DLocal Q1 TPV Rises 73% to $14.1B, Gross Margin Falls to 35%
DLocal's Q1 TPV reached $14.1B (+73% YoY) and revenue hit $335.9M (+55% YoY), while net income fell 10% to $41.9M (adjusted +11% to $51.6M). Gross margin narrowed to 35% from 39%, OPEX rose 58% to $65.9M and free cash flow dropped 63% to $14.7M.
1. Q1 2026 Financial Results
DLocal posted $14.1B in total payment volume, up 73% year-over-year, and generated $335.9M in revenue, up 55% year-over-year. Net income was $41.9M, down 10% due to a $9.7M prior-period tax adjustment, with adjusted net income rising 11% to $51.6M.
2. Margin Compression and Cost Increases
Gross profit margin narrowed to 35% from 39% as scaling with large merchants and lower-take-rate payment methods weighed on unit economics. Operating expenses climbed 58% to $65.9M after investments ramped at the end of 2025, and adjusted free cash flow fell 63% to $14.7M on working capital timing effects.
3. Cash Position and Full-Year Outlook
DLocal closed the quarter with $451.8M in cash and equivalents and $107M in financial liabilities. Management maintained full-year guidance for 50-60% TPV growth, 22.5-27.5% gross profit growth and 27.5-32.5% operating profit growth.