DLocal Reports Q1 2026 Earnings with Mixed Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy DLO?
Source: Yahoo Finance
- 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.
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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: 12.660
Low
17.00
Averages
17.50
High
18.00
Current: 12.660
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 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 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 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
dLocal Expected to Exceed Q1 Earnings Estimates
- Earnings Announcement: dLocal is set to release its Q1 2023 earnings on May 14th after market close, with consensus EPS estimate at $0.17 and revenue estimate at $331.19 million, reflecting a robust 52.8% year-over-year growth.
- Historical Performance: Over the past year, dLocal has surpassed EPS estimates 25% of the time and revenue estimates 50% of the time, indicating a degree of stability in its earnings performance amidst market fluctuations.
- Estimate Revision Trends: In the last three months, there have been no upward revisions to EPS estimates and one downward revision, while revenue estimates saw four upward revisions with none downward, suggesting increased market confidence in dLocal's revenue growth potential.
- Market Reaction: Following its Q4 2025 earnings report, dLocal reported a GAAP EPS of $0.18 and revenue of $337.89 million, exceeding market expectations by $41.55 million, highlighting the company's strong performance in the market.
See More
dLocal Adjusts Earnings Call Time
- Earnings Call Time Change: dLocal announced that its previously scheduled earnings conference call on May 14, 2026, has been moved from 6:00 p.m. to 5:00 p.m. Eastern Time, ensuring more efficient communication with investors.
- Unchanged Meeting Details: Aside from the time adjustment, all other details regarding the earnings release and conference call remain unchanged, reflecting the company's ongoing commitment to transparency.
- Global Payment Platform Advantage: As a leading cross-border payment platform, dLocal connects global merchants to emerging markets, leveraging the 'One dLocal' concept to streamline payment processes and enhance customer experience.
- Future Outlook Statement: The forward-looking statements mentioned in the press release highlight the company's expectations for future market developments, showcasing confidence in long-term growth despite known risks and uncertainties.
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
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 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 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
dLocal Expected to Exceed Q1 Earnings Estimates
- Earnings Announcement: dLocal is set to release its Q1 2023 earnings on May 14th after market close, with consensus EPS estimate at $0.17 and revenue estimate at $331.19 million, reflecting a robust 52.8% year-over-year growth.
- Historical Performance: Over the past year, dLocal has surpassed EPS estimates 25% of the time and revenue estimates 50% of the time, indicating a degree of stability in its earnings performance amidst market fluctuations.
- Estimate Revision Trends: In the last three months, there have been no upward revisions to EPS estimates and one downward revision, while revenue estimates saw four upward revisions with none downward, suggesting increased market confidence in dLocal's revenue growth potential.
- Market Reaction: Following its Q4 2025 earnings report, dLocal reported a GAAP EPS of $0.18 and revenue of $337.89 million, exceeding market expectations by $41.55 million, highlighting the company's strong performance in the market.
See More
dLocal Adjusts Earnings Call Time
- Earnings Call Time Change: dLocal announced that its previously scheduled earnings conference call on May 14, 2026, has been moved from 6:00 p.m. to 5:00 p.m. Eastern Time, ensuring more efficient communication with investors.
- Unchanged Meeting Details: Aside from the time adjustment, all other details regarding the earnings release and conference call remain unchanged, reflecting the company's ongoing commitment to transparency.
- Global Payment Platform Advantage: As a leading cross-border payment platform, dLocal connects global merchants to emerging markets, leveraging the 'One dLocal' concept to streamline payment processes and enhance customer experience.
- Future Outlook Statement: The forward-looking statements mentioned in the press release highlight the company's expectations for future market developments, showcasing confidence in long-term growth despite known risks and uncertainties.
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
