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Despite net income of $1.1B in Q2 2026, operating cash flow was negative $2.9B, indicating that rapid loan growth is consuming cash faster than earnings can generate it, a trend that warrants monitoring of deposit franchise sustainability.
Nu Holdings Ltd. (NU) cash flow statement — 8-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Cash from Operations | -4.27B | 3.5B | 2.4B | 1.27B | 755.57M | -2.92B | 974.52M | 276.14M | -5.45M |
| Operating CF Growth % | -456.35% | 45.91% | 89.47% | 67.58% | 125.84% | -400.08% | 252.91% | 5170.46% | - |
| Net Income | 3.61B | 2.87B | 1.97B | 1.03B | -364.63M | -165.33M | -171.49M | -92.53M | -28.58M |
| Depreciation & Amortization | 130.31M | 97.97M | 77.13M | 62.9M | 35.58M | 17.34M | 7.43M | 5.07M | 1.07M |
| Deferred Taxes | -706.7M | -427.26M | -713.43M | -675.68M | -417.61M | -224.65M | -44.02M | -40.34M | -19.13M |
| Other Non-Cash Items | 7.38B | 6.76B | 8.18B | 5.34B | 3.1B | 1.01B | 524.93M | 201.77M | 152.13M |
| Working Capital Changes | -15.04B | -6.07B | -7.39B | -4.71B | -1.85B | -3.72B | 622.11M | 183.65M | -120.27M |
| Cash from Investing | -289.89M | -342.31M | -330.63M | -177M | -127.15M | -154.19M | -16.27M | -4.68M | -6.38M |
| Purchase of Investments | -4.81B | -4.81B | -150M | 0 | -2.5M | -11.21M | 0 | 0 | 0 |
| Sale/Maturity of Investments | -1.13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Investment Activity | -4.81B | -4.81B | -150M | 0 | -2.5M | -11.21M | 0 | 0 | 0 |
| Acquisitions | -1.54M | -1.54M | -5.64M | 0 | -10.35M | -114.49M | -8.28M | 0 | 0 |
| Other Investing | 4.88B | 4.81B | -169.57M | -156.76M | -94.31M | -22.47M | -4.9M | -2.3M | -505K |
| Cash from Financing | 4.49B | 2.29B | 727.74M | 425.21M | 654.04M | 3.34B | 240.1M | 611.19M | 253.41M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -500.39M | 0 | 0 | 0 | 0 | -4.61M | -15K | -3.77M | -695K |
| Stock Issued | 5.16M | 6.22M | 5.55M | 0 | 248M | 2.59B | 0 | 0 | 243.6M |
| Net Stock Activity | -495.24M | 6.22M | 5.55M | 0 | 248M | 2.59B | -15K | -3.77M | 242.9M |
| Debt Issuance (Net) | 2M | 1000K | 1000K | 1000K | 1000K | -1000K | -1000K | 1000K | 1000K |
| Other Financing | 2.89B | 0 | 0 | 9.15M | 520K | -35.29M | 6.78M | 5.83M | 293K |
| Net Change in Cash | -86.92M | 5.82B | 3.26B | 1.75B | 1.47B | 361.89M | 1.1B | 867.36M | 177.25M |
| Exchange Rate Effect | -13.27M | 369.51M | 466.14M | 236.72M | 184.18M | 104.43M | -101.14M | -15.29M | -64.34M |
| Cash at Beginning | 13.92B | 9.19B | 5.92B | 4.17B | 2.71B | 2.34B | 1.25B | 379.21M | 201.96M |
| Cash at End | 13.55B | 15B | 9.19B | 5.92B | 4.17B | 2.71B | 2.34B | 1.25B | 379.21M |
| Interest Paid | 100.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Income Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | -4.22B | 3.49B | 2.22B | 1.09B | 641.27M | -2.95B | 966.53M | 271.46M | -11.83M |
| FCF Growth % | -215.29% | 57.07% | 104.19% | 69.85% | 121.72% | -405.51% | 256.05% | 2395.43% | - |
Quick answers to the most common questions about buying NU stock.
Nu Holdings Ltd. (NU) generated $3.50B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Nu Holdings Ltd. (NU) generated $3.49B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Nu Holdings Ltd. (NU) spent $340.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Regulatory interest rate caps
Strong Earnings Masked by Cash Flow Volatility
Despite net income growing 191% from $378.8M in Q1 2024 to $1.1B in Q2 2026, operating cash flow has been erratic, swinging from positive $2.7B to negative $2.9B, suggesting that rapid loan growth is consuming cash faster than earnings can generate it.
The OCF/NI ratio has been highly volatile, ranging from -2.76 to 5.48 over the past ten quarters, indicating that the cash flow statement is not a reliable indicator of underlying profitability for this high-growth lender. This pattern is typical for banks in a hyper-growth phase, where the origination of new loans (a use of cash) outpaces the collection of interest and principal from the existing book. The company's ability to generate regulatory capital organically appears strong based on net income trends, but the cash flow volatility underscores the need to monitor balance sheet growth and funding sources rather than operating cash flow.
Loan Growth Consuming Operating Cash
The persistent negative operating cash flow in recent quarters, including a $2.9B outflow in Q2 2026, appears directly tied to the expansion of the loan book, as the cash used to fund new originations is not yet being offset by repayments from the growing portfolio.
For a bank like Nu, negative operating cash flow during periods of rapid loan growth is not inherently alarming; it reflects the fundamental business model of deploying capital into interest-earning assets. However, the magnitude and consistency of the outflows, particularly the $1.2B and $2.9B negative OCF in the first two quarters of 2026, warrant monitoring to ensure that deposit inflows and other funding sources remain sufficient to support this pace of balance sheet expansion without straining liquidity.
Provisions Consistently Exceed Reported Losses
The provision for credit losses has consistently exceeded the net income figure, reaching $1.5B in Q2 2026 against net income of $1.1B, a pattern that aligns with IFRS 9 front-loading of expected losses and suggests management is building reserves ahead of potential credit deterioration.
This conservative provisioning approach, where provisions are a significant drag on reported cash flow, is a prudent risk management strategy for an unsecured consumer lender operating in a volatile macroeconomic environment. The trend indicates that the company is prioritizing balance sheet strength over short-term cash flow optics, which should provide a buffer against future credit losses as the loan book seasons. Investors should compare these provision levels to actual charge-off rates to assess whether the reserve build is excessive or appropriately calibrated.
Cash Flow Statement Hides Key Risks
The cash flow statement does not capture the potential impact of a regulatory cap on revolving credit card interest rates, which could compress net interest income and alter the funding dynamics that currently support the company's growth model.
While the cash flow data shows the mechanics of growth, it obscures the significant regulatory risk that could fundamentally change the economics of Nu's most profitable product. A cap on revolving rates would not only reduce interest income but could also affect the company's ability to attract deposits at current rates, potentially leading to a simultaneous revenue and funding shock. Furthermore, the cash flow statement does not disclose the full extent of off-balance-sheet commitments or the potential for AOCI impairments on the investment portfolio, which could become relevant in a rising rate environment.
Deposit Growth Critical to Funding Model
The sustainability of Nu's loan growth is entirely dependent on its ability to continue attracting low-cost customer deposits, as the cash flow statement reveals no significant external debt issuance to fund the expanding asset base.
The minimal long-term debt activity (fluctuating around $1M per quarter) suggests that the company is primarily funding its loan growth through customer deposits and retained earnings. This is a positive indicator of the platform's stickiness and the effectiveness of its deposit-gathering strategy. However, as the company scales and competes more aggressively for deposits, the cost of funding may rise, which would pressure the net interest margin and could be reflected in future cash flow statements as higher interest payments.