Financial Data and Key Metrics Changes - Core net income increased by 52% to $111 million, achieving a record pre-tax ROE of 26% [5] - Book value grew by 21% and net interest margin (NIM) remained stable at 3.6% [7] - Total loan production for 2025 reached $2.7 billion, a 47.5% year-over-year increase [11] Business Line Data and Key Metrics Changes - Originations volume increased by 49% to a record $2.7 billion, with 9 new securitizations totaling $2.6 billion [5] - The loan portfolio grew by 28% year-over-year, reaching $6.5 billion [11] - Non-performing loans (NPLs) decreased to 8.5% from 10.7% at the end of 2024 [13] Market Data and Key Metrics Changes - The securitization market is described as robust, with a deep bench of investors supporting the company [21] - The weighted average coupon on new Q4 held for investment originations was just over 10% [10] Company Strategy and Development Direction - The company aims to grow book value and maximize shareholder returns, supported by a strong liquidity position [6] - A transformative partnership was established by selling $129 million of NPLs while retaining servicing rights, which is expected to drive future earnings [6] Management's Comments on Operating Environment and Future Outlook - The management expressed optimism about the healthy real estate markets and stable credit conditions, indicating a positive outlook for 2026 [21] - The company does not foresee significant impacts from potential changes in the broader financial markets, as their clients are less rate-sensitive [27] Other Important Information - The company issued its first rated unsecured debt offering for $500 million, enhancing liquidity and reducing reliance on short-term warehouse lines [6] - Total liquidity at year-end was just under $117 million, with $92 million in cash and cash equivalents [11] Q&A Session Questions and Answers Question: Impact of potential rate cuts on loan demand - Management indicated that while a rate drop could lower costs and make offerings more attractive, it is not expected to be a significant driver of growth as clients are more transaction-sensitive [27][29] Question: Update on competitive dynamics in lending markets - Management noted that competition remains stable with no significant changes, and the disruption in private credit markets may create opportunities for the company [40][41] Question: Deployment of proceeds from the debt raise and liquidity management - The company has fully deployed the $500 million proceeds, paying down warehouse balances and maintaining a minimum cash reserve of $30-$50 million for safety [46] Question: Comparison of spreads and returns in single-family versus small balance commercial segments - Management stated that commercial assets yield wider spreads compared to single-family loans, with a difference of approximately 125 basis points [50]

Financial Data and Key Metrics Changes - In Q4 2025, revenues reached $4.9 billion, up 45% year-over-year, with gross profit nearly $2 billion, reflecting a 38% increase year-over-year [8][9] - Net income increased by 50% year-over-year to $895 million, achieving a record return on equity (ROE) of 33% [9][38] - The efficiency ratio improved to 19.9%, falling below 20% for the first time in company history, indicating better operating leverage [35] Business Line Data and Key Metrics Changes - The total portfolio reached $32.7 billion, up 40% year-over-year, driven by credit cards and unsecured lending [23] - Credit card balances increased by 12.2% quarter-over-quarter, marking the strongest quarterly growth since Q4 2023 [23] - Unsecured lending surpassed $8 billion, with record high originations of $4 billion in Q4 2025 [24] Market Data and Key Metrics Changes - In Brazil, Nubank became the largest private financial institution by customer count, reaching 113 million customers with an activity rate of 86% [13] - In Mexico, customer count reached 14 million, with significant progress in the banking license process [13] - In Colombia, customer count surpassed 4 million, with a notable increase in approval rates for the subscription-based credit card [14] Company Strategy and Development Direction - The company aims to transition from a Latin American leader to a global digital banking platform, focusing on winning in core markets and strengthening foundations for international expansion [16][18] - Key priorities include deepening leadership in Brazil, expanding share of wallets, and enhancing the affluent segment through products like Ultravioleta [17] - AI is viewed as a critical enabler for revenue growth and operational efficiency, with plans to expand its application across various products [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the scalability of the operating model, emphasizing strong capital buffers and a disciplined approach to growth [41][42] - The company anticipates an investment year in 2026, focusing on operational foundations for global expansion and AI adoption [36] - Management noted that while there may be upward pressure on the efficiency ratio in the short term due to investments, the long-term outlook remains positive [37] Other Important Information - The company introduced a new managerial reporting framework to enhance visibility into performance metrics and value creation [4][20] - A one-off expense of approximately $25 million related to a sector-wide deposit insurance fund was recorded, which is not indicative of the company's financial health [28] Q&A Session Summary Question: AI Disruption Risk - Management acknowledged that AI presents both challenges and opportunities, emphasizing that Nubank is well-positioned to leverage AI for revenue and cost efficiencies [44][52] Question: Loan Growth Impact from Clip Increases - Management indicated that unused credit limits increased significantly, contributing to credit card growth, and noted that benefits from credit limit increases are expected to unfold over time [54][56] Question: Efficiency Ratio Pressures - Management discussed potential upward pressure on the efficiency ratio due to investments in returning to office policies, AI, and global expansion efforts [66][68] Question: Tax Rate Clarification - The lower effective tax rate was attributed to a non-recurring increase in deferred tax assets and ongoing benefits from technology investment tax breaks [74][78] Question: Provision Expenses and NPLs - Management clarified that the increase in credit loss allowances was driven by growth rather than asset quality deterioration, with stable NPL metrics across regions [82][86] Question: Secure Loans and Client Mix - Management expressed optimism about public payroll loans and the potential for private payroll loans, while also highlighting ongoing efforts to improve offerings for affluent customers [95][100]

Financial Data and Key Metrics Changes - The company originated $640 million in new loans, a 69% increase year-over-year, driving a 27% increase in net revenue and a 17% increase in core pretax earnings [4][12] - Core earnings per share increased to $0.55 from $0.51 a year ago, marking the second-best quarterly earnings in company history [7] - The total loan portfolio reached just under $5.5 billion, a 7.8% increase from year-end 2024 and a 27.3% increase year-over-year [13][14] Business Line Data and Key Metrics Changes - The weighted average coupon on new held-for-investment originations was strong at 10.5%, with a five-quarter average trend of 10.8% [12] - The weighted average loan-to-value ratio for the quarter was just under 63%, indicating tight credit levels [13] - Non-performing loans remained stable at 10.8%, consistent with previous quarters [15][16] Market Data and Key Metrics Changes - The company reported strong demand across all property types, with a recent shift towards commercial loans [4] - The real estate markets are functioning well, with healthy investor demand and participation in offerings despite market volatility [5][21] Company Strategy and Development Direction - The company aims to grow its portfolio to $10 billion over the next five years, focusing on technology to scale the business without significantly increasing headcount [47][49] - The company has been active in capital markets, completing four successful debt transactions and issuing three new securitizations [5][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future, citing strong production and healthy demand in real estate markets [21] - The company does not anticipate material impacts from external factors such as tariff discussions [21] Other Important Information - The company has a total liquidity of $75.6 million, comprised of cash and available liquidity on unfinanced collateral [19] - The CECL loan loss reserve at the end of the quarter was $5 million, slightly above the expected normal range due to macroeconomic forecasts [17][18] Q&A Session Summary Question: Will the NIM remain stable in Q2? - Management indicated that the NIM is expected to be around 3.35% to 3.5%, which is considered normal [23] Question: What is the outlook for new origination yields? - Management expects yields to remain stable, with potential for a decrease later in the year if the Federal Reserve continues to cut rates [25][26] Question: Is the increase in commercial demand due to borrowers being shut out of other channels? - Management clarified that the increase is primarily due to the establishment of a small commercial division rather than a demand issue [30] Question: What will the raised capital be used for? - The raised capital will be used to continue making more loans, with a focus on growing the portfolio [34] Question: What is the current total headcount and office locations? - The company has a total headcount of 323 and operates from five office locations [43][45] Question: What is the long-term vision for the company? - The company aims to grow its portfolio to $10 billion in five years while leveraging technology to enhance productivity [47][49]