Is DLocal Limited (DLO) A Good Stock To Buy Now?

Is DLO a bully banal to buy? We came crossed a bullish thesis on DLocal Limited connected MVC Investing’s Substack by M. V. Cunha. In this article, we volition summarize the bulls’ thesis connected DLO. DLocal Limited's stock was trading astatine $11.49 arsenic of June 8^th. DLO’s trailing and guardant P/E were 18.39 and 13.53 respectively according to Yahoo Finance.

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DLocal Limited, unneurotic with its subsidiaries, provides outgo processing services worldwide. DLO delivered a highly compelling Q4 2025 performance, reinforcing its presumption arsenic a ascendant cross-border payments infrastructure supplier crossed emerging markets. Total Payment Volume reached a grounds $13.1B, up 70% YoY and 26% QoQ, marking the 5th consecutive 4th of >50% YoY maturation and highlighting accelerating scale, with full-year TPV of $40.8B, up 60% YoY and representing an 82% CAGR since 2020.

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Growth was broad-based crossed pay-ins, payouts, local-to-local, and cross-border flows, with standout spot successful on-demand delivery, e-commerce, remittances, and advertising, supported by heavy enlargement crossed cardinal geographies specified arsenic Brazil, Mexico, South Africa, and Egypt. Revenue reached $337.9M, up 65% YoY, crossing the $1B yearly milestone, portion gross nett roseate to $115.8M, reflecting continued monetization of standard contempt a little nett instrumentality complaint of 0.88%, which absorption emphasized arsenic an output of strategy alternatively than a constraint connected worth creation.

Adjusted EBITDA grew 38% YoY to $78.4M, portion nett income surged 87% YoY to $55.6M, demonstrating beardown operating leverage and improving profitability quality. Free currency travel reached $64.9M, up 100% YoY with 117% conversion, underscoring exceptional currency generation. Return connected equity expanded to 35%, portion NRR reached a singular 162%, driven astir wholly by existing merchants, reinforcing beardown embedded maturation visibility.

Management guided 2026 TPV maturation of 50–60%, gross nett maturation of 22.5–27.5%, and operating nett maturation of 27.5–32.5%, highlighting durable enlargement astatine scale. Capital returns were strengthened done a $300M buyback programme and dividend initiation, implying a combined ~9–10% shareholder output astatine existent levels.

With semipermanent upside imaginable driven by continued emerging marketplace digitization, heavy merchant expansion, and imaginable monetization of caller products similar BNPL, stablecoins, and AI-driven commerce, DLocal is positioned to compound strongly, with the concern lawsuit implying important upside arsenic scale, profitability, and currency procreation proceed to converge.