Summary
Brazilian digital lender Nubank posted its first $1-billion-plus quarterly net profit: $1.06 billion for Q2 2026, up 49% YoY (FX-neutral), beating the $967.2M estimate. Revenue rose 39% to $5.88 billion, and risk-adjusted net interest margin improved to 12.4% from 9.9%. Shares jumped ~9.5%. The beat was driven by higher revenue and improved risk-adjusted NIM, which the CFO says is sustainable. Nubank serves ~139 million clients across Brazil, Mexico, Colombia and is preparing to enter the US.
Key Points
- Q2 net profit: $1.06B, up 49% YoY (FX-neutral), first time above $1B
- Beat Visible Alpha estimate of $967.2M
- Revenue: $5.88B, up 39% (beat $5.60B)
- Risk-adjusted NIM: 12.4% vs 9.9% a year ago (CFO says sustainable)
- Shares jumped ~9.5% to ~$15.25 in extended trading
- Cost of credit: $1.69B (down from $1.79B last quarter, still 60% higher YoY)
- Benefited from Brazil's Desenrola debt-refinancing program (~5% of cost of credit)
- Credit portfolio: $39.4B, up 37% YoY, 5% QoQ
- Early delinquency: 4.8% (up 0.3pp YoY, down from 5% Q1)
- ~139 million clients across Brazil, Mexico, Colombia; preparing US entry
- CFO Rob Livingston assumed role last month
- JPMorgan: solid beat even vs bullish expectations (~11% NIM)