DLocal Ltd Class A NASDAQ:DLO Price, Chart, News & Insight

NASDAQ:DLO

dLocal Falls 3% Despite 77% TPV Growth and Record Q3 Net Income

dLocal (NASDAQ: DLO) shares fell about 3% after the payments company reported strong third-quarter growth but also showed continued pressure on margins and a softer outlook for operating profit.

Total payment volume reached $18.3 billion, up 77% year over year and marking the company’s eighth consecutive quarter of more than 50% growth. Revenue rose 41% to $398.0 million, while gross profit increased 28% to a record $132.0 million.

Operating profit climbed 37% to $76.2 million, while net income rose 31% to a record $68.0 million, or $0.23 per diluted share. Adjusted free cash flow also improved sharply to $99.1 million, up 163% from a year earlier.

However, profitability metrics remained a concern. Gross profit margin fell to 33% from 37% a year earlier, while gross profit as a percentage of TPV declined to 0.72% from 0.99%. Management attributed the pressure to payment-method and geographic mix shifts, higher processing costs in Mexico and softer volumes in some markets.

Quarter-over-quarter revenue was also almost flat at $398.0 million versus $399.7 million in Q2, reflecting softer Argentina volumes following the seasonal Hot Sale period and a higher mix of local-to-local and payout transactions.

For 2026, management indicated TPV growth is tracking near the upper end of its 60%-70% guidance and gross profit growth near the midpoint of 25%-30%. However, operating profit is tracking toward the lower end of its 27.5%-32.5% growth range, with management citing unexpected FX headwinds and softer performance in some higher-take-rate markets.

The 3% decline appears to reflect investor focus on margin compression, limited sequential revenue growth and operating profit tracking toward the lower end of guidance, despite continued strong TPV growth, record net income and robust cash generation.

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Global Finance News 11-13-26

dLocal (DLO) Falls 1% Premarket Despite 92% TPV Growth and Raised 2026 Guidance

dLocal (NASDAQ: DLO) shares are down 1% in premarket trading after the payments company reported strong second-quarter 2026 growth and raised parts of its full-year outlook. The modest decline appears primarily tied to continued margin compression and concerns about tougher growth comparisons ahead.

Total Payment Volume reached $17.7 billion, up 92% year over year and 26% sequentially, marking the seventh consecutive quarter of more than 50% growth. Revenue increased 56% to $399.7 million, while gross profit reached a record $127.2 million, up 29%.

Net income rose 28% to $54.8 million, or $0.18 per diluted share, while adjusted free cash flow increased 41% to $68.5 million.

Why Is DLO Stock Down?

The main pressure point appears to be profitability relative to dLocal's exceptionally rapid volume expansion. Gross profit margin fell to 32% from 39% a year earlier and 35% in the previous quarter. Gross profit as a percentage of TPV also declined sharply to 0.72% from 1.07% a year ago.

Management attributed the compression partly to a higher share of local-to-local transactions, the ramp-up of large merchants at lower pricing tiers and expansion into new products, payment methods and countries. Mexico also faced pricing and cost pressure, while Africa and Asia saw lower contributions from higher-FX-spread markets.

Operating profit increased a more moderate 15% year over year to $64.2 million despite the 56% revenue increase. The operating-profit-to-gross-profit ratio fell to 50% from 56% a year earlier, although it improved significantly from 44% in Q1.

Management also cautioned that the company's rapid recent expansion will create more demanding year-over-year comparisons during the second half of 2026 and into 2027.

Still, dLocal raised its 2026 TPV growth outlook to 60%-70% and gross profit growth guidance to 25%-30%, while maintaining operating profit growth guidance of 27.5%-32.5%.

The relatively small 1% premarket decline therefore looks more like investor caution over declining transaction economics and margins than a negative reaction to the company's underlying growth. Strong TPV expansion, higher guidance and improving sequential operating leverage remain supportive of the broader outlook.

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WS Investor 08-14-26

DLocal (DLO) Stock Jumps After UBS Upgrades Shares to Buy

DLocal (NASDAQ: DLO) shares surged approximately 13% on Wednesday after UBS upgraded the global payments company to Buy from Neutral and raised its price target to $20 from $16.

The analyst upgrade reflected growing confidence in DLocal's earnings outlook and long-term growth prospects as demand for cross-border payment solutions continues to expand across emerging markets.

UBS analyst Kaio Prato upgraded the stock to Buy while increasing the firm's price target by 25%, signaling stronger conviction that the company's valuation does not fully reflect its future growth potential.

DLocal continues to benefit from increasing digital payment adoption and its expanding presence in emerging markets, where multinational companies rely on its platform to process local payments efficiently.

# Why DLO Stock Rose

Investors reacted positively to several developments:

* UBS upgraded DLocal to Buy from Neutral.
* The firm raised its price target to $20 from $16.
* The upgrade signaled increased confidence in the company's long-term growth outlook.
* Investors responded favorably to the improved analyst outlook for the global payments provider.

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WS Investor 07-02-26

dLocal Drops 8% in Premarket as Margin Compression and Weak Free Cash Flow Overshadow Record TPV

May 14, 2026 | NASDAQ: DLO

dLocal is falling sharply in premarket despite reporting a quarter with genuine top-line strength, as investors focus on deteriorating margins, a significant free cash flow miss, and a take rate trajectory that continues to compress — concerns that have been a recurring theme for this payments company.

Total Payment Volume surpassed $14 billion for the first time, up 73% year-on-year and marking six consecutive quarters of 50%-plus TPV growth. Gross profit reached a record $119 million, up 40% year-on-year. Those are strong headline numbers. But the math reveals the problem — TPV growing at 73% while gross profit grows at 40% means take rate is compressing meaningfully. The implied gross take rate on $14 billion in TPV producing $119 million in gross profit works out to approximately 0.85%, and the divergence between volume growth and profit growth is widening rather than narrowing.

Operating profit of $57 million, excluding prior-year tax adjustments, grew 25% year-on-year — again lagging TPV growth substantially. Net income of $52 million, also excluding tax adjustments, grew just 11%. The inclusion of "prior-year tax adjustments" in the exclusions adds complexity that the market is not giving full credit for, particularly given dLocal's history of tax-related surprises across its emerging market jurisdictions.

The most alarming number is adjusted free cash flow of just $15 million, which management attributed to temporary working capital effects expected to revert. That explanation may well be correct — payments companies can experience significant working capital timing swings — but the market is not in a mood to give the benefit of the doubt, particularly when operating expenses are elevated from 2025 carry-over and management acknowledges operating leverage will only improve in the second half of 2026.

The unchanged guidance provides some comfort that management is not lowering expectations, but it offers little to reverse the negative sentiment on a day when investors are already scrutinizing every data point. For a company that was once celebrated for its high-margin, asset-light emerging market payments model, the persistent take rate compression and free cash flow volatility are keeping a valuation ceiling firmly in place. The 8% premarket decline reflects a market that has heard the "temporary" and "revert" explanations before and is waiting to see the numbers rather than the narrative.

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Global Finance News 05-15-26

10-03-25The Investor

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