Nu's Q2 net income tops $1B as Brazil customer base crosses half of adults

What happened

Nu reported Q2 2026 results showing continued customer growth, with 118 million customers in Brazil out of 138.9 million globally, and quarterly net income surpassing $1 billion for the first time, up 49% year over year on a currency-neutral basis. This milestone comes after Q1 2026 showed 135.2 million customers and net income of $871 million, indicating accelerating profitability. However, the prior quarter also highlighted rising delinquencies (NPL 15-90 at 5.0%) and a decline in Brazil CET1 to 11.3%, raising concerns about capital consumption and credit quality. The Q2 report, as summarized in the news, does not provide details on these metrics, leaving the key risks unaddressed. The master report had assigned a WAIT rating with an attractive entry at $12 and trim above $17, based on the need for evidence of capital stabilization and NIM recovery.

Implication

Investors should view the >$1B net income as a positive sign of operating leverage and scale, but it comes without visibility on the metrics that drove the prior WAIT stance: Brazil CET1, NPL trends, and risk-adjusted NIM. Until those improve, the stock's upside remains capped near the $15 base case, and a pullback toward $12 would offer a more attractive risk/reward. The Q2 report did not mention customer activity, ARPAC, or cost of credit, so it is premature to upgrade the thesis. The master report's scenarios still apply, with the bull case requiring risk-adjusted NIM above 10% and stable capital. Hold discipline is warranted.

Thesis delta

No material change to the thesis. The net income milestone confirms the base case trajectory but does not address the key variables of capital stabilization and credit quality. The stock remains a WAIT, with the next two quarterly reports after Mexico bank launch still the critical checkpoints.