DLocal: 3 Key Takeaways for Long-Term Investors

On its third quarter of 2026 earnings call, held on Nov. 12, 2026, DLocal (NASDAQ:DLO) announced that total payment volume (TPV), the total dollar value of transactions processed, jumped 77% year over year to $18.3 billion. Higher transaction throughput across emerging markets gives the business greater operating leverage, helping convert top-line activity into profit margin expansion. Three things management said stand out.

1. Automation and AI Investments Are Expanding Operating Leverage

Investments in artificial intelligence and corporate infrastructure are reducing operating expenses (OpEx), the recurring costs of running the business. Headcount dropped sequentially as automation expanded profitability without sacrificing processing volume.

Headcount peaked in the second quarter and declined 3% in the third, while gross profit per employee surpassed $100,000 for the first time, a level we believe is consistent with best-in-class productivity.
-- Pedro Arnt, Chief Executive Officer

2. Geographic Expansion Into Asian Markets Opens a Massive Opportunity

Management is building a footprint across Asia Pacific to address complex local payment rules and payment-method fragmentation for global merchants. This regional build-out offers a path to scale top-line growth over a three- to five-year horizon.

I think for year one, since we've hired a local team and local seniority, think of it more in terms of maybe mid- to high single-digit contribution of top line, but with the potential to scale very quickly if we are successful.
-- Pedro Arnt, Chief Executive Officer

3. Corporate Credit Facilities Support Efficient Holding-Level Share Repurchases

Because local operating cash remains locked in operating subsidiaries to comply with regulatory requirements, management secured a $150 million credit facility. Borrowing at the parent level provides flexible funding for capital returns, such as share repurchases.

And this facility gives us the liquidity at the holding level in a faster and more efficient way for, I would say, general corporate purposes, including obviously buybacks.
-- Guillermo Perez, Chief Financial Officer

Looking Ahead

Transaction processing volume continues to accelerate across emerging markets, pushing top-line activity toward high target ranges despite foreign exchange (FX) conversion headwinds in Latin America.

Strong volume momentum continues to support TPV growth toward the upper end of our 60% to 70% range.
-- Pedro Arnt, Chief Executive Officer

To capture future merchant demand, management relies on deep local relationships and extensive regulatory infrastructure across developing economies.

Having the right licenses both where our merchants are based and where we collect and disburse payments is a critical and difficult to replicate competitive advantage.
-- Pedro Arnt, Chief Executive Officer

The Motley Fool recommends DLocal and recommends the following options: long January 2027 $7 calls on DLocal and short January 2027 $10 calls on DLocal. The Motley Fool has a disclosure policy.