Want to see DLO full AI Analyst Report?
Top Page
DLocal
(NASDAQ:DLO)
Select Model
Select Model
Rating:77Outperform
Price Target:
$16.50
▲(13.87% Upside)
Action:Upgraded
Date:07/02/26
The score is driven primarily by strong financial quality (solid profitability, low leverage, high ROE) and a supportive earnings update highlighting record TPV/gross profit with unchanged guidance. Technicals are positive but appear overextended (high RSI/Stoch), and valuation is fair rather than compelling, which caps the overall score.
Positive Factors
TPV Growth & Market Reach
Sustained, very high TPV growth and multiple quarters above 50% reflect strong merchant adoption, broad geographic expansion and network effects. Large and growing TPV supports durable fee revenue, strengthens partner relationships, and increases scale advantages across emerging markets.
Negative Factors
Gross Margin Compression
A material decline in gross margin versus prior periods signals growing cost pressure or lower monetization on certain payment rails. If persistent, this erodes operating leverage and requires higher growth or sustained cost control to preserve profitability and return metrics over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
TPV Growth & Market Reach
Sustained, very high TPV growth and multiple quarters above 50% reflect strong merchant adoption, broad geographic expansion and network effects. Large and growing TPV supports durable fee revenue, strengthens partner relationships, and increases scale advantages across emerging markets.
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
$4.21B
Dividend Yield1.33%
Average Volume (3M)2.68M
Price to Earnings (P/E)22.4
Beta (1Y)1.47
Revenue Growth46.60%
EPS Growth66.04%
CountryUS
Employees1,274
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.66
Shares Outstanding165,877,760
10 Day Avg. Volume1,568,866
30 Day Avg. Volume2,678,121
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$17.83Price Target Upside23.07% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.82
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:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 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
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
14.49
Price Trends
13.79
Positive
13.23
Positive
13.22
Positive
Market Momentum
0.14
Positive
54.39
Neutral
30.73
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 14.49 is below the 20-day moving average (MA) of 14.69, above the 50-day MA of 13.79, and above the 200-day MA of 13.22, indicating a bullish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 54.39 is Neutral, neither overbought nor oversold. The STOCH value of 30.73 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 | $5.13B | 17.64 | 32.97% | ― | 23.79% | 1992.92% | |
77 Outperform | $4.21B | 22.36 | 37.04% | 1.36% | 46.60% | 66.04% | |
74 Outperform | $2.41B | 50.57 | 7.27% | ― | 6.31% | -48.91% | |
66 Neutral | $2.66B | 10.24 | 23.02% | ― | 5.76% | -3.78% | |
64 Neutral | $2.42B | 6.06 | 14.62% | 6.61% | 11.04% | 15.45% | |
62 Neutral | $2.43B | 3.94 | 29.41% | ― | -33.91% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
DLO
DLocal
14.76
-0.34
-2.23%
EEFT
Euronet Worldwide
74.23
-22.35
-23.14%
PAGS
Pagseguro Digital
8.82
0.47
5.64%
STNE
Stoneco
10.23
-2.43
-19.17%
PAYO
Payoneer
7.14
0.45
6.73%
RELY
Remitly Global
25.62
5.97
30.38%
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.