Pomegra
Nu Holdings reported $1.06 billion in net income for Q2 2026, its first billion-dollar quarter, sending NU shares up 9.3% in after-hours trading to $15.22.
- Nu Holdings posted Q2 2026 net income of $1.06 billion, up 49% year-over-year - the company's first billion-dollar profit quarter in its history.
- Gross revenue rose 39% year-over-year to nearly $5.9 billion as the nubank app reached 139 million customers across Latin America.
- 90-day delinquencies climbed 35 basis points to 6.9%, though allowance coverage of non-performing loans stood at 244%.
Lead
Nu Holdings (NU) crossed the billion-dollar profit threshold for the first time on August 13, 2026, reporting Q2 net income of $1.06 billion - up 49% from a year earlier and 17% sequentially - as the nubank app extended its reach to 139 million customers across Brazil, Mexico, and Colombia. The milestone arrived ahead of investor expectations and drove shares up 9.3% in extended trading, adding to a 2.73% gain in the regular session that brought the stock to $13.93.Record Margins Behind the Revenue Milestone
Gross revenue reached nearly $5.9 billion in Q2, up 39% year-over-year. Net revenue exceeded $4 billion for the first time. Gross profit grew 43% year-over-year and 25% quarter-over-quarter to $2.4 billion. Return on equity closed at a record 33%, and the efficiency ratio compressed to 19.5% from 50% four years earlier - a structural shift reflecting the leverage built into a digital-only cost model at scale.
The risk-adjusted net interest margin expanded to 12.4% from 9.5% a year earlier, as cross-sell deepened across credit cards, personal loans, business accounts, and investment products. Adjusted earnings per share reached $0.24, beating the $0.20 consensus by 20%.
Why Did NU Stock Jump 9.3%?
The after-hours surge reflected a landmark earnings threshold arriving ahead of schedule, combined with a significant estimate beat. Investors tracking the brazil fintech sector had followed the billion-dollar profit level as a key inflection point that management had pointed toward without setting a firm timeline. The convergence of that milestone with a 20% EPS beat - alongside a 22% year-over-year improvement in monthly revenue per active user - drove both the magnitude and speed of the market's reaction.
What Does the Rising Delinquency Rate Signal?
The 35-basis-point increase in 90-plus-day delinquencies to 6.9% reflects the seasonal migration of earlier-stage delinquencies rather than a deterioration in origination quality. The 15-to-90-day cohort improved 16 basis points sequentially to 4.8%, indicating the forward pipeline of stressed borrowers eased during the quarter. The allowance for expected credit losses rose to $6.6 billion from $6.1 billion, driven by portfolio growth and deliberate risk expansion, not worsening conditions. Coverage of 90-plus-day non-performing loans held at 244%, and the company reported no evidence of broad-based consumer credit weakening in its portfolio.
The credit portfolio grew 37% year-over-year to $39.4 billion.
Customer Growth and Geographic Reach
Nu added approximately 4 million net new customers in Q2. Brazil reached nearly 118 million users. Mexico climbed to 15.8 million customers and crossed 16 million by July 2026, while Colombia surpassed 5 million - establishing a third country with meaningful scale. The customer base has grown from 65 million in Q2 2022 to 139 million in four years, while efficiency metrics moved in the opposite direction.
Outlook
Nu Holdings enters the second half of 2026 with a record equity return profile and deepening monetization across its core Brazilian market. The 90-day delinquency rate warrants monitoring, particularly if the seasonal migration pattern does not reverse in Q3. The next critical test for NU is sustaining profit above $1 billion while absorbing the earlier-stage economics of Mexico and Colombia, where unit margins have not yet reached Brazilian levels. The structural cost advantage of a digital-only model continues to widen the distance between Nu and traditional regional lenders.
