dLocal combines 20% base-case growth, emerging-market payment infrastructure, and a 15.9x forward P/E for asymmetric long-term upside.
Overview
dLocal operates the One dLocal B2B infrastructure platform, linking global enterprises such as Amazon, Google, Meta, Temu, Spotify, and Uber to more than 1,000 localized payment methods in over 60 emerging-market countries through one API and contract. Revenue is primarily transaction-based, supplemented by FX, installment, chargeback, and setup fees; pay-ins represent 76% of TPV and Latin America contributes approximately 82% of revenue. **The core investment case is a high-retention, asset-light emerging-markets payments compounder**: TPV retention is 188%, NRR is 153%, and Q2 2026 TPV grew 92% year over year to $17.72 billion while revenue rose 56% to $399.66 million. Profitability is under pressure, with gross margin falling to 32% from 39%, but operating leverage is emerging as the operating-profit-to-gross-profit ratio reached 50%. **Valuation has compressed to 23.1x TTM P/E and 15.9x forward P/E**, with a forward PEG of approximately 0.66 against projected earnings growth above 20%. Near-term catalysts include raised FY2026 TPV and gross-profit guidance, further automation and dCoder benefits, product adoption, and a technical recovery above the 200-day moving averages.