dLocal Ltd (DLO)

Price$15.52Cached quoteAs of 2026-09-05 22:54 UTC

AI: Fair-priced

Price checkAt about 23 times trailing earnings, the shares look roughly fair rather than clearly cheap.

Trailing diluted earnings are about $0.68 per share, so the market is paying roughly 23 times recent earnings. That is not demanding for a business guiding to 25–30% gross-profit growth and 27.5–32.5% operating-profit growth, but it already assumes much of that growth reaches shareholders. If full-year earnings rise toward roughly $0.80–$0.85 per share, the multiple falls to about 18–19 times; slower conversion would leave little room for disappointment.

Big pictureGrowth is excellent, but cash conversion and unit economics have not improved as quickly.

Revenue rose 47% in 2025 and net income rose 63%, yet operating cash flow swung from a $33 million outflow in 2024 to $415 million of inflow in 2025, showing how merchant working capital can distort cash. In the first half of 2026, adjusted free cash flow—cash after removing merchant working-capital swings and capital spending—was $83 million versus $88 million a year earlier, although the second quarter rebounded sharply to $69 million.

Business strengthA strong cash cushion and disciplined buybacks soften dilution and operating volatility.

At June 2026, dLocal held $795 million of total cash, but only $369 million was identified as corporate cash, so the smaller figure is the better liquidity yardstick. The company had also repurchased 6.9 million Class A shares for $86 million under a $300 million authorization, after shares outstanding had risen about 3% during 2025. That buyback, plus the $57 million dividend paid in June, helps offset employee stock compensation and shows a willingness to return excess capital.

What could change the storyFaster profit conversion would make the shares cheap; weaker payment economics would not.

The bull case is that volume growth keeps making profits grow faster than costs: second-quarter payment volume rose 92%, while management raised full-year volume and gross-profit guidance. The bear case is visible in the same quarter: gross profit rose only 29% and gross margin—gross profit as a share of revenue—fell to 32% from 39%, hurt by volume pricing tiers and country mix. Watch whether gross-profit growth stays near 30%, operating profit accelerates, and adjusted free cash flow consistently tracks or exceeds net income.

AI: News

Q2 growth acceleratesSecond-quarter volumes surged and management raised growth guidance, but margins still compressed sharply.

On August 13, dLocal reported $17.7 billion of quarterly payment volume, up 92%, and $127 million of gross profit, up 29%. Net income rose 28% to $55 million. Management raised 2026 payment-volume growth guidance to 60–70% and gross-profit growth to 25–30%, while keeping operating-profit growth guidance at 27.5–32.5%. Shares closed 4% lower the next session; the timing is consistent with a cautious reaction, but does not by itself prove causation.

Russell index inclusionRussell 2000 inclusion likely boosted passive-fund demand and broadened institutional visibility.

dLocal announced on June 26 that it would join the Russell 2000 and Russell 3000 indexes effective June 29. Russell-linked products benchmark about $12.2 trillion, so inclusion can create mechanical buying from index funds and improve liquidity. The shares gained 2.8% in the regular June 26 session and roughly 8% after hours after the announcement, according to MarketScreener; that timing supports, but does not prove, index-related demand.

Q1 earnings missA tax-driven earnings miss dented confidence even as payment volumes and revenue stayed strong.

On May 14, first-quarter adjusted earnings were $0.14 per share versus a $0.17 analyst estimate, while revenue of $336 million slightly beat expectations and rose 55% year over year. A $9.7 million prior-period tax adjustment hurt the quarter; excluding it, diluted earnings would have been about $0.17 per share. The stock fell about 5% in the initial reaction, showing investors were sensitive to whether rapid payment growth converts cleanly into per-share profit.

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Revenue

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2024

2025

Net income

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2025

Free cash flow

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2025

Total cash / debt

CashTotal debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019
Revenue	$1.09B	$746.0M	$650.4M	$418.9M	$244.1M	$104.1M	$55.3M
Gross profit	$402.8M	$294.7M	$276.9M	$202.2M	$130.4M	$60.1M	$35.9M
Gross margin	36.83%	39.50%	42.57%	48.26%	53.43%	57.69%	64.89%
Research & development	$30.7M	$25.6M	$12.7M	$6.3M	$3.4M	$2.0M	$1.3M
Operating expenses	$182.8M	$154.2M	$97.2M	$74.3M	$46.6M	$29.1M	$18.3M
Operating income	$219.9M	$140.5M	$179.7M	$127.9M	$83.8M	$30.9M	$17.6M
Operating margin	20.11%	18.83%	27.62%	30.53%	34.34%	29.71%	31.77%
EBITDA	$246.2M	$157.7M	$191.9M	$136.1M	$88.6M	$31.9M	$18.0M
EBITDA margin	22.51%	21.14%	29.50%	32.48%	36.29%	30.67%	32.51%
Net income	$196.9M	$120.5M	$149.1M	$108.7M	$77.9M	$28.2M	$15.6M
Net profit margin	18.01%	16.15%	22.92%	25.95%	31.89%	27.07%	28.22%
Basic EPSper basic share	$0.68	$0.42	$0.51	$0.37	$0.27	$0.10	$0.06
Diluted EPSper diluted share	$0.65	$0.39	$0.49	$0.35	$0.25	$0.10	$0.05

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of DLO
Holder	Shares held
GENERAL ATLANTIC, L.P.	46.66M
Summit Trail Advisors, LLC	7.68M
BlackRock, Inc.	5.08M
BANK OF AMERICA CORP /DE/	4.93M
Cria, Inc.	4M
ATMOS CAPITAL GESTAO DE RECURSOS LTDA.	3.99M
Fourth Sail Capital LP	3.94M
Ribbit Management Company, LLC	3.89M
Paradice Investment Management LLC	2.73M
MARSHALL WACE, LLP	2.64M
BAILLIE GIFFORD & CO	2.55M
Bzurovski Bay Andres	2.47M
Arnt Pedro	2.35M
MORGAN STANLEY	1.93M
HSBC HOLDINGS PLC	1.66M
WELLINGTON MANAGEMENT GROUP LLP	1.49M
Tikvah Management LLC	1.42M
Invenomic Capital Management LP	1.4M
GEODE CAPITAL MANAGEMENT, LLC	1.35M
Menendez Carlos Javier	1.28M

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys1$237.0K disclosed value

Sells (SEC code S)0$0.00 disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 29, 2026Form 4	Pruett William RodneyDirector	BuyClass A Common Share	20.0K	$11.85	$237.0K	108.0K

Review ownership filings at SEC.gov ↗

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dLocal Ltd (DLO)

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