DLO - Quick Take - 1Q26 Earnings - 3 TruTakes

Research evidence excerpt

DLO - Quick Take - 1Q26 Earnings - 3 TruTakes

rong, supported by continued TPV

growth across geographies, verticals, and products, and noted that April trends are tracking

well. Importantly, management reiterated that margin pressure in the first half of 2026 has

been expected due to the carryover of prior investment cycles, with operating leverage set 5 Page Document

to improve meaningfully in the second half as expense growth moderates. Below are the

exact guidance details:

Reasons for this report dLocal updated its 2026 outlook and now expects:

1. TPV growth towards to upper end of +50% to +60% YoY, above prior range of +50% ✓ First Look Post Earnings

to +60% YoY and consensus at +55%;

2. Gross profit growth towards to upper end of +22.5% to +27.5% YoY, above prior range

of +22.5% to +27.5% YoY and consensus at +25%; and

3. Operating profit growth of +27.5% to +32.5% YoY, in-line with the prior +27.5% to

+32.5% range and consensus at +30%.

Operating Income / FCF & 1Q Timing Issues. Reported operating income came in slightly

worse than expected ($52mn vs. the Street at $55mn) due to a combination of a one-

time prior period adjustment (~$4mn impact) as well as the timing of headcount growth.

Management indicated that there was some necessary catch up spend that needed to take

place in 2024-1H26, in both product related and engineering roles, and since the end of

2023 dLocal's headcount is up +44%. That said, QoQ headcount growth slowed in 1Q26

(3Q: +5%, 4Q: +5%, 1Q: +2%) and management noted that they expect to have limited

headcount growth throughout the rest of the year. There were also two adverse impacts

on FCF (-$11mn impact from tax credits; -$24mn of higher receivables balances related to

the timing of providing advanced settlement to merchants).