DLocal (DLO) AI Stock Analysis

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DLocal

(NASDAQ:DLO)

Select Model

Outperform 73 (OpenAI - 4o)

Rating:73Outperform

Price Target:

$13.50

▲(2.74% Upside)

DLocal's strong financial performance and positive earnings call sentiment are significant strengths, driving a high score. However, technical indicators suggest bearish momentum, and the valuation is moderate, which tempers the overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for DLocal's services and effective market penetration, supporting long-term business expansion.

Strategic Partnerships

The strategic alliance with Western Union enhances DLocal's market reach and service offerings, potentially driving sustained growth in Latin America.

Market Position

Record TPV and gross profit underscore DLocal's strong market position and ability to capture significant transaction volumes, ensuring competitive advantage.

Negative Factors

Margin Pressures

Margin pressures from tariffs in Mexico could affect profitability, indicating potential vulnerabilities in cost management and pricing strategy.

Challenges in Key Markets

Economic volatility in Argentina presents risks to DLocal's operations, potentially impacting revenue and profit margins in this key market.

Cash Conversion Efficiency

Low cash conversion efficiency suggests challenges in converting income into cash, which could constrain liquidity and investment capacity.

DLocal (DLO) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$3.94B

Dividend YieldN/A

Average Volume (3M)2.40M

Price to Earnings (P/E)25.9

Beta (1Y)1.22

Revenue Growth22.02%

EPS Growth12.42%

CountryUS

Employees1,095

SectorTechnology

Sector Strength88

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)0.20

Shares Outstanding165,673,370

10 Day Avg. Volume1,848,136

30 Day Avg. Volume2,404,027

Financial Highlights & Ratios

PEG Ratio-1.23

Price to Book (P/B)7.11

Price to Sales (P/S)4.66

P/FCF Ratio-100.80

Enterprise Value/Market Cap0.00

Enterprise Value/Revenue0.00

Enterprise Value/Gross Profit0.00

Enterprise Value/Ebitda0.00

Forecast

1Y Price Target

$17.25

Price Target Upside31.28% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering5

EPS Forecast (FY)0.67

Revenue Forecast (FY)$1.04B

DLocal Business Overview & Revenue Model

Company DescriptionDLocal Limited operates a payments platform in the United States, Europe, China, and internationally. Its payments platform enables merchants to get paid and to make payments online. The company serves commerce, streaming, ride-hailing, financial services, advertising, software as a service, travel, e-learning, on-demand delivery, gaming, and crypto industries. DLocal Limited was founded in 2016 and is headquartered in Montevideo, Uruguay.

How the Company Makes MoneyDLocal generates revenue primarily through transaction fees charged to merchants for processing payments. This includes fees for both incoming transactions (when customers make payments) and outgoing transactions (when merchants make payouts to users). In addition to these transaction fees, DLocal may earn revenue from value-added services such as fraud prevention tools, currency conversion, and analytics services provided to merchants. Significant partnerships with local banks and financial institutions enhance DLocal's service offerings and expand its reach in various regions, thereby contributing to its revenue growth.

DLocal Key Performance Indicators (KPIs)

Any

Net Revenue Retention Rate

Net Revenue Retention Rate
Indicates how much revenue growth or loss occurs from existing customers, highlighting customer satisfaction, retention, and upsell opportunities.

Chart InsightsdLocal's Net Revenue Retention Rate has shown volatility, with a significant drop from 2023 to mid-2024, but a recovery trend is visible by mid-2025. This aligns with the company's strategic expansions and record-breaking growth in TPV and revenue, as highlighted in their latest earnings call. Despite challenges like the Argentine peso devaluation and potential regulatory risks, the company's operational efficiency and geographic diversification are driving a positive outlook, suggesting potential for sustained improvement in retention rates.

Data provided by:

The Fly

DLocal Earnings Call Summary

Earnings Call Date:Nov 12, 2025

(Q3-2025)

% Change Since: |

Next Earnings Date:Mar 16, 2026

Earnings Call Sentiment Positive

The earnings call highlighted strong growth and record-setting financial performance, particularly in TPV and gross profit. However, challenges remain in specific markets like Argentina, Mexico, and Egypt. Overall, despite these challenges, the company demonstrated robust financial health and strategic growth initiatives.

Q3-2025 Updates

Positive Updates

Record TPV and Gross Profit

TPV exceeded $10 billion for the first time, and gross profit surpassed $100 million, indicating strong growth and diversification. TPV grew nearly 60% year-over-year in dollars and 66% on a constant currency basis.

Strong Net Income Growth

Net income grew significantly due to lower finance costs, following a reduction in exposure to Argentine peso-denominated bonds.

Healthy Revenue and Adjusted EBITDA

Revenue was up 52% year-over-year, or 63% on a constant currency basis. Adjusted EBITDA reached $72 million, representing 70% of gross profit.

Expansion of Payment Methods

Launched Buy Now, Pay Later Fuse, now live in 6 countries. APMs-on-file capabilities now cover 27 local payment methods across 16 countries.

Strong Performance Across Emerging Markets

Brazil and Colombia showed strong growth, and significant contributions from emerging markets like Nigeria and Bolivia.

Negative Updates

Challenges in Argentina

Volatile macroeconomic situation in Argentina caused temporary cost pressures and affected gross profit negatively.

Impact of Tariffs in Mexico

There were temporary margin pressures in Mexico due to increased tariffs on imports, affecting TPV growth.

Losses in Egypt

Experienced share of wallet losses in Egypt, which negatively impacted gross profit.

Company Guidance

During the third quarter of 2025, dLocal reported a record TPV (Total Payment Volume) exceeding $10 billion, marking a nearly 60% year-over-year growth in dollars and 66% on a constant currency basis. Gross profit surpassed $100 million, showcasing a 32% year-over-year increase and 36% for the first nine months of 2025. Adjusted EBITDA reached $72 million, representing 70% of the gross profit, and net income grew robustly, aided by reduced finance costs. The company reiterated its guidance, expecting TPV to exceed the high end of previous estimates, with revenue tracking around the upper limit for the year. Gross profit and adjusted EBITDA are projected to be between the midpoint and upper level of guidance. Despite potential risks from global macroeconomic factors and changing fiscal policies in markets like Mexico and Brazil, dLocal remains optimistic about its growth trajectory, citing strong market share and merchant traction. The company's strategic focus includes expanding local payment methods, launching new products like Buy Now, Pay Later solutions, and leveraging stablecoins to enhance its payment infrastructure across emerging markets.

DLocal Financial Statement Overview

Summary

DLocal exhibits strong financial health with robust revenue growth and profitability, supported by a solid balance sheet with minimal leverage. While cash flow metrics have improved, the company should focus on enhancing cash conversion efficiency.

Income Statement

Very Positive

DLocal has demonstrated strong revenue growth with a TTM revenue growth rate of 11.2%, following a significant increase in previous years. The company maintains healthy profitability metrics, with a gross profit margin of 40% and a net profit margin of 16.9% in the TTM. EBIT and EBITDA margins are also robust at 24.5% and 26.8%, respectively. However, there is a slight decline in margins compared to earlier periods, which could indicate increasing costs or competitive pressures.

Balance Sheet

Very Positive

The balance sheet is strong, with a very low debt-to-equity ratio of 0.0087, indicating minimal leverage and financial risk. Return on equity is impressive at 30.1%, reflecting efficient use of equity capital. The equity ratio stands at 35.8%, suggesting a solid capital structure with a good proportion of equity financing.

Cash Flow

Positive

DLocal's cash flow performance shows improvement, with a significant increase in free cash flow growth of 67% in the TTM. The operating cash flow to net income ratio is 0.15, which is relatively low, indicating potential challenges in converting income into cash. The free cash flow to net income ratio is healthier at 0.77, suggesting reasonable cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	960.19M	745.97M	650.35M	418.93M	244.12M	104.14M
Gross Profit	370.66M	294.67M	276.86M	202.17M	130.44M	60.08M
EBITDA	212.83M	168.91M	191.32M	128.61M	90.39M	32.43M
Net Income	170.95M	120.42M	148.96M	108.68M	77.88M	28.18M
Balance Sheet
Total Assets	1.41B	1.17B	1.08B	826.30M	583.01M	200.47M
Cash, Cash Equivalents and Short-Term Investments	699.49M	566.11M	638.84M	513.20M	228.92M	52.00M
Total Debt	3.71M	54.45M	3.96M	4.08M	8.94M	218.00K
Total Liabilities	904.09M	682.34M	629.31M	426.68M	302.71M	155.42M
Stockholders Equity	504.53M	488.89M	455.03M	399.63M	280.32M	45.05M
Cash Flow
Free Cash Flow	151.62M	-55.43M	275.23M	167.26M	60.47M	84.60M
Operating Cash Flow	173.91M	-32.78M	293.45M	168.25M	108.49M	88.49M
Investing Cash Flow	-10.69M	-17.75M	-84.67M	-13.34M	-37.94M	3.65M
Financing Cash Flow	-116.17M	-68.59M	-133.87M	-23.48M	153.75M	-15.20M

DLocal Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price13.14

Price Trends

50DMA

14.18

Negative

100DMA

13.49

Negative

200DMA

11.61

Positive

Market Momentum

MACD

-0.36

Negative

RSI

44.97

Neutral

STOCH

67.59

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DLO, the sentiment is Neutral. The current price of 13.14 is below the 20-day moving average (MA) of 13.36, below the 50-day MA of 14.18, and above the 200-day MA of 11.61, indicating a neutral trend. The MACD of -0.36 indicates Negative momentum. The RSI at 44.97 is Neutral, neither overbought nor oversold. The STOCH value of 67.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DLO.

DLocal Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAGS	80 Outperform	$3.19B	7.49	14.28%	1.25%	0.58%	5.76%
DLO	73 Outperform	$3.94B	25.88	32.78%	―	22.02%	12.42%
PAYO	69 Neutral	$2.04B	30.15	9.79%	―	10.58%	-45.52%
EEFT	66 Neutral	$3.09B	10.70	23.10%	―	7.25%	-1.12%
RELY	66 Neutral	$2.70B	137.99	2.94%	―	31.27%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STNE	51 Neutral	$4.55B	―	-7.53%	―	-25.51%	-139.31%

* Technology Sector Average

Performance Comparison

DLO

DLocal

13.20

2.63

24.88%

EEFT

Euronet Worldwide

74.99

-29.37

-28.14%

PAGS

Pagseguro Digital

10.32

3.16

44.13%

STNE

Stoneco

15.74

6.21

65.16%

PAYO

Payoneer

5.72

-5.13

-47.28%

RELY

Remitly Global

13.31

-7.67

-36.56%

DLocal Corporate Events

DLocal Reports Record Growth in Q3 2025

Nov 13, 2025

DLocal Limited is a technology-first payments platform that connects global enterprise merchants with consumers in emerging markets across Africa, Asia, and Latin America, facilitating local payments through its ‘One dLocal’ platform.

Dlocal Limited’s Earnings Call Highlights Record Growth and Future Optimism

Sep 1, 2025

The recent earnings call for Dlocal Limited painted a picture of strong financial performance and growth, with record-breaking metrics and strategic expansions driving a positive outlook. Despite these achievements, the company acknowledged challenges such as currency devaluation and potential external regulatory risks.

DLocal Reports Strong Q2 2025 Financial Growth

Aug 14, 2025

DLocal Limited is a technology-driven payments platform that facilitates local payments in emerging markets, connecting global merchants with consumers across Africa, Asia, and Latin America. The company recently reported its financial results for the second quarter of 2025, showcasing significant growth and operational achievements.

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.Date of analysis: Nov 21, 2025