dLocal Reports Third Quarter 2026 Financial Results

(NASDAQ:DLO) dLocal Limited announced its financial results for the third quarter ended September 30, 2026. Total Payment Volume (TPV) reached $18.3 billion in Q3 2026, up 77% year-over-year from $10.4 billion in Q3 2025 and up 4% from $17.7 billion in Q2 2026. Revenues were $398.0 million, a 41% increase year-over-year from $282.5 million in Q3 2025 and nearly flat compared to $399.7 million in Q2 2026. Gross profit was $132.0 million, up 28% from $103.2 million in Q3 2025 and up 4% from $127.2 million in Q2 2026. Operating profit reached $76.2 million, a 37% increase year-over-year and a 19% increase quarter-over-quarter. Net income for Q3 2026 was $68.0 million, or $0.23 per diluted share, up 31% from $51.8 million, or $0.17 per diluted share, in Q3 2025, and up 24% from $54.8 million, or $0.18 per diluted share, in Q2 2026. Adjusted free cash flow for Q3 2026 was $99.1 million, up 163% year-over-year from $37.6 million in Q3 2025 and up 44% from $68.5 million in Q2 2026. As of September 30, 2026, dLocal had $1,033.9 million in total cash and cash equivalents, including $536.9 million of Corporate cash and cash equivalents, which increased by $203.8 million from $333.1 million as of September 30, 2025, and by $167.8 million from $369.1 million as of June 30, 2026, mainly due to a $150 million loan signed in August. The company repurchased approximately 9.1 million Class A shares for $120.1 million under a $300 million program authorized in March 2026. Gross profit margin was 33% in Q3 2026, compared to 37% in Q3 2025 and 32% in Q2 2026. Gross profit over TPV was 0.72%, down from 0.99% in Q3 2025 and flat compared to Q2 2026. Operating expenses were $55.9 million, up 17% year-over-year and down 11% quarter-over-quarter. The effective income tax rate for the period was approximately 15%. Net financial result was a $5.3 million gain, compared to $6.4 million in Q3 2025 and $2.3 million in Q2 2026. The company’s net revenue retention was 140%. The quarterly performance was influenced by lower advancement costs in Argentina, broad-based volume growth in Africa and Asia, one-off cost recovery in Nigeria, FX hedge gains, and was partly offset by a shift in payment method mix in Brazil, higher processing costs in Mexico, and lower volumes in Bolivia. Guidance for 2026 indicates TPV growth of 60%-70% year-over-year, gross profit growth of 25%-30% year-over-year, and operating profit growth of 27.5%-32.5% year-over-year. As of September 30, 2026, total assets were $2,370.3 million and total equity was $577.2 million. Pedro Arnt is CEO of dLocal.