dLocalDLO

The company is scheduled to share its latest quarterly results on August 13. Analysts are looking for earnings of about $0.18 per share on roughly $0.37 billion in revenue.

This will be an important check on whether the company can maintain its growth in total payment volume, which is the total dollar amount of transactions it processes. We will also be watching the take rate, or the small percentage the company keeps from each transaction, to see if it remains steady as the business scales.

See the full quarter, and how our tracked metrics did

Key highlights

• Payment volume surges: The total volume of payments processed jumped 73% to $14.1 billion, marking the sixth consecutive quarter where this metric grew by more than 50%. This rapid scale shows the company is successfully deepening its reach with large merchants even as it expands into more countries.
• Geographic reach broadening: Volume growth in Africa and Asia reached new highs with significant contributions from Nigeria and Vietnam, helping diversify the business away from its original home in Latin America. Gross profit grew 40% to reach $118.7 million, even as the company navigated a shift toward different payment methods and lower profit margins in certain markets.
• Cash flow temporary dip: Free cash flow, which is the cash a company generates after accounting for cash outflows to support operations, dropped 63% to $14.7 million. Management attributed the decline to temporary timing issues with tax credits and higher receivables, and expects these figures to normalize in the coming months.
• Profit hit by tax: Profit was impacted by a $9.7 million one-time tax adjustment related to previous years, though the company does not expect this to happen again. Excluding this charge, operating profit grew 25% to $57.2 million, showing that the core business remains profitable while it funds new investments.
• Full year outlook maintained: The company kept its financial guidance unchanged for the year, signaling confidence in its ability to manage through the current investment cycle. Management expect that the money they get back from their spending, known as operating leverage, will start to improve in the second half of 2026 as recent hiring and tech costs stabilize.

Our take: This was a solid quarter defined by exceptional volume growth that outpaced expectations. While the one-time tax charge and a dip in cash flow created some noise, the core machine is processing more payments than ever across more markets. This strong momentum reinforces our view that the company is effectively scaling its global footprint.