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.
Dlocal LtdQ2 volume up 92%, revenue up 56%, record gross profit, and strong retention metrics.
