Nubank Reports 42% Profit Rise; Shares Surge

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Nu Holdings (NU.N), the parent company of Brazilian digital lender Nubank, posted a 42% year-on-year increase in net profit on a foreign exchange-neutral basis, driving its shares up more than 8% in after-hours trading on Thursday.

The company, which serves nearly 123 million clients across Brazil, Colombia, and Mexico, reported $637 million in second-quarter net profit. CFO Guilherme Lago attributed the growth to operational leverage and revenue expansion but noted that the drivers of growth are shifting. “If in the last three to five years a major part of our growth came from adding new customers, in the next three to five years a major part of our revenue growth in Brazil will come from deepening the relationship with these customers,” he said.

Nubank’s annualized return on equity remained at 28%, consistent with the prior year. Analysts from Citi described the quarter as “strong,” highlighting both net profit exceeding expectations and a recovery in net interest margins.

The lender’s total loan book rose 8% from the first quarter to $27.3 billion, with personal loans contributing to growth alongside existing credit card debt. The early default ratio declined to 4.4%, down 0.3 percentage points from the prior quarter, while the over-90-day delinquency ratio edged up to 6.6%, reflecting seasonal trends and short-term delinquencies in Q1.

Lago said the bank plans to continue expanding unsecured lending throughout 2025 and 2026, provided asset quality remains stable. “Until today… everything seems to be super on track,” he added.

Equinix Signs Multiple Advanced Nuclear Deals to Power Data Centers

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Equinix (EQIX.O), a leading data center developer and operator, announced on Thursday that it has entered into multiple advanced nuclear electricity deals, including power purchase agreements for fission energy and preorders for microreactors to support its operations.

The energy-intensive nature of data centers, especially with the growing adoption of technologies like generative artificial intelligence, has driven demand for large-scale electricity, raising concerns over power supply shortages. Equinix’s agreements aim to secure long-term electricity solutions rather than short-term fixes, according to Raouf Abdel, the company’s executive vice president of global operations.

In the U.S., Equinix plans to procure 500 megawatts of power from Oklo’s next-generation nuclear fission reactors and preordered 20 transportable microreactors from Radiant Nuclear. In Europe, the company has deals with ULC-Energy and Stellaria to eventually source power from next-generation nuclear developers. Equinix has also signed advanced fuel cell agreements with Bloom Energy, based in Silicon Valley.

These initiatives align with the U.S. Department of Energy’s pilot program for high-tech test nuclear reactors, which aims to have three projects operational within a year. The deals with advanced nuclear providers are expected to supply more than 1 gigawatt of electricity to Equinix’s data centers globally.

Klarna Q2 Revenue Rises 20% Amid IPO Pause

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Swedish fintech Klarna reported on Thursday that its second-quarter revenue grew 20% year-on-year on a like-for-like basis, while adjusted operating profit increased slightly. Revenue for April–June reached $823 million, with adjusted operating profit at $29 million, up $1 million from the same period last year.

The number of active Klarna customers rose 31% year-on-year to 111 million. The company, known for its short-term financing model that reshaped online shopping, paused its planned U.S. initial public offering (IPO) in April due to recession concerns and uncertainty over tariffs.

Klarna had publicly filed its IPO paperwork in March, marking its second attempt to go public in three years since starting the process in November 2024. The company has not indicated when it will resume its IPO plans, though Bloomberg reported last month that it could occur as soon as September.