dLocal’s local-to-local payment volume rose 141% year over year to $10.8 billion in the second quarter of 2026, while pay-in volume more than doubled to $13.4 billion as ride-hailing, e-commerce, travel, and other digital businesses expanded across emerging markets.
This rapid growth pushed total payment volume to a record $17.7 billion, up 92% from $9.2 billion a year earlier and 26% from $14.1 billion in the first quarter. On a constant-currency basis, total payment volume rose 80% year over year.
Local-to-local transactions have become an increasingly important component of dLocal’s platform. Local-to-local TPV reached $10.8 billion, up from $4.5 billion in the prior-year period and representing 61% of total payment volume. A year earlier, local-to-local payments accounted for 49% of total TPV.
The 141% year-over-year increase was accompanied by 40% sequential growth. dLocal attributed the expansion to existing merchants processing greater amounts through the platform, with high net revenue retention reflecting merchants adding payment capabilities and increasing activity.
Cross-border payment volume also continued to grow, although at a slower pace than local-to-local transactions. Cross-border TPV increased 46% year-over-year and 9% sequentially to approximately $6.9 billion. As a result, cross-border payments represented 39% of Q2 TPV compared with 51% a year earlier.
Pay-ins were another major source of expansion. Pay-in TPV surpassed $13 billion for the first time, reaching approximately $13.4 billion. The figure increased 110% year-over-year and 33% sequentially, with strong performance across ride-hailing, on-demand delivery, e-commerce, travel and SaaS. Brazil and Argentina were particularly important contributors to the sequential increase.
Pay-ins accounted for approximately 76% of total Q2 payment volume, up from 69% a year earlier. Pay-outs increased 51% to approximately $4.3 billion but represented a smaller 24% share of total payment volume compared with 31% in the prior-year quarter.
dLocal’s growth continues to be driven heavily by existing merchants rather than newly acquired customers. Revenue from existing merchants increased 58% year-over-year to $391.7 million, while net revenue retention reached 153%. New merchants generated approximately $8 million of Q2 revenue compared with $8.3 million a year earlier.
The company also reported a TPV retention rate of 188%, reflecting existing merchants expanding across countries, products and payment methods. Several of dLocal’s largest Tier 0 merchants significantly increased activity in Brazil, Mexico and Argentina during the quarter.
dLocal currently serves more than 760 leading global merchants. Its customer base includes four of the largest ride-hailing companies operating in emerging markets, five of the 10 largest e-commerce platforms, the five largest video-streaming platforms and seven of the 10 largest remittance companies.
Revenue increased 56% year-over-year to $399.7 million and rose 19% sequentially. Latin America generated $326.6 million of revenue, increasing 61% from $202.7 million a year earlier and accounting for 82% of total revenue. Africa and Asia revenue increased 36% to $73 million.
Brazil revenue nearly doubled to $90.2 million from $47 million, while Argentina revenue increased to $68.9 million from $31.6 million. Mexico revenue reached $74.7 million compared with $45.7 million in the prior-year period.
Gross profit reached a record $127.2 million, increasing 29% year-over-year and 7% sequentially. Brazil benefited from the ramp-up of ride-hailing and travel merchants along with sustained e-commerce growth, while Argentina saw broad-based growth across e-commerce, ride-hailing and on-demand delivery.
The shift toward larger merchants and local-to-local volume has also changed dLocal’s transaction economics. Gross profit as a percentage of TPV declined to 0.72% from 1.07% a year earlier and 0.84% in Q1. The company attributed the decline to the higher local-to-local mix, the ramp-up of large merchants and expansion into additional payment methods, products and countries.
Despite that mix shift, operating leverage improved sequentially. Operating profit reached $64.2 million, increasing 15% year-over-year and 22% from Q1. Operating profit represented 50% of gross profit, up six percentage points sequentially.
Net income increased 28% year-over-year and 31% sequentially to $54.8 million, or $0.18 per diluted share. Adjusted free cash flow reached $68.5 million, up 41% year-over-year.
Following the strong first-half performance, dLocal raised its 2026 TPV growth outlook to 60% to 70% from 50% to 60% previously. Gross profit growth guidance increased to 25% to 30% from 22.5% to 27.5%, while operating profit growth guidance remained at 27.5% to 32.5%.
KEY QUOTES:
“TPV reached $17.7 billion, accelerating to 92% year-over-year, the highest growth rate since the first quarter of 2022. We processed more in the second quarter than we did in all of 2023.”
“Our net revenue retention was 153%, the fifth straight quarter above 140%, as we continue to deepen our relationships with merchants. Gross profit reached $127 million, up 29% year-over-year, bringing us to an annualized gross profit run rate of more than $500 million.”
“TPV growth has remained above 50% year-over-year for seven consecutive quarters, with the last three quarters at or above 70%. Growth has also accelerated over the past five quarters, reaching its highest year-over-year rate in four years.”
Pedro Arnt, CEO of dLocal
