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DLocal
(NASDAQ:DLO)
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Rating:69Neutral
Price Target:
$14.00
▼(-0.36% Downside)
Action:Downgraded
Date:05/19/26
The score is primarily supported by strong financial quality (profitability, low leverage, healthy cash generation) and a constructive earnings update with record operating metrics and reaffirmed guidance. This is tempered by weak technicals (price below major moving averages and negative MACD) and only moderate valuation support at a ~18.8 P/E, with no dividend yield provided.
Positive Factors
Sustained TPV growth
Extremely strong and sustained TPV growth (six consecutive quarters >50%) indicates durable merchant demand and expanding volume scale. Persistent TPV expansion drives fee revenue, improves take rates via product bundles, and strengthens network effects that underpin long-term competitive advantage and market share gains.
Negative Factors
Gross margin compression
Material decline in gross margins versus historical levels suggests structural pressure from pricing, higher costs, or a shift toward lower-monetization payment methods and markets. Sustained margin compression would erode operating-profit convertibility of revenue and limit long-term cash generation unless offset by scale, pricing power, or product-led margin improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained TPV growth
Extremely strong and sustained TPV growth (six consecutive quarters >50%) indicates durable merchant demand and expanding volume scale. Persistent TPV expansion drives fee revenue, improves take rates via product bundles, and strengthens network effects that underpin long-term competitive advantage and market share gains.
Read all positive factors
DLocal Key Performance Indicators (KPIs)
Any
Net Revenue Retention Rate
Indicates how much revenue growth or loss occurs from existing customers, highlighting customer satisfaction, retention, and upsell opportunities.
Indicates how much revenue growth or loss occurs from existing customers, highlighting customer satisfaction, retention, and upsell opportunities.
Data provided by:
The Fly
The FlyDLocal (DLO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.83B
Dividend YieldN/A
Average Volume (3M)2.71M
Price to Earnings (P/E)19.6
Beta (1Y)1.49
Revenue Growth46.60%
EPS Growth66.04%
CountryUS
Employees1,274
SectorTechnology
Sector Strength88
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.66
Shares Outstanding165,877,760
10 Day Avg. Volume2,092,049
30 Day Avg. Volume2,709,217
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)7.33
Price to Sales (P/S)3.81
P/FCF Ratio9.89
Enterprise Value/Market Cap0.76
Enterprise Value/Revenue2.41
Enterprise Value/Gross Profit6.70
Enterprise Value/Ebitda11.15
Forecast
1Y Price Target
$16.90Price Target Upside20.28% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.83
Revenue Forecast (FY)$1.53B
DLocal Business Overview & Revenue Model
Company Description
DLocal Limited, together with its subsidiaries, provides payment processing services worldwide. The company offers a robust pay-in solution to help global merchants expand their online presence and receive payments, including international and loc...
How the Company Makes Money
dLocal primarily makes money by charging fees for processing and facilitating payment flows on its platform. Its key revenue streams include: (1) Collections (pay-ins): fees earned when global merchants accept payments from consumers in local mark...
DLocal Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Positive
The call presented a robust growth narrative with multiple record metrics—TPV up 73% YoY and record gross profit—broad geographic and vertical expansion, improving diversification (Africa & Asia growth) and strong underlying cash generation. Negative items were mostly temporary or one‑off: a $9.7 million prior‑period tax adjustment, elevated operating expenses from a recent investment cycle and short‑term working capital headwinds. Management reiterated unchanged full‑year guidance and outlined corrective measures (hiring freeze, automation, moderation of investments) to restore operating leverage in H2. Overall, positive operational momentum and scalable foundations outweigh the transitory financial headwinds.Positive Updates
Record TPV and Sustained High Growth
Total payment volume (TPV) reached $14.1 billion in Q1 FY2026, up 73% year‑over‑year and 7% quarter‑over‑quarter; this was the sixth consecutive quarter with TPV growth above 50% and the company reported LTM TPV of ~$47 billion.
Negative Updates
Nonrecurring Prior‑Period Tax Adjustment
Company booked a one‑off tax adjustment of $9.7 million (approximately $5.3 million in corporate tax and $4.4 million in operating expenses), which elevated the reported effective tax rate to ~26% and reduced reported operating profit and net income for the quarter.
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Q1-2026 Updates
Positive
Negative
Record TPV and Sustained High Growth
Total payment volume (TPV) reached $14.1 billion in Q1 FY2026, up 73% year‑over‑year and 7% quarter‑over‑quarter; this was the sixth consecutive quarter with TPV growth above 50% and the company reported LTM TPV of ~$47 billion.
Read all positive updates
Company Guidance
dLocal reiterated that its full‑year 2026 guidance is unchanged while highlighting strong Q1 momentum: TPV of $14.1 billion (up 73% year‑over‑year and 7% quarter‑over‑quarter, the sixth consecutive quarter above 50% growth) and record gross profit of $119 million (+40% YoY, +2% QoQ). Reported operating profit was $53 million (or $57 million excluding a $9.7 million prior‑period tax adjustment — ~$5.3M in corporate tax and ~$4.4M booked to OpEx), which represents ~25% YoY growth and a 48% operating‑profit‑to‑gross‑profit ratio on an adjusted basis; reported net income was $42 million ($52 million excl. the one‑off, ≈11% YoY). Operating expenses were $62 million excluding the out‑of‑period item (+58% YoY, +16% QoQ), and management reiterated that elevated OpEx from the 2024–25 investment cycle is most visible in H1 and should moderate with operating leverage improving in H2. Cash flow from operations before working capital changes was $69.3 million (≈+10% YoY), adjusted free cash flow was temporarily affected by working capital timing (expected to reverse over coming quarters), and the company does not expect material additional prior‑period adjustments while continuing to update guidance only twice yearly.DLocal Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.21B | 1.09B | 745.97M | 650.35M | 418.93M | 244.12M |
| Gross Profit | 436.56M | 402.76M | 294.67M | 276.86M | 202.17M | 130.44M |
| EBITDA | 262.55M | 255.17M | 168.91M | 191.32M | 128.61M | 90.39M |
| Net Income | 192.15M | 196.80M | 120.42M | 148.96M | 108.68M | 77.88M |
Balance Sheet | ||||||
| Total Assets | 1.83B | 1.54B | 1.17B | 1.08B | 826.30M | 583.01M |
| Cash, Cash Equivalents and Short-Term Investments | 913.60M | 548.10M | 566.11M | 638.84M | 513.20M | 228.92M |
| Total Debt | 2.76M | 90.28M | 54.45M | 3.96M | 4.08M | 8.94M |
| Total Liabilities | 1.27B | 971.53M | 682.34M | 629.31M | 426.68M | 302.71M |
| Stockholders Equity | 553.13M | 569.26M | 488.89M | 455.03M | 399.63M | 280.32M |
Cash Flow | ||||||
| Free Cash Flow | 399.51M | 421.87M | -55.43M | 275.23M | 167.26M | 60.47M |
| Operating Cash Flow | 418.53M | 424.15M | -32.78M | 293.45M | 168.25M | 108.49M |
| Investing Cash Flow | 6.33M | -20.94M | -17.75M | -84.67M | -13.34M | -37.94M |
| Financing Cash Flow | -116.20M | -103.52M | -68.59M | -133.87M | -23.48M | 153.75M |
DLocal Technical Analysis
Positive
14.05
Price Trends
12.47
Positive
12.39
Positive
13.17
Negative
Market Momentum
0.08
Negative
56.61
Neutral
51.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DLO, the sentiment is Positive. The current price of 14.05 is above the 20-day moving average (MA) of 12.22, above the 50-day MA of 12.47, and above the 200-day MA of 13.17, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 56.61 is Neutral, neither overbought nor oversold. The STOCH value of 51.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DLO.
DLocal Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $2.41B | 35.34 | 10.01% | ― | 7.19% | -36.03% | |
70 Outperform | $4.72B | 44.67 | 12.66% | ― | 27.27% | ― | |
69 Neutral | $3.83B | 19.61 | 37.04% | ― | 46.60% | 66.04% | |
64 Neutral | $2.51B | 6.34 | 14.62% | 1.40% | 8.43% | 10.81% | |
62 Neutral | $2.79B | 9.72 | 24.04% | ― | 7.22% | 6.31% | |
62 Neutral | $2.64B | 4.13 | 29.41% | ― | -33.91% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
DLO
DLocal
13.00
1.99
18.08%
EEFT
Euronet Worldwide
73.19
-30.80
-29.62%
PAGS
Pagseguro Digital
9.05
0.16
1.79%
STNE
Stoneco
10.84
-2.49
-18.70%
PAYO
Payoneer
7.12
0.23
3.34%
RELY
Remitly Global
22.41
3.95
21.40%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.