DLocal (NASDAQ:DLO) Issues Quarterly Earnings Results

DLocal (NASDAQ:DLO) announced its earnings results on Thursday. The company reported $0.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.16 by $0.01, FiscalAI reports. DLocal had a net margin of 18.00% and a return on equity of 40.40%. The company had revenue of $335.86 million for the quarter, compared to the consensus estimate of $331.20 million. During the same period in the previous year, the business earned $0.15 EPS. The company’s revenue was up 54.9% on a year-over-year basis.

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

• dLocal delivered record Q1 TPV of $14.1 billion, up 73% year over year, marking its sixth straight quarter above 50% growth.
• Gross profit hit a new high of $119 million, supported by Argentina recovery, growth in Africa and Asia, and broad-based strength across markets and products.
• Management said reported operating profit and net income were weighed down by a one-time prior-period tax adjustment of $9.7 million, but emphasized the item should not recur.
• Operating expenses were higher than expected due to the carryover of 2025 investment cycle costs and smaller discretionary items, though management expects OpEx growth to moderate later in 2026.
• Leadership said full-year guidance remains unchanged and pointed to improving operating leverage in the second half as top-line momentum continues and the investment cycle rolls off.

DLocal Stock Performance

Shares of NASDAQ DLO traded up $0.49 during trading hours on Thursday, hitting $12.66. The stock had a trading volume of 3,287,510 shares, compared to its average volume of 1,725,956. The company has a market capitalization of $3.73 billion, a P/E ratio of 19.78 and a beta of 1.04. The firm’s 50-day moving average price is $12.81 and its two-hundred day moving average price is $13.37. DLocal has a 52 week low of $9.75 and a 52 week high of $16.78.

DLocal Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, June 10th. Investors of record on Wednesday, May 27th will be paid a $0.1939 dividend. The ex-dividend date of this dividend is Wednesday, May 27th. This represents a $0.78 annualized dividend and a dividend yield of 6.1%.

Institutional Investors Weigh In On DLocal

A number of large investors have recently added to or reduced their stakes in DLO. Royal Bank of Canada boosted its position 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 purchasing an additional 41,324 shares during the period. Goldman Sachs Group Inc. boosted its position in DLocal by 4.1% during the first quarter. Goldman Sachs Group Inc. now owns 575,111 shares of the company’s stock worth $4,796,000 after purchasing an additional 22,803 shares during the period. Empowered Funds LLC boosted its position in DLocal by 2.7% during the first quarter. Empowered Funds LLC now owns 48,688 shares of the company’s stock worth $406,000 after purchasing an additional 1,281 shares during the period. Geode Capital Management LLC boosted its position in DLocal by 0.8% during the second quarter. Geode Capital Management LLC now owns 142,677 shares of the company’s stock worth $1,618,000 after purchasing an additional 1,130 shares during the period. Finally, Quantbot Technologies LP bought a new stake in DLocal during the second quarter worth approximately $254,000. Institutional investors own 90.13% of the company’s stock.

Analyst Ratings Changes

Several analysts have issued reports on the stock. Wall Street Zen raised shares of DLocal from a “hold” rating to a “buy” rating in a research note on Sunday. Weiss Ratings reiterated a “hold (c)” rating on shares of DLocal in a report on Monday, April 20th. The Goldman Sachs Group reiterated a “buy” rating and issued a $17.00 target price on shares of DLocal in a report on Thursday, April 30th. Truist Financial dropped their target price on DLocal from $17.00 to $15.00 and set a “buy” rating on the stock in a report on Tuesday, March 17th. Finally, JPMorgan Chase & Co. dropped their target price on DLocal from $18.50 to $18.00 and set an “overweight” rating on the stock in a report on Monday, February 2nd. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $16.78.

DLocal Company Profile

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

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

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