Nu Holdings Ltd. Form 6-K Summary
Business Context and Reporting Period
This Form 6-K filing by Nu Holdings Ltd. covers the three-month period ended March 31, 2026 (Q1 2026). The document primarily presents an Independent Limited Assurance Report by KPMG regarding the Company's Managerial Profit and Loss (P&L) Reconciliation Report. The Managerial P&L is a non-GAAP measure derived from IFRS financial statements through operational reclassifications and tax-equivalency adjustments to better reflect economic drivers.
Key Financial Metrics (Q1 2026)
Financial results are presented in millions of U.S. Dollars based on the Managerial P&L framework.
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Total Revenue | 5,315.5 | 3,372.7 |
| Gross Profit | 1,877.7 | 1,327.5 |
| Operating Expenses | (647.6) | (459.2) |
| Earnings Before Tax (EBT) | 1,229.1 | 867.2 |
| Net Income | 871.4 | 557.2 |
Revenue Composition (Q1 2026):
- Credit Income: $3,173.3 million
- Float Income: $1,383.0 million
- Fee Income: $759.1 million
Cost Structure (Q1 2026):
- Total Direct Costs: $(3,437.7) million (including Cost of Credit of $(1,794.2) million)
- Operating Expenses: $(647.6) million
Note: The filing does not provide specific data on total debt, liquidity ratios, or free cash flow. It focuses on income statement metrics.
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased by 57.6% year-over-year, driven by significant growth in Credit Income (up 60.6%) and Float Income (up 57.1%).
- Profitability: Net Income rose 56.4% to $871.4 million. Gross Profit increased 41.4% to $1,877.7 million.
- Cost Expansion: Total Direct Costs increased 68.1%, with Cost of Credit rising 72.2% to $1,794.2 million, reflecting portfolio growth. Operating Expenses increased 41.0% to $647.6 million.
- Tax Impact: Income tax expense increased to $357.6 million from $310.0 million, influenced by tax-equivalency adjustments in the managerial view.
Guidance, Outlook, and Risks
Management Commentary: Management confirms the Managerial P&L information is prepared in accordance with internal criteria to facilitate understanding of economic drivers. The filing emphasizes that IFRS statements remain the sole basis for statutory reporting.
Methodology Note: The Managerial P&L includes tax-equivalency adjustments to normalize statutory tax effects for pre-tax performance comparison. These adjustments are net-income neutral and do not alter reported IFRS net income or cash taxes paid.
Risks and Contingencies: The filing does not explicitly list new material risks or contingencies beyond the standard assurance report language. The primary focus is on the assurance of the reconciliation process rather than forward-looking guidance.
Investor Verification Checklist
- Verify the reconciliation between the reported Managerial P&L Net Income ($871.4M) and the IFRS Net Income to ensure consistency in the bottom line.
- Review the "Cost of Credit" increase of 72.2% to assess credit quality trends and provisioning adequacy relative to the loan portfolio growth.
- Confirm the specific components of the $217.9 million in Revenue-Based Taxes and the nature of the tax-equivalency adjustments applied.
- Examine the breakdown of Operating Expenses, specifically the 56.0% increase in G&A Expenses, to understand scalability of the business model.
- Check subsequent filings for the full IFRS audited financial statements to validate the unaudited interim data presented here.