# Dlocal (DLO.US)

Canonical: https://gigainvestors.com/s/DLO

Analysis as of: 2026-10-16T07:28:02.828Z. Financial observations: FY2019–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $15.10 per share; close as of 2026-10-15.

Estimated value: low $13.05 per share, central $14.45 per share, high $16.31 per share. Buy at or below the central value $14.45 per share. Valuation as of 2026-10-16T07:28:02.828Z; scenarios are not confidence intervals.

Expected annual return: 9.6% at the stated quote. About 9.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 8 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.23×

Chart: Operating margin; fiscal year observations.

- FY2019: 0.32×

- FY2020: 0.30×

- FY2021: 0.34×

- FY2022: 0.31×

- FY2023: 0.28×

- FY2024: 0.19×

- FY2025: 0.20×

- LTM to Jun 2026: 0.17×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- Recent gross margin fell 11.4pp below the typical margin (limit 4pp)

- ROIC, median of available years: >100%

- ROIC, second-lowest year: 61.3%

- Typical minus recent gross margin: 11.4 pp

- Typical gross margin (annual median): 48.3%

- Recent gross margin (lower of latest and 3-year median): 36.8%

- Years with nonpositive capital: 1

- Capital spending / revenue: 3.0%

- ROIC including acquisitions, ten-year median: 85.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2019: >100%

- FY2020: 61.3%

- FY2021: >100%

- FY2022: 74.8%

- FY2023: >100%

- FY2024: 52.5%

- FY2025: >100%

### economics: pass

- Owner earnings / net income, 5-yr: 0.97×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $636M

- Net income, five-year total: $653M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -3.1 pp

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.47×

- FY2022: 1.07×

- FY2023: 0.98×

- FY2024: 0.97×

- FY2025: 1.12×

### management: pass

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 126.5% vs 112.4%

- Per-share earnings: 0.10 to 0.49 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 1.2%

- Diluted shares, 5-year annual growth: 1.2%

- Per-share value growth: 49.3%

- Per-share value change: $0.39

- Per-share value, starting three-year median: $0.10

- Per-share value, ending three-year median: $0.49

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 1.2%

- Buyback history: 4 years

- Debt-funded buybacks: Yes

- ROIC, first three-year median: >100%

- ROIC, last three-year median: >100%

Chart: Earnings per share; fiscal year observations.

- FY2019: $0.06

- FY2020: $0.10

- FY2021: $0.25

- FY2022: $0.35

- FY2023: $0.49

- FY2024: $0.39

- FY2025: $0.65

### accounting: pass

- Sloan accruals: -14.8%

- Receivables to sales index (DSRI): 0.78×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 5.7%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.16×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.13×

Chart: Sloan accruals; fiscal year observations.

- FY2019: -19.0%

- FY2020: -30.1%

- FY2021: -5.3%

- FY2022: -7.2%

- FY2023: -13.3%

- FY2024: 13.1%

- FY2025: -14.8%

## Holders

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Dan Davidowitz](https://gigainvestors.com/pcm): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 69% since Oct 2021 · "DLocal Sets TPV Record but Margins Fail to Keep Pace" (finance.yahoo.com, May 2026) · sales +24%

Story as of 2026-10-16T09:58:38.679Z; price observation 2026-10-15.

Price needs cash profits to grow 1.6% a year for ten years

- 2026-03-20: DLocal (DLO) Is Up 8.5% After Topping US$1 Billion Revenue With New Fintech Offerings ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/dlocal-dlo-8-5-topping-060615252.html))

### Sales · FY2025–2026

sales +24%; source https://www.sec.gov/Archives/edgar/data/1846832/000207097926000113/dlo-20251231.htm; observed 2026-03-18.

- FY2019: $55M 

- FY2020: $104M 

- FY2021: $244M 

- FY2022: $419M 

- FY2023: $650M 

- FY2024: $746M 

- FY2025: $1.1B 

- FY2026: $1.4B 

### Gross margin · FY2025

gross margin 36.8%; source https://www.sec.gov/Archives/edgar/data/1846832/000207097926000113/dlo-20251231.htm; observed 2026-03-18.

- FY2019: 64.9% 

- FY2020: 57.7% 

- FY2021: 53.4% 

- FY2022: 48.3% 

- FY2023: 42.6% 

- FY2024: 39.5% 

- FY2025: 36.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software infrastructure; annual sales are USD 1.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1846832/000207097926000113/dlo-20251231.htm (filed 2026-03-18); FY2025: revenue 1093587000; grossProfit 402756000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); DLO.US: DLocal Limited, together with its subsidiaries, provides payment processing services worldwide. The company offers a robust pay-in solution to help global merchants expand their online presence and receive payments, including international and local cards, online bank transfers, direct debit, cash, and hundreds of alternative payment methods (APMs). It also provides pay-in solutions for cross-border and local-to-local transactions, as well as pay-out solutions. In addition, the company offers dLocal for Platforms to manage global platform payments. It serves its products to commerce, streaming, ride-hailing, financial services, remittances, advertising, SaaS, travel, e-learning, on-demand delivery, gaming, and crypto industries. The company was founded in 2016 and is headquartered in Montevideo, Uruguay.

### Why customers stay

Margins ranged from 36.8% to 42.6% during 2023–25; it earns over 100% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2023: grossProfit / revenue = 42.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2024: grossProfit / revenue = 39.5%.

- Source: https://www.sec.gov/Archives/edgar/data/1846832/000207097926000113/dlo-20251231.htm (filed 2026-03-18); FY2025: grossProfit / revenue = 36.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); 7-year return on capital observations [[2019,6.1922171139668505],[2020,0.613268012187026],[2021,1.2650743561475608],[2022,0.7477639132468707],[2023,1.1238741950417148],[2024,0.5252626316921222],[2025,1.7161969103123789]]; median 1.1238741950417148. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 5 of 7 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2019: growth capex 0; upkeep 1706000; owner earnings 14305000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2020: growth capex 506095.3367581838; upkeep 3375904.663241816; owner earnings 25800095.336758185. Growth capex / owner earnings = 0.019616025838367128.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2021: growth capex 2189954.1873023733; upkeep 45827045.81269763; owner earnings 36795954.18730237. Growth capex / owner earnings = 0.059516167895928285.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2022: growth capex 0; upkeep 987000; owner earnings 115843000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2023: growth capex 3379274.2404909246; upkeep 14845725.759509075; owner earnings 146343274.2404909. Growth capex / owner earnings = 0.02309142157730903.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2024: growth capex 1382256.0060304962; upkeep 21264743.993969504; owner earnings 116546256.0060305. Growth capex / owner earnings = 0.011860149381023219.

- Source: https://www.sec.gov/Archives/edgar/data/1846832/000207097926000113/dlo-20251231.htm (filed 2026-03-18); FY2025: growth capex 0; upkeep 2282000; owner earnings 220779000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); Dividend observations: [[2019,10000000],[2020,15000000],[2021,638000],[2022,3939000],[2023,0],[2024,0],[2025,149982000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 21.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); DLO.US SharesStats.PercentInsiders = 21.701 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 1.6% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); Ten-year compound average after fade. Initial solved rate 0.009765190160064052. Price 15.1; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2021-06: $52.53 per share

- 2021-07: $45.14 per share

- 2021-08: $64.00 per share

- 2021-09: $54.56 per share

- 2021-10: $48.51 per share

- 2021-11: $33.20 per share

- 2021-12: $35.69 per share

- 2022-01: $29.92 per share

- 2022-02: $32.65 per share

- 2022-03: $31.26 per share

- 2022-04: $22.67 per share

- 2022-05: $28.83 per share

- 2022-06: $26.25 per share

- 2022-07: $27.78 per share

- 2022-08: $24.87 per share

- 2022-09: $20.52 per share

- 2022-10: $22.30 per share

- 2022-11: $14.60 per share

- 2022-12: $15.57 per share

- 2023-01: $16.59 per share

- 2023-02: $14.94 per share

- 2023-03: $16.22 per share

- 2023-04: $14.00 per share

- 2023-05: $11.64 per share

- 2023-06: $12.21 per share

- 2023-07: $15.17 per share

- 2023-08: $21.44 per share

- 2023-09: $19.17 per share

- 2023-10: $16.85 per share

- 2023-11: $17.25 per share

- 2023-12: $17.69 per share

- 2024-01: $16.11 per share

- 2024-02: $16.66 per share

- 2024-03: $14.70 per share

- 2024-04: $14.21 per share

- 2024-05: $9.15 per share

- 2024-06: $8.09 per share

- 2024-07: $7.68 per share

- 2024-08: $8.92 per share

- 2024-09: $8.00 per share

- 2024-10: $8.75 per share

- 2024-11: $11.44 per share

- 2024-12: $11.26 per share

- 2025-01: $13.20 per share

- 2025-02: $9.56 per share

- 2025-03: $8.34 per share

- 2025-04: $8.85 per share

- 2025-05: $10.86 per share

- 2025-06: $11.34 per share

- 2025-07: $10.26 per share

- 2025-08: $14.46 per share

- 2025-09: $14.28 per share

- 2025-10: $14.65 per share

- 2025-11: $13.44 per share

- 2025-12: $14.14 per share

- 2026-01: $13.46 per share

- 2026-02: $12.24 per share

- 2026-03: $12.97 per share

- 2026-04: $13.88 per share

- 2026-05: $11.86 per share

- 2026-06: $13.00 per share

- 2026-07: $15.08 per share

- 2026-08: $14.83 per share

- 2026-09: $13.76 per share

- 2026-10: $15.10 per share

## Annual estimated value (USD per share)

- FY2023: low $6.84 per share, central $7.65 per share, high $8.71 per share

- FY2024: low $7.05 per share, central $7.87 per share, high $8.98 per share

- FY2025: low $9.74 per share, central $10.84 per share, high $12.31 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 20-F filing](https://www.sec.gov/Archives/edgar/data/1846832/000207097926000113/dlo-20251231.htm); period 2025-12-31, filed 2026-03-18.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.