Want to see DLO full AI Analyst Report?
Top Page
DLocal
(NASDAQ:DLO)
Select Model
Select Model
Rating:76Outperform
Price Target:
$17.00
▲(9.47% Upside)
Action:Reiterated
Date:08/18/26
Overall score is driven primarily by solid financial health (especially a very conservative balance sheet) and a strong, guidance-raising earnings update with improving operating leverage and cash generation. Offsetting factors are the multi-year margin compression and cash-flow volatility on the fundamentals side, and a mixed near-term technical setup with weaker short-term momentum. Valuation appears reasonable but not a major catalyst on its own.
Positive Factors
Merchant retention and expansion
Sustained high net revenue and TPV retention indicate that existing merchants are increasing their use of dLocal rather than merely joining the platform. This deepening engagement can support recurring volume growth, improve customer economics, and strengthen the durability of future revenue.
Negative Factors
Margin compression
The multi-year decline in gross and net margins indicates that rapid growth has not translated proportionally into profitability. If this trend persists, dLocal may have less earnings capacity available for reinvestment and could see weaker operating leverage despite strong transaction growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Merchant retention and expansion
Sustained high net revenue and TPV retention indicate that existing merchants are increasing their use of dLocal rather than merely joining the platform. This deepening engagement can support recurring volume growth, improve customer economics, and strengthen the durability of future revenue.
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
$4.25B
Dividend Yield1.31%
Average Volume (3M)1.83M
Price to Earnings (P/E)21.8
Beta (1Y)1.50
Revenue Growth57.03%
EPS Growth38.31%
CountryUS
Employees1,274
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.69
Shares Outstanding165,877,760
10 Day Avg. Volume2,311,374
30 Day Avg. Volume1,830,710
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 Cap0.71
Enterprise Value/Revenue2.22
Enterprise Value/Gross Profit6.48
Enterprise Value/Ebitda11.45
Forecast
1Y Price Target
$18.00Price Target Upside15.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.82
Revenue Forecast (FY)$1.59B
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 on the payment volume it processes for merchants (i.e., it monetizes transactions flowing through its platform). Its core revenue streams generally come from: (1) Pay-ins (payment acceptance): fees ear...
DLocal Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: very high TPV growth (92% YoY), record gross profit, improving operating leverage, raised TPV and gross profit guidance, solid cash generation and active share repurchases. The principal negatives were mix-driven take-rate pressure, region-specific gross profit volatility (Mexico, Africa/Asia), elevated year-over-year operating expenses driven by prior investments and marketing, and tax/FX one-offs and uncertainty. Overall, the positive execution, guidance raises, and clear path to further operating leverage outweigh the identified challenges and one-time headwinds.Positive Updates
Exceptional TPV Growth
Total payment volume (TPV) reached $17.7 billion in Q2, accelerating 92% year-over-year — the highest TPV growth rate since Q1 2022; company processed more in Q2 2026 than all of 2023.
Negative Updates
OpEx Increase Year-over-Year
Total operating expenses were $63 million, up 46% YoY (driven by annualized 2025 investments, higher salaries from merit cycle and senior hires, and elevated marketing spend tied to World Cup and merchant events), though OpEx was down 4% sequentially.
Read all updates
Q2-2026 Updates
Positive
Negative
Exceptional TPV Growth
Total payment volume (TPV) reached $17.7 billion in Q2, accelerating 92% year-over-year — the highest TPV growth rate since Q1 2022; company processed more in Q2 2026 than all of 2023.
Read all positive updates
Company Guidance
dLocal updated its 2026 outlook, raising TPV growth to 60–70% year‑over‑year and gross profit growth to 25–30% year‑over‑year while maintaining operating profit growth guidance of 27.5–32.5% (unchanged due to a $4.4M prior‑year tax item and FX headwinds); this follows Q2 results of $17.7B TPV (up 92% y/y), $127M gross profit (up 29% y/y; annualized >$500M), operating profit equal to 50% of gross profit (up 6 pp q/q), net revenue retention of 153% and TPV retention of 188%, and reflects management’s expectation of further operating‑leverage tailwinds over the next two quarters as AI/automation deployments roll out and front‑loaded first‑semester spending normalizes.DLocal Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.36B | 1.09B | 745.97M | 650.35M | 418.93M | 244.12M |
| Gross Profit | 464.83M | 402.76M | 294.67M | 276.86M | 202.17M | 130.44M |
| EBITDA | 263.22M | 255.17M | 168.91M | 191.32M | 128.61M | 90.39M |
| Net Income | 203.97M | 196.80M | 120.42M | 148.96M | 108.68M | 77.88M |
Balance Sheet | ||||||
| Total Assets | 2.19B | 1.54B | 1.17B | 1.08B | 826.30M | 583.01M |
| Cash, Cash Equivalents and Short-Term Investments | 874.16M | 548.10M | 329.97M | 638.84M | 513.20M | 228.92M |
| Total Debt | 67.37M | 90.28M | 54.45M | 3.96M | 4.08M | 8.94M |
| Total Liabilities | 1.65B | 971.53M | 682.34M | 629.31M | 426.68M | 302.71M |
| Stockholders Equity | 540.25M | 569.26M | 488.89M | 455.03M | 399.63M | 280.32M |
Cash Flow | ||||||
| Free Cash Flow | 423.77M | 421.87M | -55.43M | 275.23M | 167.26M | 60.47M |
| Operating Cash Flow | 434.59M | 424.15M | -32.78M | 293.45M | 168.25M | 108.49M |
| Investing Cash Flow | 30.75M | -20.94M | -17.75M | -84.67M | -13.34M | -37.94M |
| Financing Cash Flow | -139.56M | -103.52M | -68.59M | -133.87M | -23.48M | 153.75M |
DLocal Technical Analysis
Positive
15.53
Price Trends
14.66
Positive
14.22
Positive
13.46
Positive
Market Momentum
0.15
Negative
55.64
Neutral
62.66
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 15.53 is above the 20-day moving average (MA) of 14.62, above the 50-day MA of 14.66, and above the 200-day MA of 13.46, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 55.64 is Neutral, neither overbought nor oversold. The STOCH value of 62.66 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $5.25B | 17.09 | 32.97% | ― | 23.79% | 1992.92% | |
76 Outperform | $4.25B | 21.83 | 37.65% | 1.31% | 57.03% | 38.31% | |
71 Outperform | $2.42B | 50.64 | 7.27% | ― | 6.31% | -48.91% | |
66 Neutral | $2.45B | 9.05 | 23.02% | ― | 5.76% | -3.78% | |
66 Neutral | $3.06B | 61.12 | 5.65% | ― | 32.44% | -78.82% | |
65 Neutral | $2.79B | 4.33 | 29.69% | 20.70% | -29.50% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
DLO
DLocal
15.06
-0.06
-0.43%
EEFT
Euronet Worldwide
65.59
-14.97
-18.58%
STNE
Stoneco
11.48
-4.54
-28.33%
FOUR
Shift4 Payments
38.79
-37.97
-49.47%
PAYO
Payoneer
7.15
0.96
15.51%
RELY
Remitly Global
24.82
7.87
46.43%
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.