Added to YB: 2026-05-20
Pitch date: 2026-05-18
DLO [neutral]
DLocal Limited
+3.5%
current return
Author Info
MVC Investing is a long-term investor. BSc in Economics, MSc in Finance. Equity Analyst with a focus on Fundamental Analysis and Valuation. Sign up for the newsletter.
Company Info
DLocal Limited, together with its subsidiaries, provides payment processing services worldwide. The company offers a robust pay-in solution to help global merchants expand their online presence and receive payments, including international and local cards, online bank transfers, direct debit, cash, and hundreds of alternative payment methods (APMs).
Market Cap
$3.2B
Pitch Price
$11.44
Price Target
N/A
Dividend
1.76%
EV/EBITDA
10.41
P/E
17.19
EV/Sales
2.01
Sector
Financial Services
Category
growth
DLocal (DLO): Q1 2026 Earnings Review
DLO (earnings): Q1 TPV $14.1B (+73% YoY), 6th straight quarter of 50%+ growth; revenue $335.9M (+55% YoY) beat $331.2M est; GP $118.7M (+40% YoY), new record despite net take rate compression to 0.84% from 1.05% (driven by large merchant tier upgrades). $9.7M one-off tax adj hit op profit, OpEx elevated from H1 investment cycle annualization. Adj FCF $14.7M (-63% YoY) on temporary working capital effects (Argentina SPV structure, tax credits). Unchanged 2026 guide: 50-60% TPV, 22.5-27.5% GP, 27.5-32.5% op profit growth. NRR 152%, 3 top-10 merchants +70%+ YoY. At ~$11, ~10x EV/EBIT on pristine balance sheet & $450M cash.
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