Dlocal Ltd

dLocal reported second-quarter results on August 13, with total payment volume reaching $17.7 billion, up 92% year over year, its fastest pace in more than four years. Revenue climbed 56% to $399.7 million, and gross profit hit a record $127.2 million. Net revenue retention was 153%, the fifth straight quarter above 140%, and TPV retention reached 188%. CEO Pedro Arnt called it the highest growth rate since the first quarter of 2022. Brazil and Argentina drove profitability with record gross profits of $40 million and $20 million, while local-to-local transactions rose to 61% of volume. The company is expanding into buy now, pay later in eight markets and plans to launch dMore, a merchant of record service. However, Mexico's sequential gross profit slipped, and CFO Guillermo Perez flagged potential upward pressure on the effective tax rate starting in 2027 due to OECD Pillar 2 rules. Executives cautioned that some strength won't repeat, with marketing spending front-loaded and take rate flat excluding one outsized merchant. Shares trade at 13.53 times forward earnings, with short interest at 14.83% of float.

UATP has named dLocal as the newest payment processing partner for its UATP One merchant services platform. dLocal processes payments across more than 60 countries in Latin America, Africa, the Middle East and Asia, giving UATP One merchants an additional acquiring option in markets where air travel is growing fastest. The partnership, now live, allows UATP clients to accept payments in emerging markets through a network they already use, while dLocal gains access to UATP's global network of airlines and corporate travel buyers. UATP One gives airlines and travel merchants a single route to local payment infrastructure that lowers cost, complexity and risk, and dLocal already connects merchants to more than 1,000 local payment methods across these regions.

dLocal raised its full-year 2026 total payment volume growth guidance to 60% to 70% and gross profit growth guidance to 25% to 30%, while maintaining operating profit growth guidance of 27.5% to 32.5%. The company reported second-quarter TPV of $17.7 billion, up 92% year-over-year, and gross profit of $127 million. Operating profit reached $64 million, representing 50% of gross profit, and net income increased 28% year-over-year with diluted EPS of $0.18. Management cited ride-hailing volume growth and expansion into new markets as key drivers, while noting take-rate pressure from tiered pricing and local-to-local flows. The company also repurchased approximately 6.9 million Class A shares for $86 million under its $300 million buyback program.

DLocal shares soared 12.9% in the last trading session to close at $14.67, extending a six-day rally. The move was driven by strength in its fully cloud-based proprietary platform, which enables merchants to access multiple emerging markets through a single API and one contract, and was further supported by a UBS analyst upgrade from Neutral to Buy. The company is expected to report quarterly earnings of $0.20 per share, a year-over-year increase of 42.9%, on revenues of $359.84 million, up 40.3%. Despite the surge, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days, and the stock carries a Zacks Rank of 3, or Hold.

dLocal announced it will join the U.S. small-cap Russell 2000 and Russell 3000 indexes effective before the U.S. market opens on June 29 as part of the 2026 Russell reconstitution. The inclusion reflects the company's growing scale, market capitalization, and free float, signaling rising institutional recognition. CEO Pedro Arnt said the move is expected to improve trading liquidity, broaden the shareholder base, and increase visibility among institutional investors.