dLocal Reports Second Quarter 2026 Financial Results
Rhea-AI Summary
dLocal (NASDAQ:DLO) reported strong second quarter 2026 results, with Total Payment Volume of US$17.7 billion, up 92% year-over-year, and revenue of US$399.7 million, up 56%. Gross profit reached a record US$127.2 million (+29%), while operating profit was US$64.2 million (+15%). Net income rose 28% to US$54.8 million, or US$0.18 diluted EPS.
Adjusted free cash flow was US$68.5 million (+41% YoY) with 125% conversion versus net income. dLocal raised 2026 TPV guidance to 60–70% growth and gross profit growth to 25–30%, maintaining operating profit growth guidance at 27.5–32.5%. The company held US$794.9 million in cash and equivalents, repurchased 6.9 million Class A shares for US$86.1 million under its US$300 million program, and entered a new US$150 million senior unsecured credit facility maturing in 2029.
Positive
- TPV growth +92% YoY to US$17.7 billion in Q2 2026
- Revenue +56% YoY to US$399.7 million in Q2 2026
- Net income +28% YoY to US$54.8 million; diluted EPS US$0.18
- Adjusted free cash flow +41% YoY to US$68.5 million; 125% of net income
- Guidance raised for 2026 TPV to 60–70% growth and gross profit to 25–30%
- Share repurchases of 6.9 million Class A shares for US$86.1 million in Q2
- Total cash and equivalents US$794.9 million as of June 30, 2026
Negative
- Gross profit margin declined to 32% from 39% a year earlier (−7 p.p.)
- Gross profit over TPV fell to 0.72% from 1.07% in Q2 2025
- Net income margin decreased to 14% from 17% in Q2 2025 (−3 p.p.)
- Operating expenses +46% YoY in Q2 2026 to US$63.0 million
- Corporate cash decreased US$82.7 million QoQ due to dividends and buybacks
- New debt US$150 million senior unsecured credit facility maturing in 2029
News Explained
The reported second-quarter results show strong growth, but scaling came with lower margins: gross profit margin fell to
Market Reaction – DLO
Following this news, DLO has declined 2.44%, reflecting a moderate negative market reaction. Argus tracked a trough of -4.1% from its starting point during tracking. Our momentum scanner has triggered 16 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $14.40. Trading volume is elevated at 2.3x the average, suggesting increased selling activity.
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Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 14 | 1Q26 earnings report | Negative | -13.0% | Net income and adjusted free cash flow declined year-over-year despite strong TPV and gross profit growth. |
| Apr 16 | Earnings call scheduling | Neutral | +1.3% | Company updated the call time while retaining the previously announced first-quarter earnings date. |
| Mar 18 | 4Q25 earnings report | Positive | +9.4% | Strong quarterly growth accompanied a dividend declaration and a $300 million share repurchase authorization. |
| Nov 12 | 3Q25 earnings report | Positive | -6.8% | Record growth and cash generation were accompanied by moderated gross profit and adjusted EBITDA margins. |
| Aug 13 | 2Q25 earnings report | Positive | +31.3% | Record TPV, revenue, gross profit, cash flow, and raised full-year guidance drove the reported results. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-specific history was mostly aligned with the announcement direction, although the prior quarter’s strong growth report was followed by a -13.03% reaction.
Key Terms
tpv financial
ifrs financial
iasb financial
term sofr financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
TPV reached nearly US
Record gross profit: US
Operating profit: US
Net income at US
Adj. Free Cash Flow US
Guidance update: TPV guidance raised to 60–
MONTEVIDEO, Uruguay, Aug. 13, 2026 (GLOBE NEWSWIRE) -- DLocal Limited (“dLocal”, “we”, “us”, and “our”) (NASDAQ:DLO), the leading cross-border financial infrastructure platform connecting global merchants to emerging markets, today announced its financial results for the second quarter ended June 30, 2026.
dLocal’s management team will host a conference call and audio webcast on August 13, 2026 at 5:00 p.m. Eastern Time. Please click here to pre-register for the conference call and obtain your dial in number and passcode.
The live conference call can be accessed via audio webcast at the investor relations section of dLocal’s website, at https://investor.dlocal.com/. An archive of the webcast will be available for a year following the conclusion of the conference call. The investor presentation will also be filed on EDGAR at www.sec.gov.
“TPV growth has remained above
Second quarter 2026 financial highlights
dLocal reports in US dollars and in accordance with IFRS as issued by the IASB
- Total Payment Volume (“TPV”) reached US
$17.7 billion in the second quarter of 2026, up92% year-over-year compared to US$9.2 billion in the second quarter of 2025 and up26% compared to US$14.1 billion in the first quarter of 2026. In constant currency, TPV growth for the period would have been80% year-over-year. - Revenues amounted to US
$399.7 million , up56% year-over-year compared to US$256.5 million in the second quarter of 2025 and up19% compared to US$335.9 million in the first quarter of 2026. In constant currency, revenue growth for the period would have been50% year-over-year. The quarter-over-quarter comparison was driven by volume growth. - Gross profit was US
$127.2 million in the second quarter of 2026, a new record, up29% compared to US$98.9 million in the second quarter of 2025 and up7% compared to US$118.7 million in the first quarter of 2026. In constant currency, gross profit growth for the period would have been23% year-over-year. The quarterly comparison was driven by (i) Brazil, supported by the ramp-up of ride-hailing and travel merchants alongside sustained e-commerce growth; (ii) Argentina, driven by broad-based growth across e-commerce, ride-hailing and on-demand delivery, as well as lower advancement costs; partially offset by (iii) Mexico, with large Tier 0 merchants hitting higher volume pricing tier along with cost pressure. Underlying volume and revenue growth (64% YoY) remain solid; and (iv) Africa and Asia, with lower contribution from higher FX spread markets (Mozambique and Vietnam) and one-off cost increase in Nigeria. - As a result, gross profit margin was
32% in this quarter, compared to39% in the second quarter of 2025 and35% in the first quarter of 2026. - Gross profit over TPV was at
0.72% , decreasing from1.07% in the second quarter of 2025 and from0.84% in the first quarter of 2026, reflecting the higher local-to-local share, the ramp-up of large merchants, and the natural margin dynamics of scaling volume with established merchants and into new payment methods, products, and countries. - Operating expenses reached US
$63.0 million for the second quarter of 2026, up46% year-over-year and down4% quarter-over-quarter. The year- over-year increase reflects the annualization of investments made in the second half of 2025, higher average salaries driven by the annual merit cycle and a limited number of senior strategic hires, and higher marketing spend concentrated in the first half around the World Cup campaign and large merchant events. The sequential decrease partly reflects the absence of the US$4.4 million non-recurring prior-year tax item recorded in OPEX in the first quarter of 2026. - As a result, Operating profit was US
$64.2 million , up15% year-over-year and22% quarter-over- quarter. The Operating Profit to Gross Profit ratio was50% , up 6 p.p. quarter-over-quarter compared to44% as reported in the first quarter of 2026 and down 6 p.p. year-over-year compared to56% as reported in the second quarter of 2025. - Net financial result was a US
$2.3 million gain, compared to a net finance loss of US$3.8 million in the second quarter of 2025 and a net finance gain of US$5.2 million in the first quarter of 2026. - Our effective income tax rate for the period was approximately
16% , in line with the second quarter of 2025 and lower when compared to26% for the first quarter of 2026, which was elevated by the non-recurring prior-period adjustment, as explained in the previous quarter. - Net income for the second quarter of 2026 was US
$54.8 million , or US$0.18 per diluted share, up28% compared to a profit of US$42.8 million , or US$0.14 per diluted share, for the second quarter of 2025, and up31% compared to a profit of US$41.9 million , or US$0.14 per diluted share, for the first quarter of 2026. The quarterly comparison is explained by higher operational profit and lower tax expenses. - Adjusted free cash flow for the second quarter of 2026 amounted to US
$68.5 million , up41% year-over-year compared to US$48.4 million in the second quarter of 2025, and up substantially compared to US$14.7 million in the first quarter of 2026. The improvement reflects the normalization of the temporary working-capital effects (including timing in tax-credit netting and receivables from advancement operations) that had weighed on the first quarter of 2026. - As of June 30, 2026, dLocal had US
$794.9 million in total cash and cash equivalents, which includes US$369.1 million of Corporate cash and cash equivalents. The Corporate cash and cash equivalents increased by US$115.3 million from US$253.8 million as of June 30, 2025. When compared to the US$451.8 million Corporate cash and cash equivalents position as of March 31, 2026, it decreased by US$82.7 million quarter-over-quarter, explained by the dividends payment and execution of the share repurchase program. Under the$300 million program authorized in March 2026, the Company has repurchased approximately 6.9 million Class A shares for US$86.1 million through the end of the second quarter. - Before the date of this release, and following the Board of Directors’ approval of the Company’s financial statements for the second quarter of 2026, ended June 30, 2026, on August 12, 2026 we entered into a credit agreement with certain of our subsidiaries as initial guarantors and the lenders party thereto, providing for a U.S.
$150.0 million senior unsecured credit facility. The facility matures on August 14, 2029, and is repayable in 11 equal, quarterly installments of US$13.6 million each, plus interest, commencing six months following the borrowing date, as specified in the Credit Agreement. Interest accrues at Term SOFR (Secured Overnight Financing Rate) plus2.00% per annum. The proceeds of the facility are intended to be used for general corporate purposes.
The following table summarizes our key performance metrics:
| Three months ended on June 30 | Six months ended on June 30 | |||||
| 2026 | 2025 | % change | 2026 | 2025 | % change | |
| Key Performance metrics | (In millions of US$ except for %) | |||||
| TPV | 17,694 | 9,212 | 92% | 31,749 | 17,319 | 83% |
| Revenue | 399.7 | 256.5 | 56% | 735.5 | 473.2 | 55% |
| Gross Profit | 127.2 | 98.9 | 29% | 245.8 | 183.8 | 34% |
| Gross Profit margin | 32% | 39% | -7p.p | 33% | 39% | -5p.p |
| Operating Profit | 64.2 | 55.8 | 15% | 116.9 | 101.6 | 15% |
| Operating Profit/Gross Profit | 50% | 56% | -6p.p | 48% | 55% | -8p.p |
| Net Income | 54.8 | 42.8 | 28% | 96.7 | 89.5 | 8% |
| Net Income margin | 14% | 17% | -3p.p | 13% | 19% | -6p.p |
Adjusted Free Cash Flow reconciliation
We calculate “Adjusted Free Cash Flow” as net cash (used in) / generated from cash flows from operating activities, less (i) changes in working capital (merchant), and (ii) capital expenditures. The working capital (merchant) is defined as (i) changes in Trade receivables net (disclosed in Note 17 to our consolidated financial statements for the period ended June 30, 2026), plus (ii) changes in Trade payables (disclosed in Note 20 to our consolidated financial statements for the period ended June 30, 2026), plus (iii) changes in Other tax liabilities (disclosed in note 21 to our consolidated financial statements for the period ended June 30, 2026). Capital expenditures consist of acquisitions of property, plant and equipment and additions of intangible assets.
Management uses Adjusted Free Cash Flow as a measure for evaluating the Company's cash generation and the cash available for distribution to our shareholders as dividends pursuant to our dividend policy. Adjusted Free Cash Flow is not a financial measure recognized under IFRS and does not purport to be an alternative to cash generated from operating activities or as a measure of liquidity. Our presentation of Adjusted Free Cash Flow has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under IFRS. See below for a reconciliation of our Adjusted Free Cash Flow to the nearest IFRS measure.
The table below presents a reconciliation of dLocal’s Adjusted Free Cash Flow reconciliation:
| $ in thousands (except percentages) | Three months ended on June 30 | Six months ended on June 30 | ||
| 2026 | 2025 | 2026 | 2025 | |
| Net cash (used in ) / generated from operating activities | 140,522 | 124,459 | 233,304 | 219,872 |
| Changes in working capital (merchant)¹ | (62,064) | (67,578) | (130,455) | (115,748) |
| Capital expenditures² | (9,910) | (8,434) | (19,649) | (15,946) |
| Adjusted Free Cash Flow | 68,548 | 48,447 | 83,200 | 88,176 |
Note: 1 Changes in working capital (merchant) consists of (i) changes in the period in the balance of trade receivables net, plus (ii) changes in the period in the balance of trade payables, plus (iii) changes in the period in the balance of other tax liabilities. 2 Capital expenditures consist of acquisitions of property, plant and equipment and Additions of Intangible Assets.
dLocal Limited
Certain financial information
Consolidated Statements of Comprehensive Income for the three-month and six-month periods ended June 30, 2026 and 2025
(All amounts in thousands of U.S. Dollars except share data or as otherwise indicated)
| Three months ended on June 30 | Six months ended on June 30 | |||
| 2026 | 2025 | 2026 | 2025 | |
| Continuing operations | ||||
| Revenues | 399,664 | 256,458 | 735,526 | 473,217 |
| Cost of services | (272,514) | (157,573) | (489,692) | (289,453) |
| Gross profit | 127,150 | 98,885 | 245,834 | 183,764 |
| Technology and development expenses | (13,298) | (7,380) | (25,422) | (14,147) |
| Sales and marketing expenses | (9,892) | (4,842) | (19,811) | (11,977) |
| General and administrative expenses | (36,460) | (27,003) | (79,117) | (51,327) |
| Impairment (loss)/gain on financial assets | (1,430) | (1,415) | (2,210) | (1,801) |
| Other operating loss | (1,909) | (2,480) | (2,341) | (2,902) |
| Operating profit | 64,161 | 55,765 | 116,933 | 101,610 |
| Finance income | 5,067 | 11,110 | 15,824 | 23,338 |
| Finance costs | (2,757) | (14,895) | (8,355) | (20,154) |
| Inflation adjustment | (1,483) | (984) | (2,869) | (1,869) |
| Other results | 827 | (4,769) | 4,600 | 1,315 |
| Profit before income tax | 64,988 | 50,996 | 121,533 | 102,925 |
| Income tax expense | (10,213) | (8,188) | (24,822) | (13,450) |
| Profit for the period | 54,775 | 42,808 | 96,711 | 89,475 |
| Profit attributable to: | ||||
| Owners of the Group | 54,638 | 42,810 | 96,612 | 89,440 |
| Non-controlling interest | 137 | (2) | 99 | 35 |
| Profit for the period | 54,775 | 42,808 | 96,711 | 89,475 |
| Earnings per share (in USD) | ||||
| Basic Earnings per share | 0.19 | 0.15 | 0.33 | 0.31 |
| Diluted Earnings per share | 0.18 | 0.14 | 0.33 | 0.30 |
| Other comprehensive Income | ||||
| Items that are or may be reclassified to profit or loss: | - | |||
| Exchange difference on translation on foreign operations | 1,805 | 4,303 | 4,852 | 7,829 |
| Other comprehensive income for the period, net of tax | 1,805 | 4,303 | 4,852 | 7,829 |
| Total comprehensive income for the period | 56,580 | 47,111 | 101,563 | 97,304 |
| Total comprehensive income for the period is attributable to: | ||||
| Owners of the Group | 56,520 | 47,010 | 101,462 | 97,184 |
| Non-controlling interest | 60 | 101 | 101 | 120 |
| Total comprehensive income for the period | 56,580 | 47,111 | 101,563 | 97,304 |
dLocal Limited
Certain financial information
Consolidated Statements of Financial Position as of June 30, 2026 and 2025
(All amounts in thousands of U.S. dollars)
| 2026 | 2025 | |
| on June 30, 2026 | on June 30, 2025 | |
| ASSETS | ||
| Current Assets | ||
| Cash and cash equivalents | 794,943 | 476,939 |
| Financial assets at fair value through profit or loss | 79,214 | 125,526 |
| Trade and other receivables | 1,149,456 | 487,320 |
| Derivative financial instruments | 169 | 691 |
| Other assets | 25,055 | 29,888 |
| Total Current Assets | 2,048,837 | 1,120,364 |
| Non-Current Assets | ||
| Trade and other receivables | 24,737 | 14,698 |
| Deferred tax assets | 4,173 | 5,961 |
| Property, plant and equipment | 3,864 | 4,208 |
| Right-of-use assets | 2,752 | 4,124 |
| Intangible assets | 94,850 | 68,165 |
| Goodwill | 6,550 | - |
| Other assets | 5,782 | 3,792 |
| Total Non-Current Assets | 142,708 | 100,948 |
| TOTAL ASSETS | 2,191,545 | 1,221,312 |
| LIABILITIES | ||
| Current Liabilities | ||
| Trade and other payables | 1,554,943 | 691,081 |
| Lease liabilities | 1,113 | 1,201 |
| Tax liabilities | 19,351 | 14,330 |
| Derivative financial instruments | 1,928 | 2,555 |
| Financial liabilities | 64,632 | 56,806 |
| Provisions | 759 | 544 |
| Total Current Liabilities | 1,642,726 | 766,517 |
| Non-Current Liabilities | ||
| Deferred tax liabilities | 6,676 | 3,918 |
| Lease liabilities | 1,626 | 2,696 |
| Total Non-Current Liabilities | 8,302 | 6,615 |
| TOTAL LIABILITIES | 1,651,028 | 773,131 |
| EQUITY | ||
| Share Capital | 576 | 587 |
| Share Premium | - | 192,820 |
| Treasury Shares | - | (200,980) |
| Capital Reserve | 55,453 | 39,241 |
| Other Reserves | (11,035) | (13,190) |
| Retained earnings | 495,254 | 429,482 |
| Total Equity Attributable to owners of the Group | 540,248 | 447,960 |
| Non-controlling interest | 269 | 220 |
| TOTAL EQUITY | 540,517 | 448,180 |
| TOTAL EQUITY AND LIABILITIES | 2,191,545 | 1,221,312 |
dLocal Limited
Certain interim financial information.
Consolidated Statements of Cash flows for the the three-month and six-month periods ended June 30, 2026 and 2025
(All amounts in thousands of U.S. dollars)
| Three months ended on June 30 | Six months ended on June 30 | |||
| 2026 | 2025 | 2026 | 2025 | |
| Cash flows from operating activities | ||||
| Profit before income tax | 64,988 | 50,996 | 121,533 | 102,925 |
| Adjustments: | ||||
| Interest Income from financial instruments | (5,067) | (5,976) | (15,657) | (11,083) |
| Interest charges for lease liabilities | 53 | 41 | 110 | 82 |
| Other interests charges | (752) | 1,568 | 6,760 | 2,452 |
| Finance expense related to derivative financial instruments | 2,932 | 3,177 | 3,632 | 3,591 |
| Net exchange differences | 469 | 9,765 | (2,147) | 13,908 |
| Fair value loss/(gain) on financial assets at FVPL | - | (4,791) | (167) | (12,134) |
| Amortization of Intangible assets | 7,328 | 5,055 | 14,390 | 9,639 |
| Depreciation and disposals of PP&E and right-of-use | 608 | 485 | 1,261 | 1,188 |
| Share-based payment expense, net of forfeitures | 6,489 | 4,911 | 12,555 | 10,931 |
| Other operating gain | 1,909 | 2,480 | 2,341 | 2,902 |
| Net Impairment loss/(gain) on financial assets | 1,430 | 1,415 | 2,210 | 1,801 |
| Inflation adjustment and other financial results | 2,187 | 3,180 | 5,050 | 9,265 |
| 82,574 | 72,306 | 151,871 | 135,467 | |
| Changes in working capital | ||||
| Increase in Trade and other receivables | (410,436) | (13,046) | (580,738) | 8,036 |
| Decrease / (Increase) in Other assets | (4,265) | 1,175 | (18,544) | 2,200 |
| Increase / (Decrease) in Trade and Other payables | 495,664 | 76,948 | 700,507 | 93,294 |
| Increase / (Decrease) in Tax Liabilities | (7,261) | (2,928) | 2,316 | (1,963) |
| Increase / (Decrease) in Provisions | 298 | 1 | 326 | 44 |
| Cash (used) / generated from operating activities | 156,575 | 134,457 | 255,738 | 237,078 |
| Income tax paid | (16,052) | (9,998) | (22,434) | (17,206) |
| Net cash (used) / generated from operating activities | 140,522 | 124,459 | 233,304 | 219,872 |
| Cash flows from investing activities | ||||
| Acquisitions of Property, plant and equipment | (241) | (515) | (763) | (1,460) |
| Additions of Intangible assets | (9,669) | (7,919) | (18,886) | (14,486) |
| Acquisition of financial assets | (65,164) | (92,090) | (92,040) | (133,464) |
| Collections of financial assets | 83,153 | 86,554 | 111,123 | 133,970 |
| Interest collected from financial instruments | 5,067 | 5,977 | 15,657 | 11,083 |
| Cash acquired in a business combination | 791 | - | 791 | - |
| Payments for investments in other assets at FVPL | - | (2,500) | - | (12,500) |
| Net cash (used in) / generated investing activities | 13,936 | (10,493) | 15,882 | (16,857) |
| Cash flows from financing activities | ||||
| Repurchase of shares | (75,940) | - | (86,062) | - |
| Share-options exercise paid | 65 | 940 | 257 | 940 |
| Dividends paid | (57,211) | (149,982) | (57,211) | (149,982) |
| Interest payments on lease liability | (53) | (41) | (110) | (82) |
| Principal payments on lease liability | 382 | (478) | (366) | (1,141) |
| Finance expense paid related to derivative financial instruments | 601 | (1,948) | (3,300) | (5,080) |
| Net proceeds from financial liabilities | (47,619) | 6,224 | (22,266) | 12,014 |
| Interest payments on financial liabilities | 5,306 | (3,835) | - | (6,001) |
| Other finance expense paid | 591 | (1,399) | (6,864) | (2,113) |
| Net cash used in by financing activities | (173,878) | (150,520) | (175,922) | (151,445) |
| Net increase in cash flow | (19,419) | (36,554) | 73,264 | 51,570 |
| Cash and cash equivalents at the beginning of the period | 815,605 | 511,506 | 719,897 | 425,172 |
| Net (decrease)/increase in cash flow | (19,419) | (36,554) | 73,264 | 51,570 |
| Effects of exchange rate changes on inflation and cash and cash equivalents | (1,243) | 1,987 | 1,782 | 197 |
| Cash and cash equivalents at the end of the period | 794,943 | 476,939 | 794,943 | 476,939 |
About dLocal
dLocal builds financial infrastructure for markets of the future, connecting global enterprises with billions of emerging market consumers in more than 60 countries across high-growth markets in Africa, Asia, the Middle East, and Latin America. Through the "One dLocal" concept (one direct API, one platform, and one contract), global companies can accept payments, send payouts, and settle funds globally without the need to manage multiple local entities and integrations. For more information, visit www.dlocal.com
Forward-looking statements
This presentation may contain forward-looking statements. These forward-looking statements convey dLocal’s current expectations or forecasts of future events, including guidance in respect of total payment volume, gross profit and operating profit. Forward-looking statements regarding dLocal and amounts stated as guidance involve known and unknown risks, uncertainties and other factors that may cause dLocal’s actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Certain of these risks and uncertainties are described in the “Risk Factors,” and “Cautionary Statement Regarding Forward-Looking Statements” sections of dLocal’s filings with the U.S. Securities and Exchange Commission.
Unless required by law, dLocal undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date hereof.
Starting in 2026, we provide guidance in respect of Operating Profit, which management believes is useful as a measure to compare our operating results to the operations of other companies in our industry, and to assess our operating performance independently of our capital structure, tax position, and non-cash depreciation and amortization charges.
Investor Relations Contact:
investor@dlocal.com
Media Contact:
media@dlocal.com
This press release does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standards 34, “Interim Financial Reporting” nor a financial statement as defined by International Accounting Standards 1 “Presentation of Financial Statements”. The second quarter financial information in this press release has not been audited nor has it been subject to any limited review procedures, whereas the annual results for the year ended December 31, 2025 are audited.
