The Bull Case For DLocal (DLO) Could Change Following Record Q3 Payment Volume and Profit Growth

• DLocal reported record third-quarter 2025 results, with total payment volume reaching US$10.4 billion, up 59% year-over-year, and revenue rising to US$282.5 million, while net income nearly doubled compared to the same period last year.
• A key insight from the results was strong payment volume growth outpacing revenue, particularly driven by expansion in markets such as Brazil and Argentina, despite the company managing ongoing currency and regulatory volatility.
• Given this robust total payment volume growth and margin performance, we’ll now examine how the news impacts DLocal’s investment narrative.

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DLocal Investment Narrative Recap

To be a DLocal shareholder, you need to believe in its ability to consistently grow transaction volumes and capture emerging market payment flows while successfully managing currency risks and regulatory volatility. The record Q3 2025 results confirm strong payment volume momentum, but margin pressure from regional effects, especially in Argentina, remains the key risk to monitor in the short term. The biggest near-term catalyst, broadening geographic and client diversification, was not materially changed by this quarter’s update.

Of the recent announcements, the new partnership with Western Union stands out as most relevant to this performance, demonstrating DLocal’s commitment to expanding payment solutions for large clients with a wide reach in Latin America. This complements DLocal's volume-driven growth catalyst, as integrating with global platforms like Western Union can accelerate client diversification and reinforce the investment case during periods of regional volatility.

By contrast, investors should be aware that ongoing exposure to currency swings, particularly in volatile markets such as Argentina, can quickly alter margin outcomes and ...

Read the full narrative on DLocal (it's free!)

DLocal's outlook anticipates $1.7 billion in revenue and $346.3 million in earnings by 2028. This scenario assumes annual revenue growth of 25.7% and a $200.4 million increase in earnings from the current level of $145.9 million.

Uncover how DLocal's forecasts yield a $16.94 fair value, a 22% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members set DLocal’s fair value estimates from as low as US$10 to as high as US$195.39, reflecting 22 different viewpoints. While enthusiasm for strong client diversification is evident in the latest quarter, your own outlook may depend on how much risk you assign to ongoing market volatility, examine these opinions for alternative insights.

Explore 22 other fair value estimates on DLocal - why the stock might be worth 28% less than the current price!

Build Your Own DLocal Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your DLocal research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free DLocal research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate DLocal's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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