DLocal Limited (DLO) AI Stock Analysis

DLocal Limited operates an international payments platform spanning across the United States, Europe, China, and various international markets. Founded in 2016 and based in Montevideo, Uruguay, the company enables global enterprise merchants to receive payments and execute electronic transactions. DLocal serves a broad range of sectors, including commerce, streaming services, ride-hailing, financial services, advertising, software as a service (SaaS), travel, e-learning, on-demand delivery, gaming, and cryptocurrency. Its platform focuses on streamlining financial operations and supporting merchants in navigating complex cross-border payment requirements across global digital economies.

DLocal grew revenue from $244.1M in FY2021 to $1.09B in FY2025, representing a 5-year revenue CAGR of 60.0%. Net income reached $196.8M in FY2025 with a net margin of 18.0%, up from $120.4M in FY2024. Over the same period, gross margin compressed from 53.4% in FY2021 to 36.8% in FY2025, while operating margin settled at 20.3%. Over the trailing twelve months, revenue reached $1.36B with an operating margin of 16.1% and return on equity of 41.3%. For the latest quarter ended June 30, 2026, quarterly revenue growth was 55.8% year-over-year and quarterly earnings growth was 28.6%.

As of June 30, 2026, DLocal held $874.2M in cash and short-term investments against total debt of $67.4M, resulting in a net cash position of $806.8M. The company reported a current ratio of 1.25 and a debt-to-equity ratio of 0.12, supported by shareholders' equity of $540.2M. In FY2025, operating cash flow rebounded to $424.2M and free cash flow stood at $421.9M. Cash deployment in FY2025 included capital expenditures of $2.3M and dividends paid of $150.0M, while share count dropped 5.5% over 5 years.

DLO trades at a trailing P/E of 21.6x, below the 28.1x median of its US-listed Technology peers. Its forward P/E of 19.6x sits slightly above the peer median of 18.8x, while its EV to EBITDA multiple of 12.2x is lower than the peer median of 16.6x. The stock has an enterprise value of $3.27B and a price-to-sales multiple of 3.2x compared to the peer median of 2.8x. Over the past 1 year, DLO generated a return of -3.1%, trailing the S&P 500 return of 16.8%, and its 5-year return of -74.5% lagged the index return of 83.0%.

DLocal pays a quarterly dividend with an annualized forward rate of $0.19 per share, delivering a dividend yield of 1.32%. The company has paid dividends for 2 consecutive years and maintains a payout ratio of 24.8%. Its most recent ex-dividend date occurred on May 27, 2026.

Wall Street coverage includes 6 Strong Buy, 3 Buy, and 1 Hold recommendations, with zero Sell or Strong Sell ratings. The mean price target is $18.80, representing upside of 28.2% versus the last close of $14.67. Consensus projections call for current fiscal year revenue of $1.59B and EPS of $0.85, followed by FY2027 revenue of $2.08B and EPS of $1.14. The company has topped EPS expectations in 2 of the past 4 quarters, with its next earnings report scheduled for November 12, 2026.

This page is an AI-written research summary of DLocal Limited (DLO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: DLO income statement, DLO balance sheet, DLO key metrics, DLO analyst forecast, DLO chart. See the DLO stock overview for the latest quote and news.