NU Q2 Earnings Call Focuses on Margins, AI and Mexico

NU Frames 12.4% Risk-Adjusted NIM as Sustainable

NU reported EPS of $0.22 versus the Zacks Consensus Estimate of $0.20, while revenue of $5.51 billion topped the $5.45 billion consensus.

CFO Rob Livingston said risk-adjusted net interest margin expanded to a record 12.4% from 9.5% in the prior quarter. He told a BofA Securities analyst that Desenrola explained about one-third of the upside versus prior expectations, with the rest from solid credit performance and higher balances earning yield.

In Q&A, Livingston told a Goldman Sachs analyst that margins should remain in the same region for the foreseeable future. He later cautioned a Morgan Stanley analyst that 12.4% should not be treated as a floor.

Nubank Defends Credit Quality Amid Mix Shifts

Livingston said 15- to 90-day delinquencies improved 16 basis points (bps) to 4.8%, while 90-plus delinquencies rose 35 bps to 6.9% on seasonal migration.

Livingston attributed the early-delinquency improvement mainly to seasonality, partly offset by deliberate expansion into higher-risk, higher-return cohorts. He said the company saw no broad-based weakening in consumer credit.

A BofA Securities analyst pressed on the longer-term rise in 90-plus delinquencies. Livingston clarified that mix shifts in where Nubank lends are driving the broader upward trend, while seasonal effects remain present.

NU Expands NuFormer Across Core Decisions

Vélez said NuFormer now supports credit cards in Brazil and Mexico and unsecured lending in Brazil, with SME and Colombian card applications in testing.

Vélez said AI agents handle more than 60% of customer-support conversations in Brazil at or above human parity. He also described AI use across deposits, growth and pricing decisions.

On staffing, Vélez told an Autonomous analyst that headcount should not change significantly from roughly 10,400, while AI could make employees two to five times more productive over the next few years.

Nubank Targets More Wallet Share in Brazil

Vélez framed Brazil's next phase around deeper relationships with existing customers rather than customer acquisition alone. ARPAC reached about $17, while older cohorts are already in the mid-$20s.

Vélez highlighted Croma, launched in July for Super Core customers, as a way to bundle enhanced credit, banking and lifestyle benefits around primary banking relationships.

He also pointed to small businesses as an under-monetized opportunity. Nubank serves 6.8 million small businesses, but Vélez said the company is only beginning to monetize that base more fully.

NU Puts Mexico First as U.S. Work Starts

Vélez said Mexico's new banking license adds payroll deposits, higher deposit insurance and broader product capacity. He characterized Mexico as Brazil's playbook moving faster.

In Q&A, Vélez said a base case for Mexico is a business equal to 60% to 70% of Brazil, with further upside tied to digital-payment adoption and utilization.

CFO Rob Livingston said a future U.S. entry would be kept within 100 basis points of the efficiency ratio. He expects U.S.-specific credit models to require 12 to 30 months of data building and testing.

Nubank Keeps Investment Discipline in Focus

Livingston reiterated that the full-year efficiency ratio should average about 20%, even as Nu invests in international expansion and technology.

Vélez emphasized continued investment in product quality, customer experience and growth rather than near-term earnings optimization. Management's stated priorities remained expansion, disciplined underwriting and operating leverage.

NU's Zacks Signals Stay Mixed

NU currently carries a Zacks Rank #4 (Sell). Its Momentum Score of A is the strongest style signal, while its Value Score of D, Growth Score of D and VGM Score of D indicate weaker readings across those categories.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks methodology treats Style Scores as complements to the Zacks Rank, with stronger combinations centered on top-ranked stocks and A or B scores. The Zacks Rank can change as earnings estimates are revised after the just-reported results.

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