The Q1 beat on revenue and earnings is overshadowed by accelerating credit losses and a cash-burn quarter. Watch for NPL trends in Q2 and whether the FGC advance signals broader Brazilian banking sector stress. The CET1 ratio decline from 13.0% to 11.3% bears monitoring — if it approaches the 10.5% minimum, capital concerns could emerge.
Price Chart
Executive Summary
Nu Holdings reported Q1 2026 results with total revenue of $4.97B (up 53% YoY) and net income of $871M (up 56% YoY), driven by strong growth in interest income and fee income. However, expected credit losses surged 76% YoY to $1.72B, and operating expenses rose 74% YoY, outpacing revenue growth. The company also disclosed a $194.7M advance to the Brazilian Credit Guarantee Fund (FGC) under an emergency recapitalization plan, a new credit event. The combination of accelerating credit costs, rising expense base, and a cash outflow from operating activities (-$1.21B vs +$1.09B a year ago) tempers the headline growth story.
Key Facts
- Q1 2026 total revenue of $4.97B, up 53% from $3.25B in Q1 2025
- Net income of $871M, up 56% from $557M in Q1 2025
- Basic EPS of $0.1796, up 55% from $0.1157 in Q1 2025
- Expected credit loss of $1.72B, up 76% from $974M in Q1 2025
- Total operating expenses of $909.5M, up 74% from $523.3M in Q1 2025
- Cash flow from operations was -$1.21B vs +$1.09B in Q1 2025
- Credit card receivables grew to $24.3B (up 12% from Dec 2025), with coverage ratio rising to 17.1% from 16.2%
- Loans to customers grew to $12.9B (up 18% from Dec 2025), with coverage ratio rising to 15.0% from 13.7%
- Disclosed $194.7M advance to Brazilian Credit Guarantee Fund (FGC) under emergency recapitalization plan
- Regulatory capital ratios declined: CET1 ratio 11.3% (from 13.0% in Dec 2025), CAR 15.1% (from 16.6%)
Financial Impact
Revenue growth of 53% YoY to $4.97B and net income growth of 56% to $871M are strong, but credit costs rose 76% to $1.72B and operating expenses rose 74% to $909.5M, compressing margin expansion. The $194.7M FGC advance is a new liability.
Risk Factors
- Expected credit losses growing faster than revenue (76% vs 53%) could pressure future earnings if credit quality deteriorates further
- Operating cash flow turned negative (-$1.21B) as credit card and loan origination outpaced deposit growth
- Regulatory capital ratios declined meaningfully (CET1 from 13.0% to 11.3%) — further declines could constrain growth or require capital raises
- FGC emergency recapitalization advance ($194.7M) may indicate broader stress in the Brazilian financial system that could impact Nu's operations
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001292814-26-003053 |
| Document: 0001292814-26-003053-index-headers.html | 0001292814-26-003053 |
| Document: 0001292814-26-003053-index.html | 0001292814-26-003053 |
| Document: 0001292814-26-003053.txt | 0001292814-26-003053 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 2d ago | 6-K | $15.18 | awaiting T+60 | — | $12.02 (−20.82%) |
Sep 10, 2026 6w ago | 6-K | $15.02 | awaiting T+60 | — | $12.02 (−19.97%) |
Sep 2, 2026 7w ago | 6-K | $15.68 | awaiting T+60 | — | $12.02 (−23.34%) |
Aug 18, 2026 9w ago | Insider Cluster | $14.61 | awaiting T+60 | — | $12.02 (−17.73%) |
Aug 13, 2026 10w ago | 6-K | $15.23 | awaiting T+60 | — | $12.02 (−21.08%) |
Aug 13, 2026 10w ago | 6-K | $15.23 | awaiting T+60 | — | $12.02 (−21.08%) |
Aug 13, 2026 10w ago | 6-K | $15.23 | awaiting T+60 | — | $12.02 (−21.08%) |
Jul 20, 2026 13w ago | 6-K | $14.39 $15.58 | ▲ +8.27% | ▲ +4.30% | $12.02 (−16.47%) |
Jul 10, 2026 15w ago | 6-K | $13.76 $15.18 | ▲ +10.32% | ▲ +7.69% | $12.02 (−12.65%) |
Jun 4, 2026 20w ago | 6-K | $12.12 $14.30 | ▲ +17.99% | ▲ +16.11% | $12.02 (−0.83%) |
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