MIAMI, FL, May 26, 2026 (GLOBE NEWSWIRE) -- Sharplink, Inc. (Nasdaq: SBET) ("Sharplink" or the "Company"), one of the world's largest corporate holders of Ether ("ETH") and a prominent industry advocate of Ethereum adoption, today announced that it will be included in the Russell 2000® Index and Russell 3000® Index. The addition follows publication of FTSE Russell's preliminary list of index changes on May 22, 2026, and it will take effect on June 29, 2026 at the conclusion of the Russell indexes' semi-annual reconstitution.
According to FTSE Russell, approximately $12.2 trillion in assets are benchmarked against the Russell US Indexes, spanning both index funds and active strategies. The Russell 2000, in particular, is widely regarded as the leading benchmark for U.S. small cap equities, making index membership a meaningful driver of institutional visibility and access to index-tracking capital.
Joseph Chalom, Chief Executive Officer of Sharplink, commented, "Joining the Russell 2000 and Russell 3000 is a meaningful validation of Sharplink’s institutional-grade ETH treasury strategy and we believe will broaden SBET's shareholder base while strengthening our access to capital markets. Ethereum sits at the center of four secular trends reshaping finance today: stablecoins, tokenization, onchain finance, and the emerging agentic economy. Through disciplined, active treasury management, Sharplink gives public market investors productive exposure to ETH and the broader Ethereum opportunity."
For more information on the Russell 2000 Index, Russell 3000 Index and the Russell indexes reconstitution, go to the “Russell Reconstitution” section on the FTSE Russell website.
About Sharplink, Inc.
Sharplink is a leading institutional-grade Ethereum treasury platform designed to give public market investors smarter, more productive exposure to ETH. Ethereum underpins the majority of global stablecoin, tokenized real-world assets and decentralized finance settlement, making ETH a unique native yield generation and long-term network growth opportunity. In addition to its Ethereum treasury platform, Sharplink operates an online affiliate marketing business. Sharplink was founded in 2019 and is headquartered in Miami, Florida. Learn more at www.sharplink.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 Statement
Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, and these forward-looking statements are subject to various risks and uncertainties. Such statements include, but are not limited to, goals and expectations regarding the Company’s strategy and potential partnerships, and other statements accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words, but the absence of these words does not mean that a statement is not forward-looking. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company’s ability to repurchase additional shares of Sharplink’s common stock through its stock repurchase program, potential use of the Company’s ATM facility, the Company’s ability to achieve profitable operations, fluctuations in the market price of ETH that will impact the Company’s accounting and financial reporting (see accounting rules discussed below), government regulation of cryptocurrencies and online betting, changes in securities laws or regulations, customer acceptance of new products and services, the demand for its products and its customers’ economic condition, the impact of competitive products and pricing, the lengthy sales cycle, proprietary rights of the Company, changes in applicable laws or regulations, and its competitors, general economic conditions and other risk factors detailed in the Company’s annual report and other filings with the SEC. Under U.S. generally accepted accounting principles, entities are generally required to measure certain crypto assets at fair value, with changes reflected in net income each reporting period. Changes in the fair value of crypto assets could result in significant fluctuations to the balance sheet and income statement results. Additionally, for other certain types of crypto assets, the Company uses the historical costs less impairment model. This model may require the Company to record an associated impairment charge reflected in net income as a result of a decrease in the market price of the crypto assets below the cost value at which the Company’s crypto assets are carried on its balance sheet. Any forward-looking statements contained in this press release speak only as of the date hereof, and the Company does not undertake any responsibility to update the forward-looking statements in this press release.
CONTACT:
Sharplink’s Investor Relations Contact:
Sean Mansouri, CFA or Aaron D’Souza | Elevate IR
Phone: (720) 330-2829
Email: [email protected]
Investors might want to bet on Sharplink Inc (SBET - Free Report) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.
A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
Therefore, the Zacks rating upgrade for Sharplink Inc basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
For Sharplink Inc, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Sharplink IncThis company is expected to earn -$1.51 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Sharplink Inc. Over the past three months, the Zacks Consensus Estimate for the company has increased 185.3%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Sharplink Inc to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
A downtrend has been apparent in Sharplink Inc (SBET - Free Report) lately with too much selling pressure. The stock has declined 30.2% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Why a Trend Reversal is Due for SBETThe heavy selling of SBET shares appears to be in the process of exhausting itself, as indicated by its RSI reading of 29.71. So, the trend for the stock could reverse soon for reaching the old equilibrium of supply and demand.
The RSI value is not the only factor that indicates a potential turnaround for the stock in the near term. On the fundamental side, there has been strong agreement among the sell-side analysts covering the stock in raising earnings estimates for the current year. Over the last 30 days, the consensus EPS estimate for SBET has increased 45%. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, SBET currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Sharplink offers a 'purer' investment opportunity compared to Bitmine, which is heavily influenced by its founder. SBET should benefit from ETH after the passage of CLARITY catalyzes on-chain finance. A recent deal with Galaxy Digital shows their ability to optimize yield.
Editor’s Note: Every tech boom creates a new wave of superstar companies. But, as we talked about in yesterday’s issue, the biggest early fortunes often come from a different place entirely: the bottlenecks.
When demand for a new technology explodes faster than supply can keep up, the companies controlling those choke points can see extraordinary gains.
My colleague Eric Fry has been studying this pattern for decades. He has a knack for spotting the economic pressure points where massive profits tend to emerge.
In the essay below, Eric explains how a little-remembered metals shortage during the dot-com boom helped fuel huge gains in mining stocks – and why a similar dynamic could now be unfolding in the AI Revolution.
Eric will dive deeper into this opportunity during FutureProof 2026, a free event happening March 18 at 1 p.m. ET, where he’ll explain why new shortages in metals, electricity, and memory could shape the next phase of the AI boom. You can reserve your spot here.
People took out thousands of dollars in cash in fear that ATMs wouldn’t work.
Thousands canceled flights because they believed planes might simply fall out of the sky.
Stores across the globe sold out of generators, bottled water, and cans of Spam.
For younger folks, it may sound crazy, but the panic over the so-called Y2K bug was very real.
At the turn of the millennium, people around the world feared computers would crash on January 1, 2000 — misreading the “00” date as 1900 instead of 2000.
The problem was real. And real money was spent to solve it.
The Clinton administration said in December 1999 that preparing the U.S. for Y2K was probably “the single largest technology management challenge in history.”
Researchers at Gartner estimate the global cost of Y2K remediation — across governments and private companies — totaled between $300 billion and $600 billion.
In the end, the remediation worked. Aside from a few minor glitches (and perhaps a lingering surplus of canned Spam), the world’s technology systems continued running smoothly.
But while the public worried about computers crashing…
… another problem was quietly forming behind the scenes.
We had to move so quickly at the turn of the century largely because of the tech boom leading up to it.
The dot-com surge triggered a massive buildout of internet infrastructure, and that buildout required enormous quantities of raw materials.
So while consumers were stockpiling supplies…
… tech companies were scrambling to secure metals.
During the late 1990s and early 2000s, the tech boom triggered a surge in demand for critical materials used in electronics and networking equipment:
Copper – to carry electricity and data Tin – used in electronic soldering Gold – used in corrosion-resistant connectors Rare earth elements – used in disk drives, displays, and fiber optics The explosion of internet infrastructure, personal computers, and networking hardware meant the world suddenly needed far more metals than usual.
But mining and refining capacity couldn’t expand overnight.
The result was a classic supply bottleneck.
Prices for semiconductors and other hardware spiked. Companies like Cisco Systems Inc. (CSCO), Intel Corp. (INTC), and Dell Technologies Inc. (DELL) faced growing lead-time issues that slowed product rollouts.
But this metals shortage also created hidden investment opportunities.
Investors who anticipated which resources would become scarce had the chance to profit in extraordinary ways, much like investors who recently benefited from Nvidia Corp.’s (NVDA) nearly 1,000% gains during the AI compute bottleneck.
From 1998 to 2001, I recommended four mining stocks to my readers that went on to generate remarkable gains. These companies became the quiet winners of the late-1990s tech boom.
Today, let’s take a closer look at them — and how identifying a supply bottleneck early created enormous upside.
Then I’ll show you how this same profit-making “bottleneck” cycle is unfolding again thanks to AI… and where investors still have time to position themselves.
Let’s take a look…
The Copper Bottleneck of the Internet Boom Back during the dot-com era, Antofagasta plc (ANTO.L) was not yet the global copper giant it is today.
In the mid-1990s, the company was still a diversified Chilean holding company involved in railways, finance, and industrial businesses.
But in 1996, Antofagasta spun off many of its non-mining assets into Quiñenco SA, one of Chile’s largest conglomerates.
That move transformed Antofagasta into a copper-focused mining company — just as the internet boom was beginning to drive enormous demand for the metal.
During the late 1990s, the company began developing the massive Los Pelambres copper mine in Chile’s Coquimbo Region. Construction started in 1997. Initial production began in 1999. By 2001, the mine had reached full capacity.
Los Pelambres quickly transformed Antofagasta from a relatively small mining group into a major global copper producer. In the early 2000s, the mine accounted for roughly three-quarters of the company’s revenue.
I recommended Antofagasta to my readers on December 18, 1998 — about a year before the mine began production.
Over the next three years, the stock soared 205%, while the S&P 500 was essentially flat.
Over six years, Antofagasta delivered an astonishing 778% gain, while the S&P continued to nurse its losses, down 27%!
Antofagasta built capacity during the investment phase of the 1990s, and then benefited enormously once the metals bottleneck tightened.
But it wasn’t the only copper producer positioned to win.
While tech companies were building the internet, companies like Freeport-McMoRan Inc. (FCX) were supplying the physical materials that made the emerging digital world possible.
Freeport’s crown jewel was the Grasberg Mine in Indonesia, one of the most important copper and gold mines on Earth.
Because Grasberg was already operating at scale, Freeport could immediately ramp up production as demand surged. The company didn’t need to build new capacity to benefit from the bottleneck — it simply needed to keep producing.
I recommended Freeport to my readers on April 26, 1999.
Over the next three years, the stock rose 37%, while the S&P 500 slumped 18%.
Over six years, Freeport soared 193%, while the broader market lost 7%.
Copper wasn’t the only opportunity of the time…
The Other Metals Bottlenecks of the Tech Boom During the late 1990s, Cameco Corp. (CCJ) controlled some of the richest uranium deposits in the world in Canada’s Athabasca Basin.
Its McArthur River and Key Lake mines had extremely high uranium grades, giving Cameco some of the lowest production costs in the entire industry.
Now, uranium wasn’t central to the internet infrastructure buildout. Prices were relatively weak during most of the dot-com era. So you might wonder why Cameco belongs on this list.
The answer is simple: cost advantage. Because its deposits were so rich, Cameco remained profitable even during periods of weak uranium prices.
Then, shortly after the dot-com era ended, uranium experienced its own supply crunch. And Cameco was perfectly positioned to benefit.
I recommended the company to my readers on July 9, 1999.
Over three years, the stock rose 36%, while the S&P 500 declined by nearly 30%.
Over six years, Cameco rocketed 640% as the S&P was still 5% underwater.
My final bottleneck winner came from another corner of the mining world.
Impala Platinum Holdings (IMPUY) was one of the largest producers of platinum-group metals in the world.
These metals — platinum, palladium, rhodium, iridium, and osmium — are used in:
automotive catalytic converters electronics components chemical processing petroleum refining During the late 1990s, demand for these metals increased sharply as global manufacturing expanded. Meanwhile, tightening emissions standards increased demand for catalytic converters.
The price of platinum surged from roughly $350–$400 per ounce to more than $600. Because Impala was already a major supplier, those rising prices flowed straight into the company’s profits.
I recommended Impala on March 30, 2001.
Over the following three years, the stock rose 176%, compared to just 2% for the S&P 500.
Over six years, Impala soared 872%, while the S&P gained only 36%.
The lesson is clear.
During major tech booms, materials and infrastructure often become bottlenecks.
And the companies that control those bottlenecks can generate extraordinary returns.
Where the AI Supply Crunch May Appear Next Today, we’re seeing something very similar unfold during the AI Revolution.
Artificial intelligence requires enormous quantities of infrastructure, including chips, electricity, memory, and critical metals.
And whenever demand for infrastructure rises faster than supply can respond, bottlenecks emerge.
For investors who identify them early, the upside can be highly asymmetric.
In general, I look for four things:
Where demand is overwhelming supply Which companies control the choke point Whether increasing supply will be easy or difficult And whether the market has recognized the opportunity yet Of course, identifying these bottlenecks in real time is easier said than done.
But right now, several new constraints are beginning to appear across the AI supply chain.
And the companies positioned to solve those constraints could become some of the biggest winners of the next phase of the AI boom.
That’s exactly what I’ll be discussing in much greater detail during FutureProof 2026, happening Wednesday, March 18 at 1 p.m. ET.
During this free broadcast, I’ll explain why new shortages in metals, electricity, and memory could soon become the next major bottlenecks in the AI Revolution.
I’ll also reveal 15 companies already positioned to benefit from these developing constraints.
If history is any guide, the next Nvidia-style winner may not come from AI software — but from the companies solving AI’s biggest infrastructure challenges.
Mining stocks climbed on Tuesday as investors returned to metals after sharp gains in gold, silver and copper prices driven by hopes of easing geopolitical tensions in the Middle East.
Endeavour Mining PLC (LSE:EDV) led the FTSE 100 risers, up 3.5%, while Rio Tinto Ltd (LSE:RIO) gained 2.3%, Glencore PLC (LSE:GLEN) rose 2.2%, Antofagasta PLC (LSE:ANTO) 1.9%, Anglo American PLC (LSE:AAL) 1.4% and Fresnillo PLC (LSE:FRES) 0.8%.
The rally followed strong moves in metals markets on Monday after Donald Trump said a "memorandum of understanding" in talks to end the US and Israel's war on Iran "has been largely negotiated".
However, the US launched strikes on Iran overnight, targeting missile launch sites and vessels suspected of attempting to lay mines in what Washington described as “defensive” action.
Meanwhile, a senior delegation of Iranian negotiators is travelling to Qatar for fresh talks with the US over frozen financial assets and a possible wider deal.
Gold climbed from around $4,500 an ounce on Friday to about $4,570 on Monday before easing back to $4,535 on Tuesday morning. Silver followed a similar pattern, rising from $75.4 an ounce at the end of last week to above $78.5 before retreating to around $76.4.
Copper prices also surged, with US copper futures reaching $6.44 a pound and London Metal Exchange copper trading at $13,667.50 a tonne at one stage.
The moves helped lift both precious metal miners and diversified mining groups, with investors betting higher commodity prices could support earnings if geopolitical tensions remain elevated.
"For markets the message is straightforward: the peace trade is more fragile than Monday’s price action suggested," said market analyst Patrick Munnelly at Tickmill.
He said the latest round of strikes "complicates hopes for an interim deal to extend the ceasefire and reopen the Strait of Hormuz, even though Trump said talks were 'proceeding nicely' and Pakistan’s military chief Asim Munir reportedly told China that an agreement was close.
"Investors are still cautiously optimistic, but the risk premium has not disappeared. As long as military action and negotiations are running in parallel, energy markets will remain vulnerable to abrupt reversals."
South32 Ltd (LSE:S32, ASX:S32, OTC:SHTLF) is Citi's preferred mining stock as the bank becomes more bullish on copper and aluminium prices, while Glencore PLC (LSE:GLEN) is its favoured way to play the copper theme among the major diversified miners.
The US bank has raised its long-term copper forecasts and now expects prices to reach $15,000 a tonne within the next year, versus a current LME price below $13,800.
Citi's view is based on support from supply shortages extending into 2027 and 2028.
That outlook has prompted a series of target price upgrades across the sector. Citi increased its target price on South32 to 320p from 300p, while lifting BHP Group Ltd (LSE:BHP, ASX:BHP) to £35 from £29 and Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) to £81 from £76.
Versus BHP or Rio, the bank's analysts argued that Glencore "among global diversifieds as better exposure to copper upside", though Anglo American PLC (LSE:AAL) and Antofagasta PLC (LSE:ANTO) are viewed by investors as the FTSE 100 miners to buy for copper exposure.
Citi maintained 'neutral' ratings on BHP and Rio Tinto, saying the benefits from higher copper prices are partly offset by a more subdued outlook for iron ore, which remains a major earnings driver for both groups.
By contrast, South32 continues to stand out because of its exposure to both copper and aluminium, where Citi also sees upside. The company's Hermosa project in Arizona was highlighted as a source of long-term structural growth.
Citi said consensus earnings forecasts for South32 still have room to move higher as analysts incorporate stronger assumptions for copper and aluminium prices.
The bank expects the company to be one of the biggest beneficiaries of commodity price upgrades over the next two years.
Earlier this week, Pan African Resources PLC (LSE:PAF, OTCQX:PAFRY, JSE:PAN) CEO Cobus Loots talked to Proactive about the company’s decision to acquire Emmerson Resources.
Loots explained the thinking behind the move to full ownership of the Tennant Creek gold project in Australia, where exploration success has already highlighted the potential of the area.
Loots also discussed exploration opportunities at Tennant Creek, and key milestones investors should watch as the deal progresses.
Proactive: Cobus, very good to speak with you. Pan African already owns 75% of the Tennant Creek joint venture. Why was now the right time to acquire Emmerson outright?
Cobus Loots: Well, it makes sense to consolidate all of Tennant into one entity. We believe that eliminates the complexities of the joint venture agreement and frees up Pan African to fast-track the development of this field as we see fit. Since we acquired Tennant, Emmerson and Tennant have had excellent exploration success, specifically at the White Devil deposit, which has turned out to be more than half a million ounces at very attractive grades.
Proactive: What strategic advantage does full ownership of Tennant Creek bring in terms of project development, capital allocation and long-term value?
Loots: We now have about 1,700 square kilometres of very prospective ground. In addition to White Devil, our geophysics has identified at least ten similar anomalies. We're very excited about the exploration potential, and owning the entire project means we can fast-track exploration. It also provides exposure to existing resources and reserves, and eliminates certain penalty and royalty payments that were due to Emmerson.
Proactive: How does Emmerson fit alongside Pan African’s existing operations and what does it add to the broader portfolio?
Loots: Effectively, we are buying more of what we already own through the joint venture. It's not a business that we don't understand or know well.
Proactive: The deal also includes a planned ASX listing. How important is that for strengthening your presence in Australia?
Loots: It was very important for Emmerson shareholders because they wanted to retain exposure to the larger group and its prospects. We believe an Australian listing would be well received. During the past year we conducted a roadshow in Australia and met several major institutions. Pan African compares well with the gold mining opportunities available in the Australian market.
Proactive: It's also a good time to increase exposure to gold with prices strong.
Loots: Yes, very much so. These are assets we already know and own, and those are often the best deals.
Proactive: What milestones should investors look out for before completion?
Loots: The transaction will be structured as a scheme of arrangement. Documentation will be circulated to Emmerson shareholders and there will be a vote later this year. Work on the deposits will continue in the meantime.
Proactive: Cobus, thank you very much for speaking with us today.
Shares in precious metals miners fell further on Monday as gold and silver prices fell back to their lowest in over three months.
The gold price was down 6% to $4,215 an ounce, wiping out gains since early December. Earlier, the yellow metal had sunk to just over $4100, a level not seen since November.
Silver fell over 8.1% to $62.27 in early trading, before battling back to $64.7 an ounce, down 4% on the day and around three-month lows.
Among FTSE 100 stocks, Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF, FRA:6E2) fell 4.3% and Fresnillo PLC (LSE:FRES) dropped 3.3%, while among mid-caps, Pan African Resources PLC (LSE:PAF, OTCQX:PAFRY, JSE:PAN) was down 7.5%, Hochschild Mining PLC (LSE:HOC, OTCQX:HCHDF, FRA:H3M) 4.1% and Atalaya Mining Copper (LSE:ATYM, TSX:AYM) slipped 3.9%.
Gold was suffering from its inverse relationship with the dollar, said market analyst Richard Hunter at Interactive Investor.
Kathleen Brooks at XTB said the gold price is "falling off a cliff", having last week lost its grip on the $5,000 handle, with $4,000 this week looking "at risk".
Bank of America’s latest Asia supply chain checks suggest Apple Inc (NASDAQ:AAPL, XETRA:APC) is preparing to introduce its first foldable iPhone in 2026, as the firm reiterated its ‘Buy’ rating while modestly lowering its price objective to $320 from $325.
Shares traded hands at $252 on Monday afternoon.
The updated target is based on an unchanged 32x multiple applied to calendar 2027 estimated earnings per share of $9.94, down from a prior estimate of $10.10.
“Our checks in Asia suggest that Apple will likely introduce its first foldable iPhone in 2026,” Bank of America wrote, adding that this marks a significant shift in the company’s product lineup.
The device is expected to feature a book-style foldable design with a 7.7- to 7.8-inch inner display and a thickness of under 10mm when folded. The first-generation model is anticipated to include Touch ID, but not Face ID, and will not support a physical SIM card.
Bank of America expects strong early demand, noting that the supply chain is preparing for a wide range of outcomes between 10 million and 20 million units. This would exceed volumes seen from competing foldable devices, with the firm pointing to potentially stronger demand from China and from existing Pro and Pro Max users seeking larger displays.
The Asia checks also indicate a shift in Apple’s iPhone launch cadence. The firm said the foldable and Pro models are still expected to launch in the traditional September timeframe, while base models and other variants could be pushed to the first half of 2027, likely around March.
Bank of America said it is “adjusting estimates to reflect this change in launch timing,” as well as the higher expected average selling price of the foldable device. The revised schedule is expected to shift some unit volumes from the September and December quarters into the March quarter, altering Apple’s typical seasonality in a way that is “not yet reflected in consensus.”
As a result, fiscal 2026 may see some pressure on unit volumes and revenue due to timing shifts, while fiscal 2027 is expected to normalize as the new cadence is absorbed, according to Bank of America.
The analysts explained that launching a broader lineup of devices simultaneously creates significant strain on the supply chain. A staggered rollout would allow for more balanced production and improved labor management, with quarterly iPhone volumes estimated to stabilize in the 60 million to 70 million range.
FTSE 100 up 71 points to 9,965 Iran and Israel trade attacks, US ceasefire applies only to energy sites Results posted by Kingfisher, Bellway, PZ Cussons 5.05pm: Stocks recover London stocks finished Tuesday’s session in positive territory as conflict in the Middle East continues, adding 71 points at 9,965.
"Following Monday's extreme volatility, markets have markedly calmed down as investors await the next developments", IG chief technical analyst Axel Rudolph said.
“Brent crude rose to around $100 a barrel, recovering part of the prior session’s sharp drop, as volatile trading persisted amid heightened Middle East tensions, growing risks of wider regional involvement and ongoing uncertainty over the Strait of Hormuz.”
4.06pm: FTSE lifted by oilers, market encouraged by 'less worse' situation London blue-chips are heading for a modest gain as uncertainty over the war in the Middle East continues, though European markets have seen gains pared in recent minutes, with Wall Street mixed.
Lifting the Footise are gains for BP and Shell, up 3.7% and 2.8%.
A mixture of utilities, miners and other randoms are filling out the rest of the risers: BT, Games Workshop, Endeavour Mining, Glencore, National Grid and Vodafone.
At the other end, houebuilders, defence and aerospace, and airlines are the most prominent fallers.
This suggests investors are tilting towards hope that a more permanent ceasefire could be agreed, though with a heavy pinch of salt.
In its 'house view' earlier today, UBS said that the wild market gyrations validate its view (and those of most investment houses) that "investors should not attempt to trade geopolitics and should maintain strategic equity holdings".
"Markets are forward-looking and can often trade on the 'second derivative': a situation merely getting 'less worse' can be sufficient for markets to bounce.
"At the same time, the recent sequence of escalation, retaliation, and pause underscores that the path forward remains narrow and conditional."
If Trump's mooted talks are real, they could still fail and would quickly lead to any market bounces reversing.
"Renewed brinkmanship is probable, further strikes and disruptions to energy flows are likely, and future infrastructure destruction is possible."
The Swiss bank said investors "should also be wary of assuming that the path to a restoration of energy flows will be smooth, even if talks prove successful", with the shipping industry needing to develop the confidence that threats have been neutralised.
"Production that has been shut in could take time to bring back online.
"Meanwhile, oil product inventory levels are running low in various economies and could necessitate still higher prices to ration demand before stocks are refilled.
"Against this backdrop, it looks likely that energy prices will remain elevated for at least the near term, weighing on growth, and driving episodic volatility."
3.31pm: Reeves makes clear her commitment to fiscal rules With Rachel Reeves stressing that any support with energy bills will be limited to those who need it most, while also focusing on price gouging at petrol pumps, it seems her main message is her commitment to the fiscal rules.
As well as asking the competition watchdog to oversee potential petrol price gouging, the Chancellor said she will also ask banks and supermarkets how they can help with rising costs.
"Presumably, she will ask them to refrain from putting up prices or interest rates for borrowers. However, this is a big ask since commodity prices and interest rates are generally set by global financial markets," says analyst Kathleen Brooks at XTB.
The government has already announced that it will not hike fuel duty for the 2026/7 fiscal year.
"The Chancellor was not only addressing the electorate today; she was also speaking to the bond market," says Brooks, making clear that the UK’s fiscal rules are iron-clad, and borrowing will not be used to protect better off households.
The energy price cap will be lowered at the start of April anyway, with a 7% decline from next month expected to be a temporary reprieve, since the price cap could rise again in July, in line with recent moves in energy prices.
"This buys the chancellor some time, but if the conflict does come to an end in the next few weeks, the effects of rising energy prices will still be felt in the UK economy for many months. Thus, households may be shielded from the worst of the energy price increases, but pain is coming down the line."
3.12pm: Markets little moved on report Iran open to peace proposals Iran has acknowledged that the US has made an "outreach" over proposals to end the war and Tehran is willing to listen, according to a report from CNN.
Oil markets are not really moving on this, however, though stocks have been edging higher over the past hour.
“There has been outreach between the United States and Iran, initiated by Washington, in recent days, but nothing that has reached the level of full-on negotiations,” the Iranian source said.
Iran has received messages "through various intermediaries to scope out whether an agreement to end the war can be reached.”
Proposals include a ceasefire and "a concrete agreement to end the conflict".
The source said any proposal must also include ending all sanctions imposed on Iran, but that the country is ready to provide guarantees that it will never develop nuclear weapons.
Brent crude is at $102.60 a barrel, having bounced between $101.5 and $103.5 all day.
US stocks have shifted since early trading, with the Dow Jones up 0.2% now. The S&P 500 is still just below flat, while the Nasdaq is down 0.4%.
Earlier, Reuters reported that Iran's negotiating posture has "hardened sharply" since the war began, with the Revolutionary Guards exerting growing influence over decision-making.
"Significant concessions" will be demanded from Washington for mediation efforts lead to serious negotiations, sources in Tehran said.
The report suggested Iran would demand concessions such as guarantees against future military action, compensation for wartime losses and formal control of the Strait of Hormuz, which the US would have a hard time agreeing to.
2.58pm: Reeves measures for households and energy sector Rachel Reeves has said officials will explore targeted cuts to agri-food tariffs to help “bring down food prices”, alongside efforts to ease cost pressures through EU agreements.
The Chancellor also confirmed contingency planning for further energy support, warning “we don’t yet know what the full impact of this conflict will be”.
Reeves said any new package would “provide support for those who need it most”, criticising the previous scheme from 2022 as helping better-off households more than those on lower incomes. She said “the top third of families… got more than a third of the benefit”, arguing a more targeted approach would better control inflation, interest rates and public finances.
The Competition and Markets Authority has been given new powers to "detect and to crack down on price gouging", with “a new anti-profiteering framework".
She says the government "will not tolerate any company exploiting this crisis", a nod to the Troy 'VIP lane' in the Covid pandemic.
The Chancellor also announced that the government will bring forward legislation to implement the recommendations of the Fingleton review, to allow the development of a new generation of nuclear power stations.
The government will change planning rules to allow more power infrastructure to be built, including proposing indemnities for top-priority energy security projects, and will also bring the next renewable auction forward to July, as well as "driving forward negotiation" on the UK’s participation in the EU internal energy electricity market.
2.42pm: Holding gold, buying 3i Gold's collapse this month has been jarring, with prices falling from above $5,200 to below $4,200 an ounce earlier this week, the metal's lowest point since late 2025.
It is one of the steepest five-day declines in over four decades, a kind of move tends to shake conviction.
But a bounce back above $4,400 has followed Donald Trump signalling openness to negotiations with Iran.
UBS is making a case that the underlying thesis for gold remains intact, forecasting prices at $5,900 per ounce by early 2027, against a current spot price of around $4,470.
Another note worth flagging is from Citi, which has put 3i Group on what it calls an "upside catalyst watch", arguing the recent share price slump has created an attractive entry point for investors.
The bank estimates the shares are trading around 15% below its net asset value estimate, with core investment Action implicitly valued at just 20 times 2027 forecast earnings, a level that already prices in only modest sales growth of 3-4% over the medium term.
A closely watched investor day on 26 March could act as a near-term catalyst, Citi says.
1.55pm: Wall Street opens lower Wall Street has opened lower, with the Nasdaq slipping 0.9%, the Dow down 0.8% and the S&P 500 falling 0.7% in early trade.
Losses were led by consumer and tech names, with Estée Lauder dropping 7.4%, Fair Isaac down 5.8% and CrowdStrike off 5.0%, while Datadog and Gartner both fell around 4.7%.
Retail and consumer stocks were also weaker, with Dollar General down 4.5% and Best Buy off 3.8%.
Among the Nasdaq's biggest 15 companies, Palantir was the biggest faller, down around 3.5%.
12.56am: Markets in the red The FTSE and other European equity benchmarks are in the red, and US futures are too.
S&P 500 futures traded down overnight before rebounding into the green as trading in Europe opened, then drifted lower.
Both Brent and WTI crude prices are trading back higher, respectively close to $103 and $92 per barrel, up 3% and 4%.
"Investors are still unclear about what happens next," says market analyst David Morrison at Trade Nation. "The fog of war is thick. The Strait of Hormuz remains closed to just about everything, and that should continue to support energy prices.
"This in turn plays into fears of higher inflation, adding to concerns that were building even before hostilities began. The tailwinds from rate cut expectations have turned into a headwind as the probability of future rate hikes gets baked into risk assets."
Like others below, he adds that investors are keen to buy the dip, as it "has worked out well since the lows hit in October 2022".
"Will it work again? Maybe. But investor risk appetite may not be quite as healthy nowadays compared to previous years, particularly as borrowing costs look likely to rise rather than fall. And stock market volatility has risen sharply, suggesting that the risk environment is not as benign as it was, even a few months ago. Time for some caution."
12.14pm: Revolut growing fast and aiming for more Revolut – a privately owned company, but with a widespread presence in the UK banking scene and around the world – has reported a 57% surge in annual profit to $2.3 billion (£1.7 billion), fresh from the news earlier this month that it has gained a full UK banking licence
Revenues rose 46% to $6 billion (£4.5 billion), with growth broad-based, as the customer base grew 30% to 68.3 million retail users across 40 markets, while business customers rose 33% to 767,000. Subscription income was up 67% to $936 million, card payments rose 45% to $1.3 billion, and foreign exchange fees climbed 43% to $800 million.
In the UK specifically, where the firm has not been able to offer lending services as it waited for its full licence, retail and business clients both grew 23% year-on-year.
Chief executive Nik Storonsky, who co-founded the company in 2015, said: "As we transition into a truly global bank, we are proving that our technology-driven operating model continues to drive rapid expansion and record profitability. A decade into this journey, we have only just begun to show what is possible.”
11.43am: UK economic readings likely to get worse As the impact of the Iran war drags on, the readings from today's PMI survey are likely to fall further, says economist Elliott Jordan-Doak at Pantheon Macroeconomics, not unreasonably.
Companies were polled between 12 and 20 March, "before market sentiment deteriorated most sharply as the war escalated, and the 2022 energy price shock suggests that the impact of surging prices can take time to filter into activity, so we think another drop in the PMI in April is a good bet", he says.
"Looking ahead to the rest of the year, we expect activity to remain subdued throughout Q2 and Q3, where we look for quarter-to-quarter GDP growth of 0.0% and 0.1%, respectively."
The PMI showed that businesses have already revised down their expectations of activity over the coming months too.
New orders activity dropped into negative territory, though still in line with its 2025 average, while export orders ended its steady recovery since Trump’s ‘liberation day’ tariff last spring.
Hiring intentions and employment dropped too, though Jordan-Doak says the PMI "has sent a misleading signal on employment growth since the start of the year".
Manufacturing activity holding up better than expected matched the signal from the CBI’s March industrial trends survey.
"Manufacturers are particularly sensitive to oil prices, and sentiment had been weaker than in the services sector because of ongoing tariff uncertainty... Surging input prices suggest that activity will drop in the coming months however," the economist said.
11.21pm: Petrol prices up, retail sales fall There some new info on petrol prices in the UK and retail sales this morning.
The average price of petrol rose to 144.16p per litre yesterday, up from the 131.71p before the US launched strikes on Iran on 28 February.
Meanwhile, diesel has jumped to 166.88p from 140.28p according to the latest government figures released this morning.
Elsewhere, retail sales volumes dropped at a rapid pace in the year to March, marking the quickest decline in nearly six years, according to the latest CBI Distributive Trades Survey out a few minutes ago.
The decline is set to continue at a similarly sharp rate next month.
Retailer chains said March sales were "poor" for the time of year, to a greater extent than last month, the CBI found.
April’s sales are expected to be below seasonal norms, though to a slightly lesser degree.
Total distribution sales volumes (including retail, wholesale, and motor trades) continued to fall in the year to March at a fast rate. Sales are set to contract at a similar pace in April.
11.04am: UK energy policies to deal with Iran war effects The government is mulling a potential plan for targeted energy bill support, targeting those most in need.
Energy minister Michael Shanks told Times Radio: "We are looking at every option. Clearly part of that is, is there a way to target support at people who need it most? I think most people would recognise that as the most efficient use of public money but we also want to make sure that we’re not missing people."
With the conflict in its fourth week, he acknowledges that "although people are really worried, there’s no certainty of how this is going to end or when and so we are looking really carefully at what that longer term support needs to be".
Around lunchtime, Rachel Reeves will give a statement to MPs with more details on what the government is doing and is planning about energy prices.
Russia's invasion of Ukraine in 2022 led to around £40 billion being spent by the state to support households and businsses with energy bills.
The BBC is reporting that the Chancellor's speech will include a section on energy security, including "a promise to crack on with delivering new nuclear power stations", as well as as "a new anti profiteering framework" that may give the CMA some targeted powers to tackle companies proved to be exploiting price rises.
10.40am: UK vet prescriptions to be capped The UK competition watchdog has ordered sweeping reforms to the veterinary services market, including caps on prescription fees, mandatory price lists and new rules requiring large chains to display their ownership, in a package of measures designed to drive down costs for pet owners.
Following up from its first recommendations back in October, the Competition and Markets Authority (CMA) concluded its market investigation today, finding that a lack of transparency had left pet owners unable to make informed choices, leading to weak competition and high prices.
Veterinary practices that are part of larger groups, like CVS Group (AIM:CVSG) and Pets at Home Group PLC (LSE:PETS), must now make their ownership clear on signage, online and at their premises, a significant change given that fewer than half of people using a large chain were aware their practice was part of one.
10.18am: PMI worrying The details of the PMI are worrying, says market analyst Kathleen Brooks at XTB, with input prices jumping to their highest level in three years, "which shows how fast the conflict in the Middle East is impacting the UK economy".
"Business expectations for the year ahead fell sharply, there was a rapid rise in cost pressures across the private sector and the seasonally adjusted input cost index for the survey rose by a whopping 14 points between February and March, the largest monthly acceleration of input cost inflation since 1992.
"The March PMI reading saw a decline in new work received for the first time in 4 months, and respondents noted cautious consumer spending patterns since the onset of the war. Business expectations for the year ahead fell to their lowest level in 9 months, and manufacturers also increased their output costs, which will likely add to upward pressure on the UK’s March CPI report.
"The details of the UK’s PMI report were weaker than the headline figures suggest, and, for now, the headline figures remain in expansionary territory. However, the details suggest that the economic effects from the war are already starting to impact the UK economy, and inflation pressure along with weaker growth will weigh heavily on the UK economy as we move into Q2."
9.42am: UK flash PMI survey shows early impact of Iran war The UK preliminary PMI readings for March are weaker than expected, with the composite PMI falling to 51.0 from 53.7 in February.
The service sector PMI reading was 51.2, weaker than the 52.9 expected, while the manufacturing survey was stronger than expected at 51.4, while expectations were for 50.
Chris Williamson, chief business economist at S&P Global Market Intelligence, which produces the survey, says: “The war in the Middle East has hit the UK economy in March, stalling growth while driving inflation sharply higher.
"Output growth across manufacturing and services has slowed to a crawl as companies blamed lost business directly on the events in the Middle East, whether through heightened risk aversion among customers, surging price pressures, higher interest rates, or via travel and supply chain disruptions.
"Inflationary pressures have surged higher on the back of rising energy prices and fractured supply chains. The acceleration in cost growth in the manufacturing sector was especially severe, being the sharpest since the depreciation of sterling following Black Wednesday in 1992.
"The full impact on inflation and economic growth depends not just on the duration of the war but also the length of disruptions to energy markets and shipping, though March’s PMI numbers clearly underscore how downside growth risks and upside inflation risks have already materialised.
"The Bank of England faces a challenging period where it will need to balance these growth and inflation risks when setting policy, seeking to dampen the potential for the inflation spike to become more engrained while ensuring a hawkish interest rate outlook does not exacerbate downturn risks."
9.28am: FTSE and European counterparts turn negative The FTSE 100 has dived into the red after spending most of Tuesday's first hour in positive territory.
Reports from the Middle East detail strikes from Iran on Israel in retaliation for earlier waves in the other direction. A military site in Iraq was struck earlier. Amazon said last night that its AWS services in Bahrain had been "disrupted" due to drone attacks in the area.
It is following similar moves by mainland European counterparts. While the Footsie is down 0.4% and the more domestically focused FTSE 250 is off 0.9%, Germany's DAX has slipped 0.6% and France's CAC 40 is just below flat.
Oil prices are creeping up. Brent crude stands at $102.3 a barrel.
Mining stocks remain the biggest drag for the London index, with Antofagasta, Anglo American, Fresnillo, Glencore and Rio Tinto all falling between 3% and 1%, as copper prices fall and precious metals flatten off.
Housebuilders and financials are also struggling, with Barratt Redrow and Persimmon both off around 2%, while HSBC and Barclays are leading a group of banks lower, down 1.2-1.7%.
8.56am: Trustpilot and Bellway among bigger fallers A couple of bigger fallers.
Trustpilot shares have dropped over 10% after private equity firm Advent sold a £46 million stake at a discount.
And Bellway is down almost 9% after interim results that showed steady progress, with investors unnerved by the shockwaves from the war in the Middle East that have led to renewed mortgage market volatility.
All the FTSE 350 housebuilders are in red this morning, though it's more likely to be a reflection of wider worries.
Bellway boss Jason Honeyman said: "The ongoing conflict in the Middle East heightens the risk of both inflationary cost pressures and an impact to customer demand, and we have already seen volatility return to the mortgage market."
Nothing new there really.
"Notwithstanding this," he said, "I am confident that our self-help and drive for capital efficiency will help mitigate the impact on our strategy to increase cash generation and shareholder returns."
8.39am: No new UK oil and gas licences Downing Street has said it will not be issuing new oil and gas exploration licences despite a warning from energy trade body Offshore Energies that the UK "urgently" needs a greater supply of domestically produced energy.
A government spokesperson told the Guardian: “Issuing new licences to explore new fields cannot give us energy security and will not take a penny off bills."
The spokesperson also noted that international markets set the price for British billpayers. "The only way to truly protect ourselves from these price spikes is to get off the rollercoaster of fossil fuel markets."
8.15am: FTSE 100 opens higher, held back by miners The FTSE 100 has opened 37 points higher at 9,931.
There's a mix of sectors represented among the top risers: private equity investor 3i Group, medical devices maker ConvaTec, data provider RELX all up over 2%, then Autotrader, Experian, Rightmove and Pearson. Several of those names are shares that were hit by AI-related worries in the first two months of the year.
Among the fallers, miners and housebuilders are the main weight on the index, with Antofagasta down 2.6%, Barratt Redrow falling 1.5%, Anglo American and Persimmon down 1.2%.
8am: Fevertree and Cussons A couple more updates.
Fevertree Drinks posted a 2% rise in full-year revenue to £375 million but the premium mixer brand saw profits diluted due to initial costs from the first year of its US distribution partnership with Molson Coors and a new environmental levy.
Soapmaker PZ Cussons said it expects full-year profit to come in at the upper end of its guidance range after continued strong trading through the third quarter.
Like-for-like revenue rose 6.3% in the three months to 28 February, a slight easing from the 9.5% recorded in the first half.
7.42am: Kingfisher repeats buyback as profits land in line with guidance Kingfisher has rewarded investors by repeating its £300 million share buyback programme after it increased annual profits by 6% last year and eyes further improvements.
The FTSE 100 retailer, which operates the B&Q and Screwfix chains, made adjusted profits of £560 million in the year to 31 January 2026, above the middle of its guidance range of £540-570 million, driven by stronger sales volumes, wider profit margins and tight cost control.
As well as the new buyback, the full-year dividend was also repeated at 12.4p per share.
For the year ahead, the group is guiding for adjusted profit of £565-625 million and free cash flow of £450-£510 million.
7.28am: Investors wait for more headlines While Iran's denial of Donald Trump's claimed peace talks has led to immense caution in markets, yesterday’s price action "suggests that investors are more afraid of missing a post-war rally... than of getting a few entries wrong", says market analyst Ipek Ozkardeskaya at Swissquote. "They continue to look for any hint of optimism."
Meanwhile, central banks are "watching through a more critical lens", she says, with European Central Bank officials, for example, warning that the current energy shock could turn into stagflation if prices remain high and volatile.
"The idea that Trump can act alone and shape outcomes doesn’t hold if the counterparty refuses to engage. Any resolution in the Middle East is also contingent on Iran’s willingness to de-escalate.
"The Strait of Hormuz remains effectively constrained, with only a limited number of tankers crossing the critical waterway," she adds.
Trump’s five-day ceasefire was called just before US trading opened yesterday and is set to end toward the end of the trading week, something that has not passed many by.
"What happens next is anyone’s guess," says Ozkardeskaya. "Market sentiment is fully dependent on war headlines and energy prices. Reactions are highly emotional: investors want the war to end, the latest selloff to be 'the dip', and to catch that dip. But uncertainty remains, and the TACO trade is only sustainable if Iran plays along. So we wait — watching both headlines and data."
Today will offer a first glimpse of how global economic sectors are reacting to rising energy prices and escalating tensions in the Middle East as preliminary March PMI surveys are released for many major economies.
Early releases from Australia and Japan showed weakening in both manufacturing and services PMIs.
7.17am: FTSE 100 called higher as markets encouraged by Trump ceasefire The FTSE 100 has been tipped to make a tentative recovery on Tuesday morning, with energy prices more becalmed as markets wait to find out if Donald Trump's mooted peace talks with Iran have any weight.
Futures for London's blue-chip index are pointing to a rise of 16 points in early trade, after yesterday saw an early 240-point loss swing to a 100-point intraday gain before finishing at 9,894.15, 24 points lower than it finished the previous week.
The swing followed President Trump saying he would postpone planned military strikes on Iran’s energy infrastructure following what he described as “very good and productive” talks with Tehran, though Iran soon snapped back that there had been "no direct or indirect contact" with the US.
Nevertheless, US stocks rose strongly, with the Dow Jones and Nasdaq Composite indices both climbing 1.4% and the S&P 500 gained 1.2%.
Asian markets are in green this morning too, with the Hang Seng up 2.5% in Hong Kong, while the benchmarks in Tokyo, Shanghai and Mumbai are up around 1.4-1.8%.
Brent crude oil stands at just under $102 per barrel, down from $112 24 hours ago.
Hochschild Mining PLC (LSE:HOC, OTCQX:HCHDF) and Fresnillo PLC (LSE:FRES) led a broad sell-off in FTSE 350 precious metals stocks on Thursday morning as gold prices pulled back from recent highs after US President Donald Trump said Iran would be "extremely hard" for up to three more weeks.
Shares in the FTSE 250-listed Hchschild fell 6.9%, with fellow mid cap Pan African Resources PLC (LSE:PAF) dropping 6.8%.
On the FTSE 100, Fresnillo declined 5.4% and Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF, FRA:6E2) lost 5%.
Gold prices fell 3% to $4,641 an ounce and silver 4.5% to $71.7 an ounce. After hitting record highs in January, precious metals have been driven lower during the Iran war as investors took profits.
President Trump declared in a national address on Wednesday night that the core strategic objectives of Operation Epic Fury in Iran were "nearing completion", expecting US forces would "finish the job" within "two to three weeks".
He added, "We are going to hit them extremely hard over the next two or three weeks. We are going to bring them back to the Stone Ages where they belong" unless the Strait of Hormuz is reopened.
Trump reiterated his claim that Iran has sought a ceasefire and that talks were "going very well", though Tehran’s foreign ministry called the assertion "false and baseless".
Valereum PLC (AQSE:VLRM, FRA:6TJ, OTCQB:VLRMF) is in discussions with Blubird Global about potentially unwinding a $2.5 million investment agreement after funding only $900,000 of the committed amount across a series of tranches.
The AQSE-listed digital markets company said the talks, which it described as constructive, include the possibility of agreeing revised terms that would conclude the investment without further funding, reflecting a reassessment of strategic priorities at both companies. Valereum said it would provide a further update as appropriate.
Pan African Resources PLC (LSE:PAF, OTCQX:PAFRY, JSE:PAN), the FTSE 250 gold producer, has moved closer to completing its £163 million acquisition of Australian gold explorer Emmerson Resources after the scheme booklet was registered with Australian regulators.
Emmerson shareholders will vote on the deal on 15 June, with completion targeted for 1 July. They will receive 0.1493 new Pan African shares for each Emmerson share held.
The acquisition does not require Pan African shareholder approval.
Pan African Resources PLC (LSE:PAF, OTCQX:PAFRY, JSE:PAN) told investors it expects to deliver record annual gold production for the year to 30 June 2026, with output forecast to rise by around 40% to approximately 275,000 ounces.
The figure is in line with the lower end of the group’s FY26 guidance range of 275,000 to 292,000 ounces, compared with 196,527 ounces in FY25. Second-half production is expected to reach 147,000 ounces, around 14% higher than the 128,296 ounces produced in the first half.
The company said stronger performances from the Elikhulu and Mogale tailings retreatment operations, alongside improved underground output at Evander and Barberton, offset a slower-than-anticipated production ramp-up at Tennant Mines in Australia.
All-in sustaining costs for FY26 are expected to come in at about US$1,870 per ounce, in line with guidance, despite inflationary pressure. Pan African also expects to end the year with around US$220 million in cash and said it is now in a net cash position, compared with net debt of US$46.2 million at the end of December.
For FY27, the miner guided for production of 280,000 to 302,000 ounces at AISC of US$2,075 to US$2,175 per ounce. Tennant Mines production is expected to rise significantly as mining starts at the White Devil deposit, while the proposed acquisition of Emmerson Resources is expected to be completed in July 2026.
Wall Street heads into the first week of June riding a wave of record highs, but investors will have plenty to digest in the days ahead as fresh economic...
As affordability remains a top priority across the automotive market, new data shows consumers continuing to lean on longer loan terms to help maintain manageable monthly payments. According to Experian’s (LSE: EXPN) State of the Automotive Finance Market Report: Q1 2026, the percentage of new vehicles with loan terms more than six years old reached 35.55% in Q1 2026, up from 30.83% a year ago. Additionally, new loans with terms greater than 85 months increased from 2.95% to 3.33% over the same period.
A similar pattern was observed in the used vehicle market. The percentage of used vehicles with loan terms more than six years hit 31.54%, up from 28.60% in Q1 2025. Meanwhile, used vehicles with loan terms more than 85 months grew to 1.40% in Q1 2026, from 1.32% the year prior.
“Affordability continues to shape financing decisions across the automotive market,” said Melinda Zabritski, Experian’s head of automotive financial insights. “While shoppers continue to lean toward larger, more expensive vehicles, we’re seeing more consumers take advantage of longer-term loans to offset rising monthly costs.”
In the first quarter of 2026, the average loan amount for a new vehicle increased $2,150 year-over-year, reaching $43,925, while the average monthly payment for a new vehicle increased from $748 to $770 during the same period.
On the used side, the average loan amount saw an uptick of $785 from a year ago to $27,070 in Q1 2026, and the average monthly payment grew from $523 last year to $531 this quarter.
Interestingly, while the average monthly payment for new vehicles continues to rise, nearly 20% of new vehicles had an average monthly payment less than $500 in Q1 2026.
Automotive refinancing supports consumer affordability and lender performance
As interest rates steadily decline, refinancing has increasingly become an option for consumers looking to ease monthly payment pressures, as well as lenders hoping to find ways to offer more competitive rates.
In Q1 2026, on average, consumers trimmed 2.2% off their interest rate after refinancing. The average refinanced interest rate was 8.05%, down from 10.29%. This lowered the average monthly payment by $81 for consumers who refinanced during the quarter.
Interestingly, credit unions accounted for the largest share of automotive refinancing at 63.43%, from 62.31% in Q1 2025, compared to banks going from 23.51% to 22.59%. In addition, the payment difference when refinancing with credit unions was $101 this quarter and those who refinanced with banks saved $60.
Subprime segment continues to grow as credit access increases
During the first quarter of 2026, subprime borrowers made up 15.75% of total vehicle financing, an increase from 14.40% last year.
For new vehicle financing, the subprime market grew to 6.88% in Q1 2026, from 5.61% in Q1 2025. In used vehicle financing, the subprime market increased from 19.36% last year to 20.60% this quarter.
“While consumers are benefiting from improved refinancing conditions, we’re also seeing broader financing accessibility emerge,” Zabritski continued. “There continues to be increased momentum within the subprime segment as financing options expand across the automotive finance market.”
Additional findings for Q1 2026:
The average loan term for a new vehicle was 69.48 months this quarter, and the average loan term for a used vehicle was 67.73 months. Banks accounted for 28.42% of total market share in Q1 2026, followed by captives (26.83%), and credit unions (20.09%). Thirty-day delinquencies rose to 2.00% in Q1 2026, from 1.95% in Q1 2025, while 60-day delinquencies increased from 0.83% to 0.86% year-over-year. New electric vehicle financing declined from 10.93% last year to 6.23% this quarter, and hybrid vehicles increased from 12.08% to 14.90%. To learn more, watch the entireState of the Automotive Finance Market Report: Q1 2026 presentation on demand.
About Experian
Experian is a global data and technology company, powering opportunities for people and businesses around the world. We help to redefine lending practices, uncover and prevent fraud, simplify healthcare, deliver digital marketing solutions, and gain deeper insights into the automotive market, all using our unique combination of data, analytics and platforms. We also assist millions of people to realize their financial goals and help them to save time and money.
We operate across a range of markets, from financial services to healthcare, automotive, agrifinance, insurance, and many more industry segments.
We invest in talented people and new advanced technologies to unlock the power of data and to innovate. A FTSE 100 Index company listed on the London Stock Exchange (EXPN), we have a team of 25,200 people across 33 countries. Our corporate headquarters are in Dublin, Ireland. Learn more at experianplc.com.
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SAN FRANCISCO--(BUSINESS WIRE)--Planet Labs PBC (NYSE: PL) (“Planet” or the “Company”), a leading provider of daily data and insights about change on Earth, today announced financial results for the period ended April 30, 2026. “Planet's excellent start to the year is a testament to the mission-critical nature of our data in an increasingly complex world,” said Will Marshall, Planet's Co-Founder, Chief Executive Officer and Chairperson. “Planet is executing with speed and focus, evidenced by th.
Planet Labs PBC (PL - Free Report) came out with a quarterly loss of $0.03 per share in line with the Zacks Consensus Estimate. This compares to break-even earnings per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -12.36%. A quarter ago, it was expected that this company would post a loss of $0.04 per share when it actually produced break-even earnings, delivering a surprise of +100%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Planet Labs PBC, which belongs to the Zacks Satellite and Communication industry, posted revenues of $94.15 million for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 4.89%. This compares to year-ago revenues of $66.26 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.
Planet Labs PBC shares have added about 118.7% since the beginning of the year versus the S&P 500's gain of 10.4%.
What's Next for Planet Labs PBC?While Planet Labs PBC has outperformed 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 Planet Labs PBC 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 -$0.02 on $100.5 million in revenues for the coming quarter and -$0.04 on $428.89 million 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, Satellite and Communication is currently in the top 36% 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.
Adobe Systems (ADBE - Free Report) , another stock in the broader Zacks Computer and Technology sector, has yet to report results for the quarter ended May 2026. The results are expected to be released on June 11.
This software maker is expected to post quarterly earnings of $5.83 per share in its upcoming report, which represents a year-over-year change of +15.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Adobe Systems' revenues are expected to be $6.46 billion, up 9.9% from the year-ago quarter.
SpaceX Gets the Attention, But These 4 Stocks Could Get the ReturnsPlanet Labs PBC NYSE: PL reported record first-quarter fiscal 2027 revenue and raised its full-year sales outlook, citing strong demand from defense and intelligence customers, international governments seeking sovereign space capabilities, and expanding use of its AI-enabled geospatial products.
Will Marshall, Planet’s CEO, chairperson and co-founder, said the company generated $94 million in revenue in the quarter, up approximately 42% year over year. Non-GAAP gross margin was 56%, and Planet achieved its “Rule of 40” target for the third consecutive quarter, which the company defines as revenue growth rate plus adjusted EBITDA margin.
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Prologis Q1 2026: Data Centers Steal the ShowPlanet ended the period with approximately $906 million in backlog, up about 72% year over year. Ashley Johnson said remaining performance obligations were approximately $816 million, up more than 80% year over year, with about 35% expected to apply to the next 12 months and 66% to the next 24 months.
Defense and Intelligence Drives Growth Marshall said defense and intelligence remained a major source of strength for Planet, with first-quarter revenue in the sector growing more than 65% year over year. He said the growth was supported by demand for data subscription solutions and satellite services amid an uncertain geopolitical backdrop.
5 Space Stocks Already Climbing Ahead of the SpaceX IPOPlanet highlighted several recent U.S. government wins, including a six-month, $7.5 million contract renewal with the U.S. Navy for vessel detection and monitoring across areas of interest in the Pacific. Marshall also said the National Geospatial-Intelligence Agency awarded Planet a $21.9 million one-year contract extension for maritime surveillance under the Luno B IDIQ, as well as a new award for global monitoring services to support crisis response.
International government demand also remained strong. Marshall said Planet signed a new eight-figure, one-year dedicated capacity contract with an international defense and intelligence customer, providing immediate access to dedicated satellite capacity and analytics across the company’s Pelican, SkySat and PlanetScope constellations.
Planet also launched three additional Pelican satellites during the quarter, including one for the Swedish Armed Forces. Marshall said the satellite, Sweden’s first sovereign reconnaissance satellite, launched just four months after the contract was signed. He described the speed of delivery as a differentiator for Planet, saying customers can receive immediate access to data services while sovereign satellites are prepared for orbit.
Commercial Revenue Rebounds, Civil Government Flat Johnson said commercial sector revenue grew more than 20% year over year, while civil government revenue was approximately flat, primarily because of a reduction in Planet’s NASA contract. Marshall said the commercial growth reflected a focus on larger opportunities and AI-enabled solutions, with positive trends in agriculture and an initial maritime domain awareness sale in the energy sector.
In agriculture, Planet said it received a John Deere Supplier Sustainability Award for 2025 and renewed its relationship with Nave Analytics, which uses Planetary Variables including soil water content and biomass proxy data. Planet also signed WatchDuty, a nonprofit public safety platform focused on wildfire tracking and emergency alerts, as a new customer.
In civil government, Planet pointed to momentum in Europe, including:
A two-year, seven-figure agreement with the Greek government, signed through the European Space Agency, to support national satellite monitoring and rapid response workflows. A two-year, seven-figure contract with the State Agricultural Intervention Fund of the Czech Republic to support agricultural payments and monitoring for approximately 25,000 agricultural holdings. A seven-figure award involving the Scottish Agriculture and Rural Economy Directorate and partner Computacenter for PlanetScope data and analytics tied to agricultural reform. AI and Satellite Product Updates Marshall said Planet has begun private beta testing of a new AI app that is designed to make the company’s global satellite data archive searchable through natural language. He said the tool is intended to help non-technical users search data across space and time, run time-series analysis and generate insights or reports.
Planet also launched SuperRes, an AI-powered feature that improves PlanetScope imagery into a 2-meter class resolution visual product. Marshall said the company previously improved its daily scan product from 3.7-meter to 3-meter class resolution and plans for its future Owl constellation to upgrade daily monitoring data to a 1-meter class resolution product.
The company also announced that Pelican-11, the first Gen 2 Pelican technology demonstration satellite, was shipped to Vandenberg Space Force Base ahead of a SpaceX Transporter-17 launch. Marshall said Gen 2 Pelicans are expected to progress toward providing up to 30-centimeter class imagery and lower-latency analysis.
Guidance Raised for Fiscal 2027 For the second quarter, Planet expects revenue of $102 million to $107 million, representing approximately 42% year-over-year growth at the midpoint. The company guided for non-GAAP gross margin of 52% to 55% and adjusted EBITDA ranging from breakeven to a $5 million profit. Capital expenditures are expected to be $21 million to $27 million in the quarter.
For the full fiscal year, Planet raised its revenue outlook to $425 million to $441 million, representing approximately 41% growth at the midpoint. The company expects full-year non-GAAP gross margin of 52% to 54% and maintained its adjusted EBITDA outlook of breakeven to $10 million in profit.
Johnson said Planet expects capital expenditures of $80 million to $95 million for the year as it invests in next-generation satellites, manufacturing capacity in San Francisco and Berlin, AI-powered solutions, and its global sales and marketing organization. She said the company still expects to be free cash flow positive on an annual basis in fiscal 2027.
Planet ended the quarter with approximately $731 million in cash equivalents and short-term investments, an increase of more than $500 million from a year earlier. Johnson attributed the increase to convertible debt issuance, positive trailing 12-month free cash flow and about $108 million in proceeds from exercises of public warrants.
Management Discusses Pipeline and Market Demand During the question-and-answer session, Marshall and Johnson said the pipeline for international defense and intelligence opportunities remains robust and geographically balanced. Marshall said Europe remains a particularly strong region, supported by demand for sovereign space capabilities, but added that interest is global, including in Asia and North America.
Asked about commercial sector growth, Marshall said the drivers appear sustainable, particularly after Planet adjusted its agriculture business model to better align with customer outcomes. Johnson said AI-enabled products such as global monitoring and maritime domain awareness could broaden adoption among commercial customers, including in sectors that have not traditionally used geospatial data in modeling and analysis.
Marshall closed the call by pointing to Planet’s record revenue, backlog, satellite launches and AI product progress, saying the quarter reflected “really good momentum” across the business.
About Planet Labs PBC NYSE: PLPlanet Labs PBC is a public benefit corporation that operates one of the largest fleets of Earth-imaging satellites, providing high-frequency, high-resolution imagery and data analytics to a broad range of industries. The company's multi-spectral satellite constellation captures daily snapshots of the planet, enabling clients to monitor changes in agriculture, forestry, urban development, energy infrastructure and environmental conditions. Planet's imagery platform is designed to support timely decision-making by transforming raw satellite data into actionable insights for business and government users.
Founded in 2010 by former NASA scientists Will Marshall, Robbie Schingler and Chris Boshuizen, Planet Labs grew from a small startup into a key provider in the satellite imaging sector.
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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Planet Labs (NYSE:PL) reported first-quarter fiscal 2027 revenue and earnings above Wall Street estimates on Friday, with its defense and intelligence segment growing more than 65% year-over-year, though shares fell more than 19% in morning trading.
The satellite imagery company posted revenue of $94.2 million for the quarter, up 42% from a year earlier and ahead of analyst estimates of $90 million and the company's own guidance range of $87 million to $91 million. Adjusted loss per share came in at $0.03, better than the estimated loss of $0.04.
Remaining performance obligations reached $816 million, up 81% year-over-year, while total backlog exceeded $906 million, a 72% increase, reflecting continued demand from domestic and international government agencies amid a complex geopolitical environment.
Non-GAAP gross margin came in at 56%, well above guidance of 49% to 51%. Adjusted EBITDA was a loss of $1 million, beating both the guidance range of negative $6 million to negative $3 million and the Street estimate of negative $5.3 million.
Planet raised its full-year fiscal 2027 revenue guidance to a range of $425 million to $441 million, implying roughly 41% growth at the midpoint and slightly above prior analyst expectations of $427.9 million. Full-year adjusted EBITDA guidance of $0 to $10 million was in line with consensus, while non-GAAP gross margin is expected in the range of 52% to 54%.
For the second quarter, the company guided for revenue of $102 million to $107 million, above consensus of $100.9 million.
The commercial segment grew 20% year-over-year as Planet expanded with large enterprise customers across agriculture and energy using AI-enabled solutions. The company also launched new AI-driven products during the quarter, including tools for querying global data through natural language and a feature called SuperRes, which uses artificial intelligence to improve resolution of its PlanetScope imagery.
Wedbush maintained its Outperform rating and $50 price target on the stock, calling the results "beats across the board" and pointing to the company's strong RPO and backlog as indicators of visibility into future execution.
Planet ended the quarter with $730.8 million in cash, cash equivalents and short-term investments. Recurring annual contract value stood at 99%.
Shares of Planet Labs (PL +6.80%) zoomed 38.3% higher in May, according to data from S&P Global Market Intelligence. Investors were anticipating further growth in its upcoming June earnings report while benefiting from the broader tailwind in the space economy stocks in the month. Hitting an all-time high in May, the satellite imaging provider is now up an astonishing 991% in the last year alone.
Here's why shares were rising in May, and whether the stock is a buy after its early June earnings report.
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Satellite launching progress Planet Labs has built a constellation of satellites that takes high-resolution images from orbit. These consistent imaging services can be used by scientists, governments, and businesses to track progress or get immediate feedback on a changing environment in vital locations around the globe, from commercial ports to military bases.
The stock struggled coming out of the gate, falling significantly from its SPAC (special purpose acquisition corporation) merger price from 2022 through 2024. But last year, Planet Labs began turning its business around and started winning more contracts, leading to strong revenue growth and an earnings inflection. Last quarter, revenue grew 42% year-over-year to $94 million, gross margin was 54%, and the backlog was up 72% to $904 million.
More specifically, in May, Planet Labs began deploying more of its advanced Pelican satellites, which feature onboard artificial intelligence (AI) computing capabilities in conjunction with Nvidia. This will allow AI systems to monitor imaging services for customers. Planet Labs is winning many government customers. In May alone, it signed seven-figure deals with both the Czech and Greek governments.
Image source: Getty Images.
Time to buy Planet Labs stock? Another tailwind for Planet Labs is the enthusiasm for space-economy stocks ahead of the SpaceX IPO. Investors want a piece of this fast-growing market right now, and Planet Labs is one of the best ways to get exposure to space data and services.
But should you buy shares after they have risen close to 1,000% in the last twelve months? Planet Labs valuation is a bit overwhelming at the moment, with a price-to-sales ratio (P/S) of 43.5 based on its trailing twelve-month revenue. Revenue is growing quickly, but this is more than 10x the average P/S ratio in the S&P 500 Index.
Planet Labs has also never generated a profit. Revenue growth should continue for years ahead, but it looks like Planet Labs stock is already pricing in a decade's worth of gains. Avoid chasing this stock after a 10x rise in the last year.
Planet Labs shares are retreating from recent levels. What’s pressuring PL stock? Q1 HighlightsPlanet Labs reported an adjusted loss of 3 cents per share, beating the consensus estimate of a 4 cent-loss. In addition, it posted revenue of $94.15 million, beating the consensus estimate of $89.85 million and representing a 42% year-over-year increase.
The company reported remaining performance obligations of $816 million, up 81% year over year, and a backlog of more than $906 million, up 72% year over year — giving management what it called “excellent visibility and predictability” into future growth.
On the balance sheet, Planet redeemed its outstanding public warrants, generating approximately $108 million in proceeds. The company ended the quarter with $731 million in cash, cash equivalents, and short-term investments, a 223% increase year over year.
Operationally, Planet successfully launched three Pelican satellites during the quarter, including Sweden’s first sovereign reconnaissance satellite, just four months after contract signing.
“Planet’s excellent start to the year is a testament to the mission-critical nature of our data in an increasingly complex world,” said CEO Will Marshall.
GuidancePlanet Labs raised its fiscal-year 2027 revenue guidance from between $415.00 million and $440.00 million to between $425.00 million and $441.00 million, versus the consensus estimate of $425.10 million.
Planet Labs sees revenue of $102.00 million to $107.00 million, versus the consensus estimate of $101.08 million.
Near-Term Reset Tests the Bull CaseThe bigger-picture trend is still up, but the stock is in a near-term reset: it's trading 6.5% below its 20-day SMA ($43.87) while still holding 5.8% above its 50-day SMA ($38.75). That "below the 20-day, above the 50-day" posture often acts like a battleground where dip-buyers and profit-takers fight for control.
RSI is at 51.37, which is basically neutral and suggests the stock isn't stretched in either direction right now. In plain English, RSI helps gauge whether recent buying or selling has become overheated; here, it's saying momentum has cooled from the May overbought condition back toward a more balanced range.
From a structure standpoint, Planet Labs remains in a bullish long-term configuration with the 20-day SMA above the 50-day SMA and the 50-day SMA above the 200-day SMA ($22.66). The risk is that continued weakness keeps price pinned under the 20-day area, turning recent May strength (including the 52-week high) into overhead supply.
Key Resistance: $41.50 — a nearby pivot area where rebounds can stall, sitting close to the current premarket zone Key Support: $38.00 — a nearby level that lines up closely with the 50-day SMA area, a common "trend support" zone in pullbacks Analyst Consensus & Recent ActionsThe stock carries a Buy rating with an average price target of $35.50. Recent analyst moves include:
Needham: Buy (Raises Target to $53.00) (June 5) Planet Labs Shares FallPL Price Action: At the time of publication, Planet Labs shares are trading 7.60% lower at $40.22, according to data from Benzinga Pro.
Image via Shutterstock
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Planet Labs (PL +6.80%) stock is getting hit with a big pullback following the company's recent quarterly report. The space-tech specialist's share price was down 18.7% as of 10 a.m. ET. The S&P 500 was down 1% at the same point in the daily session, and the Nasdaq Composite was down 2.1%.
Planet Labs published its first-quarter results after the market closed yesterday and actually posted sales and earnings that topped Wall Street's forecasts, but space tech stocks are now seeing some bearish reversal on the heels of big gains this year. Investors are also broadly adopting risk-off positioning in response to concerns that the Federal Reserve could raise interest rates this year.
Image source: Getty Images.
Planet Labs is selling off despite a solid Q1 report Planet Labs reported a non-GAAP (adjusted) loss of $0.03 per share on sales of $94 million in the first quarter of its 2027 fiscal year -- which ended April 30. The company's adjusted per-share loss came in $0.01 better than the average Wall Street analyst estimate, and sales rose roughly 42% year over year to beat the average target by roughly $3.9 million.
Along with its fiscal Q1 report, Planet Labs raised its full-year sales target to between $425 million and $441 million -- up from its previous guidance for sales between $415 million and $440 million. The company also raised its adjusted gross margin forecast from between 50% and 52% to between 52% and 54%. The space tech specialist delivered a beat-and-raise quarter, but investors are feeling jittery on the heels of last week's Blue Origin rocket explosion and SpaceX's initial public offering next week.
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Macroeconomic concerns are also weighing on Planet Labs The Bureau of Labor Statistics published a report today showing that U.S. nonfarm payrolls had risen by 172,000 in May -- far above the 80,000 payroll additions called for by economists. The news caused the 10-year Treasury bond yield to rise, and investors are concerned that relatively strong jobs growth will support the case for the Federal Reserve to raise interest rates this year.
With inflation accelerating in recent months, the Fed may move to raise rates given that job growth still looks solid. If so, it could pressure valuations for Planet Labs and other highly growth-dependent stocks.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Planet Labs PBC. The Motley Fool has a disclosure policy.
Planet Labs (NYSE:PL) reported first-quarter fiscal 2027 revenue and earnings above Wall Street estimates on Friday, with its defense and intelligence segment growing more than 65% year-over-year, though shares fell more than 19% in morning trading.
The satellite imagery company posted revenue of $94.2 million for the quarter, up 42% from a year earlier and ahead of analyst estimates of $90 million and the company's own guidance range of $87 million to $91 million. Adjusted loss per share came in at $0.03, better than the estimated loss of $0.04.
Remaining performance obligations reached $816 million, up 81% year-over-year, while total backlog exceeded $906 million, a 72% increase, reflecting continued demand from domestic and international government agencies amid a complex geopolitical environment.
Non-GAAP gross margin came in at 56%, well above guidance of 49% to 51%. Adjusted EBITDA was a loss of $1 million, beating both the guidance range of negative $6 million to negative $3 million and the Street estimate of negative $5.3 million.
Planet raised its full-year fiscal 2027 revenue guidance to a range of $425 million to $441 million, implying roughly 41% growth at the midpoint and slightly above prior analyst expectations of $427.9 million. Full-year adjusted EBITDA guidance of $0 to $10 million was in line with consensus, while non-GAAP gross margin is expected in the range of 52% to 54%.
For the second quarter, the company guided for revenue of $102 million to $107 million, above consensus of $100.9 million.
The commercial segment grew 20% year-over-year as Planet expanded with large enterprise customers across agriculture and energy using AI-enabled solutions. The company also launched new AI-driven products during the quarter, including tools for querying global data through natural language and a feature called SuperRes, which uses artificial intelligence to improve resolution of its PlanetScope imagery.
Wedbush maintained its Outperform rating and $50 price target on the stock, calling the results "beats across the board" and pointing to the company's strong RPO and backlog as indicators of visibility into future execution.
Planet ended the quarter with $730.8 million in cash, cash equivalents and short-term investments. Recurring annual contract value stood at 99%.
Wall Street analysts turned more constructive following the earnings report, with both Wedbush and Needham highlighting accelerating revenue growth, expanding backlog, and increasing demand from defense customers.
Planet Labs reported first-quarter revenue of $94.2 million, up 42% from a year earlier and ahead of the $90 million consensus estimate.
Geopolitical Tensions Accelerate Defense SalesAccording to Needham analyst Ryan Koontz, Planet Labs reported its strongest revenue growth in 12 quarters, driven by sustained momentum in the Europe, Middle East, and Africa (EMEA) region, where revenue increased 88% year over year, and in its Defense and Intelligence segment, which grew 68% year over year. The performance reflects rising demand for sovereign Earth observation (EO) data amid escalating geopolitical tensions.
A new eight-figure one-year European contract signed early in the quarter significantly lifted performance. Wedbush analyst Dan Ives noted that the defense and intelligence sector represents a major tailwind, stating that “PL is seeing major tailwinds in the geopolitical space, continuing to drive mission-critical demand globally.”
Massive Backlog Gains Secure Future VisibilityThe company’s forward-looking metrics impressed both firms, with total backlog rising 72% year-over-year to $906.1 million. Total remaining performance obligations (RPO) jumped 81% to $816 million. Wedbush highlighted that approximately 40% of this backlog applies to the next 12 months, providing Planet Labs with significant short-term visibility. Furthermore, the company successfully reached a Rule of 40 profile for the third consecutive quarter.
AI Innovation Expands Commercial HorizonsBeyond government sales, Planet Labs achieved 28% year-over-year growth in its Commercial segment, according to Needham. To ignite further growth, the company launched artificial intelligence initiatives, including pioneering tools that utilize a natural language interface to query global data. Koontz commented that management views natural language as key to expanding commercial segments “which are often not accustomed to working with GIS.”
Wedbush also pointed to “SuperRes,” an AI-powered technology focused on improving PlanetScope data resolution, as a key differentiator.
Analysts Lift Price Forecast On Disciplined ScalingIn response to enhanced gross margins of 56.3% and an improved outlook, analysts adjusted their models. Needham maintained its Buy rating and raised its 12-month price forecast to $53 from $40, stating they see the increased revenue multiple justified by the “meaningful expansion of global opportunities and improvements in execution with limited competition.”
Wedbush maintained its Outperform rating and a $50 price forecast, concluding that Planet Labs remains a “key provider of necessary data across commercial and government applications.”
PL Stock Falls Despite Analyst OptimismDespite the bullish analyst commentary, Planet Labs shares came under heavy pressure Friday. The stock slumped after the company announced a massive $1.5 billion at-the-market (ATM) equity offering, raising concerns about potential shareholder dilution.
Planet Labs disclosed in a June 5 SEC filing that it entered into an equity distribution agreement allowing the company to sell up to $1.5 billion of Class A common stock from time to time through an at-the-market offering program. The structure also permits forward sale agreements, adding to investor concerns about potential dilution.
The selloff also occurred amid broader weakness across space-related stocks following S&P Global’s decision to maintain existing index eligibility rules, a move that dampened expectations for a rapid S&P 500 inclusion following SpaceX’s anticipated IPO.
PL Price Action: Planet Labs shares were down 25.06% at $32.61 at the time of publication on Friday, according to Benzinga Pro data.
Photo via Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Shares of the leading Earth observation satellite services company Planet Labs (PL +6.80%) are down 35% this week after the company reported first-quarter earnings and announced an equity offering on Friday. Starting with Planet Labs Q1 earnings -- things weren't nearly as bad as this week's decline might suggest. The company:
increased sales by 42% grew its backlog by 72% to over $900 million maintained a solid net dollar retention rate of 114% continued to generate positive cash from operations raised its full-year guidance to grow revenue by 41% However, if you type "priced for perfection" into your favorite LLM, it might generate a picture of Planet Labs' stock chart after its shares rose eightfold over the last year, before this week's decline.
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The market wanted extraordinary results from Planet Labs, but it earnings were "only" above average, which helped spur today's decline. It simply had very lofty expectations.
Image source: The Motley Fool.
Making matters worse, management announced a $1.5 billion equity offering today alongside earnings, which, if fully executed, could dilute shareholders by 9%. So some of today's decline also comes from that. While it does dilute value somewhat today, I'd argue that it is a brilliant move from management, as they can raise funds from the company's skyrocketing share price over the last year. Rocket Lab held a similar equity raise as its share price rose over the last year, and this can prove to be a shrewd move for growth stocks, provided what they spend the money on is a sound investment.
Ultimately, Planet Labs remains a fascinating stock in my eyes. It is sending Nvidia AI compute power to space to process imaging at the satellite, saving money on the vast amount of data and imaging that previously had to be beamed back to Earth. However, Planet Labs still trades at 32 times sales -- even after today's decline. As it wrestles to improve profitability over time, the stock will undoubtedly remain volatile at this lofty valuation. Interested investors should buy in small batches over time rather than going "all-in" at today's valuation.
Josh Kohn-Lindquist has positions in Nvidia and Rocket Lab. The Motley Fool has positions in and recommends Nvidia, Planet Labs PBC, and Rocket Lab. The Motley Fool has a disclosure policy.
San Francisco-headquartered Planet Labs PL tanked on Friday morning after the company issued full-year guidance that disappointed some growth-hungry investors.
The satellite imagery specialist posted a record Q1 revenue of $94.2 million and scaled its backlog further, but structural margin adjustments and capital allocations underwhelmed short-term traders.
Still, renowned Wedbush analyst Dan Ives recommends buying the post-earnings dip in Planet Labs shares that remain up more than 65% versus the start of this year (2026).
Why Wedbush remains bullish on Planet Labs stockThe foundation of Wedbush’s unwavering optimism lies within Planet Labs’ massive, high-margin government pipeline.
In his research note, Ives said the retail market seems to be panicking over near-term operational noise – but the enterprise reality shows a business capturing critical market share globally.
Rising geopolitical tensions in early 2026 drove a 65% year-on-year increase in the firm’s Defense & Intelligence segment – a structural shift that increased its backlog to $906 million in fiscal Q1 – up a remarkable 72% versus last year.
Ives remains positive on PL stock as these multibillion-dollar sovereign defense pipelines signal a highly visible, long-term recurring revenue stream that vastly outweighs margin friction
While institutional algorithmic traders dumped Planet Labs stock over an adjusted EBITDA profit guidance of breakeven to $10 million – falling just short of peak Wall Street models – Ives views this capital allocation as a vital investment.
The NYSE-listed firm is aggressively transitioning from basic raw imagery to high-value, artificial intelligence (AI) enabled analytics and downstream data solutions.
Moreover, PL successfully shipped its cutting-edge Pelican-11 demonstration satellite to SpaceX’s launch site this week, keeping its next-generation constellation roadmap strictly on track.
All in all, Ives argues that the underlying health of the business is exceptionally robust, highlighted by a strong Net Dollar Retention rate of 113% and an immense $731 million cash cushion.
Investors should also note that options traders also share Ives’ optimism on PL shares.
The “put-to-call ratio” on contracts expiring mid-August sits at 0.42 currently – indicating a bullish skew – with the upper price set at $42.49, suggesting the stock could rally more than 25% over the next two months.
Crucially, despite the post-earnings weakness, Planet Labs is holding its 100-day moving average (MA), reinforcing that the broader uptrend remains intact.
Meanwhile, its relative strength index (RSI) has crashed to mid-30s, signaling the stock is now approaching “oversold” territory that often triggers a relief rally.
What’s also worth mentioning is that Wedbush Securities is not alone on Wall Street in keeping constructive on Planet Labs for the next 12 months.
The consensus rating on PL also currently sits at “moderate buy”, with the mean price objective of $35.36 indicating potential upside of another 9% from current levels.
Key Takeaways Planet Labs posted record Q1 FY27 revenues of $94.2 million, up 42% year over year.PL's Defense & Intelligence revenues grew 65%, backed by NGA extension, Navy renewal and international deal.Planet Labs raised FY27 revenue outlook to $425-$441M as backlog climbed 72% to about $906M. Planet Labs PBC (PL - Free Report) used its first-quarter fiscal 2027 call to show that defense demand and AI product development are now moving in tandem. Management argued that the company’s faster execution model is helping convert geopolitical urgency into larger contracts and stronger visibility.
That message landed alongside record revenues, a higher full-year sales outlook and a backlog that topped $906 million. The call focused less on quarterly volatility and more on whether Planet Labs can sustain this faster growth phase.
PL Extends Defense MomentumWill Marshall, co-founder, chief executive officer and chairman, said Defense and Intelligence remained the company’s clearest strength in the quarter. Revenues in that segment grew more than 65% year over year, supported by data subscription solutions and satellite services.
He pointed to several government wins, including a $21.9 million one-year extension from the National Geospatial-Intelligence Agency for maritime surveillance and a $7.5 million U.S. Navy renewal for vessel detection and monitoring. Management said those awards reinforced Planet’s role in commercial, AI-enabled geospatial intelligence.
Marshall also highlighted an eight-figure, one-year dedicated-capacity contract with an international defense and intelligence customer. He framed that deal, along with the rapid launch of Sweden’s first sovereign reconnaissance satellite, as evidence that Planet can deliver both immediate access and sovereign capability faster than traditional providers.
Planet Labs Raises Revenue OutlookAshley Johnson, president and chief financial officer, said first-quarter fiscal revenues reached a record $94.2 million, up 42% from a year earlier. The top line surpassed the Zacks Consensus Estimate of $90 million by 4.89%. The company reported first-quarter fiscal 2027 non-GAAP loss per share of 3 cents, which was in line with the Zacks Consensus Estimate.
Johnson said the quarter’s outperformance was driven mainly by new wins. She also noted that growth was geographically broad, with revenues rising about 86% in EMEA, 25% in both North America and Asia Pacific, and 7% in Latin America.
That performance led Planet Labs to raise its fiscal 2027 revenue outlook to $425 million to $441 million. Management said first-quarter execution and backlog strength gave it better visibility, even as it continues to fund new satellites, AI-enabled solutions and sales capacity.
PL's Margins Reflect Investment CycleThe quarter also showed the tradeoff between growth and current profitability. Johnson said non-GAAP gross margin was 56%, down from 59% a year ago, reflecting investments tied to satellite services contracts, new launches and AI-enabled partner solutions.
Even so, adjusted EBITDA loss was just $1.0 million, better than expected because the revenue upside largely flowed through the model. Marshall stressed that this marked the third consecutive quarter in which Planet achieved its Rule of 40 target.
Management kept its full-year adjusted EBITDA guidance at breakeven to $10 million. That choice signaled that Planet is willing to absorb some near-term margin pressure while demand remains strong, especially in defense and sovereign satellite programs.
Planet Labs Uses AI to Broaden MarketMarshall devoted meaningful time to Planet’s AI strategy, presenting it as a way to expand beyond expert users and lower the barrier to working with geospatial data. He said the company has begun private beta testing of an AI application that lets users query Planet Labs’ archive with natural language.
He also highlighted SuperRes, which uses AI to improve PlanetScope imagery into a 2-meter class visual product. Management tied those efforts to a broader push to make daily satellite data more usable in agriculture, energy, finance and other commercial markets.
Johnson said commercial revenues grew more than 20% year over year, helped by better alignment with agriculture customers and newer AI-based solutions. Management’s view was that defense may be the immediate growth engine, but AI tools could widen the long-term addressable market in commercial and civil sectors.
PL Q&A Stresses Speed and DifferentiationAnalyst questions centered on how durable Planet’s current momentum is and whether competitors can match its sovereign satellite offering. In response, Marshall and Johnson repeatedly returned to speed, saying Planet can get customers operating on existing satellites immediately and then launch sovereign assets in months rather than years.
Asked about the pipeline, Johnson declined to quantify near-term awards but said demand remains robust and geographically balanced. Marshall added that Europe is the hottest region today, though interest is broadening across Asia and North America as geopolitical uncertainty drives demand for sovereign space access.
On margins, Johnson said the upside in the fiscal first quarter came from strong sales execution, especially the early contribution from a large international deal. On capital allocation, she said growth and market capture remain the priorities, while Marshall suggested M&A is possible but not central to the current plan.
Planet Labs Leaves Q1 With Stronger VisibilityThe clearest takeaway from the call was that Planet sees itself in an execution window, not an experimentation phase. Management sounded confident that backlog, faster launches and AI product development are reinforcing one another rather than competing for attention.
That confidence was backed by an end-of-period backlog of roughly $906 million, up 72% year over year, and remaining performance obligations of about $816 million, up more than 80%. Planet ended the quarter with about $731 million in cash, cash equivalents and short-term investments, giving it room to keep investing while preserving balance-sheet flexibility.
Zacks Signals Remain MixedPL carries a Zacks Rank #3 (Hold), which points to a more neutral earnings estimate revision trend than the higher-conviction Zacks Rank #1 (Strong Buy) and Zacks Rank #2 (Buy) categories. Under the Zacks framework, the stock is placed in the middle ground rather than a top-ranked setup. You can see the complete list of today’s Zacks #1 Rank stocks here.
Its Style Scores are uneven, with an F for Value, a B for Growth, an A for Momentum and a VGM Score of D. That combination suggests stronger growth and momentum characteristics than value or overall blended appeal. The Zacks Rank can also shift as analysts revise estimates after the latest quarter.
Planet Labs delivered strong 42% revenue growth and a $900M+ backlog, but profitability remains distant, with widening losses and margin compression. PL's forward guidance disappointed: FY revenue of $425–441M implies decelerating growth, and adjusted EBITDA is guided to breakeven at best. Heavy investment in satellites and AI, plus a new $1.5B equity distribution program, signals ongoing capital intensity and potential dilution risks.
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52-Week Range$4.90▼
$51.76Price Target$35.28
Space stocks are having a moment. But as the Q1 earnings report for fiscal 2027 from Planet Labs PBC NYSE: PL shows, it may be a big, irrational moment.
When SpaceX's IPO became the most anticipated market event in years, investors did what investors always do—they got ahead of themselves. If you couldn't buy SpaceX directly, you'd buy the next best thing. Planet Labs, with its constellation of Earth-imaging satellites and genuine government contracts, became a proxy trade. The stock ran hard. Too hard.
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The Quarter Itself Was More Than FineLet's be fair to Planet Labs—the business delivered a strong Q1. Revenue came in at $94.2 million, up 42% year over year. The company's backlog exploded to $906 million, a 72% jump from the same period a year ago. Around 92% of contracts are annual or multi-year. The NGA renewed. The Navy renewed. Sweden bought a sovereign reconnaissance satellite. These aren't vanity metrics.
The Rule of 40 score hit 41—a number many software companies would envy. Non-GAAP gross margins held at 56%. Free cash flow came in at negative $2.5 million, which is essentially breakeven at this stage of investment. Management guided full-year revenue of $425 to $441 million.
On the fundamentals, Planet Labs is executing.
So What's the Problem?The problem isn't the earnings report. The problem is the price tag attached to a company that still loses money on a GAAP basis. The net loss for Q1 was $138.9 million—though that figure is heavily distorted by a $106 million non-cash swing in warrant liability fair value. Strip that out, and the operating picture looks much cleaner.
But the stock trades at a price-to-sales ratio that implies perfection. Price-to-book tells a similar story. These are momentum multiples—and momentum is a fickle engine once the original catalyst fades.
The SpaceX IPO excitement was that catalyst. And it's fading.
The Institutional Story Matters HerePlanet Labs carries roughly 40% institutional ownership. That's not negligible—serious money has looked at this company and said yes. But it also means the majority of the float sits with retail traders, many of whom aren't particularly interested in backlog reconciliations or satellite services unit economics.
That creates a specific kind of risk. Planet Labs isn't a meme stock. It has real revenues, real government customers, and real technology. But a meaningful slice of its shareholder base will trade it like one. They'll push the stock higher because they can—because the narrative is fun, because satellites are cool, and because "space" carries a reflexive excitement that few other sectors can match.
This makes price discovery messy. It also means the pullback that began before earnings may not follow a clean, fundamental-driven script.
A Reset, Not a CrashPlanet Labs traded down slightly in overnight sessions, but the real action happened when the market opened on June 5. PL plunged by more than 25% that day, closing around $32. Whether that represents relief or renewed selling pressure will tell you something about who's still in control of this name.
Arguing for the former, PL had already started rolling over before the report hit. The MACD turned negative heading into earnings — a subtle warning that the post-SpaceX-fever momentum was losing steam. The 50-day moving average is still trending sharply up, indicating the longer-term trend remains intact. But extended stocks have a way of returning to their averages.
So What Do You Actually Do?Here's the honest truth: there probably isn't a perfect entry point coming. PL closed at $43.44 on June 4. That was nearly 30% above its consensus price forecast of $30.61. Something had to give, and that something was profit-taking, maybe with more to come.
If Planet Labs continues executing—converting that $906 million backlog, scaling its AI-enabled analytics products, and landing more sovereign satellite services contracts—the fundamentals will eventually grow into the valuation. The company turned free cash flow positive for the full fiscal year 2026. That's a real milestone.
But "eventually grow into the valuation" is not a comfortable place to park capital when the stock has already run 300%+ from its lows. Investors who want exposure to this story need to think about sizing and staging. Pick a price range you can live with. Buy a partial position. Add on weakness. Don't chase it back to the highs, hoping the SpaceX-proxy trade reignites.
Planet Labs is building something real. It images the entire Earth, every single day. That capability has genuine value for defense agencies, civil governments, agricultural monitors, and financial analysts tracking physical-world signals. The product roadmap—SuperRes, Maritime Domain Awareness, the new agentic AI application—shows a company that isn't standing still.
But great companies can be bad stocks at the wrong price.
The space rush gave a lot of investors an expensive education in the difference between a compelling story and a compelling valuation. Planet Labs is one of the more interesting companies to come out of that frenzy. Just make sure you're paying the right price for interesting.
Should You Invest $1,000 in Planet Labs PBC Right Now?Before you consider Planet Labs PBC, you'll want to hear this.
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For two decades, investing in the commercial space economy has come with an asterisk: the single most important company in the industry wasn't available to own.
That changes this week. SpaceX is targeting a Nasdaq debut on June 12th under the ticker SPCX, with pricing expected after the close on June 11th, an offering of roughly 557 million shares at about $135 each, aiming to raise around $75 billion at a $1.75 trillion valuation.
That would make it the largest IPO in history by a wide margin. Whatever one thinks of the valuation, the event is a genuine milestone, and it's worth thinking carefully about what it means for the public companies that have been quietly building this industry alongside Elon Musk's juggernaut.
Here's the part that matters most for investors who can't get a meaningful allocation in the SpaceX deal itself: a listing of this magnitude gives the entire commercial space sector its first true large-cap benchmark.
Until now, public market investors have had no clean reference point for how to value a vertically integrated space business. Once SPCX is trading and analysts are publishing models, every other space stock gets repriced relative to it — and the early evidence suggests that repricing tends to run in one direction. Pure-play names have already been climbing in anticipation.
Space Stocks to WatchThe clearest beneficiary is Rocket Lab (RKLB - Free Report) , which has matured from a scrappy small-satellite launcher into something approaching a vertically integrated space prime. Its first-quarter 2026 results were genuinely impressive: record revenue of $200.3 million, up 63.5% year over year, a record GAAP gross margin of 38.2%, and a record backlog of $2.2 billion.
Image Source: StockCharts
The more telling shift is beneath the headline — Space Systems has now overtaken Launch Services as the larger revenue contributor, which speaks to a more diversified, higher-margin business than the "rocket company" label implies. The real catalyst ahead is Neutron, Rocket Lab's medium-lift reusable rocket targeted for a late-2026 debut, which would let the company compete for the larger payloads and constellation contracts that have historically gone to SpaceX.
The company signed its largest launch contract ever during the quarter — five dedicated Neutron missions with a confidential customer — alongside 31 new Electron and HASTE bookings. The caveat, and it's an important one, is valuation: at roughly 94 times sales, RKLB prices in a great deal of future success, and any slip in Neutron's schedule would sting.
A very different kind of bet is AST SpaceMobile (ASTS - Free Report) , which is attempting something audacious — a space-based cellular network that connects directly to ordinary, unmodified smartphones, eliminating dead zones anywhere on Earth.
The company has assembled nearly 60 mobile network operator partners covering more than 3 billion subscribers and reaffirmed full-year 2026 revenue guidance of $150 million to $200 million. Backed by AT&T and Vodafone, with a fortified balance sheet, AST represents the "new category" thesis in its purest form: if direct-to-device connectivity works at scale, the addressable market is staggering.
Image Source: StockCharts
The flip side is execution risk on a knife's edge — the company needs to launch dozens of its second-generation satellites this year, and every delay pushes the revenue ramp further out. It also faces the uncomfortable reality of competing with Starlink's own direct-to-cell ambitions. This is a high-conviction, high-volatility name; the stock's roughly 265% gain over the past year tells you the market is already dreaming big.
For investors who want exposure with a slightly clearer line of sight to profitability, Intuitive Machines (LUNR - Free Report) deserves a look. The lunar lander and space-infrastructure company guided 2026 revenue of up to roughly $1 billion against a backlog approaching $1.1 billion anchored by NASA and defense contracts, and stands closest to profitability among the major pure plays.
Image Source: StockCharts
NASA's Artemis program is creating entirely new commercial categories — lunar landers, surface communications, even lunar positioning — with a government spending pipeline that runs well into the next decade. The risk here is timing: lunar missions have a long history of slipping, and guidance tends to follow the launch cadence. Successful landings have been the right moments to lean in; slippage has been the time to step back.
There are other ways to play the theme, too. Earth-observation specialist Planet Labs (PL - Free Report) has seen its remaining performance obligations surge on defense and intelligence contracts with agencies including the NRO and NATO. And for those who'd rather not pick a single winner in a field this young, the established defense primes with deep space franchises — names like Lockheed Martin (LMT - Free Report) and L3Harris (LHX - Free Report) — offer space exposure wrapped in real earnings and dividends.
Bottom LineOf course, most of the pure-play names are not yet consistently profitable and trade at multiples that assume years of flawless execution. And they are exquisitely sensitive to sentiment — a recent Blue Origin launch failure knocked the group down sharply in a single session, a reminder that one bad headline can erase weeks of gains.
There's also a real "buy the rumor, sell the news" risk around the IPO itself; it would not be surprising to see space stocks give back some of their pre-listing enthusiasm once SPCX actually begins trading. None of this invalidates the long-term thesis, but it does argue for discipline, position sizing, and a genuine tolerance for volatility.
Still, the space economy is transitioning from a government-funded curiosity into a genuine commercial industry, and the SpaceX IPO is the clearest signal yet that public markets are ready to fund the next chapter.
For investors willing to accept the turbulence that comes with frontier industries, this week may be remembered as the moment the sector grew up — and the moment a handful of well-positioned public companies finally got the benchmark they needed to be taken seriously.
Stocks charged higher in May, but it may take some time before investors know how much upside is left.
Summer can be a tricky season for the market. As many institutional investors step away from their screens for a bit, trading volumes thin out, making strong moves in either direction hard to take at face value.
However, this historically quiet time is an excellent opportunity for investors to position themselves for a strong second half. That starts with putting together a watch list.
With the July 4 holiday approaching, now is a good time to look for stocks that could have more room to run once Wall Street gets back to full speed. Here are three names worth considering before the fireworks begin.
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Broadcom: A Selloff That Puts the AI Thesis Back in FocusBroadcom Today
$378.76 +6.66 (+1.79%)
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52-Week Range$244.17▼
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Broadcom NASDAQ: AVGO just posted a quarter that would make most chipmakers jealous.
The company delivered record revenue of $22.2 billion, record free cash flow and AI chip growth of 143% year over year (YOY).
Investor response was a gut punch: shares sank roughly 14% when the market opened and finished the day down around 12%.
The reason? Investors were disappointed that the company did not raise its outlook for AI-related revenue.
That's worth putting in context. CEO Hock Tan said Broadcom expects to Broadcom to generate $16 billion in AI semiconductor revenue in fiscal Q3 2026, up more than 200% YOY. For the full fiscal year, the company expects AI semiconductor revenue to reach $56 billion and reiterated that it remains on track to exceed $100 billion in fiscal 2027.
Broadcom’s AI exposure reaches across some of the biggest names in the AI buildout: Google (Alphabet: NASDAQ: GOOGL), Anthropic, OpenAI, Meta Platforms NASDAQ: META, and two additional unnamed customers, while also pointing to an AI XPU platform with Apollo, Blackstone, and other investors designed to deploy more than 20 gigawatts of compute capacity through 2028. For Anthropic specifically, Broadcom said TPU-based compute agreements include more than one gigawatt in 2026 and another five gigawatts beginning in 2027.
That means the post-earnings sell-off looks more like the market moving the goalposts than Broadcom missing them.
Broadcom now trades at a notable discount to semiconductor peers on forward P/E despite historically commanding a premium multiple, and its long-term uptrend remains intact. That’s a dip that can reward patient investors.
Broadcom Inc. (AVGO) Price Chart for Thursday, June, 11, 2026
Palo Alto Networks: Cybersecurity's "SaaSpocalypse" Never CamePalo Alto Networks Today
PANW
Palo Alto Networks
$272.96 +9.74 (+3.70%)
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52-Week Range$139.57▼
$302.95P/E Ratio224.01
Price Target$306.59
Earlier this year, investors fretted that AI would gut the software sector, including cybersecurity companies.
Palo Alto Networks NASDAQ: PANW recently delivered its fiscal Q3 2026 earnings report and CEO Nikesh Arora pushed back on the “SaaSpocalypse” narrative, arguing that AI is making cybersecurity more urgent, not less. The more powerful the AI tools that potential bad actors can access, the more sophisticated the defense needs to be.
Palo Alto noted that over 1,200 customers reached out in the wake of Mythos, and that the company held 800 meetings over six weeks to prepare for the shifting AI threat landscape.
The numbers back up Palo Alto’s CEO. The company delivered a record quarter, with 60% YOY growth in Next Generation Security ARR, bringing the total to $8.13 billion. That kind of ARR growth coming from a sector leader signals growth that is more than a cyclical trend. In addition, the company counted 2,280 total platformized customers with a 120% net retention rate.
Put those two numbers together, and it suggests existing customers are staying and spending more.
PANW is up over 40% year-to-date (YTD), but with raised guidance and expanding free cash flow, the run may have more room.
Palo Alto Networks, Inc. (PANW) Price Chart for Thursday, June, 11, 2026
Planet Labs: The Quiet Space Stock With Eyes on EverythingPlanet Labs PBC Today
PL
Planet Labs PBC
$32.76 +2.04 (+6.64%)
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52-Week Range$4.90▼
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Planet Labs PBC NYSE: PL doesn't get the headlines that rocket companies do, but it may be doing something more commercially durable: building the world's most comprehensive real-time picture of Earth.
The company operates a constellation of satellites that can image every point on the planet daily.
They then sell that data to agriculture, defense, government, and commercial customers who need situational awareness that no other platform can provide.
Like most space stocks, PL has had strong momentum, climbing over 25% over the past three months. The recent momentum reflects a combination of hardware milestones and contract wins.
Planet launched three new Pelican satellites to orbit aboard a SpaceX rideshare mission on May 3, 2026. The company received high-resolution first light imagery within days of launch—a sign of a maturing deployment cadence
The company has been steadily building government relationships across Europe. For example, Planet Labs Germany landed a two-year, seven-figure enterprise contract with the Greek government, via the European Space Agency, adding to a growing backlog of sovereign clients.
The bull case is straightforward: a subscription-based data business with a government-heavy revenue mix, a growing satellite fleet, and a clear path toward profitability.
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SAN FRANCISCO--(BUSINESS WIRE)--Planet Labs PBC (NYSE: PL), a leading provider of daily data and insights about change on Earth, today announced its role as a founding participant in the Atmospheric Impact of Reentered Spacecraft (AIRS) initiative. Convened by Astroscale Holdings Inc., the AIRS initiative is a first-of-its-kind industry-academia collaboration designed to improve scientific understanding of the effects of spacecraft reentry on Earth’s atmosphere.
As activity in low Earth orbit (LEO) accelerates, the number of satellites reentering the atmosphere is expected to rise significantly. While historical efforts have focused on orbital debris, the AIRS initiative addresses the underexplored research area of chemical compounds released during reentry fragmentation and vaporization. By sharing non-proprietary manufacturing data and material compositions, Planet and Astroscale will empower academic researchers at the University of Southampton to build high-fidelity atmospheric models.
"Our mission to make global change visible starts with a deep responsibility for the space environment in which we operate," said James Mason, Chief Space Officer at Planet. "Sustainable space operations must account for a satellite’s entire lifecycle, including its eventual reentry. By providing data to the AIRS initiative, we are helping the scientific community move past simulations and toward a factual, data-driven understanding of our industry’s atmospheric footprint."
“Spacecraft reentry has long been treated as an optimal mission endpoint, but it is increasingly clear that we need a deeper scientific understanding of what happens during this phase,” said Mike Lindsay, Chief Technology Officer at Astroscale. “By enabling industry to contribute real-world data in a trusted way, AIRS removes critical barriers for atmospheric research and ensures space sustainability is guided with the most accurate and up-to-date information.”
Planet’s participation demonstrates its commitment to Agile Aerospace and transparency – extending that transparency from the Earth’s surface to the very atmosphere that protects it. By contributing data from the world's largest Earth observation fleet, Planet is helping to ensure that the future of LEO is guided by evidence-based science.
About Planet
Planet is a leading provider of global, daily satellite imagery and geospatial solutions. Planet is driven by a mission to image the world every day, and make change visible, accessible and actionable. Founded in 2010 by three NASA scientists, Planet designs, builds, and operates the largest Earth observation fleet of imaging satellites. Planet provides mission-critical data, advanced insights, and software solutions to customers comprising the world’s leading agriculture, forestry, intelligence, education and finance companies and government agencies, enabling users to simply and effectively derive unique value from satellite imagery. Planet is a public benefit corporation listed on the New York Stock Exchange as PL. To learn more visit www.planet.com and follow us on X, LinkedIn, or tune in to HBO’s ‘Wild Wild Space’.
Forward-looking Statements
Certain statements contained in this press release are “forward-looking statements” about Planet within the meaning of the securities laws, including statements about the expansion of the high resolution capacity of Planet’s fleet, the delivery of such capacity to Planet customers, and the Company’s ability to realize any of the potential benefits from product and satellite launches, either as designed, within the expected time frame, in a cost-effective manner, or at all. Such statements, which are not of historical fact, involve estimates, assumptions, judgments and uncertainties. There are a number of factors that could cause actual results or outcomes to differ materially from those addressed in the forward-looking statements, including risks related to the macroeconomic environment. Such factors are detailed in Planet’s filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Planet does not undertake an obligation to update its forward-looking statements to reflect future events, except as required by applicable law.
Space stocks are catching a strong bid at midday Thursday, June 11. Virgin Galactic (NYSE:SPCE) stock is leading the pack, up 20% intraday on a fresh liquidity catalyst, while sector peers ride a broader wave of enthusiasm into a highly anticipated SpaceX IPO window.
AST SpaceMobile (NASDAQ:ASTS) stock is up 7%, Planet Labs (NYSE:PL) stock is up 6%, and Rocket Lab (NASDAQ:RKLB | RKLB Price Prediction) stock is advancing 5%. These are intraday moves that can easily shift through the rest of the session.
The rally appears to have two distinct drivers operating side by side. A company-specific debt-for-equity swap is fueling Virgin Galactic stock, while broader portfolio positioning ahead of an imminent SpaceX IPO seems to be lifting the rest of the group.
Virgin Galactic Surges on Debt-for-Equity Swap Virgin Galactic completed a partial debt-for-equity exchange disclosed in a June 10 regulatory filing. The company redeemed $30,524,000 of its 9.8% First Lien Notes due 2028 by issuing 6,734,960 shares directly to noteholders, a meaningful step toward cleaning up its capital structure.
About $172 million of First Lien Notes remain outstanding, with no principal due until March 31, 2028. Virgin Galactic’s management framed the swap as improving liquidity, mitigating debt-concentration risk, reducing cash interest obligations, and enhancing financial flexibility ahead of planned commercial operations in Q4 2026.
Virgin Galactic stock initially dipped slightly after-hours Wednesday, after closing the regular session up 3%. Thursday’s surge therefore reads as a fresh re-rating, with the market embracing the liquidity improvement and momentum traders piling on a low-priced, high-beta name where directional moves get amplified.
Reddit chatter has shifted sharply alongside the price. A top WallStreetBets post titled “The thesis is still not dead” drew 125 upvotes, echoing earlier bag-holder narratives among long-suffering Virgin Galactic shareholders. Activity has migrated from r/investing to r/wallstreetbets in recent days, a familiar pattern for low-float names where retail flow tends to drive outsized daily moves.
Sector Tailwind Lifts AST SpaceMobile, Planet Labs, and Rocket Lab AST SpaceMobile, Planet Labs, and Rocket Lab have no major company-specific news today. Their similar mid-single-digit gains point to broad space-sector enthusiasm and portfolio positioning ahead of the highly anticipated SpaceX IPO, which is expected in the coming days.
AST SpaceMobile carries plenty of operational momentum into the move, with a 20% year-to-date gain heading into Thursday’s session. The company is targeting roughly 45 BlueBird satellites in orbit by year-end, with BlueBirds 8-10 launching mid-June on Falcon 9, a milestone that keeps the satellite-broadband narrative front and center.
Planet Labs posted record Q1 FY2027 revenue of $94.15 million, up 42% year over year, when it reported on June 4. PL stock had pulled back meaningfully after that report, so Thursday’s bounce comes off a recent drawdown rather than extended highs. Planet Labs’ backlog also expanded sharply alongside the revenue print, supporting the longer-term satellite-imagery story.
Rocket Lab posted Q1 2026 revenue of $200.35 million, up 64% year over year, with backlog rising to $2.2 billion. Polymarket traders are pricing an 86% probability on RKLB stock finishing today’s session higher. Rocket Lab also holds a slot on the Department of War’s Space Based Interceptor program under Golden Dome in partnership with Raytheon, adding defense optionality to the story.
What to Watch Into the Close Investors will watch for whether the sector bid holds into the close, particularly given how quickly sentiment-driven rallies can reverse. The SpaceX IPO debut, whenever it lands, can either validate or undercut the positioning trade running through these space names.
Key catalysts to track include the ASTS BlueBird 8-10 launch on Falcon 9, Rocket Lab’s Neutron debut launch later in 2026, and Virgin Galactic’s targeted Q3 2026 flight test milestone. Each can move sentiment for its respective ticker independently from the broader sector trade.
These space companies remain mostly unprofitable, and their stocks are highly volatile. The debt-for-equity swap improves Virgin Galactic’s balance sheet, but it dilutes existing shareholders, so the longer-term setup stays nuanced even after Thursday’s pop. Aggregated Reddit data still shows neutral weekly sentiment on Virgin Galactic stock, a reminder that recent gains haven’t erased deeper skepticism on the name.
Investors considering exposure may want to size their positions modestly and review their holdings into the close. Sector rotations driven by IPO sentiment can reverse just as quickly as they form, and the underlying businesses still have substantial execution milestones to deliver before the fundamental story catches up to the share prices.
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.
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52-Week Range$9.75▼
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P/E Ratio19.27
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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.
