DLocal Smashes Q2 Expectations with Record-Breaking TPV Growth and Improved Operating Leverage
DLocal, a leading payment processor for emerging markets, has announced record-breaking results in its second quarter of 2026. The company's Total Payment Volume (TPV) reached $17.7 billion, marking an impressive 92% year-over-year growth rate, the highest since Q1 2022.
According to Pedro Arnt, CEO of DLocal, this achievement is a testament to the positive returns on investments made in their platform and portfolio of licenses. "The trust merchants place in us as they build and grow across emerging markets reflects the execution on our value proposition," said Arnt. Through a single integration, DLocal's merchants access locally relevant payment methods, local card schemes, and financial infrastructure to operate and grow across more than 60 emerging markets.
The company's net revenue retention rate hit 153%, its fifth straight quarter above 140%. Gross profit reached $127 million, up 29% year-over-year, with an annualized rate of over $500 million. Operating leverage improved significantly, with operating profit as a percentage of gross profit increasing by 6 percentage points to reach 50%. This improvement is expected to continue in the next two quarters as DLocal benefits from the deployment of automations and AI investments.
The TPV growth has remained above 50% year-over-year for seven consecutive quarters, with the last three quarters at above 70%. The pace and scale of this growth will create more demanding comparisons as the company moves through the second half of the year and into 2027. However, it serves as a testament to the trust merchants place in DLocal's platform and expertise.
Today, over 760 leading global merchants trust DLocal, including four of the largest ride-hailing companies operating in emerging markets, five of the top e-commerce platforms, the top video streaming platforms, and seven of the top remittance companies. The company is now serving some of the world's preeminent AI companies and digital asset exchanges.
The trust that these merchants place in DLocal is translating into deeper relationships over time as they add countries, payment methods, and products. Consequently, DLocal's TPV retention rate of 188% this quarter demonstrates the depth of these relationships. Several Tier 0 merchants had significant ramp-ups in some of DLocal's largest markets, such as Brazil and Argentina, demonstrating that the opportunity remains substantial even in more established markets.
The record-breaking results and improved operating leverage position DLocal for continued success in the payment processing industry. As the company continues to execute on its value proposition, it is expected to remain a leader in emerging markets.
