Sebastian Kanovich, Director of DLocal Limited (DLO +0.94%), sold 25,700 shares on July 7, 2026, at $15.50 per share. SEC Form 4 filing
Transaction summaryMetricValueTransaction value$398,350Shares sold (directly held)25,700Post-transaction shares (directly held)0Post-transaction valueN/ATransaction value based on SEC Form 4 weighted average sale price ($15.50); post-transaction value based on July 07, 2026, market close ($14.88).
Key questionsWas this transaction part of a structured liquidity plan?
Yes, the sale was conducted under a Rule 10b5-1 trading plan adopted on Nov. 26, 2025, which removes discretionary timing from the execution process.Does the liquidation of direct holdings suggest a complete exit?
No, because while the direct Class A holdings were reduced to zero, the director maintains beneficial ownership of 11.6 million Class B Common Shares that are convertible into Class A shares at a 1:1 ratio.What was the market context on the date of the sale?
At the time of the July 7, 2026 transaction, the stock had delivered a 29% total return over the preceding year, with shares priced at $14.49 as of the July 8, 2026 market close.How was the conversion of share classes handled?
The transaction required converting Class B shares, which have no expiration date, into Class A shares to facilitate this disposal.Company OverviewMetricValueShare Price (as of market close 2026-07-13)$14.92Market Capitalization$4.3 billionRevenue (TTM)$1.2 billionNet Income (TTM)$192.1 millionCompany SnapshotDLocal Limited provides comprehensive payment processing solutions, including pay-in services for international and local cards, online bank transfers, direct debit, cash, and hundreds of alternative payment methods (APMs), as well as pay-out solutions for cross-border and local-to-local transactions.The company generates revenue by enabling global merchants to expand their online presence and accept payments through its robust platform, monetizing transaction volumes and payment processing services across multiple payment channels and geographies.DLocal serves global merchants seeking to accept payments in emerging markets and cross-border transactions, with a particular focus on Latin American and other high-growth regions where alternative payment methods are prevalent.DLocal Limited operates as a leading fintech payment processor with a market capitalization of $4.3 billion and TTM revenue of $1.2 billion, demonstrating significant scale in the global payments infrastructure space. The company's competitive advantage derives from its specialized expertise in emerging-market payment ecosystems and its extensive network of local and alternative payment method integrations, enabling merchants to reach customers in regions underserved by traditional payment processors. With a net income margin of approximately 16.0% on TTM revenues, DLocal exhibits strong operational efficiency and profitability characteristics typical of high-quality fintech infrastructure businesses.
What this transaction means for investorsInvestors should not be worried about Kanovich’s sale. Not only is it rather small, but it is also just a byproduct of a structured liquidity plan. Furthermore, while 25,700 DLO shares were sold, Kanovich still holds over 11 million shares -- so this is far from an indictment on the stock.
From an operational perspective, I think DLocal looks better than ever as an investment proposition. While it remains a high-risk, high-reward type of growth stock to consider, the company plays a large (and quickly growing) role in helping global merchants reach hard-to-access foreign markets for payment processing. DLocal processes over $47 billion in payments for nearly 800 merchants across more than 60 markets, successfully using over 1,000 payment methods along the way. Simply put, it is a major force in its niche.
That said, its net take rate has been sliding over recent quarters as it offers concessions with its mega-merchants as they process higher volumes on its platform. This has spooked the markets as it wants to see a “bottoming out” of DLO’s take rate so that it can fit cleanly into a financial model. However, I’m not interested in those -- more so just the fact that DLocal remains the dominator in its niche, as it continues to do. Growing total payment volume by 73% in its latest quarter, while maintaining slower-growing profitability, DLocal is one of my favorite buys today at just 17 times forward earnings.
Josh Kohn-Lindquist has positions in DLocal. The Motley Fool recommends DLocal and recommends the following options: long January 2027 $7 calls on DLocal and short January 2027 $10 calls on DLocal. The Motley Fool has a disclosure policy.
DLocal Limited still has a weak market sentiment around the stock, but increasingly bullish Wall Street recommendations could turn the sentiment around. The take rate has declined, implying limited pricing power, but also reflecting DLO's deliberate growth strategy. DLO's strategy's success is reflected in the company's earnings growth. Payment volume growth on the platform has only accelerated.
DLocal (DLO) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road.
MONTEVIDEO, Uruguay, June 26, 2026 (GLOBE NEWSWIRE) -- DLocal Limited (“dLocal”, “we”, “us”, and “our”) (NASDAQ:DLO), a leading cross-border financial infrastructure platform connecting global merchants to emerging markets, today announced that the Company was added as a member of the US small-cap Russell 2000® Index, effective when the US market opens on June 29 as part of the 2026 Russell indexes reconstitution. Membership in the Russell 2000® Index is based on membership in the broad-market Russell 3000® Index. The stock also was automatically added to the appropriate growth indexes.
“Inclusion in the Russell 3000® and Russell 2000® Indexes marks an important milestone for dLocal and reinforces the growing institutional recognition of our platform, our scale, and our continued execution across emerging markets. We believe this inclusion also reflects the scale, market capitalization, and free float we have built as a public company, and will help broaden our shareholder base, improve trading liquidity, and increase visibility among institutional investors as we continue building the financial infrastructure that connects global enterprises to the markets of the future,” said Pedro Arnt, CEO of dLocal.
Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies. According to data as of the end of June 2025, about $12.2 trillion in assets are benchmarked against the Russell US indexes, which belong to FTSE Russell, the global index provider.
For more information on the Russell 2000® Index and the Russell indexes reconstitution, go to the “Russell Reconstitution” section on the FTSE Russell website.
About dLocal
dLocal builds financial infrastructure for markets of the future, connecting global enterprises with billions of emerging market consumers in more than 60 countries across high-growth markets in Africa, Asia, the Middle East, and Latin America. Through the “One dLocal” concept (one direct API, one platform, and one contract), global companies can accept payments, send payouts, and settle funds globally without the need to manage multiple local entities and integrations. For more information, visit www.dlocal.com.
About FTSE Russell, an LSEG Business
FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 70 countries, covering 98% of the investable market globally. FTSE Russell index expertise and products are used extensively by institutional and retail investors globally.
Approximately $21.20 trillion is benchmarked to FTSE Russell indexes. Leading asset owners, asset managers, ETF providers and investment banks choose FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives.
A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on applying the highest industry standards in index design and governance and embraces the IOSCO Principles. FTSE Russell is also focused on index innovation and customer partnerships as it seeks to enhance the breadth, depth and reach of its offering.
FTSE Russell is wholly owned by LSEG. For more information, visit FTSE Russell.
Forward Looking Statements
This press release contains certain forward-looking statements. These forward-looking statements convey dLocal’s current expectations or forecasts of future events. Forward-looking statements regarding dLocal involve known and unknown risks, uncertainties and other factors that may cause dLocal’s actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Certain of these risks and uncertainties are described in the “Risk Factors,” and “Cautionary Note Regarding Forward-Looking Statements” sections of dLocal’s filings with the U.S. Securities and Exchange Commission. Unless required by law, dLocal undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date hereof.
DLocal stock is among today’s top performers. Why are DLO shares rallying? Revenue Beat, EPS In LineDLocal reported earnings per share of 18 cents, inline with the consensus estimate. Revenue came in at $337.88 million, beating the consensus estimate of $297.28 million.
Total payment volume reached a record $13.1 billion in the fourth quarter, up 70% year-over-year.
The company ended the year with $719.9 million in cash and cash equivalents.
CEO Pedro Arnt said 2025 reflected "exceptional execution," highlighting strong growth, customer retention and a high cash-conversion model.
DLocal announced a new share repurchase program of up to $300 million, set to run through March 2027 or until the limit is reached.
The company also declared a cash dividend of approximately $57.2 million, or about $0.1939 per share.
DLO Price Action: At the time of publication, DLocal shares are trading 12.14% higher at $12.84, according to data from Benzinga Pro.
This illustration was generated using artificial intelligence via Midjourney.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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52-Week Range$9.75▼
$16.78Dividend Yield6.49%
P/E Ratio19.27
Price Target$16.63
Uruguayan-based fintech company dLocal NASDAQ: DLO has delivered yet another impressive quarter, easily topping both earnings and sales estimates. It has also continued a pattern that is becoming hard to overlook. For the fourth consecutive quarter, the company has beaten expectations, reinforcing a clear trend of operational excellence and management's ability to execute consistently.
Yet despite that track record, the stock continues to trade at what appears to be a significant discount, with a forward P/E below 11 as of Wednesday, March 18's close. With key metrics pointing to stellar growth and the stock well off its 52-week high, the question is whether this represents a compelling long-term buying opportunity. Let's unpack the results and see what Wall Street thinks.
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DLO Posts an Impressive Q4 Beat dLocal delivered a strong finish to 2025, with fourth-quarter results highlighting accelerating growth across every key metric. Total Payment Volume (TPV) reached a record $13.1 billion, up 70% year over year, marking the fifth consecutive quarter of growth above 50%. Revenue surged 65% to $338 million, while gross profit rose 38% to $116 million. Profitability also improved meaningfully, with adjusted EBITDA increasing 38% year over year and net income jumping 87%. The company also demonstrated strong cash generation, with adjusted free cash flow doubling and exceeding net income, underscoring the strength of its asset-light, high-conversion business model.
The full-year picture is equally compelling. TPV climbed 60% to a record $41 billion, while revenue surpassed the $1 billion milestone for the first time in company history. Gross profit rose 37%, adjusted EBITDA increased 47% with margin expansion, and net income grew 63% to $197 million. Free cash flow was a particular standout, rising 110% year over year, and the strength of that cash generation allowed management to announce an expected dividend payment.
Demand remains robust across regions, driven by e-commerce, streaming, financial services, and continued geographic expansion in Latin America, Africa, and Asia. Despite margin pressure from rapid scaling and geographic expansion, the overall picture is one of strong execution and disciplined cost control. The results reinforce DLO’s position as a leading payments infrastructure platform in emerging markets.
Sentiment Is Strong, But the Chart Has Work to Do It's easy to see why sentiment on dLocal is broadly bullish. The results speak for themselves, and so does the valuation. Of the nine analysts covering the stock, seven have assigned a Buy rating and two a Hold, resulting in a consensus Moderate Buy. But it's the consensus price target that stands out most, at $17, implying nearly 50% upside from Wednesday's close. Following the strength of the most recent results, that figure, along with overall analyst coverage and ratings, is likely to improve further in the days and weeks ahead.
Current Price$11.78High Forecast$21.00Average Forecast$16.63Low Forecast$15.00DLocal Stock Forecast Details
That said, there is work to do on the technical side. Despite the stellar fundamentals and consistent execution, DLO has been stuck in a downward channel for several months. The stock has failed to build any meaningful upside momentum. It’s down 19% on the year and almost 18% over the prior three years, a reminder that strong fundamentals alone don't always translate into near-term price action.
For sentiment to genuinely shift on the chart, the stock would need to break above and hold the $14 level, which would signal a potential breakout of its downward channel resistance and possibly mark the beginning of a higher-timeframe uptrend. Until that happens, the stock remains a fundamentally compelling but technically unconfirmed opportunity, one that patient investors with a longer-term horizon may find increasingly difficult to ignore at current levels.
Should You Invest $1,000 in DLocal Right Now?Before you consider DLocal, you'll want to hear this.
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DLocal Limited delivered record 2025 results, surpassing $1B in revenue and $191M in adjusted free cash flow, with no debt and $720M in cash. DLO's TPV grew from $9.2B in Q2 to $13.1B in Q4, and management guides for 50–60% TPV growth in 2026, targeting over $60B. Operating leverage is driving expanding margins and capital returns, with a 30% payout ratio, special dividends, and a new $300M buyback program.
DLocal Limited (NASDAQ: DLO - Get Free Report) gapped up before the market opened on Thursday following a dividend announcement from the company. The stock had previously closed at $11.45, but opened at $12.44. DLocal shares last traded at $13.2430, with a volume of 2,973,817 shares changing hands. The newly announced dividend which will be paid
Every fintech is not the same. Even if you narrow your focus to Latin America, MercadoLibre (MELI 0.16%), DLocal (DLO +2.97%), and Nu Holdings (NU +1.64%) are three very different companies. There may be some overlap in offerings, but they have unique specialties as well as territorial ambitions.
One thing they all have in common is spectacular growth. MercadoLibre, DLocal, and Nu grew their revenue by 45%, 65%, and 57%, respectively, in their latest quarters. This isn't a race, but consider that the two U.S. companies many investors think of in the world of fintech both grew their top lines by roughly 4% over the same three months. There's also the bonus of opportunity with Mercado Libre, DLocal, and Nu trading at 38%, 28%, and 27%, respectively, off their recent highs. Let's travel south to check out three companies with businesses heading north as their stocks go south.
Image source: Getty Images.
1. MercadoLibre As one of Latin America's largest companies by market cap, MercadoLibre doesn't need much of an introduction. Typically labeled as an e-commerce business -- because that's where it started -- its biggest gains these days are coming from the financial front.
The $83.4 billion that its Mercado Pago subsidiary helped facilitate in payment volume during its latest quarter was 4 times higher than the gross merchandise value on the e-commerce front. The business is also growing faster than its online retail sales volume.
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MercadoLibre stock is the hardest hit of the three stocks on this list. The shares are down almost 40% from the all-time highs they notched last summer. This doesn't mean it's also the cheapest of the three names. MercadoLibre is trading at a beefy 30 times this year's projected earnings. Thankfully, the multiple drops below 22 if we look out to next year.
Margins are currently being pressured. Competitive challenges in Brazil -- its largest market -- find it taking a hit by lowering the order size requirement for free shipping.
Latin American fintech stocks are still worth your due diligence. Superior growth, historically potent net margins, and serving a region still early in the online migration make MercadoLibre and its peers worth watching.
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2. DLocal Uruguay-based DLocal is laser-focused on processing payments. It was one of Thursday's biggest gainers, rising nearly 10% in an otherwise down day for the market following blowout results. Revenue rose 65% for the quarter, fueled by a 70% surge in total payment volume.
It's currently the most geographically diversified player of the three. No single country accounts for more than 19% of its revenue. A little over 20% of its business last year came from outside of Latin America (primarily Egypt, as well as other countries in Africa and Asia). It helps that the tech-first platform is a rising star in managing cross-border payments, accounting for half of its payment volume in 2025.
Net income rose 63%, and adjusted free cash flow more than doubled. That last point is particularly noteworthy for income investors, since DLocal aims to distribute 30% of its free cash flow to shareholders in the form of a springtime dividend. DLocal's distribution of $0.19 a share in June translates into a 1.5% yield, a decent payout for a stock investors are buying for its high-octane growth.
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3. Nu Holdings There is a lot that is new with Nu Holdings these days. Earlier this month, the parent company of Brazil's Nubank announced that it secured naming rights for the new stadium in Miami, where Lionel Messi's Inter Miami will kick off their new home season. It may seem like an odd choice for a company with 131 million accounts in Brazil, Mexico, and Colombia, in that order. There is a method to the brand-ness.
Nu Holdings stock received conditional approval for its U.S. national bank charter in January. Is Nu ready to cash in on both this country's growing Latin American population and the region's infatuation with soccer to ramp up stateside operations?
As we wait for that chess move to play out, Nu keeps growing. Revenue climbed 57% in its latest quarter, with net income jumping 62% higher. A whopping 62% of Brazilian adults now have a Nubank account. That explosive growth and the stock's recent retreat make it the cheapest of the three stocks on a price-to-earnings (P/E) basis. It's trading for less than 13 times next year's profit target. With strong account growth and engagement, Nu should be turning heads for its high-margin business.
MONTEVIDEO, Uruguay, March 31, 2026 (GLOBE NEWSWIRE) -- DLocal Limited (NASDAQ: DLO, “dLocal” or the “Company”), a leading financial technology company powering payments across emerging markets, intends to release financial results for its first fiscal quarter ended March 31, 2026 on May 14, 2026 after market close.
The Company will host a conference call and video webcast on May 14, 2026 at 6:00 p.m. Eastern Time.
Please click here to pre-register for the conference call and obtain your dial in number and passcode. The live conference call can be also accessed via audio webcast at the investor relations section of the Company’s website, at https://investor.dlocal.com/. An archive of the webcast will be available for one year following the conclusion of the conference call.
About dLocal
dLocal powers local payments in emerging markets, connecting global enterprise merchants with billions of emerging market consumers across APAC, the Middle East, Latin America, and Africa. Through the “One dLocal” concept (one direct API, one platform, and one contract), global companies can accept payments, send payouts, and settle funds globally without the need to manage multiple local entities and integrations. For more information, visit www.dlocal.com.
Forward Looking Statements
This press release contains certain forward-looking statements. These forward-looking statements convey dLocal’s current expectations or forecasts of future events. Forward-looking statements regarding dLocal involve known and unknown risks, uncertainties and other factors that may cause dLocal’s actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Certain of these risks and uncertainties are described in the “Risk Factors,” and “Cautionary Note Regarding Forward-Looking Statements” sections of dLocal’s filings with the U.S. Securities and Exchange Commission. Unless required by law, dLocal undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date hereof.
MONTEVIDEO, Uruguay, April 16, 2026 (GLOBE NEWSWIRE) -- DLocal Limited (NASDAQ: DLO, “dLocal” or the “Company”), the leading cross-border payment platform connecting global merchants to emerging markets, today announced a change to the time of its previously scheduled earnings conference call.
MONTEVIDEO, Uruguay, April 20, 2026 (GLOBE NEWSWIRE) -- DLocal Limited (NASDAQ: DLO, “dLocal” or the “Company”), a leading cross-border financial infrastructure platform connecting global merchants to emerging markets, today announced that the Supreme Court of the State of New York, Appellate Division, First Department, has unanimously affirmed the dismissal of the putative class action lawsuit captioned In the Matter of DLocal Securities Litigation, Index No. 151778/23 (the “New York State Action”). The Supreme Court, New York County had previously granted the defendants’ motion to dismiss the complaint in its entirety, and the Appellate Division has now unanimously upheld that decision.
In its unanimous decision, the Appellate Division held that all claims against the Company and the individual defendants lacked merit.
The New York State Action had alleged that the Company's registration statement and prospectus contained materially misleading statements and omissions relating to alleged trends in the Company's take rate. The Court rejected these allegations, finding that the plaintiffs did not identify a known material trend, especially in light of the Company's consistent growth in total payment volume (TPV), revenue, and gross profit.
Pedro Arnt, Chief Executive Officer of dLocal, stated: “We are pleased that the Appellate Division unanimously affirmed the complete dismissal of this case in a decision that recognizes the strength of the Company’s disclosures, the growth of our total payment volume, revenue and gross profit in the pre-IPO period, and the merits of our position. As always, we remain focused on executing our strategy and delivering value to our merchants, shareholders, and the communities we serve across emerging markets; not on the distractions generated by inaccurate allegations.”
About dLocal
dLocal builds financial infrastructure for markets of the future, connecting global enterprises with local payment cultures across high-growth markets in Africa, Asia, the Middle East, and Latin America. Through the "One dLocal" concept (one direct API, one platform, and one contract), global companies can accept payments, send payouts, and settle funds globally without the need to manage multiple local entities and integrations. For more information, visit www.dlocal.com.
Forward Looking Statements
This press release contains certain forward-looking statements. These forward-looking statements convey dLocal’s current expectations or forecasts of future events. Forward-looking statements regarding dLocal involve known and unknown risks, uncertainties and other factors that may cause dLocal’s actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Certain of these risks and uncertainties are described in the “Risk Factors,” and “Cautionary Note Regarding Forward-Looking Statements” sections of dLocal’s filings with the U.S. Securities and Exchange Commission. Unless required by law, dLocal undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date hereof.
Software stocks have always been expensive, up until a few months ago. Stocks like Procore Technologies (NYSE:PCOR | PCOR Price Prediction), dLocal (NASDAQ:DLO), and Intuit (NASDAQ:INTU) have plunged significantly, and they’re not the only ones that have done so. Wall Street now believes AI will make the software-as-a-service (SaaS) business model much less profitable. And considering AI models now can easily make some basic software with prompting and no coding knowledge, it’s easy to see why.
For example, a business like Adobe (NASDAQ:ADBE) was well-coveted. It built software that it could then sell to users ad infinitum on a monthly basis for low upkeep. Wall Street loves recurring revenue and also loves high margins, so investors paid a premium for it.
Today, you don’t really need Photoshop. Almost all casual photo editing can be done by just asking AI.
Not all software stocks have an underlying business like Adobe, though. It’s a mistake to think of all SaaS stocks as the same. AI can replace some basic software, but the following three companies have software that can’t be replaced with prompts:
Procore Technologies (PCOR) Procore Technologies makes software for the construction industry, and construction management isn’t something AI is ever going to entirely replace. AI can definitely help with the tidbits, but it cannot replicate a platform that integrates everything a construction company needs to function, which Procore sells. On top of that, the construction industry can’t trade some reliability for big-time cost savings. Procore has audit trails, compliance, and no AI is reliable enough to handle that.
PCOR stock has been relatively spared compared to most other software stocks because of this. It is “only” down some 26% below its highs, but I think that’s a serious discount for a company with bright prospects.
Analysts expect nearly 30% annual EPS growth in the latter half of this decade. I will admit that the revenue growth is expected to slow down a little to 13.4% annually, but the earnings growth still makes it worth it.
Procore is also sitting on a $768 million pile of cash with just $72 million of debt. This company has historically focused on customer acquisition, but it is pivoting quickly.
I see the stock more than doubling above $100 sometime in 2027. Analysts have a $72 price target in the next 12 months, with the highest target at $95.
DLocal (DLO) DLocal is a payments company that AI is not going to replace anytime soon because of what it does. The business makes it easier for developing countries to pay global businesses. That may sound like a trivial thing, but it certainly isn’t once you realize just how much certain countries struggle with international payments.
Lots of countries restrict U.S. dollars from flowing out of the country, and the mishmash of their regulations makes it a nightmare for businesses to support them all. DLocal deals with this by letting a customer pay in their own currency and then paying the global company in their own currency.
The 3-year free cash flow growth rate is in hypergrowth territory at over 40% annually. Analysts expect revenue growth to top nearly 40% this year. You’re paying just over 15 times earnings for it.
This isn’t even the real discount. When you look at cash flow, you’re paying just 11 times FCF for DLO stock. When you strip out the $458 million net cash from the market cap, you’re paying just over 9 times FCF.
Intuit (INTU) Out of the three stocks in this list, Intuit is probably the most “vulnerable”. Intuit has a popular product you’ve likely heard of, and it’s called TurboTax, alongside other accounting products for businesses.
I do expect some softness on the consumer side, but I think the moat around the business software is underestimated. Accounting is growing fast, and the stack Intuit offers can’t be replaced.
The stock is down nearly 40% from its highs and now trades at less than 15 times forward earnings despite sustained double-digit growth. There has been a slight slowdown, but it does not warrant a selloff of this magnitude, as both sales and earnings are growing just fine.
I don’t expect a full recovery this year, but 50%-plus upside is likely if the broader software sector starts recovering.
DLocal (DLO - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on May 14, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis online payment company is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of +6.7%.
Revenues are expected to be $332.77 million, up 53.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 2.56% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for DLocal?For DLocal, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -6.25%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that DLocal will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that DLocal would post earnings of $0.18 per share when it actually produced earnings of $0.22, delivering a surprise of +22.22%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
DLocal doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
TPV surpassed US$14 billion for the first time (+73% year-over-year), six consecutive quarters of 50%+ year-over-year growth.
Record gross profit: US$119 million (+40% year-over-year).
Operating profit US$57 million excluding prior years tax adjustments (+25% year-over-year).
Expected higher OPEX from 2025 carry-over; operating leverage to improve in 2H26.
Net income at US$52 million excluding prior-years tax adjustments (+11% year-over-year).
Adjusted Free Cash Flow US$15 million, driven by temporary working capital effects, expected to revert.
Guidance unchanged.
MONTEVIDEO, Uruguay, May 14, 2026 (GLOBE NEWSWIRE) -- DLocal Limited (“dLocal”, “we”, “us”, and “our”) (NASDAQ:DLO), the leading cross-border financial infrastructure platform connecting global merchants to emerging markets, today announced its financial results for the first quarter ended March 31, 2026.
dLocal’s management team will host a conference call and audio webcast on May 14, 2026 at 5:00 p.m. Eastern Time. Please click here to pre-register for the conference call and obtain your dial in number and passcode.
The live conference call can be accessed via audio webcast at the investor relations section of dLocal’s website, at https://investor.dlocal.com/. An archive of the webcast will be available for a year following the conclusion of the conference call. The investor presentation will also be filed on EDGAR at www.sec.gov.
“Ten years in, the thesis is intact, the opportunity is larger than ever, and we are better equipped to capture it than at any point in our history. The infrastructure we have built - the licenses, the payment methods, the stakeholder relationships, the data, the technology - abstracts local complexity and compounds in value over time. The combination of strong base business momentum, a product roadmap that is gaining traction, and secular tailwinds across our markets as merchants increasingly convert to local processing, gives us confidence that the next decade can be as impressive as the last,” said Pedro Arnt, CEO of dLocal.
First quarter 2026 financial highlights
dLocal reports in US dollars and in accordance with IFRS as issued by the IASB
Total Payment Volume (“TPV”) reached US$14.1 billion in the first quarter of 2026, up 73% year-over-year compared to US$8.1 billion in the first quarter of 2025 and up 7% compared to US$13.1 billion in the fourth quarter of 2025. In constant currency, TPV growth for the period would have been 63% year-over-year.Revenues amounted to US$335.9 million, up 55% year-over-year compared to US$216.8 million in the first quarter of 2025 and broadly flat compared to US$337.9 million in the fourth quarter of 2025. In constant currency, revenue growth for the period would have been 52% year-over-year. The quarter-over-quarter comparison reflects a less favorable payment method mix and narrower FX spreads.Gross profit was US$118.7 million in the first quarter of 2026, a new record, up 40% compared to US$84.9 million in the first quarter of 2025 and up 2% compared to US$115.8 million in the fourth quarter of 2025. In constant currency, gross profit growth for the period would have been 35% year-over-year. The quarter-over-quarter comparison is explained by (i) Argentina's strong volume growth and normalized funding costs; (ii) broad-based volume growth in Africa and Asia, with notable contributions from Nigeria, Mozambique, and Vietnam; partially offset by (iii) Brazil's normalization following an exceptionally strong fourth quarter of 2025; and (iv) a modest mix shift toward lower take rate merchants in Other LatAm markets.As a result, gross profit margin was 35% in this quarter, compared to 39% in the first quarter of 2025 and 34% in the fourth quarter of 2025.Gross profit over TPV was at 0.84%, decreasing from 1.05% in the first quarter of 2025 and from 0.88% in the fourth quarter of 2025, reflecting the continued strong TPV momentum and the natural margin dynamics of scaling volume with established merchants and into new payment methods, products, and countries.During the first quarter of 2026, dLocal recorded a one-off prior-periods tax adjustment of US$9.7 million related to installment payment products in certain markets. This out-of-period adjustment was not material to any previously reported annual or interim period. Of the total adjustment, approximately US$5.3 million impacted the income tax expense line and US$4.4 million in operating expenses related to indirect and other taxes. The Company does not expect to record comparable items in future quarters.Operating expenses totaled US$65.9 million for the first quarter of 2026, or US$61.5 million excluding the prior-periods adjustment, up 58% year-over-year and 16% quarter-over-quarter on a normalized basis, reflecting the expected carry-over of the last part of the investment cycle costs, which ramped up mostly towards the end of 2025.As a result, Operating profit was US$52.8 million, or would have been US$57.2 million excluding the one-off prior-periods tax adjustment, representing growth of 25% year-over-year and decrease of 9% on a normalized basis. The Operating Profit to Gross Profit ratio was 44% as reported and 48% excluding the one-off.Net financial result was US$5.2 million gain, compared to a net finance gain of US$7.0 million in the first quarter of 2025 and a net finance gain of US$3.4 million in the fourth quarter of 2025.Our effective income tax rate for the period was approximately 26% as reported, elevated by the non-recurring prior-period adjustment. Excluding the adjustment, the effective rate would have been approximately 16%, broadly in line with prior quarters.Net income for the first quarter of 2026 was US$41.9 million, or US$0.14 per diluted share, down 10% compared to a profit of US$46.7 million, or US$0.16 per diluted share, for the first quarter of 2025 and down 25% compared to a profit of US$55.6 million, or US$0.18 per diluted share for the fourth quarter of 2025. Excluding the prior-periods tax adjustment, net income would have been US$51.6 million, or US$0.17 per diluted share, up 11% year-over-year.Adjusted Free cash flow for the first quarter of 2026 amounted to US$14.7 million, down 63% year-over-year compared to US$39.7 million in the first quarter of 2025 and down 77% compared to US$64.9 million in the fourth quarter of 2025. The year-over-year and sequential variation is primarily explained by temporary working capital effects, including timing in tax credit netting and higher receivables from our advancement operations, which are expected to normalize in upcoming quarters.As of March 31, 2026, dLocal had US$815.6 million in cash and cash equivalents, which includes US$451.8 million of Corporate cash and cash equivalents. The Corporate cash and cash equivalents increased by US$95.9 million from US$355.9 million as of March 31, 2025. When compared to the US$424.5 million Corporate cash and cash equivalents position as of December 31, 2025, it increased by US$27.3 million quarter-over-quarter. The following table summarizes our key performance metrics:
Three months ended on March 31 2026 2025 % changeKey Performance metrics(In millions of US$ except for %)TPV14,055 8,107 73%Revenue335.9 216.8 55%Gross Profit118.7 84.9 40%Gross Profit margin35% 39% -4p.pOperating Profit52.8 45.8 15%Operating Profit/Gross Profit44% 54% -10p.pNet Income41.9 46.7 -10%Net Income margin12% 22% -9p.p
Adjusted Free Cash Flow reconciliation
We calculate “Adjusted Free Cash Flow” as net cash (used in) / generated from cash flows from operating activities, less (i) changes in working capital (merchant), and (ii) capital expenditures. The working capital (merchant) is defined as (i) changes in Trade receivables net (disclosed in Note 17 to our consolidated financial statements for the period ended March 31, 2026), plus (ii) changes in Trade payables (disclosed in Note 20 to our consolidated financial statements for the period ended March 31, 2026), plus (iii) changes in Other tax liabilities (disclosed in note 21 to our consolidated financial statements for the period ended March 31, 2026). Capital expenditures consist of acquisitions of property, plant and equipment and additions of intangible assets.
Management uses Adjusted Free Cash Flow as a measure for evaluating the Company's cash generation and the cash available for distribution to our shareholders as dividends pursuant to our dividend policy. Adjusted Free Cash Flow is not a financial measure recognized under IFRS and does not purport to be an alternative to cash generated from operating activities or as a measure of liquidity. Our presentation of Adjusted Free Cash Flow has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under IFRS. See below for a reconciliation of our Adjusted Free Cash Flow to the nearest IFRS measure.
The table below presents a reconciliation of dLocal’s Adjusted Free Cash Flow reconciliation:
$ in thousands (except percentages)Three months ended on March 31 2026 2025 Net cash (used in ) / generated from operating activities92,781 95,411 Changes in working capital (merchant)¹(68,391) (48,170) Capital expenditures²(9,738) (7,512) Adjusted Free Cash Flow14,652 39,729 Note: 1 Changes in working capital (merchant) consists of (i) changes in the period in the balance of trade receivables net, plus (ii) changes in the period in the balance of trade payables, plus (iii) changes in the period in the balance of other tax liabilities. 2 Capital expenditures consist of acquisitions of property, plant and equipment and Additions of Intangible Assets.
Operating profit excluding prior years tax adjustments reconciliation
We calculate "Operating Profit Excluding Prior Years Tax Adjustments" as operating profit for the period, excluding the impact of prior periods tax adjustments. During the three-months period ended on March 31, 2026, certain tax assessments related to prior years were adjusted, resulting in tax impacts amounting to US$9,699 corresponding to fiscal years 2023, 2024 and 2025. From the total amount, US$5,296 relates to income tax and related interest (refer to Note 12. Income tax, footnote (i)) and US$4,403 relates to indirect taxes, other taxes and related interest which were included within other operating expenses. The Company concluded that the out of period adjustment was not material to any previously reported annual or interim period.
Management uses Operating Profit Excluding Prior Years Tax Adjustments as a measure for evaluating the Company's underlying operating performance by removing the effect of non-recurring, out-of-period tax assessments. Operating Profit Excluding Prior Years Tax Adjustments is not a financial measure recognized under IFRS and does not purport to be an alternative to operating profit as a measure of operating performance. Our presentation of Operating Profit Excluding Prior Periods Tax Adjustments has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under IFRS.
The table below presents a reconciliation of dLocal’s operating profit excluding prior years tax adjustments reconciliation:
$ in thousandsThree months ended on March 31 20262025Operating profit52,77245,845Prior years tax adjustments (2023-2025)4,404-Operating profit excluding prior years tax adjustments57,17645,845
Net income excluding prior years tax adjustments reconciliation
We calculate "Net Income Excluding Prior Years Tax Adjustments" as net income (profit for the period), excluding the impact of prior periods tax adjustments. During the three-months period ended on March 31, 2026, certain tax assessments related to prior years were adjusted, resulting in tax impacts amounting to US$9,699 corresponding to fiscal years 2023, 2024 and 2025. From the total amount, US$5,296 relates to income tax and related interest (refer to Note 12. Income tax, footnote (i)) and US$4,403 relates to indirect taxes, other taxes and related interest which were included within other operating expenses. The Company concluded that the out of period adjustment was not material to any previously reported annual or interim period.
Management uses Net Income Excluding Prior Years Tax Adjustments as a measure for evaluating the Company's underlying profitability by removing the effect of non-recurring, out-of-period tax assessments. Net Income Excluding Prior Years Tax Adjustments is not a financial measure recognized under IFRS and does not purport to be an alternative to profit for the period as a measure of profitability. Our presentation of Net Income Excluding Prior Periods Tax Adjustments has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under IFRS.
The table below presents a reconciliation of dLocal’s net income excluding prior years tax adjustments reconciliation:
$ in thousandsThree months ended on March 31 20262025Net income (Profit for the period)41,93646,667Prior years tax adjustments (2023-2025)9,700-Net income excluding prior years tax adjustments51,63646,667
dLocal Limited
Certain financial information
Consolidated Statements of Comprehensive Income for the three-month period ended March 31, 2026 and 2025
(All amounts in thousands of U.S. Dollars except share data or as otherwise indicated)
Three months ended on March 31 2026 2025 Continuing operations Revenues335,862 216,759 Cost of services(217,178) (131,880) Gross profit118,684 84,879 Technology and development expenses(12,124) (6,767) Sales and marketing expenses(9,919) (7,135) General and administrative expenses(42,657) (24,324) Impairment (loss)/gain on financial assets(780) (386) Other operating loss(432) (422) Operating profit52,772 45,845 Finance income10,757 12,228 Finance costs(5,598) (5,259) Inflation adjustment(1,386) (885) Other results3,773 6,084 Profit before income tax56,545 51,929 Income tax expense(14,609) (5,262) Profit for the period41,936 46,667 Profit attributable to: Owners of the Group41,975 46,630 Non-controlling interest(39) 37 Profit for the period41,936 46,667 Earnings per share (in USD) Basic Earnings per share0.14 0.16 Diluted Earnings per share0.14 0.15 Other comprehensive Income Items that are or may be reclassified to profit or loss: Exchange difference on translation on foreign operations3,047 3,526 Other comprehensive income for the period, net of tax3,047 3,526 Total comprehensive income for the period44,983 50,193 Total comprehensive income for the period is attributable to:Owners of the Group45,022 50,174 Non-controlling interest(39) 19 Total comprehensive income for the period44,983 50,193
dLocal Limited
Certain financial information
Consolidated Condensed Interim Statements of Financial Position as of March 31, 2026 and December 31, 2025
(All amounts in thousands of U.S. dollars)
Three months ended on March 31 2026 2025 on March 31, 2026on December 31, 2025ASSETS Current Assets Cash and cash equivalents815,605 719,897 Financial assets at fair value through profit or loss97,995 99,089 Trade and other receivables740,432 572,024 Derivative financial instruments2,341 140 Other assets20,871 29,607 Total Current Assets1,677,244 1,420,757 Non-Current Assets Financial assets at fair value through profit or loss - Trade and other receivables26,664 25,982 Deferred tax assets10,251 7,666 Property, plant and equipment4,043 3,985 Right-of-use assets2,808 2,995 Intangible assets92,506 73,965 Goodwill6,550 - Other assets5,701 5,614 Total Non-Current Assets148,523 120,207 TOTAL ASSETS1,825,767 1,540,964 LIABILITIES Current Liabilities Trade and other payables1,116,490 854,436 Lease liabilities1,003 1,076 Tax liabilities39,778 21,500 Derivative financial instruments567 1,567 Financial liabilities106,944 86,898 Provisions461 433 Total Current Liabilities1,265,243 965,910 Non-Current Liabilities Deferred tax liabilities5,427 3,316 Lease liabilities1,761 2,309 Total Non-Current Liabilities7,188 5,625 TOTAL LIABILITIES1,272,431 971,535 EQUITY Share Capital588 590 Share Premium7,097 7,097 Treasury Shares(10,122)- Capital Reserve48,899 42,641 Other Reserves(12,919)(15,885)Retained earnings519,584 534,818 Total Equity Attributable to owners of the Group553,127 569,261 Non-controlling interest209 168 TOTAL EQUITY553,336 569,429 TOTAL EQUITY AND LIABILITIES1,825,767 1,540,964
dLocal Limited
Certain interim financial information.
Consolidated Statements of Cash flows for the three-month period ended March 31, 2026 and 2025
(All amounts in thousands of U.S. dollars)
Three months ended on March 31 2026 2025 Cash flows from operating activities Profit before income tax56,545 51,929 Adjustments: Interest Income from financial instruments(10,590) (5,106) Interest charges for lease liabilities57 41 Other interests charges7,512 883 Finance expense related to derivative financial instruments700 414 Net exchange differences(2,616) 4,142 Fair value loss/(gain) on financial assets at FVPL(167) (7,343) Amortization of Intangible assets7,062 4,584 Depreciation and disposals of PP&E and right-of-use653 703 Share-based payment expense, net of forfeitures6,066 6,020 Other operating gain432 422 Net Impairment loss/(gain) on financial assets780 386 Inflation adjustment and other financial results2,862 6,083 69,296 63,158 Changes in working capital Increase in Trade and other receivables(170,302) 21,082 Decrease / (Increase) in Other assets(14,279) 1,025 Increase / (Decrease) in Trade and Other payables204,843 16,346 Increase / (Decrease) in Tax Liabilities9,577 965 Increase / (Decrease) in Provisions28 43 Cash (used) / generated from operating activities99,163 102,619 Income tax paid(6,382) (7,208) Net cash (used) / generated from operating activities92,781 95,411 Cash flows from investing activities Acquisitions of Property, plant and equipment(522) (945) Additions of Intangible assets(9,216) (6,567) Acquisition of financial assets at FVPL(26,876) (41,374) Collections of financial assets at FVPL27,179 47,416 Interest collected from financial instruments10,590 5,106 Cash acquired in a business combination791 - Payments for investments in other assets at FVPL- (10,000) Net cash (used in) / generated investing activities1,946 (6,364) Cash flows from financing activities Repurchase of shares(10,122) - Share-options exercise paid192 - Interest payments on lease liability(57) (41) Principal payments on lease liability(748) (663) Finance expense paid related to derivative financial instruments(3,901) (3,132) Net proceeds from financial liabilities25,353 5,790 Interest payments on financial liabilities(5,306) (2,166) Other finance expense paid(7,455) (714) Net cash used in by financing activities(2,044) (926) Net increase in cash flow92,683 88,121 Cash and cash equivalents at the beginning of the period719,897 425,172 Net (decrease)/increase in cash flow92,683 88,121 Effects of exchange rate changes on inflation and cash and cash equivalents3,025 (1,787) Cash and cash equivalents at the end of the period815,605 511,506
About dLocal
dLocal builds financial infrastructure for markets of the future, connecting global enterprises with billions of emerging market consumers in more than 60 countries across high-growth markets in Africa, Asia, the Middle East, and Latin America. Through the "One dLocal" concept (one direct API, one platform, and one contract), global companies can accept payments, send payouts, and settle funds globally without the need to manage multiple local entities and integrations. For more information, visit www.dlocal.com
Forward-looking statements
This presentation may contain forward-looking statements. These forward-looking statements convey dLocal’s current expectations or forecasts of future events, including guidance in respect of total payment volume, gross profit and operating profit. Forward-looking statements regarding dLocal and amounts stated as guidance involve known and unknown risks, uncertainties and other factors that may cause dLocal’s actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Certain of these risks and uncertainties are described in the “Risk Factors,” and “Cautionary Statement Regarding Forward-Looking Statements” sections of dLocal’s filings with the U.S. Securities and Exchange Commission.
Unless required by law, dLocal undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date hereof.
Starting in 2026, we provide guidance in respect of Operating Profit, which management believes is useful as a measure to compare our operating results to the operations of other companies in our industry, and to assess our operating performance independently of our capital structure, tax position, and non-cash depreciation and amortization charges.
This press release does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standards 34, “Interim Financial Reporting” nor a financial statement as defined by International Accounting Standards 1 “Presentation of Financial Statements”. The first quarter financial information in this press release has not been audited nor has it been subject to any limited review procedures, whereas the annual results for the year ended December 31, 2025 are audited.
May 14 (Reuters) - Payments provider dLocal (DLO.O), opens new tab on Thursday reported a 10% dip in its first-quarter net profit missing analyst estimates as a one-off tax charge and higher expenses offset a surge in payment volumes.
Net profit for the period hit $41.9 million, falling short of the $48.9 million expected by analysts. The company said the results were hit by a $9.7 million tax adjustment related to installment products and costs from a recent investment cycle.
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However, revenue for Uruguay's first unicorn, a company to publicly list for more than $1 billion, jumped 55% to $335.9 million, topping the $333.1 million forecast. Total payment volume (TPV) surged 73% to $14.1 billion, up from $8.1 billion a year earlier.
DLocal, which facilitates transactions for merchants including Amazon (AMZN.O), opens new tab, Uber (UBER.N), opens new tab and Spotify (SPOT.N), opens new tab, operates across more than 40 emerging markets and earns the bulk of its income in Latin America, notably Brazil, Mexico and Argentina, but also in Africa and Asia.
Reporting by Natalia Siniawski; Editing by Brendan O'Boyle
Our Standards: The Thomson Reuters Trust Principles., opens new tab
DLocal (DLO - Free Report) came out with quarterly earnings of $0.17 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.15 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +6.25%. A quarter ago, it was expected that this online payment company would post earnings of $0.18 per share when it actually produced earnings of $0.22, delivering a surprise of +22.22%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
DLocal, which belongs to the Zacks Financial Transaction Services industry, posted revenues of $335.86 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.93%. This compares to year-ago revenues of $216.76 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
DLocal shares have lost about 13.9% since the beginning of the year versus the S&P 500's gain of 8.8%.
What's Next for DLocal?While DLocal has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for DLocal was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.20 on $355.42 million in revenues for the coming quarter and $0.85 on $1.5 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial Transaction Services is currently in the top 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the broader Zacks Business Services sector, Full Truck Alliance Co. Ltd. Sponsored ADR (YMM - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 21.
This company is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of -27.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Full Truck Alliance Co. Ltd. Sponsored ADR's revenues are expected to be $403.53 million, up 8.5% from the year-ago quarter.
dLocal Keeps Winning, but the Stock Still Has Something to ProveDLocal NASDAQ: DLO reported another quarter of rapid payment volume growth, with management pointing to broad-based merchant expansion across emerging markets while also addressing higher operating expenses and a one-time tax adjustment that weighed on reported earnings.
On the company’s first-quarter 2026 earnings call, Chief Executive Officer Pedro Arnt said DLocal is marking 10 years since its founding and five years since its Nasdaq IPO. He framed the quarter in the context of the company’s longer-term expansion, saying DLocal processed $100 million in total payment volume, or TPV, in one country in 2016 and has now crossed $47 billion in TPV over the last 12 months across the Global South.
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3 Emerging Market Stocks Leveraging South America’s Momentum“We now process more in a 1 day than we did in our entire first year of operations only a decade ago,” Arnt said.
Payment Volume and Gross Profit Hit New Highs Chief Financial Officer Guillermo López Pérez said TPV reached $14.1 billion in the first quarter, up 73% from a year earlier and 7% sequentially. He said it was DLocal’s sixth consecutive quarter of TPV growth above 50%.
The Next Market Leaders? 5 Growth Stocks to Watch in 2026Gross profit reached a record $119 million, up 40% year over year and 2% quarter over quarter. López Pérez said the sequential gross profit performance was helped by a recovery in Argentina, where volumes grew and funding costs normalized after a weaker fourth quarter, as well as growth in Africa and Asia, particularly Nigeria, Mozambique and Vietnam.
Management said DLocal’s top three markets—Mexico, Brazil and Argentina—continued to grow consistently, while Chile, Nigeria, Colombia and Vietnam also contributed strongly. Africa and Asia represented about 29% of gross profit and grew 16% sequentially, outpacing the company average, López Pérez said.
Brazil moved in the opposite direction sequentially after a strong fourth quarter, which benefited from Black Friday and holiday e-commerce installments. Arnt said Brazil’s year-over-year performance remained strong, with gross profit more than doubling, but the first quarter reflected seasonality and a higher mix of Pix transactions, which have lower monetization than cards.
One-Time Tax Adjustment Weighs on Reported Profit DLocal reported operating profit of $53 million for the quarter. Excluding a one-time prior-period tax adjustment, operating profit would have been $57 million, representing 25% year-over-year growth and an operating profit-to-gross profit ratio of 48%, according to López Pérez.
The adjustment totaled $9.7 million, with about $5.3 million recorded in the corporate tax line and $4.4 million in operating expenses. López Pérez said the adjustment related to the company’s tax treatment for prior periods of one installment payment product in certain markets. He said DLocal does not expect comparable items in future quarters.
Net income was $42 million as reported. Excluding the one-time item, DLocal would have reported $52 million in net income, or about 11% year-over-year growth, López Pérez said. The reported effective tax rate was approximately 26%, compared with about 16% excluding the adjustment.
Operating expenses were $62 million excluding the adjustment, up 58% year over year and 16% sequentially. Management said the increase reflected the expected carryover of investments made in the second half of 2025.
Guidance Unchanged as Management Targets Operating Leverage Arnt said DLocal’s full-year guidance remains unchanged. He said costs were expected to be heavier in the first half of 2026, with margins improving in the second half.
During the question-and-answer portion of the call, López Pérez said first-quarter operating expenses were slightly above the company’s expectations due to a number of smaller items, including discretionary categories, third-party spending and somewhat higher average salaries. He said DLocal has started targeted corrective actions and does not expect new net hiring for the rest of the year.
López Pérez said several factors should support a better expense trajectory through 2026, including:
Fading effects from the late-2025 investment cycle; An accelerated automation agenda; Targeted cost actions already underway; Lower share-based payment expense as graded vesting flows through the year. Arnt said the investments made in 2024 and 2025, including in engineering and product headcount, supported the company’s current growth in TPV, revenue and gross profit. He said that as the investment cycle ends, “the innate operating leverage of the business model should begin to flow through the P&L.”
Merchant Expansion and Local Payment Infrastructure Remain Central Arnt emphasized DLocal’s focus on local payment infrastructure, saying the company now operates in more than 60 countries, including Algeria, Qatar, Kuwait and Oman. He said DLocal holds 38 licenses and authorizations across 26 markets, with 16 additional applications in process, and serves more than 760 enterprise merchants through a single API.
Arnt said local payment methods are increasingly central to online commerce in emerging markets. He cited examples including Yape in Peru and Payflex in South Africa, which he said drive significant net-new customers for some DLocal merchants. He also pointed to local card schemes such as Mada in Saudi Arabia, Verve in Nigeria and Meeza in Egypt as important to competing in those markets.
Vertical diversification remained a key theme. Arnt said every vertical in DLocal’s portfolio grew between the first quarter of 2024 and the first quarter of 2026. E-commerce remains the company’s largest vertical, while DLocal also serves four of the five largest ride-hailing players operating across emerging markets. Remittances remain one of the company’s fastest-growing verticals, and management said travel and gaming are areas of focus.
In the first quarter, travel led sequential growth at 38%, driven by a new expansion deal with a key global travel merchant. On-demand delivery grew 24% sequentially. E-commerce and remittances were softer sequentially, which López Pérez said was consistent with seasonality after the fourth-quarter peak.
AZA Deal Closes, Africa and Asia Remain Growth Priorities Arnt said DLocal closed the AZA transaction during the quarter, but he cautioned that it was not material to the reported results and is not expected to create a near-term revenue impact. He said the transaction ultimately became an asset purchase after legal and regulatory hurdles, and that it added customer relationships, intellectual property, licenses and talent that should support DLocal’s position in Africa.
Management also discussed Asia as a longer-term opportunity. Arnt said DLocal’s strength in Africa and Asia is still driven more by Africa and the Middle East, while Asia remains in earlier stages. However, he said the company’s view has shifted as it sees fragmentation, alternative payment methods and room for improvement in card performance across Asian markets.
Arnt said merchants are increasingly focused on alternative payment methods, real-time networks, digital wallets, local card schemes and localized credit card processing. He said stablecoins are already emerging as a real use case for merchant settlement, but core local payment infrastructure remains the company’s main driver of volume.
About DLocal NASDAQ: DLOdLocal 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.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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DLocal Limited (DLO) remains a compelling fintech play, with robust execution and improving unit economics despite recent post-earnings volatility. DLO's Q1 2026 saw 73% YoY TPV growth and 55% revenue growth, but net take rate declined as large enterprise clients pressured fees. Management is proactively controlling OPEX via a hiring freeze and expanding into higher-margin Tier 2/3 payment networks to stabilize margins.
It's been a rough earnings season for the leading fintech stocks of Latin America. MercadoLibre (MELI 0.16%), DLocal (DLO +2.97%), and Nu Holdings (NU +1.64%) all declined after posting their latest financial results.
Shares of e-commerce and fintech leader MercadoLibre have tumbled 17% in the past six trading days since a disappointing first-quarter performance. DLocal and Nu announced their numbers after Thursday's market close. The stocks slipped 13% and 6% on Friday, respectively.
Zoom out, and the carnage gets worse. Mercado Libre, DLocal, and Nu are trading 42%, 345, and 32% off their recent highs, respectively. There are some serious headwinds picking up for the recent laggards, but this also feels like an opportunity. Let's go over some reasons this could be a great time to establish or build a position in one or more of these Latin American fintech players.
Image source: Getty Images.
1. MercadoLibre MercadoLibre has seen its market cap shrink from $134 billion to $78 billion since reaching an all-time high a year ago. But that doesn't make it any less of a leader in Latin America's e-commerce and fintech realms. Revenue accelerated in its latest quarter, rising 49%, or 46% on a foreign-exchange neutral basis. No matter which measuring stick you use, that's MercadoLibre's biggest year-over-year jump since the second quarter of 2022.
The market isn't happy with what the 87% jump in its credit portfolio over the past year is doing to MercadoLibre's bottom line. Initiating loans requires establishing bad-debt reserves, squeezing margins in the short run. There's also the fear that if the Latin American bellwether jacks up its lending offerings, through credit cards and other loan products, MercadoLibre stock could come under pressure from credit risk if the Latin American economy takes a turn for the worse.
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There's been too much negative attention to the short-term pressure on margins. At least 10 analysts have slashed their price targets on MercadoLibre, including a pair of downgrades. Lost in the noise, MercadoLibre's Mercado Pago processed $87.2 billion in total payment volume through the first three months of this year, a 50% increase from where it was a year ago. The e-commerce business saw its gross merchandise volume rise 42% to $19 billion for the quarter.
Near-term profit forecasts have dropped precipitously in recent months. One can't say that MercadoLibre is cheap at 37 times this year's earnings or even 26 times next year's analyst target. However, free cash flow more than doubled in MercadoLibre's latest quarter. Ramping up its credit offerings elevates the risk level of the shares. Lowering its threshold for free shipping in Brazil is a one-two punch that weighs on margins while raising concerns about MercadoLibre's competitive dominance in e-commerce.
I still like MercadoLibre here. This is a short-term hit for the promise of bigger gains in the future. It's a good investing strategy, and the company has a long track record of bouncing back after near-term setbacks.
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2. DLocal Like MercadoLibre, global payments processing speedster DLocal posted better-than-expected revenue that failed to impress amid challenging margin contraction. The Uruguay-based company saw its revenue rise 55%, fueled largely by a 73% surge in total payment volume.
However, revenue's failure to keep pace with total payment volume, both sequentially and year over year, raised concerns about DLocal's take rate. As a geographically diverse fintech with a penchant for cross-border payments, it unsurprisingly has to offer more generous terms when partnering with larger companies. But investors weren't ready for that. After a long run of double-digit earnings beats, DLocal proved mortal in the first quarter.
DLocal points to secular tailwinds, but the stock's 13% slide on Friday suggests that the headwinds, contracting margins, are stronger. Wall Street pros will probably be narrowing their projections in the coming days, but for now DLocal is trading for less than 13 times forward earnings and just 10 times next year's multiple.
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3. Nu Holdings This brings us to Nu Holdings stock. It's the best performer of the three this earnings season, but the parent company of Brazil's Nubank has still shed nearly a third of its peak value. Despite growing its customer base by 14% to 135 million by the end of March, Nu delivered better-than-expected top-line revenue of $5.3 billion. The 42% jump found it cracking the $5 billion ceiling on the top line for the first time.
Net income rose 41% despite a more modest 27% step up in gross profit. But although Nu still posted the strongest bottom-line growth of the three companies, it still didn't turn in a perfect report. Customer deposits dipped sequentially. The non-performing loan rate increased for customers who were 15 to 90 days late. And it missed slightly on earnings, partly on the early-stage credit provisions that also tripped up MercadoLibre.
Nu remains a cheap fintech relative to its growth. You can buy Nu for just 11 times next year's analyst profit estimate, and less than 15 times this year's outlook. Brazil accounts for 115 million of its 135 million accounts, but with Mexico now reaching 15 million, Nu sees that country at an inflection point to duplicate the growth spurt it achieved in its home country.
Opportunity is knocking for all three companies. You don't need a translator to figure that out.
dLocal Keeps Winning, but the Stock Still Has Something to ProveDLocal NASDAQ: DLO Chief Executive Officer Pedro Arnt said the payments company remains focused on expanding its role as a financial infrastructure provider for large global merchants operating in emerging markets, emphasizing that fragmentation in those markets continues to be central to the company’s value proposition.
Speaking with Sebastian Rodriguez, Managing Director of Technology Investment Banking at JPMorgan, Arnt described DLocal’s core advantage as its ability to give enterprise merchants a single integration into more than 60 emerging markets and thousands of payment mechanisms. He said many global companies find payments to be a “significant friction point and bottleneck to growth” when entering markets with fragmented systems, legacy technology and varied local regulations.
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3 Emerging Market Stocks Leveraging South America’s MomentumArnt said DLocal has spent more than 10 years building payment pipelines, stakeholder relationships, licenses and regulatory knowledge across those markets. He called that a “significant moat” and said it has supported net revenue retention levels of more than 150%.
CEO Focus Shifts Toward Growth Initiatives Arnt said much of his early tenure as sole CEO was spent rebuilding parts of the team and strengthening middle-office, back-office and regulatory capabilities. He characterized that period as a more “defensive agenda.”
The Next Market Leaders? 5 Growth Stocks to Watch in 2026Over the past six months, he said, his focus has shifted toward product innovation and geographic growth. Areas of emphasis include newer products such as buy now, pay later, alternative payment methods, merchant of record services and omnichannel offerings, including a physical payments presence.
On geography, Arnt said DLocal is a consolidated leader in Latin America and has a strong position in Africa, while Southeast Asia is becoming a key area of focus. He said the company sees an opportunity to leverage existing merchant relationships by adding Asian and Southeast Asian markets to its Latin American and African portfolio.
Guidance, Take Rates and Emerging Market Risks Rodriguez noted that DLocal recently kept its guidance unchanged, including expectations for total payment volume growth of 50% to 60%, largely from existing merchants. Arnt said momentum through May was strong, particularly in TPV and gross profit, and that performance was trending toward the top end of guidance.
He described the strength as broad-based across verticals and markets, adding that there are “way more” markets ahead of schedule than behind schedule. Potential risks, he said, are largely tied to the nature of operating across volatile emerging markets, including foreign exchange movements, geopolitical disruptions, tariffs and trade barriers. Arnt also noted that Brazil’s recent lowering of de minimis thresholds on e-commerce imports was “actually looking positive” for DLocal’s merchants.
Asked about take rates, Arnt said declining take rates are increasingly an “inherent feature” of DLocal’s strategy rather than a flaw. He said management is focused more on winning share of wallet, adding large global contracts and increasing gross profit dollars than on defending current pricing levels.
“Payments eventually will be a scale play,” Arnt said. He added that DLocal would rather process larger volumes for major global technology clients, then monetize those relationships through cross-selling, complex frontier markets and new products. He said DLocal’s first-quarter gross profit grew 40% on TPV growth of 70%, compared with a gross profit guidance midpoint of 25%.
OpEx Investment Cycle and Product Development Arnt said DLocal had previously communicated an investment cycle focused on areas such as product research and development, local market presence, compliance, regulatory capabilities, artificial intelligence and automation. He said the company had signaled that the investment cycle would end last year, though expenses in the first half of this year reflect the annualization of prior investments and January salary adjustments.
He also said an unexpected prior-period cost of about $9 million, related to 2023, 2024 and 2025, made first-quarter operating expense optics worse. Even so, Arnt said DLocal remains on track to hit guidance without needing to adjust away that incremental cost.
Arnt said DLocal expects operating leverage to begin showing more clearly in the second half of the year as comparisons become easier and sequential operating expense growth slows. He added that because gross profit continues to grow rapidly, the company can still invest in newer technologies while delivering operating leverage.
Competition and New Technologies Discussing competition, Arnt said emerging markets require a different approach from developed-market payments. He contrasted DLocal’s model with the vertically integrated strategies used by companies such as Adyen and Stripe in developed markets, where credit card rails dominate.
In emerging markets, he said, more than half the population may not use or have credit cards, and payment systems are highly fragmented. Arnt said DLocal’s strength is providing a horizontal layer that connects global merchants to local financial infrastructure without trying to rebuild each market’s stack.
On agentic commerce, Arnt said he does not believe anyone yet knows how the technology will play out. DLocal’s approach, he said, is to ensure its stack can process payment mandates from agents, stay close to protocols being developed by companies including Google, OpenAI, Stripe, Visa and Mastercard, and advocate for local and alternative payment methods such as Pix, Yape and mobile money to be considered in those protocols.
He said if agents become rational optimizers of payment methods on a transaction-by-transaction basis, that could increase payment fragmentation, which he believes would benefit DLocal.
Cash Flow, Capital Returns and M&A Arnt said DLocal continues to convert free cash flow at roughly 100% after adjusting for two interim reporting issues in the latest quarter. He described the business as “extremely asset light” and said it does not require large capital expenditures, though it does need a liquidity buffer because of the markets in which it operates.
DLocal’s capital allocation plan includes a dividend policy equal to 30% of annualized prior-year free cash flow, according to Arnt. He also highlighted the company’s announced $300 million share buyback program for its first year, saying a declining share count combined with growing earnings and free cash flow could be a powerful part of the company’s financial model.
On mergers and acquisitions, Arnt said M&A remains part of the company’s toolkit but is not central to its capital allocation policy. He said valuation gaps between private and public payments companies make many potential deals difficult, and he cautioned that technology M&A often destroys value unless the buyer is an experienced serial acquirer. He said DLocal is more likely to pursue small tuck-in acquisitions to add capabilities, contracts or talent, rather than larger deals, unless a clearly transformative opportunity emerges.
Arnt closed by saying DLocal is a way for investors to gain exposure to emerging market digitalization through the growth of major global digital companies operating across what he called the “Global South.” He said the company’s role is to ride alongside large clients such as Google, Netflix, Spotify, Amazon, Shein and DiDi as they expand in those markets.
About DLocal NASDAQ: DLOdLocal 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.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Robotics and automation are rapidly becoming essential infrastructure across healthcare, manufacturing, logistics, and many other industries.
"Physical AI" is coming to the United States, and there are four ways that investors can gain exposure to this new robotics revolution. Plus, learn which seven companies are most positioned to benefit as intelligent robots enter the workforce.
MONTEVIDEO, Uruguay, June 05, 2026 (GLOBE NEWSWIRE) -- DLocal Limited (NASDAQ: DLO, “dLocal” or the “Company”), the leading cross-border payment platform connecting global merchants to emerging markets, intends to release financial results for its second fiscal quarter ended June 30, 2026 on August 13, 2026 after market close.
The Company will host a conference call and video webcast on August 13, 2026 at 5:00 p.m. Eastern Time.
Please click here to pre-register for the conference call and obtain your dial in number and passcode. The live conference call can be also accessed via audio webcast at the investor relations section of the Company’s website, at https://investor.dlocal.com/. An archive of the webcast will be available for one year following the conclusion of the conference call.
About dLocal
dLocal builds financial infrastructure for markets of the future, connecting global enterprises with local payment cultures across high-growth markets in Africa, Asia, the Middle East, and Latin America. Through the "One dLocal" concept (one direct API, one platform, and one contract), global companies can accept payments, send payouts, and settle funds globally without the need to manage multiple local entities and integrations. For more information, visit www.dlocal.com.
Forward Looking Statements
This press release contains certain forward-looking statements. These forward-looking statements convey dLocal’s current expectations or forecasts of future events. Forward-looking statements regarding dLocal involve known and unknown risks, uncertainties and other factors that may cause dLocal’s actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Certain of these risks and uncertainties are described in the “Risk Factors,” and “Cautionary Note Regarding Forward-Looking Statements” sections of dLocal’s filings with the U.S. Securities and Exchange Commission. Unless required by law, dLocal undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date hereof.
