TPV reached nearly US$18 billion (+92% year-over-year), the 7th consecutive quarter of 50%+ growth, and continued acceleration over the last 5 quarters.
Record gross profit: US$127 million (+29% year-over-year).
Operating profit: US$64 million (+15% year-over-year), with Operating Profit/Gross Profit ratio reaching 50% (+6 p.p. quarter-over-quarter); operating leverage to improve in the second half of 2026.
Net income at US$55 million (+28% year-over-year), diluted EPS $0.18 (vs. $0.14 in 1Q26).
Adj. Free Cash Flow US$69 million (+41% year-over-year), Adj. FCF/Net income conversion of 125%.
Guidance update: TPV guidance raised to 60--70% year-over-year and Gross profit to 25--30% year-over-year; Operating profit guidance maintained at 27.5--32.5% year-over-year.
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 50% year-over-year for seven consecutive quarters, with the last three quarters at or above 70%. Growth has also accelerated over the past five quarters, reaching its highest year-over-year rate in four years. Although the pace and scale of this growth will naturally create more demanding comparisons as we move through the second half of the year and into 2027, what we are seeing today reflects the positive returns on the investments we have made in our platform and portfolio of licenses. It is also a testament to the trust merchants place in us as they build and grow across emerging markets," said Pedro Arnt, CEO of dLocal.
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, up 92% year-over-year compared to US$9.2 billion in the
second quarter of 2025 and up 26% compared to US$14.1 billion in the
first quarter of 2026. In constant currency, TPV growth for the period
would have been 80% year-over-year.
-- Revenues amounted to US$399.7 million, up 56% year-over-year compared to
US$256.5 million in the second quarter of 2025 and up 19% compared to
US$335.9 million in the first quarter of 2026. In constant currency,
revenue growth for the period would have been 50% 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, up 29% compared to US$98.9 million in the second quarter of 2025
and up 7% compared to US$118.7 million in the first quarter of 2026. In
constant currency, gross profit growth for the period would have been 23%
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 to 39%
in the second quarter of 2025 and 35% in the first quarter of 2026.
-- Gross profit over TPV was at 0.72%, decreasing from 1.07% in the second
quarter of 2025 and from 0.84% 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, up 46% year-over-year and down 4% 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, up 15% year-over-year
and 22% quarter-over- quarter. The Operating Profit to Gross Profit ratio
was 50%, up 6 p.p. quarter-over-quarter compared to 44% as reported in
the first quarter of 2026 and down 6 p.p. year-over-year compared to 56%
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 to 26% 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, up 28% compared to a profit of US$42.8 million, or
US$0.14 per diluted share, for the second quarter of 2025, and up 31%
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, up 41% 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$13.6 million each,
plus interest, commencing six months following the borrowing date, as
specified in the Credit Agreement. Interest accrues at Term SOFR (Secured
Overnight Financing Rate) plus 2.00% per annum. The proceeds of the
facility are intended to be used for general corporate purposes.
The following table summarizes our key performance metrics:
Three months ended on June 30 Six months ended on June 30
------------------------------ -------------------------------
2026 2025 % change 2026 2025 % change
---------- -------
Key
Performance
metrics (In millions of US$ 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 Three months ended on June
(except percentages) 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
expenditures(2) (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.