Nu Holdings Ltd. (NYSE: NU) reported another quarter of substantial revenue growth, supported by customer expansion, lending activity and increasing scale across its digital banking operations. Third-quarter 2026 results point to continued operating momentum, while the combination of higher credit exposure and rising late-stage delinquencies highlights the importance of maintaining disciplined lending standards as the business expands.

Revenue Growth and Profitability Support Operating Momentum

Nu Holdings generated $5.82 billion in revenue during Q3 2026, representing a 39% year-over-year increase and exceeding the estimated $5.68 billion. Net income reached $1.09 billion, up 31% from the previous year and broadly in line with expectations. Return on equity stood at 32%, reflecting the company’s ability to generate substantial earnings relative to shareholder capital.

The earnings snapshot also reported managerial revenue of $6.3 billion, an increase of 37%, alongside gross profit of $2.6 billion, up 35%. Net interest income reached $3.9 billion, demonstrating the importance of Nu’s lending and deposit operations to its revenue base. These managerial figures represent a separate reporting presentation from the headline revenue figure and should not be treated as interchangeable.

Risk-adjusted net interest margin reached 12.1%, improving by 1.3 percentage points year over year. Meanwhile, the efficiency ratio improved to 19.3%, a reduction of 1.0 percentage point from the prior-year period. The combination of expanding revenue and operating efficiency suggests that Nu continues to benefit from the scale of its technology-driven banking model.

Customer Expansion Strengthens Nu’s International Position

Nu’s global customer base reached 142.6 million, adding approximately 3.7 million customers during the quarter. The expansion reinforces the company’s position as one of Latin America’s largest digital financial services platforms, while its newer markets provide additional opportunities to diversify revenue and deepen customer relationships.

Mexico represents a particularly important part of this strategy. Nu’s banking operation in the country added approximately 870,000 customers during its first quarter as a bank, according to the supplied earnings highlights. The development provides a larger platform for expanding deposits, payments and lending services as the company builds on its existing customer relationships.

In the United States, Nu reported reaching customers in all 50 states, while Nu Global had customers in 37 countries. Its Croma offering was also approaching one million customers. These initiatives broaden the company’s potential addressable market, although their long-term contribution will depend on customer engagement, regulatory requirements, operating costs and the ability to establish sustainable profitability in each market.

Credit Quality and Efficiency Remain Central to the Outlook

Despite the strong growth figures, credit quality requires close attention. Nu’s credit portfolio expanded to $41.6 billion, an increase of 33% year over year, while deposits reached $47.5 billion, up 19%. The larger lending portfolio creates additional opportunities for interest income, but it also increases the importance of underwriting discipline and effective management of potential credit losses.

The non-performing loan ratio for balances overdue by 15–90 days reached 4.9%, increasing by 0.1 percentage point quarter over quarter. The ratio for loans more than 90 days overdue rose to 7.3%, up 0.4 percentage point. These increases suggest that repayment pressure is becoming more visible in parts of the portfolio. The reported cost of credit reached $1.8 billion, making credit performance an important factor in assessing the sustainability of earnings growth.

Management nevertheless improved its full-year operating outlook, expecting the 2026 efficiency ratio to range between 19% and 19.5%, compared with its previous expectation of approximately 20%. A lower efficiency ratio indicates that operating expenses are consuming a smaller proportion of revenue, supporting the company’s ability to scale without a corresponding increase in its cost base.

Looking ahead, Nu’s performance will depend on whether customer growth in Mexico, the United States and other markets translates into stronger customer activity and sustainable earnings. Investors will also be monitoring the progression of late-stage delinquencies, credit costs and risk-adjusted margins as the loan portfolio expands. The central question is whether Nu can preserve its operating efficiency and profitability while managing the risks associated with a larger and increasingly international banking franchise.