Revenue growth has accelerated sharply to 55.8% year-over-year, but this momentum is accompanied by a significant structural margin erosion, with gross margins compressing from 42.1% in 2024Q3 to 31.8% in 2026Q2.
Dlocal Limited (DLO) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 1.36B | 1.09B | 745.97M | 650.35M | 418.93M | 244.12M | 104.14M | 55.29M |
| Revenue Growth % | 57.03% | 46.6% | 14.7% | 55.24% | 71.61% | 134.41% | 88.36% | - |
| Cost of Goods Sold | 891.07M | 690.83M | 451.3M | 373.49M | 216.76M | 113.68M | 44.06M | 19.41M |
| COGS % of Revenue | - | 63.17% | 60.5% | 57.43% | 51.74% | 46.57% | 42.31% | 35.11% |
| Gross Profit | 464.83M | 402.76M | 294.67M | 276.86M | 202.17M | 130.44M | 60.08M | 35.88M |
| Gross Margin % | 34.28% | 36.83% | 39.5% | 42.57% | 48.26% | 53.43% | 57.69% | 64.89% |
| Gross Profit Growth % | - | 36.68% | 6.43% | 36.95% | 54.98% | 117.12% | 67.46% | - |
| Operating Expenses | 228.42M | 180.65M | 154.17M | 97.2M | 74.26M | 46.6M | 29.13M | 18.31M |
| OpEx % of Revenue | - | 16.52% | 20.67% | 14.95% | 17.73% | 19.09% | 27.97% | 33.12% |
| Selling, General & Admin | 149.75M | 114.96M | 99.16M | 84.17M | 50.46M | 44.15M | 24.7M | 15.92M |
| SG&A % of Revenue | - | 10.51% | 13.29% | 12.94% | 12.05% | 18.09% | 23.72% | 28.8% |
| Research & Development | 41.98M | 30.71M | 25.63M | 12.65M | 6.35M | 3.39M | 2M | 1.35M |
| R&D % of Revenue | - | 2.81% | 3.44% | 1.95% | 1.52% | 1.39% | 1.93% | 2.44% |
| Other Operating Expenses | 3.43M | 34.98M | 29.39M | 379K | 17.45M | -931K | 2.42M | 1.04M |
| Operating Income | 236.41M | 222.1M | 140.5M | 179.66M | 127.91M | 83.84M | 30.95M | 17.56M |
| Operating Margin % | 17.44% | 20.31% | 18.83% | 27.62% | 30.53% | 34.34% | 29.71% | 31.77% |
| Operating Income Growth % | - | 58.08% | -21.8% | 40.46% | 52.57% | 170.93% | 76.18% | - |
| EBITDA | 267.49M | 248.36M | 157.9M | 191.88M | 136.06M | 88.58M | 31.94M | 17.97M |
| EBITDA Margin % | 19.73% | 22.71% | 21.17% | 29.5% | 32.48% | 36.29% | 30.67% | 32.51% |
| EBITDA Growth % | 28.65% | 57.3% | -17.71% | 41.03% | 53.59% | 177.37% | 77.69% | - |
| D&A (Non-Cash Add-back) | 31.08M | 26.26M | 17.39M | 12.22M | 8.15M | 4.75M | 992K | 409K |
| EBIT | 232.13M | 228.91M | 151.52M | 179.09M | 120.46M | 85.64M | 31.44M | 17.85M |
| Net Interest Income | 19.93M | 5.32M | -21.43M | -39.23M | 17.94M | 2.01M | 376K | 187K |
| Interest Income | 33.28M | 26.25M | 28.27M | 49.59M | 18.11M | 2.56M | 443K | 217K |
| Interest Expense | 13.35M | 20.93M | 49.7M | 88.82M | 177K | 544K | 67K | 30K |
| Other Income/Expense | 10.86M | 6.55M | 10.52M | -1.14M | -7.63M | 1.66M | 473K | 259K |
| Pretax Income | 247.26M | 228.65M | 151.02M | 178.51M | 120.28M | 85.5M | 31.42M | 17.82M |
| Pretax Margin % | 18.24% | 20.91% | 20.24% | 27.45% | 28.71% | 35.02% | 30.17% | 32.24% |
| Income Tax | 43.12M | 31.75M | 30.55M | 29.43M | 11.59M | 7.65M | 3.23M | 2.22M |
| Effective Tax Rate % | 17.44% | 13.89% | 20.23% | 16.48% | 9.63% | 8.94% | 10.28% | 12.46% |
| Net Income | 203.97M | 196.8M | 120.42M | 148.96M | 108.68M | 77.88M | 28.18M | 15.6M |
| Net Margin % | 15.04% | 18% | 16.14% | 22.91% | 25.94% | 31.9% | 27.06% | 28.22% |
| Net Income Growth % | 39.8% | 63.43% | -19.16% | 37.06% | 39.56% | 176.31% | 80.64% | - |
| Net Income (Continuing) | 204.14M | 196.9M | 120.47M | 149.09M | 108.7M | 77.85M | 28.19M | 15.6M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 269K | 168K | 100K | 109K | -9K | -18K | -4K | 166K |
| EPS (Diluted) | 0.69 | 0.67 | 0.39 | 0.49 | 0.37 | 0.26 | 0.10 | 0.05 |
| EPS Growth % | 41.55% | 71.79% | -20.41% | 32.43% | 42.31% | 170.27% | 80.49% | - |
| EPS (Basic) | - | 0.67 | 0.39 | 0.51 | 0.37 | 0.26 | 0.10 | 0.05 |
| Diluted Shares Outstanding | 295.87M | 294.93M | 305.14M | 302.96M | 296.03M | 295.03M | 292.92M | 292.92M |
| Basic Shares Outstanding | 295.87M | 294.93M | 308.76M | 291.98M | 296.03M | 295.03M | 292.92M | 292.92M |
| Dividend Payout Ratio | - | 76.21% | - | - | - | - | 53.22% | 64.09% |
Quick answers to the most common questions about buying DLO stock.
For fiscal year 2025, Dlocal Limited (DLO) reported total revenue of $1.09B. This represents a 1877.9% increase compared to $55.3M in 2019.
Dlocal Limited (DLO) is profitable, generating $196.8M in net income for the fiscal year ending 2025 with a net profit margin of 18.0%.
Dlocal Limited (DLO) reported an operating income of $222.1M, resulting in an operating profit margin of 20.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Dlocal Limited (DLO) generated $402.8M in gross profit for the year, representing a gross profit margin of 36.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin compression from merchant mix shift
Robust Growth Acceleration
Dlocal's revenue growth has accelerated sharply, reaching 55.8% year-over-year in the latest quarter, a significant acceleration from the 8.8% growth seen in 2024Q4, indicating strong momentum in its core emerging market transaction volumes.
The acceleration from single-digit growth in late 2024 to over 50% in recent quarters suggests successful execution on geographic expansion and deeper penetration with global merchants. This growth appears to be driven by volume increases in Total Payment Volume (TPV) rather than pricing, as evidenced by concurrent margin pressure. The durability of this growth rate is a key question, as it may partially reflect a recovery from a slower period and the lapping of easier year-over-year comparisons.
Structural Margin Erosion
Gross margins have compressed significantly from a peak of 42.1% in 2024Q3 to 31.8% in 2026Q2, a trend that appears to be driven by a mix shift toward larger, lower-margin global merchants and increased processing costs.
The 1,030 basis point decline in gross margin over eight quarters is a material structural shift, not a cyclical fluctuation. This suggests that as Dlocal scales with Tier-1 global clients, its pricing power diminishes, and it must share a larger portion of the transaction value with underlying financial infrastructure. The operating margin has also compressed, from 22.1% to 16.1%, indicating that operating leverage has not fully offset the gross margin headwinds, raising questions about the long-term profitability profile of the current growth strategy.
Operating Leverage Under Pressure
Despite revenue growing 55.8% year-over-year in 2026Q2, operating income grew only 43.4%, indicating that operating leverage is currently negative as cost growth outpaces revenue expansion.
The disconnect between top-line growth and operating income growth is a critical inflection point. SG&A expenses have risen substantially in absolute terms, particularly in 2026Q1 and Q2, suggesting significant investment in sales, geographic expansion, and potentially the new leadership structure. This implies that the company is in a phase of prioritizing market share capture over near-term operating efficiency, which may pressure profitability until the new revenue base matures.
Volatile EPS and SBC Impact
Diluted EPS has been highly volatile, swinging from $0.06 to $0.19 over the past ten quarters, with stock-based compensation (SBC) representing a meaningful non-cash expense that has varied from $0 to $6.8M per quarter.
The erratic EPS trajectory, including a -50.0% decline in 2024Q1 and a 150.0% increase in 2025Q1, suggests that reported earnings are heavily influenced by non-operating items, tax rate fluctuations, and the timing of SBC grants. The reappearance of significant SBC in recent quarters after periods of zero expense introduces a recurring non-cash charge that dilutes the quality of net income. Investors should adjust for these items to assess the underlying cash earnings power of the business.
Cost Discipline Eroding
Cost of services has grown at a compound annual rate far exceeding revenue growth, with the COGS-to-Revenue ratio increasing from 65.9% in 2024Q1 to 68.2% in 2026Q2, indicating diminishing cost discipline.
The primary cost line, COGS, is expanding faster than revenue, which is the direct driver of gross margin compression. This suggests that the variable costs associated with processing transactions—interchange fees, local bank charges, and compliance costs—are rising as a percentage of volume, likely due to the mix shift toward more complex or lower-margin payment methods and geographies. Concurrently, SG&A has shown less discipline, with a sharp spike in 2026Q1, indicating that overhead efficiency is not currently a management priority.
Growth at the Expense of Profitability
The strongest bear case is that Dlocal's impressive revenue acceleration is being purchased with unsustainable margin concessions, creating a business that grows larger but less profitable over time.
The data shows a clear inverse relationship: as revenue growth accelerated from 8.8% to 55.8%, gross margin fell from 40.9% to 31.8%. This suggests the company is winning business by offering aggressive pricing to large global merchants, effectively commoditizing its core offering. If this trend continues, Dlocal risks becoming a high-volume, low-margin processor, undermining the investment thesis that its regulatory moat translates into durable pricing power. The lack of formal guidance further obscures whether management views this margin trajectory as temporary or structural.