increase in 15-90 day NPLs (to 5.0%) is driven by historical Q1 seasonality versus permanent credit deterioration.
- Managerial P&L Reconciliation: Review the reconciliation between the new Managerial P&L framework and IFRS measures to understand the structural reorganization of line items.
- US Market Execution: Monitor the capital efficiency of the US expansion to ensure it remains within the projected 100 basis point impact on the efficiency ratio.
- Deposit Cost Trends: Track the cost of deposits, which closed at 88% of interbank rates (slightly higher sequentially), to assess funding stability.
- AI ROI: Assess the tangible impact of AI on credit loss allowances and limit growth as the company scales NuFormer models.