TPV surpassed US$14 billion for the first time (+73% year-over-year), six consecutive quarters of 50%+ year-over-year growth.
Record gross profit: US$119 million (+40% year-over-year).
Operating profit US$57 million excluding prior years tax adjustments (+25% year-over-year).
Expected higher OPEX from 2025 carry-over; operating leverage to improve in 2H26.
Net income at US$52 million excluding prior-years tax adjustments (+11% year-over-year).
Adjusted Free Cash Flow US$15 million, driven by temporary working capital effects, expected to revert.
Guidance unchanged.
MONTEVIDEO, Uruguay, May 14, 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 first quarter ended March 31, 2026.
dLocal's management team will host a conference call and audio webcast on May 14, 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.
"Ten years in, the thesis is intact, the opportunity is larger than ever, and we are better equipped to capture it than at any point in our history. The infrastructure we have built - the licenses, the payment methods, the stakeholder relationships, the data, the technology - abstracts local complexity and compounds in value over time. The combination of strong base business momentum, a product roadmap that is gaining traction, and secular tailwinds across our markets as merchants increasingly convert to local processing, gives us confidence that the next decade can be as impressive as the last," said Pedro Arnt, CEO of dLocal.
First 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$14.1 billion in the first quarter
of 2026, up 73% year-over-year compared to US$8.1 billion in the first
quarter of 2025 and up 7% compared to US$13.1 billion in the fourth
quarter of 2025. In constant currency, TPV growth for the period would
have been 63% year-over-year.
-- Revenues amounted to US$335.9 million, up 55% year-over-year compared to
US$216.8 million in the first quarter of 2025 and broadly flat compared
to US$337.9 million in the fourth quarter of 2025. In constant currency,
revenue growth for the period would have been 52% year-over-year. The
quarter-over-quarter comparison reflects a less favorable payment method
mix and narrower FX spreads.
-- Gross profit was US$118.7 million in the first quarter of 2026, a new
record, up 40% compared to US$84.9 million in the first quarter of 2025
and up 2% compared to US$115.8 million in the fourth quarter of 2025. In
constant currency, gross profit growth for the period would have been 35%
year-over-year. The quarter-over-quarter comparison is explained by (i)
Argentina's strong volume growth and normalized funding costs; (ii)
broad-based volume growth in Africa and Asia, with notable contributions
from Nigeria, Mozambique, and Vietnam; partially offset by (iii) Brazil's
normalization following an exceptionally strong fourth quarter of 2025;
and (iv) a modest mix shift toward lower take rate merchants in Other
LatAm markets.
-- As a result, gross profit margin was 35% in this quarter, compared to 39%
in the first quarter of 2025 and 34% in the fourth quarter of 2025.
-- Gross profit over TPV was at 0.84%, decreasing from 1.05% in the first
quarter of 2025 and from 0.88% in the fourth quarter of 2025, reflecting
the continued strong TPV momentum and the natural margin dynamics of
scaling volume with established merchants and into new payment methods,
products, and countries.
-- During the first quarter of 2026, dLocal recorded a one-off prior-periods
tax adjustment of US$9.7 million related to installment payment products
in certain markets. This out-of-period adjustment was not material to any
previously reported annual or interim period. Of the total adjustment,
approximately US$5.3 million impacted the income tax expense line and
US$4.4 million in operating expenses related to indirect and other taxes.
The Company does not expect to record comparable items in future
quarters.
-- Operating expenses totaled US$65.9 million for the first quarter of 2026,
or US$61.5 million excluding the prior-periods adjustment, up 58%
year-over-year and 16% quarter-over-quarter on a normalized basis,
reflecting the expected carry-over of the last part of the investment
cycle costs, which ramped up mostly towards the end of 2025.
-- As a result, Operating profit was US$52.8 million, or would have been
US$57.2 million excluding the one-off prior-periods tax adjustment,
representing growth of 25% year-over-year and decrease of 9% on a
normalized basis. The Operating Profit to Gross Profit ratio was 44% as
reported and 48% excluding the one-off.
-- Net financial result was US$5.2 million gain, compared to a net finance
gain of US$7.0 million in the first quarter of 2025 and a net finance
gain of US$3.4 million in the fourth quarter of 2025.
-- Our effective income tax rate for the period was approximately 26% as
reported, elevated by the non-recurring prior-period adjustment.
Excluding the adjustment, the effective rate would have been
approximately 16%, broadly in line with prior quarters.
-- Net income for the first quarter of 2026 was US$41.9 million, or US$0.14
per diluted share, down 10% compared to a profit of US$46.7 million, or
US$0.16 per diluted share, for the first quarter of 2025 and down 25%
compared to a profit of US$55.6 million, or US$0.18 per diluted share for
the fourth quarter of 2025. Excluding the prior-periods tax adjustment,
net income would have been US$51.6 million, or US$0.17 per diluted share,
up 11% year-over-year.
-- Adjusted Free cash flow for the first quarter of 2026 amounted to US$14.7
million, down 63% year-over-year compared to US$39.7 million in the first
quarter of 2025 and down 77% compared to US$64.9 million in the fourth
quarter of 2025. The year-over-year and sequential variation is primarily
explained by temporary working capital effects, including timing in tax
credit netting and higher receivables from our advancement operations,
which are expected to normalize in upcoming quarters.
-- As of March 31, 2026, dLocal had US$815.6 million in cash and cash
equivalents, which includes US$451.8 million of Corporate cash and cash
equivalents. The Corporate cash and cash equivalents increased by US$95.9
million from US$355.9 million as of March 31, 2025. When compared to the
US$424.5 million Corporate cash and cash equivalents position as of
December 31, 2025, it increased by US$27.3 million quarter-over-quarter.
The following table summarizes our key performance metrics:
Three months ended on March 31
-------------------------------------
2026 2025 % change
----------- ---------
Key Performance metrics (In millions of US$ except for %)
------------------------------ -------------------------------------
TPV 14,055 8,107 73%
Revenue 335.9 216.8 55%
Gross Profit 118.7 84.9 40%
Gross Profit margin 35% 39% -4p.p
Operating Profit 52.8 45.8 15%
Operating Profit/Gross Profit 44% 54% -10p.p
Net Income 41.9 46.7 -10%
Net Income margin 12% 22% -9p.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 March 31, 2026), plus (ii) changes in Trade payables (disclosed in Note 20 to our consolidated financial statements for the period ended March 31, 2026), plus (iii) changes in Other tax liabilities (disclosed in note 21 to our consolidated financial statements for the period ended March 31, 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 March 31
----------------------------------
2026 2025
--------------- ---------------
Net cash (used in ) / generated from
operating activities 92,781 95,411
Changes in working capital (merchant)(1) (68,391) (48,170)
Capital expenditures(2) (9,738) (7,512)
Adjusted Free Cash Flow 14,652 39,729
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.
Operating profit excluding prior years tax adjustments reconciliation
We calculate "Operating Profit Excluding Prior Years Tax Adjustments" as operating profit for the period, excluding the impact of prior periods tax adjustments. During the three-months period ended on March 31, 2026, certain tax assessments related to prior years were adjusted, resulting in tax impacts amounting to US$9,699 corresponding to fiscal years 2023, 2024 and 2025. From the total amount, US$5,296 relates to income tax and related interest (refer to Note 12. Income tax, footnote (i)) and US$4,403 relates to indirect taxes, other taxes and related interest which were included within other operating expenses. The Company concluded that the out of period adjustment was not material to any previously reported annual or interim period.
Management uses Operating Profit Excluding Prior Years Tax Adjustments as a measure for evaluating the Company's underlying operating performance by removing the effect of non-recurring, out-of-period tax assessments. Operating Profit Excluding Prior Years Tax Adjustments is not a financial measure recognized under IFRS and does not purport to be an alternative to operating profit as a measure of operating performance. Our presentation of Operating Profit Excluding Prior Periods Tax Adjustments 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.
The table below presents a reconciliation of dLocal's operating profit excluding prior years tax adjustments reconciliation:
$ in thousands Three months ended on March 31
-------------------------------------------- --------------------------------
2026 2025
Operating profit 52,772 45,845
Prior years tax adjustments (2023-2025) 4,404 -
Operating profit excluding prior years tax
adjustments 57,176 45,845
Net income excluding prior years tax adjustments reconciliation
We calculate "Net Income Excluding Prior Years Tax Adjustments" as net income (profit for the period), excluding the impact of prior periods tax adjustments. During the three-months period ended on March 31, 2026, certain tax assessments related to prior years were adjusted, resulting in tax impacts amounting to US$9,699 corresponding to fiscal years 2023, 2024 and 2025. From the total amount, US$5,296 relates to income tax and related interest (refer to Note 12. Income tax, footnote (i)) and US$4,403 relates to indirect taxes, other taxes and related interest which were included within other operating expenses. The Company concluded that the out of period adjustment was not material to any previously reported annual or interim period.
Management uses Net Income Excluding Prior Years Tax Adjustments as a measure for evaluating the Company's underlying profitability by removing the effect of non-recurring, out-of-period tax assessments. Net Income Excluding Prior Years Tax Adjustments is not a financial measure recognized under IFRS and does not purport to be an alternative to profit for the period as a measure of profitability. Our presentation of Net Income Excluding Prior Periods Tax Adjustments 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.
The table below presents a reconciliation of dLocal's net income excluding prior years tax adjustments reconciliation:
$ in thousands Three months ended on March 31
-------------------------------------------- --------------------------------
2026 2025
Net income (Profit for the period) 41,936 46,667
Prior years tax adjustments (2023-2025) 9,700 -
Net income excluding prior years tax
adjustments 51,636 46,667
dLocal Limited
Certain financial information
Consolidated Statements of Comprehensive Income for the three-month period ended March 31, 2026 and 2025
(All amounts in thousands of U.S. Dollars except share data or as otherwise indicated)
Three months ended on March 31
----------------------------------
2026 2025
--------------- ---------------
Continuing operations
Revenues 335,862 216,759
Cost of services (217,178) (131,880)
---------------------------------------- --------------- ---------------
Gross profit 118,684 84,879
Technology and development expenses (12,124) (6,767)
Sales and marketing expenses (9,919) (7,135)
General and administrative expenses (42,657) (24,324)
Impairment (loss)/gain on financial
assets (780) (386)
Other operating loss (432) (422)
---------------------------------------- --------------- ---------------
Operating profit 52,772 45,845
Finance income 10,757 12,228
Finance costs (5,598) (5,259)
Inflation adjustment (1,386) (885)
Other results 3,773 6,084
---------------------------------------- --------------- ---------------
Profit before income tax 56,545 51,929
Income tax expense (14,609) (5,262)
---------------------------------------- --------------- ---------------
Profit for the period 41,936 46,667
Profit attributable to:
Owners of the Group 41,975 46,630
Non-controlling interest (39) 37
Profit for the period 41,936 46,667
Earnings per share (in USD)
Basic Earnings per share 0.14 0.16
Diluted Earnings per share 0.14 0.15
Other comprehensive Income
Items that are or may be reclassified to
profit or loss:
Exchange difference on translation on
foreign operations 3,047 3,526
Other comprehensive income for the
period, net of tax 3,047 3,526
---------------------------------------- --------------- ---------------
Total comprehensive income for the
period 44,983 50,193
Total comprehensive income for the period is attributable
to:
Owners of the Group 45,022 50,174
Non-controlling interest (39) 19
Total comprehensive income for the
period 44,983 50,193
dLocal Limited
Certain financial information
Consolidated Condensed Interim Statements of Financial Position as of March 31, 2026 and December 31, 2025
(All amounts in thousands of U.S. dollars)
Three months ended on March 31
-------------------------------------------
2026 2025
on March 31, 2026 on December 31, 2025
------------------- ----------------------
ASSETS
Current Assets
Cash and cash equivalents 815,605 719,897
Financial assets at fair value
through profit or loss 97,995 99,089
Trade and other receivables 740,432 572,024
Derivative financial
instruments 2,341 140
Other assets 20,871 29,607
Total Current Assets 1,677,244 1,420,757
Non-Current Assets
Financial assets at fair value
through profit or loss -
Trade and other receivables 26,664 25,982
Deferred tax assets 10,251 7,666
Property, plant and equipment 4,043 3,985
Right-of-use assets 2,808 2,995
Intangible assets 92,506 73,965
Goodwill 6,550 -
Other assets 5,701 5,614
Total Non-Current Assets 148,523 120,207
------------------------------- ------------------ -------------------
TOTAL ASSETS 1,825,767 1,540,964
LIABILITIES
Current Liabilities
Trade and other payables 1,116,490 854,436
Lease liabilities 1,003 1,076
Tax liabilities 39,778 21,500
Derivative financial
instruments 567 1,567
Financial liabilities 106,944 86,898
Provisions 461 433
Total Current Liabilities 1,265,243 965,910
Non-Current Liabilities
Deferred tax liabilities 5,427 3,316
Lease liabilities 1,761 2,309
Total Non-Current Liabilities 7,188 5,625
------------------------------- ------------------ -------------------
TOTAL LIABILITIES 1,272,431 971,535
EQUITY
Share Capital 588 590
Share Premium 7,097 7,097
Treasury Shares (10,122) -
Capital Reserve 48,899 42,641
Other Reserves (12,919) (15,885)
Retained earnings 519,584 534,818
Total Equity Attributable to
owners of the Group 553,127 569,261
Non-controlling interest 209 168
TOTAL EQUITY 553,336 569,429
------------------------------- ------------------ -------------------
TOTAL EQUITY AND LIABILITIES 1,825,767 1,540,964
dLocal Limited
Certain interim financial information.
Consolidated Statements of Cash flows for the three-month period ended March 31, 2026 and 2025
(All amounts in thousands of U.S. dollars)
Three months ended on March 31
----------------------------------
2026 2025
Cash flows from operating activities
Profit before income tax 56,545 51,929
Adjustments:
Interest Income from financial
instruments (10,590) (5,106)
Interest charges for lease liabilities 57 41
Other interests charges 7,512 883
Finance expense related to derivative
financial instruments 700 414
Net exchange differences (2,616) 4,142
Fair value loss/(gain) on financial
assets at FVPL (167) (7,343)
Amortization of Intangible assets 7,062 4,584
Depreciation and disposals of PP&E and
right-of-use 653 703
Share-based payment expense, net of
forfeitures 6,066 6,020
Other operating gain 432 422
Net Impairment loss/(gain) on financial
assets 780 386
Inflation adjustment and other financial
results 2,862 6,083
---------------------------------------- ---------------- --------------
69,296 63,158
Changes in working capital
Increase in Trade and other receivables (170,302) 21,082
Decrease / (Increase) in Other assets (14,279) 1,025
Increase / (Decrease) in Trade and Other
payables 204,843 16,346
Increase / (Decrease) in Tax Liabilities 9,577 965
Increase / (Decrease) in Provisions 28 43
---------------------------------------- ---------------- --------------
Cash (used) / generated from operating
activities 99,163 102,619
Income tax paid (6,382) (7,208)
---------------------------------------- ---------------- --------------
Net cash (used) / generated from
operating activities 92,781 95,411
Cash flows from investing activities
Acquisitions of Property, plant and
equipment (522) (945)
Additions of Intangible assets (9,216) (6,567)
Acquisition of financial assets at FVPL (26,876) (41,374)
Collections of financial assets at FVPL 27,179 47,416
Interest collected from financial
instruments 10,590 5,106
Cash acquired in a business combination 791 -
Payments for investments in other assets
at FVPL - (10,000)
---------------------------------------- ---------------- --------------
Net cash (used in) / generated investing
activities 1,946 (6,364)
Cash flows from financing activities
Repurchase of shares (10,122) -
Share-options exercise paid 192 -
Interest payments on lease liability (57) (41)
Principal payments on lease liability (748) (663)
Finance expense paid related to
derivative financial instruments (3,901) (3,132)
Net proceeds from financial liabilities 25,353 5,790
Interest payments on financial
liabilities (5,306) (2,166)
Other finance expense paid (7,455) (714)
---------------------------------------- ---------------- --------------
Net cash used in by financing activities (2,044) (926)
---------------------------------------- ---------------- --------------
Net increase in cash flow 92,683 88,121
Cash and cash equivalents at the
beginning of the period 719,897 425,172
Net (decrease)/increase in cash flow 92,683 88,121
Effects of exchange rate changes on
inflation and cash and cash
equivalents 3,025 (1,787)
Cash and cash equivalents at the end of
the period 815,605 511,506
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 first 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.
(END) Dow Jones Newswires
May 14, 2026 16:07 ET (20:07 GMT)