DLocal (NASDAQ:DLO) Posts Quarterly Earnings Results

DLocal (NASDAQ:DLO) posted its quarterly earnings results on Wednesday. The company reported $0.18 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.18, FiscalAI reports. The business had revenue of $337.89 million for the quarter, compared to the consensus estimate of $294.29 million. DLocal had a return on equity of 41.82% and a net margin of 18.00%.The business’s revenue was up 65.2% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.10 EPS.

Here are the key takeaways from DLocal’s conference call:

• Scale and growth: FY2025 TPV reached $41 billion (up 60% YoY) with Q4 TPV at $13 billion (+70% YoY), and revenue surpassed the $1 billion milestone, underscoring accelerating merchant adoption and scale.
• Cash generation and efficiency: Adjusted free cash flow was $191 million (up 110% YoY) with ~97% full‑year conversion of net income to FCF and strong quarterly conversion, supporting reinvestment and returns.
• 2026 financial outlook: Management guides TPV growth of 50–60%, gross profit growth of 22.5–27.5%, and operating profit growth of 27.5–32.5%, expecting operating leverage to materialize in H2 2026.
• Capital returns and balance sheet: Company confirmed a dividend policy of 30% of prior year FCF (~$57M) and launched a new $300 million share repurchase program while retaining minimal debt and liquidity buffers.
• Execution and margin risks: FX volatility in Argentina materially pressured Q4 gross profit, management warns of margin compression from volume‑based discounts and new payment methods, and key growth drivers like BNPL, stablecoins and card‑present are still early‑stage and unlikely to be material in 2026.

DLocal Stock Up 9.4%

Shares of DLO stock opened at $12.53 on Friday. The stock’s fifty day moving average price is $12.93 and its 200 day moving average price is $13.73. DLocal has a 1-year low of $7.61 and a 1-year high of $16.78. The company has a market cap of $3.92 billion, a price-to-earnings ratio of 19.58 and a beta of 1.14. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.46 and a quick ratio of 1.46.

DLocal Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, June 10th. Investors of record on Wednesday, May 27th will be paid a dividend of $0.1939 per share. This represents a $0.78 annualized dividend and a yield of 6.2%. The ex-dividend date is Wednesday, May 27th.

More DLocal News

Here are the key news stories impacting DLocal this week:

• Positive Sentiment: Q4 beat and FY milestone — Q4 revenue $337.9M (+65% YoY) and record Q4 TPV $13.1B; full-year revenue surpassed US$1.0B, driving the rally. Fintech dLocal posts Q4 profit up 87% on improving margins
• Positive Sentiment: Strong cash generation and capital returns — management reported large cash (~$720M), no debt, robust adjusted free cash flow and announced a $300M buyback plus a quarterly dividend (record date May 27). These actions support shareholder returns and helped lift sentiment. DLocal: Entering 2026 At Escape Velocity
• Positive Sentiment: Aggressive 2026 growth guide — management is targeting ~50–60% TPV growth for 2026 with a multi-quarter cadence to reach >$60B TPV, implying continued revenue leverage if execution holds. DLocal: Entering 2026 At Escape Velocity
• Positive Sentiment: Analyst upside and attractive valuation metrics — despite strong results, forward P/E is low relative to growth and the consensus price target implies upside, supporting buy-side interest. dLocal Keeps Winning, but the Stock Still Has Something to Prove
• Neutral Sentiment: EPS in line with expectations — reported EPS (~$0.18) largely matched consensus, so upside was revenue/TPV-driven rather than an EPS surprise. DLocal Shares Rise On Q4 Revenue Beat, Buyback Plan
• Neutral Sentiment: Short-interest reporting unclear — public short-interest snapshots available in feeds showed anomalous/zero values for March; treat short-interest signaling as unreliable until clarified.
• Negative Sentiment: Technical and cash‑flow nuances — the stock has been range-bound and needs a technical breakout to sustain momentum; some sources flag volatile operating cash-flow wording and rising liabilities that merit follow-up in filings. DLocal Limited (DLO) Stock Rises on Q4 2025 Earnings

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. Truist Financial lowered their price objective on shares of DLocal from $17.00 to $15.00 and set a “buy” rating for the company in a research note on Tuesday. Itau BBA Securities assumed coverage on shares of DLocal in a research report on Wednesday, December 17th. They set an “outperform” rating and a $21.00 target price on the stock. JPMorgan Chase & Co. cut their target price on shares of DLocal from $18.50 to $18.00 and set an “overweight” rating on the stock in a research report on Monday, February 2nd. Finally, Weiss Ratings restated a “hold (c)” rating on shares of DLocal in a report on Wednesday, January 21st. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, DLocal presently has a consensus rating of “Moderate Buy” and a consensus price target of $17.00.

Institutional Investors Weigh In On DLocal

Several institutional investors have recently added to or reduced their stakes in the business. IFP Advisors Inc purchased a new stake in shares of DLocal during the third quarter worth about $26,000. Kestra Advisory Services LLC purchased a new position in shares of DLocal in the 4th quarter valued at approximately $95,000. Advisory Services Network LLC acquired a new stake in DLocal in the 3rd quarter worth approximately $103,000. Osaic Holdings Inc. boosted its stake in DLocal by 17.1% in the 2nd quarter. Osaic Holdings Inc. now owns 9,108 shares of the company’s stock worth $103,000 after purchasing an additional 1,329 shares in the last quarter. Finally, JT Stratford LLC purchased a new stake in DLocal during the 4th quarter worth approximately $149,000. Institutional investors and hedge funds own 90.13% of the company’s stock.

About DLocal

dLocal is a fintech company specializing in cross-border payments and payouts for global merchants operating in emerging markets. Headquartered in Montevideo, Uruguay, the company offers a technology platform that simplifies complex payment flows, enabling businesses to connect with local payment methods through a single integration.

The dLocal platform supports a wide range of local payment options, including credit and debit cards, bank transfers, e-wallets and cash-based methods. It incorporates risk-management tools, compliance services and anti-fraud solutions to help clients navigate regulatory requirements and minimize payment failures across diverse jurisdictions.

dLocal serves merchants in sectors such as e-commerce, online marketplaces, digital content and gig economy platforms.