DLocal Limited (DLO) Presents at Goldman Sachs Communacopia + Technology Conference 2026 Transcript

DLocal reported strong second-quarter transaction-processing-volume growth of more than 90%, exceeding expectations. CEO Pedro Arnt said growth was broad-based across merchant verticals and most markets, supported by increasing wallet share from large global enterprise clients that are making DLocal one of their top three to four global payment-service providers. The commentary points to continued momentum from prior infrastructure and merchant-acquisition investments, although no formal forward financial guidance was provided in the excerpt.

Analysis

The investable question is not volume momentum but whether DLO can convert merchant concentration and higher share-of-wallet into durable gross-profit growth. As enterprise merchants route more payment flows through DLO, the company gains operating leverage and better local-payment-method data, but bargaining power can shift toward those same large customers; TPV can remain strong while take rate and net revenue yield compress. The next earnings release should therefore be judged on revenue growth relative to TPV, gross margin, customer concentration, and FX-neutral EBITDA—not on payment volume alone.

Competitive pressure is likely asymmetric. DLO's local-market infrastructure is most valuable where Adyen (ADYEN), PayPal (PYPL), and Stripe face fragmented payout, FX, and alternative-payment-method complexity; success in these corridors could make DLO a credible multi-region vendor rather than a niche LatAm processor. Conversely, MercadoLibre (MELI), Nubank (NU), and local acquirers retain structural advantages where merchants prioritize domestic distribution or proprietary wallets, limiting DLO's ability to monetize local volume at cross-border economics.

Near term, the conference commentary can support sentiment, but it is not independently verifiable guidance and the transcript provides no evidence on pricing, retention, or cash conversion. Over 1-3 months, consensus revisions will depend on whether management quantifies the revenue and margin contribution from large merchant ramps. Over 6-18 months, the key structural risk is emerging-market FX and regulatory friction: local-currency volatility can raise settlement costs, impair merchant economics, and expose any mismatch between reported TPV growth and USD revenue/FCF growth.

Key Decisions for Investors

• Maintain a tactical long bias in DLO only into the next earnings report if the stock has not already materially rerated; add on confirmation that revenue growth keeps pace with or exceeds TPV growth and EBITDA margin is stable-to-up. Use a post-results exit if TPV outgrows revenue by a meaningful margin or management cites enterprise pricing concessions.
• Prefer a DLO / PYPL relative-value long-short over an outright fintech beta position for a 3-6 month horizon: DLO has greater upside to emerging-market merchant-routing share gains, while PYPL remains more exposed to mature-market branded-checkout competition. Size modestly because the pair carries substantial FX, duration, and idiosyncratic earnings risk.
• Set a research alert—not a trade—around disclosure of top-customer concentration, net revenue yield, and settlement-float economics. A disclosed large-merchant ramp without associated revenue-yield deterioration would be a bullish catalyst; evidence that a few merchants drive the incremental volume would cap multiple expansion.
• Avoid using GS as a read-through. The conference host relationship has no identifiable earnings sensitivity for Goldman; the relevant catalysts are DLO's own quarterly revenue conversion, margin guidance, and EM currency/regulatory developments.