Record Revenues and Scaling AI: Rebuilding the Digital Banking Model (NU Q1 2026 Earnings Call)

By Dr. Graph | Updated on May 26, 2026 | earnings

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Nubank continues to demonstrate the massive earnings power of its digital banking platform by combining rapid customer acquisition with structural cost advantages.

Digital Platform Reaches Milestone Five Billion Revenue Amid Surging Activity

Nubank achieved a record quarterly revenue of $5 billion for the first time in its history. This top-line momentum drove operating leverage, generating a historical high Q1 net income of $871 million. The scalable digital model pushed the reported efficiency ratio to a record low of 17.6% on a consolidated basis.

Long Term Efficiency Guided To Approximately Twenty Percent As Global Investments Rise

For the full year, management expects its consolidated efficiency ratio to land at approximately 20% to absorb planned international expansion and structural investments. The company's U.S. entry is treated deliberately as a bounded call option with limited risk. Co-founder David Velez-Osorio emphasized this approach: "The asymmetry between a bounded downside and an uncapped upside is at the center of our investment thesis in the U.S. and potentially, the world."

Proprietary Foundation Models Speed Credit Card and Unsecured Loan Decisioning

Footprint expansion across Latin America was fueled by strong growth in core markets like Brazil, where the customer base crossed 115 million. This customer scale supported credit portfolio acceleration, with the unsecured lending segment growing 53% year-over-year. To optimize underwriting, Nubank deployed its proprietary nuFormer foundation models to price and approve personal loan requests in under 1 second.

Underappreciated Small Enterprise Opportunities Yield Millions of Customers at Zero Cost

During the Q&A session, Jorge Kuri from Morgan Stanley asked about the new small and medium enterprise product launch in Brazil. In response, co-founder David Velez-Osorio revealed that the company has built a base of upwards of 5 million SME customers at zero customer acquisition cost. The firm successfully built this segment by cross-selling to its existing consumer base.

Frequently Asked Questions

What is Nubank's asset quality and late-stage delinquency status?

Late-stage delinquencies continued to improve as the 90-plus NPL ratio fell to 6.5%. Total credit coverage stands at 16.2% of the portfolio, which represents approximately 2.5 times the entire 90-plus delinquency balance.

What was the deposit volume and cost of deposits in the quarter?

Total deposits reached $42.4 billion, reflecting a year-over-year increase of 22% on an FX-neutral basis. The consolidated cost of deposits closed at 88% of the interbank rate, reflecting optimization of funding costs in newer markets.

How is management protecting shareholders against expansion risk?

The maximum operating expense headwind from U.S. operations is limited to less than 100 basis points on the consolidated efficiency ratio. This ensures the downside remains highly bounded while the long-term upside remains uncapped.