dLocal has reported its Q3 earnings results, in which the Uruguay-based payment processor saw overall revenue rise 41% YoY driving an operating margin of 19%. Despite a share price decline after missing revenue projections, the company has continued to break payment volume records, with total payments volume (TPV) rising by 77% to $18.3bn.
Chart data
| Quarter | Revenue | Operating profit margin |
|---|---|---|
| Q1 22 | $87.5m | 33.3% |
| Q2 22 | $101.2m | 34.7% |
| Q3 22 | $111.9m | 33.3% |
| Q4 22 | $118.4m | 22.4% |
| Q1 23 | $137.3m | 28.7% |
| Q2 23 | $161.1m | 29.6% |
| Q3 23 | $163.9m | 31.4% |
| Q4 23 | $188.0m | 21.8% |
| Q1 24 | $184.4m | 14.6% |
| Q2 24 | $171.3m | 17.6% |
| Q3 24 | $185.8m | 22.1% |
| Q4 24 | $204.5m | 20.7% |
| Q1 25 | $216.8m | 21.1% |
| Q2 25 | $256.5m | 21.7% |
| Q3 25 | $282.5m | 19.7% |
| Q4 25 | $337.9m | 18.6% |
| Q1 26 | $335.9m | 15.7% |
| Q2 26 | $399.7m | 16.1% |
| Q3 26 | $398.0m | 19.1% |
dLocal broke its record for net income, which grew 31% YoY to $68m, while gross profit rose 28% to $132m. However, the company’s net take rate has declined in Q3 2026 to 0.72%, down from 0.99% the previous year. dLocal attributed the change to a shift in the company’s mix, as well as its natural margin dynamics of scaling its volume with merchants, but said this was offset by lower advancement costs and cost recovery in Argentina and cost recovery in Nigeria.
For the full year, dLocal’s ranges have remained unchanged, with the company expecting TPV volume growth towards the upper end of 60-70%, as well as gross profits around the midpoint of 25-30% YoY and operating profit towards the lower end of a 27.5-32.5% range.
Ride-hailing continues to push up local volume share versus cross-border
dLocal saw cross-border volume rise by 32% YoY to $7bn in Q3 2026, however local-to-local volumes rapidly outpaced cross-border, rising by 124% to $11.3bn. This continues a trend for the company, which started in Q4 2025, with local-to-local volumes now almost triple what they were at the start of last year.
Cross-border volume’s overall share of dLocal’s volume has declined from being over half of dLocal’s volumes in Q3 last year to 38% in its latest quarter. Local-to-local volumes overtook cross-border at the end of 2025 and this gap has continued to widen.
Chart data
| Quarter | Cross-border volume | Local-to-local volume | Cross-border volume share |
|---|---|---|---|
| Q1 22 | $1.30bn | $0.80bn | 61.9% |
| Q2 22 | $1.49bn | $0.95bn | 61.1% |
| Q3 22 | $1.54bn | $1.19bn | 56.5% |
| Q4 22 | $1.75bn | $1.55bn | 52.9% |
| Q1 23 | $1.96bn | $1.61bn | 54.8% |
| Q2 23 | $2.22bn | $2.15bn | 50.7% |
| Q3 23 | $2.26bn | $2.36bn | 48.9% |
| Q4 23 | $2.23bn | $2.88bn | 43.7% |
| Q1 24 | $2.43bn | $2.88bn | 45.7% |
| Q2 24 | $2.70bn | $3.33bn | 44.8% |
| Q3 24 | $3.04bn | $3.48bn | 46.6% |
| Q4 24 | $3.74bn | $3.97bn | 48.5% |
| Q1 25 | $4.26bn | $3.85bn | 52.5% |
| Q2 25 | $4.72bn | $4.49bn | 51.2% |
| Q3 25 | $5.32bn | $5.07bn | 51.2% |
| Q4 25 | $5.97bn | $7.13bn | 45.6% |
| Q1 26 | $6.33bn | $7.72bn | 45.1% |
| Q2 26 | $6.88bn | $10.81bn | 38.9% |
| Q3 26 | $7.00bn | $11.34bn | 38.2% |
Driving this gap is the company’s continued growth of its ride-hailing segment, which grew by 230% YoY during the quarter – more than any other segment – with the company seeing sequential growth in Mexico, Brazil, Colombia, South Africa and smaller Latin American markets. According to CFO Guillermo Perez, this growth came from multiple merchants and is mostly local-to-local flows.
dLocal has seen some significant shifts in how its segments are growing versus last year’s period. Travel, on-demand delivery and advertising were the other major growth drivers for volume in Q3 2026, rising by 190%, 162% and 84% respectively. During the same period last year, advertising revenues fell while travel saw relatively small growth versus other segments.
Meanwhile, remittances – by far the company’s fastest growing segment in 2025 – grew 59% in Q3 2026, driven primarily by growth in Latin America. However, this was much slower than 226% growth the same time last year. Financial services, another major segment for dLocal and focused on payouts, grew strongly across several markets in Latin America, Africa and Asia Pacific, rising 42% overall.
Chart data
| Segment | Q3 2025 YoY growth | Q3 2026 YoY growth |
|---|---|---|
| Ride-hailing | 48% | 230% |
| Travel | 10% | 190% |
| On-demand delivery | 58% | 162% |
| Advertising | -33% | 84% |
| Remittances | 226% | 59% |
| SaaS | 53% | 46% |
| E-commerce | 89% | 43% |
| Financial services | 27% | 42% |
| Other | 22% | 37% |
| Streaming | 45% | 21% |
The segmental shifts are also reflected in the company’s pay-in volume mix versus payouts, with pay-ins volume rising by 92% to $13.8bn, while pay-outs rose by 41% to $4.5bn in Q3 2026. This is once again a reversal of Q3 last year, when pay-ins rose by 55% versus 70% for payout growth.
dLocal’s volume grows across regions amid shift in profits
dLocal saw strong growth numbers across its core markets, as well as some mixed profitability results in some regions. Revenue for LatAm markets rose by 38% to $324m during Q3, though it was outpaced by growth in Africa and Asia, which rose by 53% to $74m.
Revenues rose across Argentina, Mexico and Brazil – dLocal’s three major reported markets – with Mexico seeing the highest growth at 64% YoY. However, while gross profit rose by 35% YoY in Brazil and 74% YoY in Argentina, Mexico saw a decline in gross profit by 2% YoY and 17% QoQ, driven by continued processing cost pressure. Brazil also saw a QoQ decline with Other LatAm markets falling by 3% QoQ, contributing to a 2% sequential dip in LatAm’s profits overall, though YoY LatAm markets gross profits rose by 22%.
CEO Pedro Arnt linked the sequential profitability drop in Mexico to its high concentration of large merchants hitting its lowest pricing tiers, affecting the overall take rate for the market. However, he said that the company is addressing the issue and expects to see Mexico improving next year or even in Q4 depending on the upcoming shopping season.
Chart data
| Quarter | Other LatAm | Brazil | Mexico | Argentina | Africa & Asia |
|---|---|---|---|---|---|
| Q1 24 | $34.5m | $43.1m | $34.0m | $13.8m | $59.0m |
| Q2 24 | $40.1m | $42.3m | $35.8m | $20.5m | $32.6m |
| Q3 24 | $47.3m | $32.9m | $38.9m | $26.0m | $40.6m |
| Q4 24 | $53.6m | $33.7m | $40.5m | $25.1m | $51.6m |
| Q1 25 | $63.5m | $34.4m | $36.7m | $28.2m | $53.9m |
| Q2 25 | $78.4m | $47.0m | $45.7m | $31.6m | $53.7m |
| Q3 25 | $88.0m | $58.9m | $45.9m | $41.4m | $48.2m |
| Q4 25 | $92.9m | $66.9m | $54.7m | $59.8m | $63.6m |
| Q1 26 | $87.8m | $57.8m | $55.7m | $61.2m | $73.4m |
| Q2 26 | $92.8m | $90.2m | $74.7m | $68.9m | $73.0m |
| Q3 26 | $94.8m | $90.7m | $75.4m | $63.5m | $73.6m |
| Q3 26 YoY revenue growth | 8% | 54% | 64% | 53% | 53% |
Meanwhile Africa and Asia saw gross profit rise 49% YoY, with TPV hitting a record driven by strong growth in South Africa, Morocco and Turkey. The company has taken steps to expand in Africa in 2026, such as its acquisition of selected assets in Cameroon from AZA Finance earlier in the year.
Arnt said that 2027 will be a year in which the company would build out its payments infrastructure and integrations into payments methods, as well as expanding the team and dLocal’s “go-to-market cadence”. The company noted it had added 11 new local payment methods integrations during the quarter, as well as securing two new money transmitter licences in the US, an anti-money laundering registration in Canada and a remittance authorisation in Tanzania.
dLocal has also continued to grow its focus on automation, with AI investments having already lowered its headcount and spending with third parties, helping to bring down its total operating expenses by 11% QoQ in Q3 2026. As the company continues to grow its volumes, a major focus going into next quarter will be on driving higher revenue from merchants.