Montevideo, Uruguay, May 14, 2026, 19:03 (UYT)
- dLocal posted a 10% drop in first-quarter net profit, coming in at $41.9 million after factoring in a $9.7 million tax adjustment from the previous period.
- Revenue jumped 55% to $335.9 million. Total payment volume crossed the $14 billion mark for the first time.
DLocal posted a 10% slide in first-quarter profit Thursday, weighed down by a one-off tax hit along with rising costs—factors that knocked the stock lower in after-hours trading. The Montevideo payments company reported net income of $41.9 million, or 14 cents per diluted share, compared with $46.7 million in the same period last year.
This result is key for dLocal, which is out to show it can ramp up alongside heavyweight global merchants and still protect its margins. Shares finished regular trading with a 4% gain at $12.66, but after-hours numbers from MarketBeat had the stock slipping 4.9% as of 5:48 p.m. Eastern time.
TPV—short for total payment volume—jumped 73% to $14.1 billion, marking the first quarter the figure topped $14 billion. Revenue hit $335.9 million, up 55%, narrowly topping the analyst consensus quoted by Reuters. Merchants continued feeding more transactions into dLocal’s local payments network.
But growth brought some strain. Gross profit margin slid to 35%, down from 39% a year ago, and gross profit as a percentage of TPV dipped to 0.84%. That points to heavier processing volumes, but at slimmer take rates as the firm picks up more mature merchants and expands into new payment rails and geographies.
DLocal booked a $9.7 million tax adjustment, citing links to installment payment products in select markets. The company described the charge as immaterial for previous annual or interim periods, adding it doesn’t anticipate comparable adjustments showing up in quarters ahead.
Net income, stripping out the adjustment, would have landed at $51.6 million—17 cents a share on a diluted basis, marking an 11% gain from the prior year. Operating profit reached $52.8 million; excluding the tax item, that figure comes to $57.2 million. Operating expenses moved higher, with costs from a late-2025 investment cycle still lingering this quarter.
CEO Pedro Arnt called dLocal’s “opportunity… larger than ever,” highlighting momentum in its core business, fresh products, and a move by merchants to local processing. Gross profit gains, the company noted, got a lift from Argentina, with volume picking up in Africa and Asia. Nigeria, Mozambique and Vietnam also contributed. GlobeNewswire
Adjusted free cash flow dropped sharply to $14.7 million, down from $39.7 million in the prior-year period. The company pointed to temporary working-capital swings—tax-credit timing and a bump in receivables from advancement operations. As of March’s end, cash and cash equivalents totaled $815.6 million.
The competitive landscape keeps tightening. In April, Brazilian cross-border payments rival Ebanx announced moves into Thailand, Indonesia, and Turkey, eyeing Malaysia and Vietnam next. Payments players are targeting global merchants who want local payment options in markets where card usage remains limited.
DLocal handles payments for major merchants—Amazon, Uber, Spotify among them—according to Reuters. The company runs its operations across emerging markets in Latin America, Africa, and Asia. Its pitch: the “One dLocal” platform, which, it claims, lets global businesses accept payments, send payouts, and settle funds without needing to set up separate integrations for each country. Reuters
Faster volume growth doesn’t necessarily mean profits will keep pace. dLocal’s 2026 forecast called out a laundry list of headwinds: volatility across emerging markets, shifting tax policy in Brazil, currency swings in Argentina, Mexican tariff swings, election-driven uncertainty, and the usual currency risk—any of which could push results off track from its guidance.
dLocal is sticking with its existing full-year outlook. Back in March, the company projected 2026 TPV growth between 50% and 60%, gross profit rising 22.5% to 27.5%, and operating profit set to climb 27.5% to 32.5%.
