DLocal (NASDAQ:DLO) Posts Earnings Results, Meets Expectations

Key Points

• DLocal met EPS expectations at $0.18, while quarterly revenue reached $399.66 million, exceeding the $366.77 million analyst estimate and rising 55.9% year over year.
• Second-quarter total payment volume nearly doubled to $18 billion, up 92% year over year. Management is targeting 60%–70% TPV growth and 25%–30% gross-profit growth for 2026.
• Despite strong operating results, shares fell to $14.17 in Friday trading. Wall Street maintains a “Moderate Buy” consensus, with an average price target of $18.67, though recent insider selling may weigh on sentiment.

DLocal (NASDAQ:DLO - Get Free Report) released its quarterly earnings results on Friday. The company reported $0.18 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.18, Zacks reports. The business had revenue of $399.66 million during the quarter, compared to analysts' expectations of $366.77 million. DLocal had a return on equity of 41.22% and a net margin of 15.85%.The firm's revenue for the quarter was up 55.9% compared to the same quarter last year. During the same period in the previous year, the business posted $0.14 earnings per share.

DLocal Stock Performance

DLO traded down $0.59 during trading on Friday, reaching $14.17. 5,066,685 shares of the company's stock were exchanged, compared to its average volume of 2,009,462. The company's fifty day moving average price is $13.88 and its 200-day moving average price is $13.10. DLocal has a fifty-two week low of $10.64 and a fifty-two week high of $16.78. The firm has a market capitalization of $4.18 billion, a PE ratio of 22.49 and a beta of 0.97.

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

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on DLO shares. Wall Street Zen cut shares of DLocal from a "buy" rating to a "hold" rating in a research report on Monday, May 18th. The Goldman Sachs Group increased their price target on shares of DLocal from $17.00 to $19.00 and gave the company a "buy" rating in a research note on Friday, July 31st. UBS Group raised shares of DLocal from a "neutral" rating to a "buy" rating and raised their price target for the company from $16.00 to $20.00 in a report on Wednesday, July 1st. Weiss Ratings restated a "hold (c)" rating on shares of DLocal in a research report on Friday, July 17th. Finally, Truist Financial upped their price objective on DLocal from $15.00 to $17.00 and gave the stock a "buy" rating in a report on Friday, July 24th. Six research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $18.67.

Insiders Place Their Bets

In related news, Director William Rodney Pruett purchased 20,000 shares of DLocal stock in a transaction dated Friday, May 29th. The shares were acquired at an average cost of $11.85 per share, for a total transaction of $237,000.00. Following the transaction, the director directly owned 108,043 shares of the company's stock, valued at approximately $1,280,309.55. This trade represents a 22.72% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Sebastian Kanovich sold 1,000,000 shares of DLocal stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $14.63, for a total value of $14,630,000.00. Following the sale, the director directly owned 1,000,000 shares of the company's stock, valued at approximately $14,630,000. This trade represents a 50.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 1,103,153 shares of company stock worth $16,231,782. 45.44% of the stock is currently owned by company insiders.

Institutional Trading of DLocal

A number of institutional investors and hedge funds have recently modified their holdings of DLO. Cria Inc. acquired a new stake in shares of DLocal in the 4th quarter valued at approximately $56,560,000. Atmos Capital Gestao DE Recursos LTDA. acquired a new position in DLocal during the fourth quarter valued at approximately $54,128,000. Marshall Wace LLP increased its stake in DLocal by 18.9% in the fourth quarter. Marshall Wace LLP now owns 3,662,772 shares of the company's stock valued at $51,792,000 after purchasing an additional 582,718 shares in the last quarter. Two Sigma Investments LP increased its stake in DLocal by 131.6% in the third quarter. Two Sigma Investments LP now owns 1,732,140 shares of the company's stock valued at $24,735,000 after purchasing an additional 984,341 shares in the last quarter. Finally, Jain Global LLC acquired a new stake in DLocal in the fourth quarter worth $21,085,000. 90.13% of the stock is owned by institutional investors.

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.

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 contact@marketbeat.com.

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