Nu Holdings Ltd. Form 6-K Summary
Business Context and Reporting Period
This filing covers the unaudited interim condensed consolidated financial statements for the three and six-month periods ended June 30, 2026. Nu Holdings Ltd. operates primarily through subsidiaries in Brazil, Mexico, and Colombia, offering digital banking, credit cards, loans, and investment services. The financial statements were reviewed by KPMG Auditores Independentes Ltda. and prepared in accordance with IAS 34.
Key Financial Metrics (Six Months Ended June 30, 2026)
| Metric | Value (USD) |
|---|---|
| Total Revenue | $10,481,175 |
| Net Income | $1,932,520 |
| Net Income Attributable to Shareholders | $1,932,255 |
| Diluted Earnings Per Share (EPS) | $0.3936 |
| Operating Cash Flow | $(1,242,048) |
| Total Assets | $82,753,414 |
| Total Liabilities | $69,501,693 |
| Total Equity | $13,251,721 |
| Cash and Cash Equivalents | $13,551,611 |
| Deposits (Primary Funding) | $45,328,419 |
| Borrowings and Financing | $4,682,252 |
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased 51.5% year-over-year (YoY) for the six-month period, driven by a 54.2% increase in interest income and 37.0% growth in fee and commission income.
- Profitability: Net income attributable to shareholders rose 61.8% YoY to $1.93 billion. Gross profit increased 46.9% to $4.21 billion.
- Expense Expansion: Total operating expenses increased 69.2% YoY to $2.02 billion, primarily due to higher customer support, general and administrative, and marketing costs.
- Credit Quality: Expected credit loss (ECL) expenses increased 61.2% YoY to $3.20 billion, reflecting portfolio growth. The ECL coverage ratio for credit cards rose to 17.4% from 16.2%.
- Cash Flow: Operating cash flow turned negative at $(1.24) billion compared to a positive $3.64 billion in the prior year, largely due to significant increases in credit card receivables and loans to customers.
Guidance, Outlook, and Risks
- Regulatory Milestones:
- Mexico: On July 9, 2026, Nubank Mexico received authorization to commence operations as a multiple bank, officially beginning operations on August 6, 2026.
- United States: Received conditional approval from the Office of the Comptroller of the Currency (OCC) on January 29, 2026, to form a national bank.
- Acquisition: On July 20, 2026, Nu announced an agreement to acquire 100% of Banco Porto Real de Investimentos S.A. to add a banking license to its Brazilian conglomerate.
- Tax Reform: Brazil's new consumption tax regime (IBS/CBS) is set to gradually replace current taxes starting in 2027. Financial services will be subject to an initial estimated rate of 10.85%, rising to 12.50% by 2033.
- Capital Management: The Group maintains capital ratios well above regulatory minimums in Brazil (CAR 15.7%), Mexico (14.9%), and Colombia (15.3%).
- Share Repurchase: The Board approved a $1.0 billion share repurchase program in June 2026. As of June 30, 2026, the company repurchased $500.4 million worth of shares.
Investor Verification Checklist
- Cash Flow Reversal: Verify the drivers behind the shift from positive to negative operating cash flow despite record net income.
- Credit Loss Trajectory: Monitor the ECL coverage ratio and Stage 3 (defaulted) exposure as the loan portfolio expands.
- Regulatory Execution: Confirm the integration timeline and capital impact of the Banco Porto Real acquisition and the U.S. national bank charter.
- Tax Impact: Assess the quantitative impact of Brazil's 2027 tax reform on future net margins.
- Share Buyback: Track the remaining $499.6 million authorization under the new repurchase program.