dLocal Q4 Earnings Beat Expectations, 2026 Outlook Optimistic
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 18 2026
0mins
Should l Buy DLO?
Source: seekingalpha
- Strong Earnings Report: dLocal reported a Q4 GAAP EPS of $0.18, meeting expectations, with revenue of $337.89 million reflecting a 65.2% year-over-year increase, surpassing estimates by $41.55 million, indicating robust market demand and growth potential.
- 2026 Financial Guidance: The company projects a total payment volume (TPV) of $40.8 billion for 2026, representing a year-over-year growth of 50% to 60%, driven by strong commercial traction with large merchants and geographic expansion, highlighting increased market penetration.
- Gross and Operating Profit: For 2026, gross profit is expected to reach $403 million, with a year-over-year growth of 22.5% to 27.5%, despite facing structural volume-based discounting pressures, which reflect long-term relationships with merchants and scale benefits.
- Operational Baseline Adjustment: Starting in 2026, the company will use operating profit as a measure of operational performance, anticipating temporary margin pressure in the first half of 2026 due to new operating expenses post-investment cycle, but expecting improvements in operating leverage in the second half of 2026.
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Analyst Views on DLO
Wall Street analysts forecast DLO stock price to rise
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 12.360
Low
17.00
Averages
17.50
High
18.00
Current: 12.360
Low
17.00
Averages
17.50
High
18.00
About DLO
Dlocal Ltd, an Uruguay-based company, is focused on enabling global merchants to connect with emerging market users. The Company offers payment platform for emerging markets. Through the Company's direct application programming interface (API), one technology platform, and one contract, which is collectively referred as the One dLocal model. The Company enables global enterprise merchants to get paid (pay-in) and to make payments (pay-out) online in a safe and efficient manner. The Company's cloud-based platform powers both cross-border and local-to-local transactions in approximately 29 countries. The Company enables global merchants to connect with over 600 local payment methods across different geographies, which expands their addressable markets. It operates in different verticals and geographies. The Company's key verticals include retail, streaming, ride hailing, financial institutions, advertising, software as a service (SaaS), travel, e-learning and gaming.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
DLocal Rated as One of the Most Undervalued Growth Stocks by Analysts
- Strong Financial Performance: DLocal's total payment volume surged 70% year-over-year in Q4 2025 to $13.1 billion, with a 60% increase for the full year to $40.82 billion, showcasing its robust execution in emerging markets.
- Revenue and Net Income Growth: The company reported a 47% year-over-year revenue increase to $1.09 billion, while net income rose 63% to $196.9 million, indicating a significant enhancement in profitability and solidifying its market position.
- Dividend Distribution Plan: The board approved a cash dividend of $57.2 million, translating to $0.19 per share, set to be paid on June 10, 2026, reflecting the company's commitment to shareholder returns.
- Market Potential Analysis: DLocal offers a cross-border payment processing platform connecting over 900 local payment methods across 40+ countries, and while analysts see greater upside in certain AI stocks, DLocal remains a highly valued investment option.
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- Return Comparison: The Motley Fool's Stock Advisor program reports an average total return of 898%, significantly outperforming the S&P 500's 183%, underscoring the importance of selecting quality stocks for investment.
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- Market Assessment: The video mentions Sea Limited and Dlocal as currently undervalued stocks, suggesting these companies may present high investment value due to their perceived cheapness in the market.
- Viewing Recommendation: Viewers are encouraged to watch the video for more insights and consider subscribing to the channel for future updates, demonstrating the content creator's ongoing appeal and willingness to engage with the audience.
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Earnings Report Analysis for Nu Holdings and Others
- Earnings Overview: The video covers earnings reports for UiPath and Rubrik, highlighting their market performance and potential investment opportunities, although specific figures are not disclosed.
- Investment Recommendations: Nu Holdings, Sea Limited, and Dlocal are identified as cheap stocks to buy now, despite Nu Holdings not making the Motley Fool's list of the top 10 best stocks.
- Historical Returns Comparison: The Motley Fool Stock Advisor boasts an average return of 898%, significantly outperforming the S&P 500's 183%, showcasing the strength of its stock recommendations.
- Investor Community: Viewers are encouraged to join the Motley Fool investment community to access the latest investment advice and stock recommendations, aiming to seize future investment opportunities.
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Analysis of Growth in Latin American Fintech Companies
- Market Performance Comparison: MercadoLibre, DLocal, and Nu Holdings achieved revenue growth of 45%, 65%, and 57% respectively in their latest quarters, while two major U.S. fintech companies only grew by about 4%, highlighting the robust growth potential in the Latin American market.
- MercadoLibre Development Dynamics: As one of the largest companies in Latin America, MercadoLibre's Mercado Pago subsidiary facilitated $83.4 billion in payment volume in the latest quarter, significantly surpassing the gross merchandise value of its e-commerce business, indicating that its financial operations are rapidly outpacing traditional e-commerce.
- DLocal Financial Highlights: DLocal's revenue surged by 65%, driven by a 70% increase in payment volume, with net income rising 63%, leading to plans to distribute 30% of its free cash flow to shareholders, offering a 1.5% dividend yield that attracts income-focused investors.
- Nu Holdings Strategic Layout: Nu Holdings reported a 57% revenue increase and a 62% rise in net income, with 131 million accounts across Brazil, Mexico, and Colombia, and its stock trading at a price-to-earnings ratio below 13 times, showcasing its potential in high-margin business operations.
See More
DLocal Rated as One of the Most Undervalued Growth Stocks by Analysts
- Strong Financial Performance: DLocal's total payment volume surged 70% year-over-year in Q4 2025 to $13.1 billion, with a 60% increase for the full year to $40.82 billion, showcasing its robust execution in emerging markets.
- Revenue and Net Income Growth: The company reported a 47% year-over-year revenue increase to $1.09 billion, while net income rose 63% to $196.9 million, indicating a significant enhancement in profitability and solidifying its market position.
- Dividend Distribution Plan: The board approved a cash dividend of $57.2 million, translating to $0.19 per share, set to be paid on June 10, 2026, reflecting the company's commitment to shareholder returns.
- Market Potential Analysis: DLocal offers a cross-border payment processing platform connecting over 900 local payment methods across 40+ countries, and while analysts see greater upside in certain AI stocks, DLocal remains a highly valued investment option.
See More
Analysis of FOMC Decision and Tech Stock Movements
- FOMC Decision Insights: The recent FOMC meeting concluded without changing interest rates, reflecting a cautious stance on economic growth that could significantly influence future monetary policy directions and market sentiment.
- Micron Technology Movement: Micron (MU) saw a 4.24% increase in trading on March 19, 2026, indicating optimistic market expectations regarding its future performance, likely linked to new product launches and growing market demand.
- DLocal Earnings Review: DLocal's latest earnings report showcased robust revenue growth, though specific figures were not disclosed; the positive market reaction suggests initial success in its expansion strategy within the Latin American market.
- Alibaba Performance Overview: Alibaba's earnings report attracted market attention, and while detailed figures were not provided, its performance in e-commerce and cloud computing is considered a key driver of stock price volatility.
See More
FOMC Decision and Tech Stock Analysis
- FOMC Decision Impact: The recent FOMC decision by the Federal Reserve could have significant implications for the market, although specific details were not elaborated in the video, investors should monitor its potential effects on interest rates and the economy.
- Micron Investment Advice: While Micron Technology is highlighted as a stock of interest, The Motley Fool's analyst team did not include it in their current top ten recommended stocks, indicating a cautious outlook on its future performance.
- Return Comparison: The Motley Fool's Stock Advisor program reports an average total return of 898%, significantly outperforming the S&P 500's 183%, underscoring the importance of selecting quality stocks for investment.
- Personal Portfolio Dynamics: The video mentions personal portfolio dynamics with a focus on Alibaba and DLocal, reflecting investor confidence in the growth potential of these companies.
See More
Earnings Report Analysis of UiPath and Rubrik
- Earnings Highlights: The video discusses the earnings reports of UiPath and Rubrik, indicating that despite the lack of specific figures, analysts believe both companies are performing well in the current market environment, potentially attracting investor interest.
- Investment Opportunities: Analysts highlight Nu Holdings' stock price increase of 5.31%, reflecting market recognition of its future growth potential, making it a preferred target for investors.
- Market Assessment: The video mentions Sea Limited and Dlocal as currently undervalued stocks, suggesting these companies may present high investment value due to their perceived cheapness in the market.
- Viewing Recommendation: Viewers are encouraged to watch the video for more insights and consider subscribing to the channel for future updates, demonstrating the content creator's ongoing appeal and willingness to engage with the audience.
See More
Earnings Report Analysis for Nu Holdings and Others
- Earnings Overview: The video covers earnings reports for UiPath and Rubrik, highlighting their market performance and potential investment opportunities, although specific figures are not disclosed.
- Investment Recommendations: Nu Holdings, Sea Limited, and Dlocal are identified as cheap stocks to buy now, despite Nu Holdings not making the Motley Fool's list of the top 10 best stocks.
- Historical Returns Comparison: The Motley Fool Stock Advisor boasts an average return of 898%, significantly outperforming the S&P 500's 183%, showcasing the strength of its stock recommendations.
- Investor Community: Viewers are encouraged to join the Motley Fool investment community to access the latest investment advice and stock recommendations, aiming to seize future investment opportunities.
See More
Analysis of Growth in Latin American Fintech Companies
- Market Performance Comparison: MercadoLibre, DLocal, and Nu Holdings achieved revenue growth of 45%, 65%, and 57% respectively in their latest quarters, while two major U.S. fintech companies only grew by about 4%, highlighting the robust growth potential in the Latin American market.
- MercadoLibre Development Dynamics: As one of the largest companies in Latin America, MercadoLibre's Mercado Pago subsidiary facilitated $83.4 billion in payment volume in the latest quarter, significantly surpassing the gross merchandise value of its e-commerce business, indicating that its financial operations are rapidly outpacing traditional e-commerce.
- DLocal Financial Highlights: DLocal's revenue surged by 65%, driven by a 70% increase in payment volume, with net income rising 63%, leading to plans to distribute 30% of its free cash flow to shareholders, offering a 1.5% dividend yield that attracts income-focused investors.
- Nu Holdings Strategic Layout: Nu Holdings reported a 57% revenue increase and a 62% rise in net income, with 131 million accounts across Brazil, Mexico, and Colombia, and its stock trading at a price-to-earnings ratio below 13 times, showcasing its potential in high-margin business operations.
See More
