Global Finance News
13 Nov 2026, 09:21
dLocal Falls 3% Despite 77% TPV Growth and Record Q3 Net Income
dLocal (NASDAQ: DLO) shares fell about 3% after the payments company reported strong third-quarter growth but also showed continued pressure on margins and a softer outlook for operating profit.
Total payment volume reached $18.3 billion, up 77% year over year and marking the company’s eighth consecutive quarter of more than 50% growth. Revenue rose 41% to $398.0 million, while gross profit increased 28% to a record $132.0 million.
Operating profit climbed 37% to $76.2 million, while net income rose 31% to a record $68.0 million, or $0.23 per diluted share. Adjusted free cash flow also improved sharply to $99.1 million, up 163% from a year earlier.
However, profitability metrics remained a concern. Gross profit margin fell to 33% from 37% a year earlier, while gross profit as a percentage of TPV declined to 0.72% from 0.99%. Management attributed the pressure to payment-method and geographic mix shifts, higher processing costs in Mexico and softer volumes in some markets.
Quarter-over-quarter revenue was also almost flat at $398.0 million versus $399.7 million in Q2, reflecting softer Argentina volumes following the seasonal Hot Sale period and a higher mix of local-to-local and payout transactions.
For 2026, management indicated TPV growth is tracking near the upper end of its 60%-70% guidance and gross profit growth near the midpoint of 25%-30%. However, operating profit is tracking toward the lower end of its 27.5%-32.5% growth range, with management citing unexpected FX headwinds and softer performance in some higher-take-rate markets.
The 3% decline appears to reflect investor focus on margin compression, limited sequential revenue growth and operating profit tracking toward the lower end of guidance, despite continued strong TPV growth, record net income and robust cash generation.
dLocal (NASDAQ: DLO) shares fell about 3% after the payments company reported strong third-quarter growth but also showed continued pressure on margins and a softer outlook for operating profit.
Total payment volume reached $18.3 billion, up 77% year over year and marking the company’s eighth consecutive quarter of more than 50% growth. Revenue rose 41% to $398.0 million, while gross profit increased 28% to a record $132.0 million.
Operating profit climbed 37% to $76.2 million, while net income rose 31% to a record $68.0 million, or $0.23 per diluted share. Adjusted free cash flow also improved sharply to $99.1 million, up 163% from a year earlier.
However, profitability metrics remained a concern. Gross profit margin fell to 33% from 37% a year earlier, while gross profit as a percentage of TPV declined to 0.72% from 0.99%. Management attributed the pressure to payment-method and geographic mix shifts, higher processing costs in Mexico and softer volumes in some markets.
Quarter-over-quarter revenue was also almost flat at $398.0 million versus $399.7 million in Q2, reflecting softer Argentina volumes following the seasonal Hot Sale period and a higher mix of local-to-local and payout transactions.
For 2026, management indicated TPV growth is tracking near the upper end of its 60%-70% guidance and gross profit growth near the midpoint of 25%-30%. However, operating profit is tracking toward the lower end of its 27.5%-32.5% growth range, with management citing unexpected FX headwinds and softer performance in some higher-take-rate markets.
The 3% decline appears to reflect investor focus on margin compression, limited sequential revenue growth and operating profit tracking toward the lower end of guidance, despite continued strong TPV growth, record net income and robust cash generation.
