DLocal enables merchants to access local payment methods in 60+ markets via API, driving rapid TPV growth and high client retention. DLO's gross profit grew 28.6% YoY in Q2 2026 despite take-rate compression, as volume discounts for large partners are offset by expanding transaction volumes. The stock trades at a forward P/E of 16.9, 78% below its 2021 peak, with market skepticism focused on margin compression as local-to-local flows and large merchants increase.
Here is how DLocal (DLO) and Paymentus (PAY) have performed compared to their sector so far this year.
DLocal Limited (DLO) Presents at Goldman Sachs Communacopia + Technology Conference 2026 Transcript
Some of the more intriguing setups in the market right now are the ones quietly building bases, well away from the headlines dominated by AI and mega-cap technology.
Mobile payments are gaining momentum as digital wallets, instant payments and embedded finance reshape global commerce. RELY, PAY, DLO and MQ could be among the biggest beneficiaries.
The consensus price target hints at a 28.5% upside potential for DLocal (DLO). While empirical research shows that this sought-after metric is hardly effective, an upward trend in earnings estimate revisions could mean that the stock will witness an upside in the near term.
DLocal Limited (DLO) Q2 2026 Earnings Call Transcript
DLocal NASDAQ: DLO reported second-quarter 2026 total payment volume of $17.7 billion, up 92% from a year earlier, as growth in ride-hailing, travel, remittances, e-commerce and other verticals drove record volume and gross profit.
DLocal (DLO) came out with quarterly earnings of $0.18 per share, missing the Zacks Consensus Estimate of $0.2 per share. This compares to earnings of $0.14 per share a year ago.
DLocal (DLO) appears to have found support after losing some value lately, as indicated by the formation of a hammer chart. In addition to this technical chart pattern, strong agreement among Wall Street analysts in revising earnings estimates higher enhances the stock's potential for a turnaround in the near term.
DLocal Limited is rated a Strong Buy with a 2030 price target of $45/share, nearly 195% upside from current levels. DLocal's moat is built on regulatory barriers and local payment method expertise across 60+ emerging markets, supporting resilient 50%+ TPV growth. Despite take-rate compression to 0.84%, DLocal's net revenue retention of 152% and robust merchant growth drive sustained revenue expansion.
DLocal Limited still has a weak market sentiment around the stock, but increasingly bullish Wall Street recommendations could turn the sentiment around. The take rate has declined, implying limited pricing power, but also reflecting DLO's deliberate growth strategy. DLO's strategy's success is reflected in the company's earnings growth. Payment volume growth on the platform has only accelerated.