dLocal Limited (NASDAQ:DLO) shares traded lower in premarket action Friday after the company reported first-quarter results that showed strong revenue and payment-volume growth but a slight earnings miss.

Earnings Snapshot

The company reported first-quarter earnings of 14 cents per share, slightly below analyst estimates of 15 cents per share.

Revenue rose to $335.9 million, topping consensus estimates of $333.1 million, driven by continued expansion across multiple verticals and geographies.

Growth remained broad-based across e-commerce, ride-hailing, on-demand delivery, remittances, travel and gaming, with all segments expanding between the first quarter of 2024 and the first quarter of 2026.

Total Payment Volume increased 73% year over year to $14.1 billion, marking the sixth consecutive quarter with TPV growth above 50%.

Gross profit reached a record $119 million, up 40% from a year earlier, supported by a recovery in Argentina and continued strength across Africa and Asia.

Operating profit totaled $53 million, or $57 million adjusted for a one-time tax item, representing 25% year-over-year growth.

Operating cash flow before working capital changes rose 10% to $69.3 million, reflecting continued underlying cash generation.

Localization Strategy Gains Momentum

dLocal said adoption of local payment rails continued to grow, including mada in Saudi Arabia, Verve in Nigeria and Meeza in Egypt, highlighting the company's localization-focused strategy in emerging markets.

E-commerce remained the company's largest vertical, while ride-hailing now supports four of the five largest global players operating in emerging markets. Remittances also remained among the fastest-growing categories.

Net revenue retention stayed above 140% for a fourth consecutive quarter as merchants expanded into additional markets and adopted more payment methods.

The company reaffirmed confidence in its fiscal 2026 outlook despite near-term margin pressure tied to prior investment cycles. Management expects operating leverage to improve in the second half of the year as those costs normalize.

dLocal Price Action

DLO Price Action: dLocal shares were down 5.98% at $11.90 during premarket trading on Friday, according to Benzinga Pro data.

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