dLocal Q2 2026 TPV Jumps 92% as Guidance Rises

In Short

• dLocal said Q2 2026 total payment volume (TPV) hit $17.7 billion, up 92% year over year.
• Revenue rose 56% to $399.7 million, and gross profit reached a record $127.2 million.
• Gross margin fell to 32% from 39% a year ago, as transaction mix shifted toward larger merchants.
• The company raised 2026 guidance for TPV growth and gross profit growth.

What Happened

dLocal reported results for the quarter ended June 30, 2026, showing fast growth in TPV, which is the total value of payments processed on its rails, similar to a payments throughput metric.

TPV reached $17.7 billion, up 92% year over year. Revenue was $399.7 million, up 56%. Gross profit rose 29% to $127.2 million, but gross margin dropped to 32% from 39% in the same quarter last year.

dLocal said the margin decline came from a shift toward large merchants, local-to-local processing, and newer products and geographies. Local-to-local means payments where the buyer and seller are in the same country, which can price differently from cross-border flows.

Operating profit was $64.2 million, up 15% year over year. Net income rose 28% to $54.8 million, with diluted EPS of $0.18.

On cash generation, adjusted free cash flow was $68.5 million, up 41% year over year. The company ended the quarter with $794.9 million in cash and equivalents, including $369.1 million of corporate cash.

dLocal also returned capital to shareholders, paying a $57.2 million dividend and buying back 6.9 million Class A shares for $86.1 million under its $300 million program. It added a new $150 million senior unsecured credit facility maturing in 2029, priced at Term SOFR plus 2.00%.

For 2026, management raised TPV growth guidance to 60% to 70% year over year and gross profit growth guidance to 25% to 30%. It kept operating profit growth guidance at 27.5% to 32.5%.

Why It Matters

For Africa and other emerging markets where dLocal sells payment acceptance and payout tools, the results show demand is still rising for cross-border and local processing.

But the same quarter also shows the trade-off operators face as they scale into larger enterprise merchants and new corridors. Higher volume does not always mean higher margins, especially when product mix shifts.

The combination of raised guidance, continued buybacks, and a new credit line suggests dLocal is balancing growth investment with capital returns. For founders and fintech operators, this is a reminder to track unit economics, not just TPV, when evaluating payment partners.