dLocal Reports Record TPV and Dividend in Q1 2026, Legal Win, Despite Lower Reported Net Income and FCF
DLO sits 25% above its 52-week low of $9.75 on elevated volume (1.9× avg).
Summary
dLocal announced Q1 2026 results featuring record TPV and strong revenue growth, alongside a dividend declaration and a favorable legal outcome, though reported net income declined and free cash flow was significantly lower due to temporary factors.
Key Events · Earnings and Guidance · DLO
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Record TPV and Strong Revenue Growth
Total Payment Volume (TPV) reached a record $14.1 billion, up 73% year-over-year, and revenue increased 55% to $335.9 million, demonstrating continued business expansion.
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Mixed Profitability with One-Off Adjustment
Reported net income declined 10% to $41.9 million. However, excluding a one-off $9.7 million prior-periods tax adjustment, net income would have been $51.6 million, an 11% increase year-over-year.
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Reduced Free Cash Flow
Adjusted Free Cash Flow decreased significantly by 63% year-over-year to $14.7 million, primarily due to temporary working capital effects expected to normalize in upcoming quarters.
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Dividend Declared and Share Repurchase Ongoing
The company declared a cash dividend of $57.2 million ($0.1939 per share) and repurchased $10.1 million in shares under its existing $300 million program.
Analysis · DLO · Trade & Services
dLocal reported strong top-line growth in Q1 2026, with Total Payment Volume (TPV) reaching a record $14.1 billion, up 73% year-over-year, and revenue increasing 55% to $335.9 million. However, reported net income declined 10% to $41.9 million. Excluding a one-off prior-periods tax adjustment of $9.7 million, net income would have been $51.6 million, an 11% increase year-over-year. Adjusted Free Cash Flow significantly decreased by 63% to $14.7 million, attributed to temporary working capital effects expected to normalize. The company declared a cash dividend of $57.2 million ($0.1939 per share) and continued its share repurchase program, buying back $10.1 million in shares. Additionally, a New York state class action lawsuit against dLocal was dismissed, with the decision affirmed on appeal, reducing a significant legal overhang. The company's 2026 guidance remains unchanged, indicating management's confidence in future performance despite the mixed Q1 results.
At the time of this filing, DLO was trading at $12.23 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $3.7B. The 52-week trading range was $9.75 to $16.78. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.