Added to YB: 2026-03-24
Pitch date: 2026-03-20
DLO [neutral]
DLocal Limited
+2.66%
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
$3.6B
Pitch Price
$12.39
Price Target
N/A
Dividend
1.60%
EV/EBITDA
12.54
P/E
18.68
EV/Sales
2.59
Sector
Financial Services
Category
growth
DLocal (DLO): Q4 2025 Earnings Review
DLO (earnings): Q4 TPV $13.1B (+70% YoY, +26% QoQ); rev $337.9M (+65% YoY) beat $296.1M est; full yr rev crossed $1B. Gross margin compressed to 34% from 41% YoY as take rate fell to 0.88% vs 1.09% (mgmt frames this as intentional: maximize TPV/abs profit, not rates). Adj EBITDA $78.4M, op profit $62.7M (+48% YoY). FCF $64.9M (+100% YoY), 117% conversion. NRR 162% (up from 149% Q3). 2026 guide: TPV +50-60%, gross profit +22.5-27.5%, op profit +27.5-32.5%. Announced $300M buyback + $57M dividend. Risks: execution on large merchant rollouts, take rate compression, stablecoin/AI disruption (author views as overblown). Trading <18x EV/FCF for 30-50%+ compounder.
Read full article (14 min)