Dlocal Limited (DLO)
NASDAQ:DLO
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DLocal
(NASDAQ:DLO)
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Rating:73Outperform
Price Target:
$14.00
▼(-0.36% Downside)
Action:ReiteratedDate:03/24/26
The score is driven primarily by strong fundamentals (growth, profitability, and low leverage) and a constructive earnings outlook with clear guidance and capital-return plans. This is tempered by mixed technical momentum (below key longer-term moving averages with negative MACD) and some fundamental watch items around margin pressure and cash-flow consistency.
Positive Factors
Multi-year revenue growth & scale
Sustained, large-scale revenue expansion shows the business model works across many corridors and merchants. Scale drives network effects, better routing economics, and stronger bargaining power with banks/processors, supporting durable margin recovery and product investment.
Negative Factors
Margin compression risk
As TPV expands, lower take-rates from large merchants, product mix shifts, and competitive pricing can compress gross margins. Sustained margin decline would reduce operating leverage and ROIC, forcing higher growth to maintain absolute profit and cash generation levels.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year revenue growth & scale
Sustained, large-scale revenue expansion shows the business model works across many corridors and merchants. Scale drives network effects, better routing economics, and stronger bargaining power with banks/processors, supporting durable margin recovery and product investment.
Read all positive factors
DLocal (DLO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.76B
Dividend YieldN/A
Average Volume (3M)1.59M
Price to Earnings (P/E)18.8
Beta (1Y)1.34
Revenue Growth22.02%
EPS Growth12.42%
CountryUS
Employees1,095
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.20
Shares Outstanding165,877,760
10 Day Avg. Volume2,127,550
30 Day Avg. Volume1,588,135
Financial Highlights & Ratios
PEG Ratio0.30
Price to Book (P/B)7.33
Price to Sales (P/S)3.81
P/FCF Ratio9.89
Enterprise Value/Market Cap0.82
Enterprise Value/Revenue2.81
Enterprise Value/Gross Profit7.63
Enterprise Value/Ebitda11.25
Forecast
1Y Price Target
$16.75Price Target Upside19.22% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.85
Revenue Forecast (FY)$1.49B
DLocal Business Overview & Revenue Model
Company Description
DLocal 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 ...
How the Company Makes Money
DLocal generates revenue primarily through transaction fees charged to merchants for processing payments. When a transaction is completed, DLocal takes a percentage of the total amount as a service fee. Additionally, the company may earn revenue f...
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 Earnings Call Summary
Earnings Call Date:Mar 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial story: exceptional TPV growth, a first-time $1B+ revenue milestone, robust cash generation, expanding product capabilities and disciplined capital returns. The company also acknowledged short-term headwinds — FX volatility in Argentina, margin pressure from rapid scale and a temporary OpEx overhang from recent hiring — and noted that new products (stablecoins, BNPL, card-present) are early-stage and not yet material. Management provided confident 2026 guidance with operating leverage expected in H2 and emphasized execution and macro/FX as primary risks.Positive Updates
Record TPV and Strong Volume Growth
Total Payment Volume (TPV) reached $41.0B for FY2025, up 60% year-over-year; Q4 TPV was $13.0B, up 70% YoY and 26% QoQ. TPV CAGR from 2020–2025 was 82%.
Negative Updates
Argentina FX Volatility Impacting Gross Profit
Argentina was a primary drag in Q4: while volumes grew strongly, higher costs driven by election-related FX and rate volatility held back gross profit in the country.
Read all updates
Q4-2025 Updates
Positive
Negative
Record TPV and Strong Volume Growth
Total Payment Volume (TPV) reached $41.0B for FY2025, up 60% year-over-year; Q4 TPV was $13.0B, up 70% YoY and 26% QoQ. TPV CAGR from 2020–2025 was 82%.
Read all positive updates
Company Guidance
dLocal guided 2026 to continued strong growth with TPV up 50–60% year‑over‑year, gross profit growth of 22.5–27.5% YoY (midpoint implying roughly $0.5 billion in gross profit dollars) and operating profit growth of 27.5–32.5% YoY, with operating leverage expected to materialize more in H2 as 2025 hires annualize; the company confirmed a dividend policy of 30% of prior‑year adjusted free cash flow (translating to $57 million) and approved a share‑repurchase program of up to $300 million, citing 2025 cash generation (adjusted FCF $191M, ~97% full‑year conversion; Q4 adj. FCF $65M, 117% conversion) and minimal debt as support for the plan while noting FX volatility and execution on large merchant rollouts as key risks.DLocal Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
85
Very Positive
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.09B | 745.97M | 650.35M | 418.93M | 244.12M |
| Gross Profit | 401.71M | 294.67M | 276.86M | 202.17M | 130.44M |
| EBITDA | 255.44M | 168.91M | 191.32M | 128.61M | 90.39M |
| Net Income | 196.80M | 120.42M | 148.96M | 108.68M | 77.88M |
Balance Sheet | |||||
| Total Assets | 1.54B | 1.17B | 1.08B | 826.30M | 583.01M |
| Cash, Cash Equivalents and Short-Term Investments | 824.07M | 566.11M | 638.84M | 513.20M | 228.92M |
| Total Debt | 90.28M | 54.45M | 3.96M | 4.08M | 8.94M |
| Total Liabilities | 971.53M | 682.34M | 629.31M | 426.68M | 302.71M |
| Stockholders Equity | 569.26M | 488.89M | 455.03M | 399.63M | 280.32M |
Cash Flow | |||||
| Free Cash Flow | 421.87M | -55.43M | 275.23M | 167.26M | 60.47M |
| Operating Cash Flow | 424.15M | -32.78M | 293.45M | 168.25M | 108.49M |
| Investing Cash Flow | -20.94M | -17.75M | -84.67M | -13.34M | -37.94M |
| Financing Cash Flow | -103.52M | -68.59M | -133.87M | -23.48M | 153.75M |
DLocal Technical Analysis
Positive
14.05
Price Trends
12.65
Positive
13.25
Negative
13.18
Negative
Market Momentum
0.08
Negative
53.28
Neutral
47.31
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 12.65, and above the 200-day MA of 13.18, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 53.28 is Neutral, neither overbought nor oversold. The STOCH value of 47.31 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.76B | 18.77 | 38.09% | ― | 22.02% | 12.42% | |
71 Outperform | $1.70B | 27.73 | 9.84% | ― | 10.58% | -45.52% | |
68 Neutral | $2.61B | 11.26 | 23.78% | ― | 7.25% | -1.12% | |
65 Neutral | $3.41B | 41.81 | 8.61% | ― | 31.27% | ― | |
64 Neutral | $3.09B | 7.50 | 14.40% | 1.40% | 0.58% | 5.76% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
50 Neutral | $3.87B | 9.51 | 19.67% | ― | -25.51% | -139.31% |
* Technology Sector Average
DLO
DLocal
12.74
5.23
69.64%
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66.25
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PAYO
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4.81
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RELY
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16.02
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-14.10%
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.