DLocal (NASDAQ:DLO) Announces Quarterly Earnings Results

DLocal (NASDAQ:DLO) posted its quarterly earnings data on Thursday. The company reported $0.18 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.18, Zacks reports. DLocal had a net margin of 15.04% and a return on equity of 41.60%. The firm had revenue of $399.66 million during the quarter, compared to the consensus estimate of $366.77 million. During the same quarter in the previous year, the firm posted $0.14 EPS. The business’s revenue for the quarter was up 55.9% compared to the same quarter last year.

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

• TPV surged 92% year over year to $17.7 billion, driven by strong growth in ride-hailing, travel, e-commerce and other verticals, with local-to-local flows reaching 61% of TPV.
• DLocal raised its full-year guidance, now expecting 60%–70% TPV growth and 25%–30% gross profit growth, citing broad-based merchant and geographic momentum.
• Gross profit reached a record $127 million, while operating profit rose 22% sequentially and operating leverage improved to 50% of gross profit; management expects further gains from AI, automation and lower second-half spending.
• Merchant relationships continued to deepen, reflected in 153% net revenue retention and 188% TPV retention; DLocal also plans to launch its Merchant of Record product and has expanded buy-now-pay-later services to eight markets.
• Take-rate pressure remains a concern as large merchants reach lower pricing tiers and local-to-local volumes carry lower monetization; Mexico also saw gross profit lag revenue because payment-processing costs increased, while future tax rules could raise the effective tax rate from 2027.

DLocal Price Performance

NASDAQ DLO traded down $0.59 on Friday, reaching $14.17. The company had a trading volume of 5,066,685 shares, compared to its average volume of 1,812,261. DLocal has a fifty-two week low of $10.64 and a fifty-two week high of $16.78. The firm has a market cap of $4.18 billion, a price-to-earnings ratio of 21.15 and a beta of 0.97. The business has a 50 day moving average of $13.94 and a two-hundred day moving average of $13.11.

Analyst Upgrades and Downgrades

DLO has been the topic of a number of recent research reports. Wall Street Zen lowered DLocal from a “buy” rating to a “hold” rating in a research note on Monday, May 18th. Truist Financial boosted their price target on DLocal from $15.00 to $17.00 and gave the company a “buy” rating in a research note on Friday, July 24th. The Goldman Sachs Group increased their price objective on shares of DLocal from $17.00 to $19.00 and gave the stock a “buy” rating in a research note on Friday, July 31st. UBS Group upgraded shares of DLocal from a “neutral” rating to a “buy” rating and increased their price target for the stock from $16.00 to $20.00 in a research report on Wednesday, July 1st. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of DLocal in a research note on Friday, July 17th. Six investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, DLocal currently has a consensus rating of “Moderate Buy” and an average price target of $18.67.

Insider Buying and Selling at DLocal

In related news, Director Sebastian Kanovich sold 72,753 shares of the business’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $15.54, for a total value of $1,130,581.62. Following the transaction, the director owned 4,700 shares in the company, valued at $73,038. The trade was a 93.93% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director William Rodney Pruett bought 20,000 shares of the firm’s stock in a transaction that occurred on Friday, May 29th. The shares were acquired at an average cost of $11.85 per share, with a total value of $237,000.00. Following the purchase, the director directly owned 108,043 shares of the company’s stock, valued at $1,280,309.55. This trade represents a 22.72% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders have sold 1,103,153 shares of company stock valued at $16,231,782. 45.44% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On DLocal

Institutional investors and hedge funds have recently made changes to their positions in the business. Royal Bank of Canada grew its holdings in DLocal by 562.7% during the first quarter. Royal Bank of Canada now owns 48,668 shares of the company’s stock worth $406,000 after buying an additional 41,324 shares in the last quarter. Goldman Sachs Group Inc. lifted its holdings in DLocal by 4.1% during the first quarter. Goldman Sachs Group Inc. now owns 575,111 shares of the company’s stock valued at $4,796,000 after purchasing an additional 22,803 shares during the last quarter. Empowered Funds LLC boosted its holdings in DLocal by 2.7% in the 1st quarter. Empowered Funds LLC now owns 48,688 shares of the company’s stock worth $406,000 after buying an additional 1,281 shares during the period. Geode Capital Management LLC raised its stake in shares of DLocal by 0.8% during the 2nd quarter. Geode Capital Management LLC now owns 142,677 shares of the company’s stock valued at $1,618,000 after purchasing an additional 1,130 shares during the period. Finally, Quantbot Technologies LP purchased a new stake in shares of DLocal in the second quarter worth about $254,000. Institutional investors and hedge funds own 90.13% of the company’s stock.

Trending Headlines about DLocal

Here are the key news stories impacting DLocal this week:

• Positive Sentiment: Second-quarter TPV reached nearly $18 billion, up 92% year over year and marking the company’s seventh consecutive quarter of more than 50% growth. Revenue rose 55.9% to $399.66 million, exceeding the roughly $366.77 million analyst estimate, while gross profit reached a record $127 million, up 29%. DLocal Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Management is targeting 60%–70% TPV growth and 25%–30% gross-profit growth in 2026, with operating leverage expected to improve. The outlook supports the long-term growth case, although gross-profit growth is projected to trail TPV growth. DLocal 2026 Growth Targets
• Positive Sentiment: DLocal expanded its relationship with ACI Worldwide to broaden access to local payment methods across Latin America, potentially strengthening its regional payments network and merchant offering. ACI Worldwide and DLocal Expand Local Payment Access
• Neutral Sentiment: Unusually high options activity included purchases of 21,694 call contracts, about 219% above typical daily volume. This may indicate speculative bullish positioning but does not confirm a fundamental change in valuation.
• Neutral Sentiment: A technical analysis report identified possible support around the stock after recent weakness, while analysts have generally raised earnings estimates. This could help sentiment but is less significant than the quarterly results. DLocal Technical Analysis
• Negative Sentiment: Adjusted earnings of $0.18 per share missed the Zacks consensus estimate of $0.20, although they matched another consensus estimate and improved from $0.14 a year earlier. The earnings miss likely contributed to the negative investor reaction despite the revenue and TPV beats. DLocal Q2 Earnings Estimate Miss

About DLocal

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

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

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