dLocal reported strong top-line performance for the second quarter of 2026, with revenue of $399.7 million exceeding analyst expectations of $366.77 million. While diluted EPS of $0.18 was a cent below consensus, the company achieved record hypergrowth in volume and gross profit. Management subsequently raised full-year guidance for both payment volume and gross profit growth.
Key Highlights
- Total Payment Volume (TPV) surged 92% year-over-year to $17.7 billion, marking the seventh consecutive quarter of 50%+ growth.
- Record gross profit reached $127.2 million, up 29% YoY, despite gross margin compressing to 32% from 39% a year ago due to a higher share of large Tier 0 merchants and local-to-local transactions.
- Adjusted free cash flow significantly improved to $68.5 million, representing a 125% net income conversion rate as working capital normalized.