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The call presented a robust growth narrative with multiple record metrics—TPV up 73% YoY and record gross profit—broad geographic and vertical expansion, improving diversification (Africa & Asia growth) and strong underlying cash generation. Negative items were mostly temporary or one‑off: a $9.7 million prior‑period tax adjustment, elevated operating expenses from a recent investment cycle and short‑term working capital headwinds. Management reiterated unchanged full‑year guidance and outlined corrective measures (hiring freeze, automation, moderation of investments) to restore operating leverage in H2. Overall, positive operational momentum and scalable foundations outweigh the transitory financial headwinds.
dLocal reiterated that its full‑year 2026 guidance is unchanged while highlighting strong Q1 momentum: TPV of $14.1 billion (up 73% year‑over‑year and 7% quarter‑over‑quarter, the sixth consecutive quarter above 50% growth) and record gross profit of $119 million (+40% YoY, +2% QoQ). Reported operating profit was $53 million (or $57 million excluding a $9.7 million prior‑period tax adjustment — ~$5.3M in corporate tax and ~$4.4M booked to OpEx), which represents ~25% YoY growth and a 48% operating‑profit‑to‑gross‑profit ratio on an adjusted basis; reported net income was $42 million ($52 million excl. the one‑off, ≈11% YoY). Operating expenses were $62 million excluding the out‑of‑period item (+58% YoY, +16% QoQ), and management reiterated that elevated OpEx from the 2024–25 investment cycle is most visible in H1 and should moderate with operating leverage improving in H2. Cash flow from operations before working capital changes was $69.3 million (≈+10% YoY), adjusted free cash flow was temporarily affected by working capital timing (expected to reverse over coming quarters), and the company does not expect material additional prior‑period adjustments while continuing to update guidance only twice yearly.
Total payment volume (TPV) reached $14.1 billion in Q1 FY2026, up 73% year‑over‑year and 7% quarter‑over‑quarter; this was the sixth consecutive quarter with TPV growth above 50% and the company reported LTM TPV of ~$47 billion.
Gross profit hit a new record of $119 million, up 40% year‑over‑year and 2% quarter‑over‑quarter, driven by recovery in Argentina and growth in Africa and Asia.
Revenue retention exceeded 140% for four consecutive quarters; several top 10 TPV merchants grew TPV north of 70% year‑over‑year in Q1, and long‑standing merchant relationships expanded across many countries.
dLocal now operates in more than 60 countries, holds 38 licenses across 26 markets, and sees notable contributions from Mexico, Brazil, Argentina, Chile, Nigeria, Colombia and Vietnam; Africa & Asia represent ~29% of gross profit and grew 16% quarter‑over‑quarter. Travel grew 38% QoQ and on‑demand delivery grew 24% QoQ.
Cash flow from operations before working capital changes was $69.3 million, growing close to 10% year‑over‑year, and management expects temporary working capital effects to reverse over coming quarters.
Launched a full stablecoin settlement solution recently; Card‑Present product being developed for a large client with initial commercial rollout targeted in H2; an Africa asset acquisition closed bringing customer relationships, IP, licenses and talent to accelerate regional expansion.
Reported operating profit was $53 million, and excluding a nonrecurring prior‑period tax adjustment operating profit would be $57 million, representing 25% year‑over‑year growth; adjusted operating profit to gross profit ratio was ~48% excluding the one‑off.
Welcome to dLocal First Quarter 2026 Earnings Conference Call. [Operator Instructions] I will now hand the call over to the company.
Good afternoon, and thank you all for joining our Earnings Call today. If you have not seen the earnings release, as always, a copy is posted in the financial section of the Investor Relations website. On the call today, you have Pedro Arnt, Chief Executive Officer; Guillermo López Pérez, Chief Financial Officer; Christopher Stromeyer, SVP of Corporate Development; and Mirele de Aragao, Head of Investor Relations. A slide presentation has been provided to accompany the prepared remarks. This event is being broadcast live via webcast, and both the webcast and presentation may be accessed through dLocal's website at investor.dlocal.com. The recordings will be available shortly after the event is concluded. Before proceeding, let me mention that any forward-looking statements included in the presentation or mentioned in this conference call are based on currently available information and dLocal's current assumptions, expectations and projections about future events. Whilst the company believes that our assumptions, expectations and projections are reasonable given currently available information, you are cautioned not to place undue reliance on those forward-looking statements.
Actual results may differ materially from those included in dLocal's presentation or discussed in this conference call for a variety of reasons, including those described in the forward-looking statements and Risk Factors section of dLocal's filings with the Securities an...
