DLocal Limited(NASDAQ:DLO) 
360 payments technology platform for mass online payments and payouts in emerging markets across Latin America, APAC, Middle East and Africa.
Website: https://dlocal.com/
Founded: 2016
Full Time Employees: 165
Co-Founder: Sebastian Kanovich
CEO: Sebastián Kanovich
Sector: Information
Industry: Data Processing, Hosting, and Related Services
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At a glance:
- Business Overview: Cross-Border Payments in Emerging Markets: dLocal Limited provides payment processing that enables global merchants to accept and disburse payments in multiple local methods across emerging markets, positioning itself as a cross-border payments infrastructure provider.
- Growth Tied to Merchant Volume and Geographic Expansion: Revenue and profitability are highly dependent on transaction volumes from enterprise merchants and continued expansion into new countries, payment methods, and verticals.
- Concentration and Customer Mix Can Drive Volatility: Performance can be influenced by a relatively concentrated large-merchant customer base; onboarding/offboarding of major merchants or changes in their volumes can create quarter-to-quarter volatility.
- Regulatory and Compliance Risk Is a Core Operating Factor: Operating across many jurisdictions exposes the company to evolving payments regulation, licensing requirements, FX controls, and compliance obligations, which can affect costs and growth pace.
- Competitive Landscape Remains Intense: dLocal competes with global payment processors and local acquirers/aggregators, making pricing, authorization rates, product breadth, and reliability key to sustaining margins and retention.
Bull Thesis:
- Strong Niche in Emerging Markets & Local Payment Expertise: DLocal specializes in providing payment solutions for complex emerging markets, offering a wide array of local payment methods and cross-border capabilities. This niche is difficult for global players to replicate and provides a significant competitive moat, as merchants seek to access these high-growth consumer bases.
- Consistent High Growth & Profitability: The company has consistently demonstrated strong growth in Total Payment Volume (TPV) and revenue, while also maintaining healthy profit margins. This indicates a scalable business model with operating leverage, distinguishing it from many high-growth tech companies that are not yet profitable.
- Expanding Global Footprint & Enterprise Client Acquisition: DLocal continues to expand its geographic reach into new emerging markets and successfully acquire large, sticky enterprise clients. Once integrated, these clients are less likely to switch providers due to the complexity and critical nature of payment infrastructure, ensuring recurring revenue streams.
- Untapped Market Potential in Emerging Economies: Digital payment penetration in many emerging markets is still relatively low compared to developed nations. DLocal is well-positioned to capitalize on the secular trend of increasing e-commerce adoption and digital financial inclusion in these regions, offering a long runway for growth.
Bear Thesis:
- Regulatory & Political Volatility in Operating Markets: Operating across numerous emerging markets exposes DLocal to significant regulatory changes, political instability, and currency fluctuations. Sudden shifts in government policy, capital controls, or economic crises in key markets can directly impact transaction volumes, profitability, and the ability to repatriate funds.
- Customer Concentration Risk: A significant portion of DLocal's revenue may be concentrated among a few large enterprise clients. This creates a risk where the loss of a major client, or a substantial reduction in their transaction volume, could have a disproportionately negative impact on the company's financial performance.
- Intensifying Competition: While specialized, DLocal faces growing competition from various fronts. This includes global payment giants (e.g., Adyen, Stripe) expanding their reach into emerging markets, as well as local fintech players and traditional banks enhancing their digital offerings, potentially leading to pricing pressure or market share erosion.
- Macroeconomic Headwinds in Emerging Markets: Economic slowdowns, high inflation, and currency devaluations in emerging markets can directly impact consumer spending and cross-border trade. These macroeconomic factors can lead to reduced transaction volumes for DLocal's merchants, affecting the company's top-line growth and overall profitability.
Main Competitors:
- Adyen N.V. ($ADYEN) (Adyen Platform), Competes by offering a unified global payment platform that supports a wide array of local payment methods and currencies, increasingly expanding its depth in emerging markets to serve global merchants with a single integration.
- Stripe, Inc. (Stripe Payments, Connect), Competes by providing a developer-friendly suite of payment APIs and tools, expanding its global reach and local payment method support aggressively into new geographies, attracting businesses looking for scalable and modern payment infrastructure, including in emerging economies.
- MercadoLibre, Inc. (Mercado Pago) ($MELI) (Mercado Pago (payment processing, digital wallet)), Dominant regional competitor in Latin America, offering a comprehensive payment ecosystem that includes local payment processing, digital wallets, and cross-border solutions within its core markets, leveraging its strong brand, merchant network, and user base.
- Checkout.com (Checkout.com Platform), Competes by offering a robust, cloud-based payment processing platform for large enterprises, focusing on high-volume transactions and global reach, including expanding its local payment method coverage and acquiring capabilities in various emerging markets, similar to Adyen.
Moat:
DLocal's primary competitive advantage lies in its deep specialization and local expertise in emerging markets, offering a single API solution that simplifies complex cross-border payments. Its moat is built on extensive direct integrations with local banks and alternative payment methods, strong regulatory compliance knowledge, and a nuanced understanding of consumer payment preferences in fragmented economies. Competition comes from two main fronts: global payment processing giants like Adyen, Stripe, and Checkout.com, who are increasingly expanding their local payment method coverage and global reach, and strong regional players such as Mercado Pago, which dominate specific geographies with established ecosystems and brand recognition. While global players offer broader services and greater resources, DLocal's focused approach and 'boots on the ground' strategy in challenging markets allow it to maintain a competitive edge by offering unparalleled depth and efficiency in its chosen niche.
Income Statements:
Quarterly
Annual
| Unit: USD | 2024-12-31 | 2024-09-30 | 2023-06-30 |
|---|---|---|---|
continuing operations | |||
revenues | 204,491,000 | 185,774,000 | 161,138,000 |
cost of services | -120,780,000 | -107,594,000 | -90,378,000 |
gross profit | 83,711,000 | 78,180,000 | 70,760,000 |
yoy | |||
qoq | 7.07% | 10.49% | |
technology and development expenses | -6,822,000 | -6,930,000 | -2,640,000 |
sales and marketing expenses | -5,598,000 | -6,892,000 | -3,106,000 |
general and administrative expenses | -27,183,000 | -22,636,000 | -17,268,000 |
impairment gain on financial assets | -533,000 | 21,000 | |
other operating gain | -987,500 | -578,000 | |
operating profit | 42,268,000 | 41,136,000 | 47,767,000 |
yoy | |||
qoq | 2.75% | -13.88% | |
finance income | 12,036,000 | 7,335,000 | 18,878,000 |
finance costs | -13,121,000 | -17,420,000 | -11,419,000 |
inflation adjustment | -392,000 | -1,954,000 | -1,661,000 |
other results | -1,477,000 | -12,039,000 | 5,798,000 |
profit before income tax | 40,791,000 | 29,097,000 | 53,565,000 |
income tax expense | -11,090,000 | -2,286,000 | -8,774,000 |
profit for the period | 22,692,000 | 26,811,000 | 44,791,000 |
profit attributable to: | |||
owners of the group | 29,682,000 | 26,782,000 | 44,697,000 |
non-controlling interest | 19,000 | 29,000 | 94,000 |
earnings per share | |||
basic earnings per share | 0.11 | 0.09 | 0.15 |
diluted earnings per share | 0.09 | 0.09 | 0.15 |
other comprehensive income | |||
items that may be reclassified to profit or loss: | |||
exchange difference on translation on foreign operations | -4,417 | -498 | 1,675 |
other comprehensive income for the period, net of tax | -1,692.75 | -498 | |
total comprehensive income for the period, net of tax | 20,999.25 | 26,313 | |
total comprehensive income for the period | 20,999.25 | 26,313 | 46,466 |
other comprehensive income for the period | 1,675 |
Balance Sheets:
Quarterly
Annual
| Unit: USD | 2025-09-30 | 2025-06-30 | 2025-03-31 | 2024-12-31 | 2024-09-30 | 2023-12-31 | 2023-09-30 | 2023-06-30 | 2023-03-31 | 2023-03-19 |
|---|---|---|---|---|---|---|---|---|---|---|
assets | ||||||||||
current assets | ||||||||||
cash and cash equivalents | 604,467,000 | 476,939,000 | 511,506,000,000 | 425,172,000 | 560,532,000 | 536,160,000 | 498,165,000 | 549,386,000 | 517,892,000 | 536,160,000 |
financial assets at fair value through profit or loss | 95,026,000 | 125,526,000 | 125,487,000,000 | 129,319,000 | 112,247,000 | 102,677,000 | 103,920,000 | 51,565,000 | 339,000 | 102,677,000 |
trade and other receivables | 576,389,000 | 487,320,000 | 477,349,000,000 | 496,713,000 | 405,917,000 | 363,374,000 | 312,506,000 | 299,802,000 | 249,272,000 | 363,374,000 |
derivative financial instruments | 828,000 | 691,000 | 463,000,000 | 2,874,000 | 591,000 | 2,040,000 | 353,000 | 1,200,000 | 32,000 | 2,040,000 |
other assets | 30,328,000 | 29,888,000 | 28,001,000,000 | 18,805,000 | 12,235,000 | 11,782,000 | 27,549,000 | 44,632,000 | 43,035,000 | 11,782,000 |
total current assets | 1,307,038,000 | 1,120,364,000 | 1,142,806,000,000 | 1,072,883,000 | 1,091,522,000 | 1,016,033,000 | 942,493,000 | 946,585,000 | 810,570,000 | 1,016,033,000 |
non-current assets | ||||||||||
deferred tax assets | 5,428,000 | 5,961,000 | 5,468,000,000 | 5,367,000 | 3,277,000 | 2,217,000 | 1,314,000 | 809,000 | 548,000 | 2,217,000 |
property, plant and equipment | 4,116,000 | 4,208,000 | 4,007,000,000 | 3,377,000 | 3,308,000 | 2,917,000 | 3,488,000 | 2,780,000 | 2,346,000 | 2,917,000 |
right-of-use assets | 3,212,000 | 4,124,000 | 3,852,000,000 | 3,645,000 | 3,939,000 | 3,689,000 | 3,884,000 | 3,694,000 | 3,794,000 | 3,689,000 |
intangible assets | 71,754,000 | 68,165,000 | 65,301,000,000 | 63,318,000 | 61,983,000 | 57,887,000 | 56,381,000 | 54,920,000 | 53,073,000 | 57,887,000 |
total non-current assets | 101,716,000 | 100,948,000 | 98,841,000,000 | 98,446,000 | 79,637,000 | 68,420,000 | 65,067,000 | 62,203,000 | 59,761,000 | 68,420,000 |
total assets | 1,408,754,000 | 1,221,312,000 | 1,241,647,000,000 | 1,171,329,000 | 1,171,159,000 | 1,084,453,000 | 1,007,560,000 | 1,008,788,000 | 870,331,000 | 1,084,453,000 |
liabilities | ||||||||||
current liabilities | ||||||||||
trade and other payables | 816,729,000 | 691,081,000 | 614,133,000,000 | 597,787,000 | 669,608,000 | 602,493,000 | 549,839,000 | 598,013,000 | 449,252,000 | 602,493,000 |
lease liabilities | 1,147,000 | 1,201,000 | 1,107,000,000 | 1,137,000 | 1,127,000 | 626,000 | 630,000 | 675,000 | 679,000 | 626,000 |
tax liabilities | 14,806,000 | 14,330,000 | 20,631,000,000 | 21,515,000 | 17,525,000 | 20,800,000 | 14,035,000 | 12,856,000 | 10,222,000 | 20,800,000 |
financial liabilities | 63,079,000 | 56,806,000 | 54,248,000,000 | 50,455,000 | 16,775,000 | |||||
provisions | 388,000 | 544,000 | 543,000,000 | 500,000 | 278,000 | 362,000 | 637,000 | 916,000 | 1,168,000 | 362,000 |
total current liabilities | 897,755,000 | 766,517,000 | 691,760,000,000 | 677,621,000 | 709,892,000 | 625,229,000 | 566,514,000 | 613,298,000 | 463,124,000 | 625,229,000 |
non-current liabilities | ||||||||||
deferred tax liabilities | 3,768,000 | 3,918,000 | 1,862,000,000 | 1,858,000 | 1,276,000 | 753,000 | 6,675,000 | 3,200,000 | 1,852,000 | 753,000 |
total non-current liabilities | 6,334,000 | 6,615,000 | 4,687,000,000 | 4,721,000 | 4,261,000 | 4,084,000 | 10,184,000 | 6,492,000 | 5,169,000 | 4,084,000 |
total liabilities | 904,089,000 | 773,132,000 | 696,447,000,000 | 682,342,000 | 714,153,000 | 629,313,000 | 576,698,000 | 619,790,000 | 468,293,000 | 629,313,000 |
equity | ||||||||||
share capital | 588,000 | 587,000 | 570,000,000 | 570,000 | 570,000 | 591,000 | 578,000 | 578,000 | 587,000 | 591,000 |
share premium | 192,820,000 | 187,671,000,000 | 186,769,000 | 182,946,000 | 73,065,000 | 68,550,000 | 68,550,000 | 128,694,000 | 73,065,000 | |
treasury shares | -200,980,000 | -200,980,000,000 | -200,980,000 | -200,980,000 | ||||||
capital reserve | 40,418,000 | 39,241,000 | 38,556,000,000 | 33,438,000 | 30,564,000 | 21,575,000 | 21,252,000 | 17,930,000 | 17,283,000 | 21,575,000 |
other reserves | -15,758,000 | -13,190,000 | -17,390,000,000 | -20,934,000 | -14,749,000 | -9,808,000 | -1,827,000 | -590,000 | -9,808,000 | |
retained earnings | 479,283,000 | 429,482,000 | 536,654,000,000 | 490,024,000 | 458,528,000 | 369,608,000 | 342,164,000 | 301,856,000 | 256,069,000 | 369,608,000 |
total equity attributable to owners of the group | 504,531,000 | 447,960,000 | 545,081,000,000 | 488,887,000 | 456,879,000 | 455,031,000 | 430,717,000 | 388,908,000 | 402,043,000 | 455,031,000 |
non-controlling interest | 134,000 | 220,000 | 119,000,000 | 100,000 | 127,000 | 109,000 | 145,000 | 90,000 | 109,000 | |
total equity | 504,665,000 | 448,180,000 | 545,200,000,000 | 488,987,000 | 457,006,000 | 455,140,000 | 430,862,000 | 388,998,000 | 402,038,000 | 455,140,000 |
total equity and liabilities | 1,408,754,000 | 1,221,312,000 | 1,241,647,000,000 | 1,171,329,000 | 1,084,453,000 |
Cashflow Statements:
Quarterly
Annual
| Unit: USD | 2025-09-30 | 2025-06-30 | 2025-03-31 | 2023-12-31 | 2023-09-30 | 2023-06-30 | 2023-03-31 |
|---|---|---|---|---|---|---|---|
net cash (used in ) / generated from operating activities | |||||||
changes in working capital (merchant)¹ | |||||||
capital expenditures² | |||||||
adjusted free cash flow | |||||||
continuing operations | |||||||
revenues | |||||||
cost of services | |||||||
gross profit | |||||||
technology and development expenses | |||||||
sales and marketing expenses | |||||||
general and administrative expenses | |||||||
impairment (loss)/gain on financial assets | |||||||
other operating income | |||||||
operating profit | |||||||
finance income | |||||||
finance costs | |||||||
inflation adjustment | |||||||
other results | |||||||
profit before income tax | 61,127,004,000 | -933,000 | 51,929,000 | 129,253,000 | -4,304,000 | 13,834,000 | 39,731,000 |
income tax expense | |||||||
profit for the period | |||||||
profit attributable to: | |||||||
owners of the group | |||||||
non-controlling interest | |||||||
earnings per share | |||||||
basic earnings per share | |||||||
diluted earnings per share | |||||||
other comprehensive income | |||||||
items that are or may be reclassified to profit or loss: | |||||||
exchange difference on translation on foreign operations | |||||||
other comprehensive income for the period, net of tax | |||||||
total comprehensive income for the period | |||||||
total comprehensive income for the period is attributable to: | |||||||
cash flows from operating activities | |||||||
adjustments: | |||||||
interest income from financial instruments | -870,000 | -5,106,000 | -29,371,000 | -4,904,000 | -8,414,000 | -6,899,000 | |
interest charges for lease liabilities | 0 | 41,000 | 205,000 | 321,000 | 9,000 | 43,000 | |
other interests charges | 685,000 | 883,000 | |||||
finance expense related to derivative financial instruments | 2,763,000 | 414,000 | 15,366,000 | 8,013,000 | -601,000 | 5,235,000 | |
net exchange differences | 5,623,000 | 4,142,000 | 54,182,000 | 24,887,000 | 3,020,000 | 531,000 | |
fair value loss/(gain) on financial assets at fvpl | 2,552,000 | -7,343,000 | |||||
amortization of intangible assets | 471,000 | 4,584,000 | 7,919,000 | 405,000 | 316,000 | 2,176,000 | |
depreciation and disposals of pp&e and right-of-use | -218,000 | 703,000 | |||||
share-based payment expense, net of forfeitures | -1,109,000 | 6,020,000 | 8,600,000 | 1,901,000 | -908,000 | 2,329,000 | |
other operating gain | 2,058,000 | 422,000 | |||||
net impairment loss/(gain) on financial assets | 1,029,000 | 386,000 | |||||
inflation adjustment and other financial results | -2,903,000 | 6,083,000 | |||||
changes in working capital | |||||||
increase in trade and other receivables | -34,128,000 | 21,082,000 | -110,540,000 | 37,606,000 | -41,238,000 | -9,074,000 | |
decrease / (increase) in other assets | 151,000 | 1,025,000 | |||||
increase / (decrease) in trade and other payables | 60,602,000 | 16,346,000 | |||||
increase / (decrease) in tax liabilities | -3,893,000 | 965,000 | |||||
increase / (decrease) in provisions | -42,000 | 43,000 | |||||
cash (used) / generated from operating activities | 31,838,000 | 102,619,000 | |||||
income tax paid | -2,790,000 | -7,208,000 | -9,812,000 | 1,111,000 | 1,268,000 | -4,042,000 | |
net cash (used) / generated from operating activities | 29,048,000 | 95,411,000 | |||||
cash flows from investing activities | |||||||
acquisitions of property, plant and equipment | 430,000 | -945,000 | -49,000 | ||||
additions of intangible assets | -1,352,000 | -6,567,000 | -12,902,000 | -19,000 | -533,000 | -3,806,000 | |
acquisition of financial assets at fvpl | -50,716,000 | -41,374,000 | |||||
collections of financial assets at fvpl | 39,139,000 | 47,416,000 | |||||
interest collected from financial instruments | 870,000 | 5,106,000 | 29,134,000 | 5,299,000 | 8,335,000 | 6,820,000 | |
payments for investments in other assets at fvpl | 7,500,000 | -10,000,000 | |||||
net cash (used in) / generated investing activities | -4,129,000 | -6,364,000 | |||||
cash flows from financing activities | |||||||
repurchase of shares | -24,093,000 | -36,918,000 | |||||
share-options exercise paid | |||||||
dividends paid | |||||||
interest payments on lease liability | 0 | -41,000 | -205,000 | -321,000 | -9,000 | -43,000 | |
principal payments on lease liability | 185,000 | -663,000 | -591,000 | -366,000 | -16,000 | -130,000 | |
finance expense paid related to derivative financial instruments | 1,184,000 | -3,132,000 | -18,977,000 | -282,000 | -7,031,000 | -2,153,000 | |
net proceeds from financial liabilities | 433,000 | 5,790,000 | |||||
interest payments on financial liabilities | -1,669,000 | -2,166,000 | |||||
other finance expense paid | -685,000 | -714,000 | -4,056,000 | -1,147,000 | -331,000 | -437,000 | |
net cash from by financing activities | -149,594,000 | -926,000 | |||||
net increase in cash flow | -124,675,000 | 88,121,000 | 120,728,000 | -76,788,000 | -17,956,000 | 48,931,000 | |
cash and cash equivalents at the beginning of the period | 86,334,000 | 425,172,000 | 31,494,000 | 49,800,000 | 468,092,000 | ||
net (decrease)/increase in cash flow | -124,675,000 | 88,121,000 | |||||
effects of exchange rate changes on inflation and cash and cash equivalents | 3,774,000 | -1,787,000 | |||||
cash and cash equivalents at the end of the period | -34,567,000 | 511,506,000 | -51,221,000 | 31,494,000 | 517,892,000 | ||
depreciation and disposals of property, plant and equipment and right-of-use | |||||||
revenue reduction related to prepaid assets | |||||||
acquisitions of financial asset at fvpl | |||||||
contingent consideration liability paid | |||||||
repayment of borrowings | |||||||
net cash from financing activities | |||||||
cash and cash equivalents at the beginning of the year | |||||||
cash and cash equivalents at the end of the year | |||||||
other finance expense | 3,705,000 | 1,153,000 | 328,000 | 437,000 | |||
depreciation of property, plant and equipment and right-of-use | |||||||
fair value (gain)/loss on financial assets at fvpl | |||||||
net impairment (gain)/loss on financial assets | |||||||
(increase) / decrease in other assets | |||||||
increase in trade and other payables | 242,793,000 | -196,935,000 | 107,383,000 | 41,378,000 | |||
(decrease) / increase in tax liabilities | |||||||
(decrease) / increase in provisions | -832,000 | ||||||
cash from operating activities | 295,291,000 | -132,641,000 | 53,703,000 | 88,575,000 | |||
capital expenditures | 0 | 0 | 0 | 0 | |||
free cash flows | 295,291,000 | -132,641,000 | 53,703,000 | 88,575,000 | |||
net cash from operating activities | 285,479,000 | -131,530,000 | 54,971,000 | 84,533,000 | |||
net acquisitions of property, plant and equipment | |||||||
net (acquisitions)/collections of financial assets at fvpl | |||||||
net cash from / (used in) investing activities | -43,146,000 | ||||||
proceeds from issuance of shares | |||||||
proceeds from initial public offering | |||||||
initial public offering expenses paid | |||||||
proceeds from borrowings | |||||||
interest payments on borrowings | |||||||
net cash (used in) / provided by financing activities | -121,605,000 | ||||||
effects of exchange rate changes on cash and cash equivalents | -1,439,000 | -5,927,000 | -350,000 | 869,000 | |||
fair value loss on financial assets at fair value through profit or loss | -20,667,000 | -3,476,000 | -89,000 | ||||
depreciation of property, plant and equipment | 7,000 | 17,000 | 195,000 | ||||
amortization of right-of-use asset | -44,000 | 21,000 | 144,000 | ||||
decrease/(increase) in other assets | 13,754,000 | ||||||
decrease in tax liabilities | 1,244,000 | -1,217,000 | -1,062,000 | ||||
acquisition of property, plant and equipment | 279,000 | ||||||
payments of contingent consideration | |||||||
acquisitions of financial assets at fvtpl | |||||||
net collections of financial assets at fvtpl | |||||||
share-options exercise | 15,000 | 69,000 | |||||
borrowing proceeds | |||||||
borrowing repayments | |||||||
other operating loss | |||||||
net impairment loss on financial assets | |||||||
decrease in other assets | |||||||
increase in provisions | |||||||
acquisitions of financial asset at fvtpl | |||||||
net collections of/investments in financial assets at fvtpl | |||||||
net cash from investing activities | |||||||
net impairment gain on financial assets | 51,000 | ||||||
(decrease)/increase in provisions | -305,000 | ||||||
net collections of financial assets at fvpl | 1,045,000 | ||||||
net cash from/(used in) investing activities | 4,010,000 | ||||||
net cash (used in)/provided by financing activities | -39,612,000 | ||||||
lease cancellation |