DLocal (NASDAQ:DLO – Get Free Report) released its quarterly earnings data on Thursday. The company reported $0.18 EPS for the quarter, hitting the consensus estimate of $0.18, Zacks reports. The business had revenue of $399.66 million for the quarter, compared to analyst estimates of $366.77 million. DLocal had a net margin of 15.04% and a return on equity of 41.60%. The business’s revenue for the quarter was up 55.9% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.14 EPS.
Here are the key takeaways from DLocal’s conference call:
- TPV surged 92% year over year to $17.7 billion, driven by strong growth in ride-hailing, travel, e-commerce and other verticals, with local-to-local flows reaching 61% of TPV.
- DLocal raised its full-year guidance, now expecting 60%–70% TPV growth and 25%–30% gross profit growth, citing broad-based merchant and geographic momentum.
- Gross profit reached a record $127 million, while operating profit rose 22% sequentially and operating leverage improved to 50% of gross profit; management expects further gains from AI, automation and lower second-half spending.
- Merchant relationships continued to deepen, reflected in 153% net revenue retention and 188% TPV retention; DLocal also plans to launch its Merchant of Record product and has expanded buy-now-pay-later services to eight markets.
- Take-rate pressure remains a concern as large merchants reach lower pricing tiers and local-to-local volumes carry lower monetization; Mexico also saw gross profit lag revenue because payment-processing costs increased, while future tax rules could raise the effective tax rate from 2027.
DLocal Trading Down 4.0%
Shares of DLocal stock traded down $0.59 during trading hours on Friday, reaching $14.17. The stock had a trading volume of 5,066,685 shares, compared to its average volume of 1,812,261. The firm has a market capitalization of $4.18 billion, a price-to-earnings ratio of 21.15 and a beta of 0.97. DLocal has a 1 year low of $10.64 and a 1 year high of $16.78. The firm has a 50 day simple moving average of $13.94 and a two-hundred day simple moving average of $13.11.
Key Stories Impacting DLocal
- Positive Sentiment: Second-quarter TPV reached nearly $18 billion, up 92% year over year and marking the company’s seventh consecutive quarter of more than 50% growth. Revenue rose 55.9% to $399.66 million, exceeding the roughly $366.77 million analyst estimate, while gross profit reached a record $127 million, up 29%. DLocal Reports Second Quarter 2026 Financial Results
- Positive Sentiment: Management is targeting 60%–70% TPV growth and 25%–30% gross-profit growth in 2026, with operating leverage expected to improve. The outlook supports the long-term growth case, although gross-profit growth is projected to trail TPV growth. DLocal 2026 Growth Targets
- Positive Sentiment: DLocal expanded its relationship with ACI Worldwide to broaden access to local payment methods across Latin America, potentially strengthening its regional payments network and merchant offering. ACI Worldwide and DLocal Expand Local Payment Access
- Neutral Sentiment: Unusually high options activity included purchases of 21,694 call contracts, about 219% above typical daily volume. This may indicate speculative bullish positioning but does not confirm a fundamental change in valuation.
- Neutral Sentiment: A technical analysis report identified possible support around the stock after recent weakness, while analysts have generally raised earnings estimates. This could help sentiment but is less significant than the quarterly results. DLocal Technical Analysis
- Negative Sentiment: Adjusted earnings of $0.18 per share missed the Zacks consensus estimate of $0.20, although they matched another consensus estimate and improved from $0.14 a year earlier. The earnings miss likely contributed to the negative investor reaction despite the revenue and TPV beats. DLocal Q2 Earnings Estimate Miss
Analyst Ratings Changes
A number of equities research analysts recently issued reports on DLO shares. Truist Financial upped their target price on DLocal from $15.00 to $17.00 and gave the company a “buy” rating in a research note on Friday, July 24th. UBS Group upgraded DLocal from a “neutral” rating to a “buy” rating and upped their target price for the company from $16.00 to $20.00 in a research note on Wednesday, July 1st. Weiss Ratings reissued a “hold (c)” rating on shares of DLocal in a research note on Friday, July 17th. Wall Street Zen downgraded shares of DLocal from a “buy” rating to a “hold” rating in a research note on Monday, May 18th. Finally, The Goldman Sachs Group increased their price objective on shares of DLocal from $17.00 to $19.00 and gave the stock a “buy” rating in a report on Friday, July 31st. Six investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $18.67.
View Our Latest Stock Report on DLocal
Insider Transactions at DLocal
In other DLocal news, Director William Rodney Pruett bought 20,000 shares of the company’s stock in a transaction that occurred on Friday, May 29th. The stock was purchased at an average price of $11.85 per share, with a total value of $237,000.00. Following the transaction, the director owned 108,043 shares in the company, valued at $1,280,309.55. This trade represents a 22.72% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Sebastian Kanovich sold 72,753 shares of the firm’s stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $15.54, for a total transaction of $1,130,581.62. Following the completion of the transaction, the director owned 4,700 shares in the company, valued at $73,038. The trade was a 93.93% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,103,153 shares of company stock valued at $16,231,782 in the last quarter. Company insiders own 45.44% of the company’s stock.
Institutional Inflows and Outflows
Several hedge funds have recently added to or reduced their stakes in DLO. IFP Advisors Inc purchased a new stake in shares of DLocal in the third quarter worth about $26,000. Kestra Advisory Services LLC acquired a new position in DLocal during the 4th quarter worth approximately $95,000. Advisory Services Network LLC purchased a new position in DLocal in the 3rd quarter worth approximately $103,000. Osaic Holdings Inc. boosted its holdings 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 acquiring an additional 1,329 shares during the period. Finally, Boothbay Fund Management LLC acquired a new stake in DLocal in the second quarter valued at approximately $122,000. 90.13% of the stock is owned by hedge funds and other institutional investors.
DLocal Company Profile
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.
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