dLocal Posts 16% QoQ Gross Profit Gain, Expands to 60+ Countries
DLO•dLocal reported 16% quarter-on-quarter gross profit growth in Africa and Asia alongside strong volume recovery in Argentina, offsetting seasonal declines in Brazil. The firm expanded into 60+ countries, closed an African asset transaction adding IP and talent, and initiated a hiring freeze to improve operating leverage in H2.
1. Q1 Profit Drivers
dLocal’s gross profit rose by 16% quarter-on-quarter in Africa and Asia, fueled by volume growth and reduced funding costs in Argentina recovering from Q4 weakness. Brazil recorded strong year-on-year growth despite seasonal headwinds, underpinning overall Q1 performance.
2. Geographic Expansion and Asset Transaction
The company extended operations to more than 60 countries, entering Algeria, Qatar, Kuwait and Oman. A strategic African asset transaction added customer relationships, intellectual property, licenses and key talent, enhancing dLocal’s regional capabilities.
3. Cost Management and Operating Leverage Outlook
Operating expenses in Q1 reflected the full impact of the 2025 investment cycle, leading to slightly higher costs. Management implemented a hiring freeze for the remainder of the year and expects operating leverage to improve in H2 as expense drivers moderate.
4. Vertical Expansion and Product Pipeline
dLocal secured large travel sector wins with a solid pipeline and is developing gaming vertical capabilities. A Card-Present payment solution is slated for launch in the second half of the year, broadening the company’s total addressable market.
