DLocal is a Uruguay‑based fintech company that facilitates seamless cross‑border payments, enabling global merchants to transact in emerging markets. Founded in 2016 and headquartered in Montevideo, it quickly became Uruguay’s first unicorn and went public on NASDAQ in 2021. Through a single API and contract, DLocal supports pay‑in and pay‑out capabilities across multiple local payment methods, serving verticals such as streaming, retail, ride‑hailing, SaaS, travel, gaming, and fintech. It operates in over 40 markets with offices worldwide. The company continues to expand its global footprint, reflecting its strong platform adoption and emerging markets expertise.
2. Most Recent Earnings
In Q2 2025, DLocal delivered an impressive revenue of $256.5 million, marking a 50% year‑over‑year increase and beating estimates of ~$229.6 million . EPS came in at $0.14, exceeding forecasts by $0.01 . Total payment volume (TPV) reached a record $9.2 billion, up 53% YoY . Following this, the stock surged ~20–21% in pre‑market trading . Management also raised guidance for TPV and EBITDA for the full year, signaling strong momentum and improved financial confidence .
3. Founding, Founders & Corporate Background
DLocal was founded in 2016 in Montevideo by Sergio Fogel and Andrés Bzurovski, who remain among the wealthiest in Uruguay . The firm built a unified API platform—the “One dLocal model”—to streamline pay‑in and pay‑out in emerging markets . It went public on NASDAQ in 2021 after forming a Cayman Islands‑based holding company . In mid‑2025, DLocal announced plans to acquire AZA Finance, an African payments provider, for approximately $150 million, underscoring its strategy to deepen regional reach . Key competitors include Stripe (emerging markets focus), local processors, and global giants like PayPal and Adyen.
4. Market & Growth Outlook
DLocal operates in the global digital payments sector, with a focus on emerging markets across Latin America, Africa, and Asia . These markets are projected to see strong tailwinds as digital adoption and e‑commerce accelerate. In 2023, DLocal forecast a 50% increase in payment volumes to $27 billion and a potential 30% rise in adjusted EBITDA up to $260 million . The broader market is expected to grow with high single‑digit to double‑digit CAGR through 2030, fueled by increasing financial inclusion, mobile penetration, and shifting consumer habits—though exact figures vary by report.
5. Competitors Overview
DLocal competes with global and regional payment platforms, including Stripe, Adyen, PayPal, along with local players in Latin America and Africa. These firms offer overlapping capabilities, but DLocal differentiates through specialized focus on alternative payment methods and deep compliance infrastructure in emerging markets.
6. Unique Differentiation
DLocal’s edge lies in its “one API, one contract” model that simplifies entry into fragmented emerging markets. It supports hundreds of local payment methods and maintains over 30 regulatory licenses across multiple regions, offering unified pay‑in and pay‑out solutions—reducing complexity for large global merchants. This, combined with strong regional compliance and partnerships, gives it a defensible moat.
7. Management Team Overview
- Pedro Arnt – CEO, leads strategy and global operations .
- Carlos Menendez – COO, responsible for operations and expansion .
- Mark Ortiz – CFO (as of mid‑2025), transitioning into the role; brings financial discipline and experience .
8. Financial Performance (Last 5 Years)
Over the past five years, DLocal has grown from a startup to a multi‑hundred‑million‑dollar revenue company. In 2024, revenue was around $746 million, up ~15% YoY from $650 million in 2023 . However, earnings struggled with net income pressure and margin compression. Q4 2023 net profit rose 47% to $28.5 million, but Q4 2024 profit of $29.7 million missed estimates, highlighting volatility . Earnings growth trends are lumpy, with remarkable Q2 2025 EPS beats (14 cents) but prior quarters lagging. The balance sheet includes healthy cash reserves (e.g., $536 million in Q4 2023) and low debt. Lack of tables per instructions.
9. Bull Case Highlights
- Emerging markets exposure positions DLocal for long‑term growth as global digital penetration rises.
- Proven execution: record TPV, revenue acceleration, and raised guidance.
- Operational moat: unified platform and regulatory footprint across 40+ markets.
10. Bear Case Highlights
- Currency and geopolitical risks in emerging markets can pressure earnings and margins.
- Competitive threats from deep‑pocketed global payments providers and potential price pressure.
- Take‑rate risk: If volume growth falters, declining take rates could compress revenues.
Charts
The stock is in a stage 1 consolidation (neutral) on the weekly chart and post earnings bump has moved (20% higher) has moved it to stage 2. The near term outlook has some resistance in the $15- $16 range, where it might help to go over the range bound nature of the stock.
