Challenging Earnings Season for Latin America's Fintech Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 17 2026
0mins
Source: Yahoo Finance
- Market Performance Decline: MercadoLibre's market cap has shrunk from $134 billion to $78 billion, and despite a 49% year-over-year revenue increase in the latest quarter, the stock has dropped 17% over the past six trading days due to an 87% surge in its credit portfolio impacting profit margins.
- Revenue Growth Concerns: DLocal reported a 55% revenue increase, yet its total payment volume surged 73% without a corresponding revenue rise, raising concerns about its take rate and leading to a 13% stock decline on Friday.
- Customer Base Expansion: Nu Holdings grew its customer base by 14% to 135 million and achieved $5.3 billion in revenue, a 42% increase, but the stock has still lost nearly a third of its peak value due to declining customer deposits and rising non-performing loans.
- Investment Opportunities Emerging: Despite short-term pressures, all three companies exhibit long-term growth potential, particularly Nu's expansion in Mexico, which could present new growth avenues, making these Latin American fintech stocks worth monitoring for investors.
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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: 12.240
Low
17.00
Averages
17.50
High
18.00
Current: 12.240
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.
Analysis of Currently Oversold Stocks
- Market Sentiment: As of May 15, 2026, certain stocks are perceived as undervalued, reflecting a pessimistic market sentiment that may lead investors to miss potential rebound opportunities.
- Investment Opportunities: The oversold stocks mentioned in the video could provide a favorable buying opportunity for investors, particularly during market recoveries when these stocks are likely to see significant value appreciation.
- Short-term Volatility: Despite the current depressed prices, short-term market sentiment may cause price fluctuations, necessitating careful risk and reward assessments by investors.
- Long-term Perspective: From a long-term viewpoint, investing in undervalued stocks may yield substantial returns, especially against the backdrop of economic recovery, prompting investors to watch for signs of fundamental improvement.
See More
Challenging Earnings Season for Latin American Fintech Stocks
- MercadoLibre Market Cap Decline: MercadoLibre's market cap has shrunk from $134 billion to $78 billion since its all-time high last year, and despite a 49% year-over-year revenue increase, the 87% growth in its credit portfolio is pressuring margins, potentially impacting stock performance in the short term.
- DLocal Revenue Growth Concerns: DLocal reported a 55% revenue increase, but its failure to match this with total payment volume growth raised concerns about its take rate, leading to a 13% stock drop on Friday, indicating market caution regarding its future profitability.
- Nu Holdings Customer Growth: Nu Holdings saw a 14% increase in its customer base to 135 million and revenue of $5.3 billion, a 42% year-over-year rise; however, a sequential dip in customer deposits and rising non-performing loan rates highlight potential credit risks, reflected in a 5.26% stock decline.
- Overall Market Outlook: Despite the short-term challenges faced by Latin American fintech companies, analysts suggest this may be an opportune time to establish or increase positions, particularly given the long-term growth potential these firms possess, warranting investor attention on their future market performance.
See More
Challenging Earnings Season for Latin America's Fintech Stocks
- Market Performance Decline: MercadoLibre's market cap has shrunk from $134 billion to $78 billion, and despite a 49% year-over-year revenue increase in the latest quarter, the stock has dropped 17% over the past six trading days due to an 87% surge in its credit portfolio impacting profit margins.
- Revenue Growth Concerns: DLocal reported a 55% revenue increase, yet its total payment volume surged 73% without a corresponding revenue rise, raising concerns about its take rate and leading to a 13% stock decline on Friday.
- Customer Base Expansion: Nu Holdings grew its customer base by 14% to 135 million and achieved $5.3 billion in revenue, a 42% increase, but the stock has still lost nearly a third of its peak value due to declining customer deposits and rising non-performing loans.
- Investment Opportunities Emerging: Despite short-term pressures, all three companies exhibit long-term growth potential, particularly Nu's expansion in Mexico, which could present new growth avenues, making these Latin American fintech stocks worth monitoring for investors.
See More
DLocal Reports Q1 2026 Earnings with Mixed Results
- Total Payment Volume Growth: DLocal reported a total payment volume of $14.1 billion in Q1 2026, marking a 73% year-over-year increase and the sixth consecutive quarter of over 50% growth, indicating strong performance in the global payments market.
- Revenue and Gross Profit: The company generated $335.9 million in revenue, up 55% year-over-year, with gross profit reaching a record $118.7 million; however, gross profit margin declined from 39% to 35%, reflecting profit dilution from scaling with large merchants.
- Net Income Fluctuation: Net income fell 10% to $41.9 million, but excluding a one-off tax adjustment of $9.7 million, net income rose 11% to $51.6 million, demonstrating resilience in the company's fundamentals despite the decline.
- Rising Operating Expenses: Operating expenses surged 58% year-over-year to $65.9 million, reflecting the ongoing impact of increased investments made at the end of 2025, while adjusted free cash flow dropped 63% to $14.7 million, which the company expects to recover as working capital timing normalizes.
See More
DLocal Reports 55% Revenue Growth in Q1 2026
- Significant Revenue Growth: DLocal reported a 55% year-over-year increase in quarterly revenue for Q1 2026, reaching approximately $336 million, which underscores the company's robust performance in the fintech sector, despite a decline in net income due to tax adjustments, reflecting the strength of its business fundamentals.
- Record Payment Value: The company's total payment value (TPV) reached a record $14.1 billion in the first quarter, up 73% year-over-year, which not only boosts market confidence but also lays a solid foundation for future growth, particularly in expanding emerging markets.
- Retail Sentiment Shift: Despite a more than 6.7% drop in stock price during overnight trading, DLocal saw a 220% surge in discussions on Stocktwits, indicating a shift in retail investor sentiment towards optimism about the company's future prospects, with many believing the current stock price may be undervalued.
- Positive Future Outlook: DLocal reiterated its full-year guidance for 2026, forecasting a 50% to 60% year-over-year growth in TPV, alongside expected increases in gross profit and operating profit of 27.5% and 32.5%, respectively, demonstrating the company's competitive edge and growth potential in the market.
See More
dLocal Reports 10% Drop in Q1 Net Profit Amid Tax Charges
- Profit Decline: dLocal reported a net profit of $41.9 million in Q1, falling 10% short of the $48.9 million expected by analysts, primarily due to one-off tax charges and increased expenses impacting profitability.
- Tax Adjustment Impact: The company noted a $9.7 million tax adjustment related to installment products, which hindered its ability to meet profit expectations, reflecting challenges in financial management.
- Significant Revenue Growth: Despite the profit decline, dLocal's revenue surged 55% to $335.9 million, exceeding analyst forecasts of $333.1 million, indicating strong market demand for its services.
- Transaction Volume Surge: Total payment volume (TPV) increased by 73% to $14.1 billion, up from $8.1 billion a year earlier, demonstrating the company's substantial growth in emerging markets.
See More
Analysis of Currently Oversold Stocks
- Market Sentiment: As of May 15, 2026, certain stocks are perceived as undervalued, reflecting a pessimistic market sentiment that may lead investors to miss potential rebound opportunities.
- Investment Opportunities: The oversold stocks mentioned in the video could provide a favorable buying opportunity for investors, particularly during market recoveries when these stocks are likely to see significant value appreciation.
- Short-term Volatility: Despite the current depressed prices, short-term market sentiment may cause price fluctuations, necessitating careful risk and reward assessments by investors.
- Long-term Perspective: From a long-term viewpoint, investing in undervalued stocks may yield substantial returns, especially against the backdrop of economic recovery, prompting investors to watch for signs of fundamental improvement.
See More
Challenging Earnings Season for Latin American Fintech Stocks
- MercadoLibre Market Cap Decline: MercadoLibre's market cap has shrunk from $134 billion to $78 billion since its all-time high last year, and despite a 49% year-over-year revenue increase, the 87% growth in its credit portfolio is pressuring margins, potentially impacting stock performance in the short term.
- DLocal Revenue Growth Concerns: DLocal reported a 55% revenue increase, but its failure to match this with total payment volume growth raised concerns about its take rate, leading to a 13% stock drop on Friday, indicating market caution regarding its future profitability.
- Nu Holdings Customer Growth: Nu Holdings saw a 14% increase in its customer base to 135 million and revenue of $5.3 billion, a 42% year-over-year rise; however, a sequential dip in customer deposits and rising non-performing loan rates highlight potential credit risks, reflected in a 5.26% stock decline.
- Overall Market Outlook: Despite the short-term challenges faced by Latin American fintech companies, analysts suggest this may be an opportune time to establish or increase positions, particularly given the long-term growth potential these firms possess, warranting investor attention on their future market performance.
See More
Challenging Earnings Season for Latin America's Fintech Stocks
- Market Performance Decline: MercadoLibre's market cap has shrunk from $134 billion to $78 billion, and despite a 49% year-over-year revenue increase in the latest quarter, the stock has dropped 17% over the past six trading days due to an 87% surge in its credit portfolio impacting profit margins.
- Revenue Growth Concerns: DLocal reported a 55% revenue increase, yet its total payment volume surged 73% without a corresponding revenue rise, raising concerns about its take rate and leading to a 13% stock decline on Friday.
- Customer Base Expansion: Nu Holdings grew its customer base by 14% to 135 million and achieved $5.3 billion in revenue, a 42% increase, but the stock has still lost nearly a third of its peak value due to declining customer deposits and rising non-performing loans.
- Investment Opportunities Emerging: Despite short-term pressures, all three companies exhibit long-term growth potential, particularly Nu's expansion in Mexico, which could present new growth avenues, making these Latin American fintech stocks worth monitoring for investors.
See More
DLocal Reports Q1 2026 Earnings with Mixed Results
- Total Payment Volume Growth: DLocal reported a total payment volume of $14.1 billion in Q1 2026, marking a 73% year-over-year increase and the sixth consecutive quarter of over 50% growth, indicating strong performance in the global payments market.
- Revenue and Gross Profit: The company generated $335.9 million in revenue, up 55% year-over-year, with gross profit reaching a record $118.7 million; however, gross profit margin declined from 39% to 35%, reflecting profit dilution from scaling with large merchants.
- Net Income Fluctuation: Net income fell 10% to $41.9 million, but excluding a one-off tax adjustment of $9.7 million, net income rose 11% to $51.6 million, demonstrating resilience in the company's fundamentals despite the decline.
- Rising Operating Expenses: Operating expenses surged 58% year-over-year to $65.9 million, reflecting the ongoing impact of increased investments made at the end of 2025, while adjusted free cash flow dropped 63% to $14.7 million, which the company expects to recover as working capital timing normalizes.
See More
DLocal Reports 55% Revenue Growth in Q1 2026
- Significant Revenue Growth: DLocal reported a 55% year-over-year increase in quarterly revenue for Q1 2026, reaching approximately $336 million, which underscores the company's robust performance in the fintech sector, despite a decline in net income due to tax adjustments, reflecting the strength of its business fundamentals.
- Record Payment Value: The company's total payment value (TPV) reached a record $14.1 billion in the first quarter, up 73% year-over-year, which not only boosts market confidence but also lays a solid foundation for future growth, particularly in expanding emerging markets.
- Retail Sentiment Shift: Despite a more than 6.7% drop in stock price during overnight trading, DLocal saw a 220% surge in discussions on Stocktwits, indicating a shift in retail investor sentiment towards optimism about the company's future prospects, with many believing the current stock price may be undervalued.
- Positive Future Outlook: DLocal reiterated its full-year guidance for 2026, forecasting a 50% to 60% year-over-year growth in TPV, alongside expected increases in gross profit and operating profit of 27.5% and 32.5%, respectively, demonstrating the company's competitive edge and growth potential in the market.
See More
dLocal Reports 10% Drop in Q1 Net Profit Amid Tax Charges
- Profit Decline: dLocal reported a net profit of $41.9 million in Q1, falling 10% short of the $48.9 million expected by analysts, primarily due to one-off tax charges and increased expenses impacting profitability.
- Tax Adjustment Impact: The company noted a $9.7 million tax adjustment related to installment products, which hindered its ability to meet profit expectations, reflecting challenges in financial management.
- Significant Revenue Growth: Despite the profit decline, dLocal's revenue surged 55% to $335.9 million, exceeding analyst forecasts of $333.1 million, indicating strong market demand for its services.
- Transaction Volume Surge: Total payment volume (TPV) increased by 73% to $14.1 billion, up from $8.1 billion a year earlier, demonstrating the company's substantial growth in emerging markets.
See More
