Nu Holdings Ltd. Q1 2026 Financial Summary
Business Context and Reporting Period
This Form 6-K filing presents the unaudited interim condensed consolidated financial statements for Nu Holdings Ltd. for the three-month period ended March 31, 2026. The Group operates primarily through subsidiaries in Brazil, Mexico, and Colombia, offering digital banking, credit cards, loans, and investment services. The financial statements are prepared in accordance with IAS 34 and reviewed by KPMG Auditores Independentes Ltda.
Key Financial Metrics
| Metric (in thousands USD) | Q1 2026 | Q1 2025 |
|---|---|---|
| Total Revenue | $4,967,967 | $3,247,689 |
| Gross Profit | $1,864,882 | $1,319,453 |
| Net Income | $871,431 | $557,208 |
| Diluted EPS | $0.1776 | $0.1139 |
| Total Assets | $77,456,407 | $74,893,877 (Dec 31, 2025) |
| Cash and Cash Equivalents | $13,920,432 | $15,003,643 (Dec 31, 2025) |
| Total Deposits | $42,448,121 | $41,925,101 (Dec 31, 2025) |
| Borrowings and Financing | $4,504,241 | $4,398,216 (Dec 31, 2025) |
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased by 53% year-over-year, driven by a 56% increase in interest income and a 34% increase in fee and commission income.
- Profitability: Net income attributable to shareholders rose 56% to $872 million. Gross profit margin improved to 37.5% from 40.6% in the prior year, though absolute gross profit grew significantly.
- Expense Expansion: Total operating expenses increased to $909.5 million from $523.3 million. Notable increases include General and Administrative expenses (up 70%) and Customer Support and Operations (up 35%).
- Credit Costs: Expected credit losses (ECL) rose sharply to $1.72 billion from $973.5 million, reflecting portfolio growth and macroeconomic assumptions.
- Cash Flow: Operating cash flow turned negative at -$1.21 billion, compared to a positive $1.09 billion in Q1 2025, primarily due to significant increases in credit card receivables and loans to customers.
Outlook, Risks, and Management Commentary
- Strategic Expansion: On January 29, 2026, Nu received conditional approval from the U.S. Office of the Comptroller of the Currency (OCC) to form a national bank, aligning with its strategy to expand into the U.S. market. Additionally, Nu Mexico Financiera received regulatory approval in April 2025 to convert into a bank.
- Capital Adequacy: The Group remains well-capitalized. The Brazilian Prudential Conglomerate maintained a Capital Adequacy Ratio (CAR) of 15.1% (above the 10.5% minimum). Mexico and Colombia subsidiaries also reported capital ratios significantly above regulatory requirements.
- Risk Management: The Group actively monitors credit, liquidity, market, and operational risks. A significant portion of the net investment in Brazilian operations is hedged against FX risk using Non-Deliverable Forwards (NDFs).
- Seasonality: Management notes that the business is subject to seasonality, with historically higher volumes in the fourth quarter, though high growth rates have historically masked these effects.
Investor Verification Checklist
- Cash Flow Divergence: Verify the drivers behind the shift from positive to negative operating cash flow despite record net income, specifically the acceleration in loan and receivable growth.
- Credit Quality Trends: Review the increase in Expected Credit Losses (ECL) and the coverage ratio (17.1% for credit cards) to assess the sustainability of credit growth.
- U.S. Bank Charter Progress: Monitor the status of the OCC conditional approval and the timeline for finalizing the U.S. national bank charter.
- Expense Efficiency: Analyze the 70% year-over-year increase in General and Administrative expenses relative to revenue growth to assess operational leverage.
- Regulatory Capital: Confirm continued compliance with local capital adequacy requirements in Brazil, Mexico, and Colombia as the balance sheet expands.