DLocal (NASDAQ:DLO) Issues Earnings Results, Beats Expectations By $0.01 EPS

DLocal (NASDAQ:DLO) issued its earnings results on Thursday. The company reported $0.17 earnings per share for the quarter, topping 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 analyst estimates of $331.20 million. During the same period in the prior year, the business posted $0.15 earnings per share. The firm’s revenue for the quarter was up 54.9% compared to the same quarter last year.

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 Trading Down 7.1%

Shares of NASDAQ DLO traded down $0.91 during trading on Friday, reaching $11.76. The company had a trading volume of 5,239,484 shares, compared to its average volume of 1,566,803. DLocal has a twelve month low of $9.75 and a twelve month high of $16.78. The stock has a 50-day moving average price of $12.81 and a two-hundred day moving average price of $13.37. The stock has a market capitalization of $3.47 billion, a PE ratio of 18.38 and a beta of 1.04.

DLocal Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Wednesday, May 27th will be issued a $0.1939 dividend. This represents a $0.78 dividend on an annualized basis and a dividend yield of 6.6%. The ex-dividend date of this dividend is Wednesday, May 27th.

Institutional Trading of DLocal

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vident Advisory LLC boosted its stake in shares of DLocal by 9.0% during the 4th quarter. Vident Advisory LLC now owns 25,943 shares of the company’s stock worth $367,000 after purchasing an additional 2,142 shares during the last quarter. SummitTX Capital L.P. purchased a new position in shares of DLocal during the fourth quarter valued at approximately $387,000. Atmos Capital Gestao DE Recursos LTDA. acquired a new stake in DLocal during the fourth quarter worth approximately $54,128,000. TB Capital Gestao de Recursos Ltda. boosted its position in DLocal by 27.3% during the fourth quarter. TB Capital Gestao de Recursos Ltda. now owns 923,768 shares of the company’s stock worth $13,062,000 after acquiring an additional 198,055 shares during the last quarter. Finally, Cria Inc. purchased a new stake in DLocal in the 4th quarter worth approximately $56,560,000. Hedge funds and other institutional investors own 90.13% of the company’s stock.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on DLO shares. Weiss Ratings reissued a “hold (c)” rating on shares of DLocal in a research note on Monday, April 20th. JPMorgan Chase & Co. decreased their target price on DLocal from $18.50 to $18.00 and set an “overweight” rating on the stock in a research report on Monday, February 2nd. Wall Street Zen upgraded DLocal from a “hold” rating to a “buy” rating in a research report on Sunday, May 10th. Truist Financial cut their price target on DLocal from $17.00 to $15.00 and set a “buy” rating for the company in a research note on Tuesday, March 17th. Finally, The Goldman Sachs Group reiterated a “buy” rating and issued a $17.00 price objective on shares of DLocal in a research report on Thursday, April 30th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $16.63.

Key Headlines Impacting DLocal

Here are the key news stories impacting DLocal this week:

• Positive Sentiment: DLocal delivered strong operating scale in Q1, with total payment volume topping $14 billion for the first time, up 73% year over year, and gross profit rising to a record $119 million. dLocal Reports First Quarter 2026 Financial Results
• Positive Sentiment: The company said revenue grew 54.9% year over year to about $335.9 million, while earnings per share of $0.17 edged past analyst expectations, showing continued demand for its cross-border payments platform. DLocal (DLO) Q1 Earnings and Revenues Beat Estimates
• Neutral Sentiment: Management reiterated that guidance was unchanged and highlighted expectations for operating leverage to improve in the second half of 2026, which may reassure investors looking for margin recovery. dLocal Reports First Quarter 2026 Financial Results
• Neutral Sentiment: There was also unusual put-option activity, suggesting some traders are positioning for more downside or hedging into the earnings reaction.
• Negative Sentiment: Despite the growth, margins lagged as costs rose faster than revenue, and reports noted a profit decline versus last year and a miss on some estimates, which appears to be weighing on the stock. Fintech dLocal posts first-quarter profit down 10%
• Negative Sentiment: Operating cash flow fell sharply year over year and liabilities increased, adding to investor concerns about near-term financial flexibility and profitability quality. DLocal: Q1 Earnings Snapshot

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.