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Highlights

  • DLO’s Q1FY25 total interest income rose by 17.5% YoY to USD 216.8 million.
  • The company’s net income surged by 163.4% YoY to USD 46.7 million due to increased revenue and reduced finance costs.
  • DLO anticipates a 15 bps take rate compression but maintains focus on efficiency, innovation, and emerging market growth amid external challenges.

dLocal Limited (NASDAQ: DLO) is a technology-driven payments platform specializing in cross-border transactions, enabling global merchants to process payments seamlessly in emerging markets. The company leverages its infrastructure to deliver innovative payment solutions across Latin America, Africa, and Asia.

In the first quarter of the financial year 2025 (Q1FY25), the company’s total interest income rose by 17.5% YoY to USD 216.8 million, driven by a higher cross-border share in the mix and partially offset by performance in Mexico. Net income surged by 163.4% YoY to USD 46.7 million due to increased revenue and decreased finance costs. Cash flow from operating activities increased by 138.8% YoY to USD 95.4 million, driven by higher net income as well as a favourable impact from changes in net working capital, resulting in a 20.3% increase in cash and cash equivalents.

Recent Business Update

dLocal Limited announced the appointment of Will Pruett as Independent Board Member and Audit Committee member, effective 1 July 2025, leveraging his experience from Fidelity Investments and PicPay to support the company’s growth strategy in capital and emerging markets.

The company also announced on 25 March 2025 that Chief Financial Officer Mark Ortiz would step down due to health reasons with Jeffrey Brown appointed as interim CFO and Ortiz continuing in an advisory role during the transition.

Company Outlook

dLocal expects sustained revenue growth in 2025, supported by Total Payment Volume (TPV) expansion, a 144% net retention rate, and over 50% YoY TPV growth for the second straight quarter.

The company anticipates a 15 basis point take rate compression but remains focused on operational efficiency, tech innovation, and emerging market investments to deliver long-term shareholder value despite currency, regulatory, and competitive challenges.

Top 10 Shareholders

The top 10 shareholders of dLocal collectively hold approximately 66.77% of the total shares, with the largest stakes held by General Atlantic LLC, at ~42.20% and Unsal Holdings Ltd, at~10.80%.

Stock Information

The stock has risen 31.11% over the past three months but declined 0.84% over the last six months. It is leaning towards the higher band of its 52-week range of USD 13.62 and 52-week low price of USD 6.28, with a closing price of USD 10.99 as of June 25, 2025.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is June 25 2025. The reference data in this report has been partly sourced from EODHD/Others.

 Technical Indicators Defined

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.