| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 56 | 22.5x | 17.8x | Around median | |
Growth | 88 | 57.0% | 7.1% | Top tier | |
Quality | 92 | 36.2% | 4.5% | Top tier | |
Safety | 75 | — | 2.6x | Top tier | |
Capital Return | 60 | 3.42% | 2.12% | Around median | |
Momentum | 72 | 1.1% | 2.9% | Top tier | |
Sentiment | 72 | 4 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Dlocal Limited operates a payments platform that connects global merchants to local financial infrastructure and payment methods across more than 60 emerging markets through a single integration. The company generates income from processing payments and transfers, including local-to-local flows and cross-border payments, leveraging local licenses, teams, and operating expertise in each country. In fiscal Q2 2026, the platform served more than 760 global merchants, including four of the largest ride-hailing companies, five of the ten largest e-commerce platforms, the five largest video-streaming platforms, and seven of the ten largest remittance companies.
In fiscal Q2 2026, total payment volume reached $17.7 billion, growing 92% year over year, while gross profit increased 29% to $127 million. Operating profit reached $64 million, up 15% year over year and 22% quarter over quarter, representing 50% of gross profit after improving by 6 percentage points sequentially. Net income also reached $55 million, up 28% year over year, and diluted earnings per share were $0.18, while the call context did not include an accounting revenue figure for the quarter.
The business mix shifted strongly toward local-to-local flows, which represented 61% of total payment volume in fiscal Q2 2026, up 6 percentage points from the previous quarter, driven by growth in ride-hailing and on-demand delivery. Brazil recorded a record gross profit of $40 million, and Argentina recorded a record $20 million, while gross profit declined sequentially in Mexico and in Africa and Asia. For the annual comparison, Dlocal generated fiscal 2025 revenue of $1.1 billion, gross profit of $402.8 million, and net income of $196.9 million, compared with $746 million, $294.7 million, and $120.5 million, respectively, in fiscal 2024.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $18.5, within a range of $17 to $20, compared with a consensus rating of “Buy.” The average target is approximately 10% above the 52-week range high of $16.78, while the lowest target is also slightly above that high; therefore, the targets assume continued growth in volume and gross profit, while take-rate pressure, costs in Mexico, and expected taxes in 2027 could limit the realization of this scenario.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Total payment volume reached $17.7 billion, up 92% year over year, the highest pace since fiscal Q1 2022 according to management. Ride-hailing was the largest contributor to sequential growth, with its volume doubling from the previous quarter, supported by the expansion of a large global merchant and several ride-hailing and delivery companies. Travel, remittances, e-commerce, software as a service, and advertising also contributed. This translated into record gross profit of $127 million, up 29% year over year.
A large global ride-hailing merchant was an important driver of growth in fiscal Q2 2026, and management reported that its expansion into key markets had been completed. However, the company said growth was not limited to this merchant, as several ride-hailing and delivery merchants also expanded, and total volume grew by more than 65% year over year even after excluding this relationship and certain currency effects. Net revenue retention reached 153%, while total payment volume retention reached 188%. Nevertheless, the size of that merchant's contribution and the completion of its expansion make future comparisons more difficult.
Local-to-local flows increased to 61% of total payment volume in fiscal Q2 2026, up 6 percentage points from the previous quarter. These flows do not include the foreign exchange component present in cross-border payments, so their take rate is lower, while large volumes also move merchants quickly into lower pricing tiers. Management explained that excluding the major expansion of one ride-hailing merchant would have left the take rate approximately stable sequentially. The updated guidance assumes that the decline in the take rate will slow, not reverse upward.
Management said on August 13, 2026 that more than 60% of the software code had become AI-generated. This coincided with a near doubling of engineering deployments year over year and shorter software development lead times, while headcount remained approximately stable sequentially. The company is also applying automation to compliance, operations, commercial activities, and customer support. In fiscal Q2 2026, operating profit increased to $64 million and represented 50% of gross profit.
Dlocal's buy now, pay later offering became available in eight markets during fiscal Q2 2026. The company is also working to launch dMore, a solution under which Dlocal acts as the merchant of record on behalf of the merchant. The solution handles aspects of establishing a local entity and filing and collecting taxes, with the aim of accelerating merchants' entry into emerging markets and increasing the take rate earned by the company. However, management acknowledged that the contribution from new products was slightly below the targeted level through August 13, 2026.
Management raised total payment volume growth guidance to 60%–70% year over year following the strength of the first half of fiscal 2026. It also raised gross profit growth guidance to 25%–30%, but maintained expected operating profit growth at 27.5%–32.5%. The unchanged operating guidance reflects a nonrecurring tax item of $4.4 million and foreign exchange headwinds. At the same time, the company does not expect material increases in headcount during fiscal 2026 and is relying partly on automation to improve operating leverage.
