In short: #2 on revenue growth: "DLocal: +52.4%." Also 3-yr ROIC 84.3% (sixth on that sort), EPS CAGR 30.1%, gross margin 43.6%, $4.6bn market cap. An emerging-markets payments processor — a name the new developed-countries-only portfolio rule would exclude. Listed only; first mention in this archive.
In short: Volume eats take rate. Q2 revenue +56% Y/Y to $400M ($33M beat) while GAAP EPS $0.18 missed by $0.01. TPV accelerated to +92% — its fastest pace in four years — reaching $17.7B, with net revenue retention improving to 153%, a fifth straight quarter above 140%. But gross profit grew just 29% to $127M because gross profit per dollar of TPV fell to 0.72% (from 1.07% a year ago and 0.84% in Q1): lower-margin local-to-local payments surged 141% to 61% of TPV, and several large merchants reached volume tiers carrying lower pricing. "In other words, dLocal is processing vastly more money but earning less on each dollar." Underneath, operating profit rose 22% sequentially to $64M — 50% of gross profit versus 44% in Q1 — with more leverage expected in H2 as AI automation kicks in and front-loaded marketing rolls off; adjusted free cash flow rebounded to $69M. FY26 TPV growth guidance raised to 60%–70% and gross-profit growth to 25%–30%. Bottom Line: "no stabilization in take-rate compression," but rising gross-profit expectations and improving operating leverage underneath. A disclosed author holding.
dLocal handles payments in emerging markets for global companies — if Netflix or Amazon wants to collect money in Nigeria, Egypt or Argentina using whatever local payment method people actually use, dLocal makes that work. The volume it processes grew 92%, its fastest in four years, to $17.7 billion.
But gross profit grew only 29%, because dLocal earns much less per dollar it moves than it used to: 0.72 cents per dollar of volume, down from 1.07 a year ago. Two reasons — lower-margin "local-to-local" payments (money moving within one country, simpler and cheaper than cross-border) surged 141% and are now 61% of volume, and several big merchants crossed volume thresholds that automatically earn them cheaper pricing. App Economy's summary is blunt: "dLocal is processing vastly more money but earning less on each dollar."
That is a real risk — a business whose unit economics keep compressing has no natural floor. But two things pull the rating back toward positive. Volume is growing so fast that total gross profit still beats expectations, so guidance went up. And costs are behaving: operating profit rose to 50% of gross profit from 44%, with more improvement expected as AI automation lands and front-loaded marketing rolls off. The open question is whether the take rate ever stabilizes.
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