Uruguay's DLocal eases past Q4 revenue estimates; announces $300 mln buyback

Overview

• Uruguay payments platform's Q4 revenue rose 65% yr/yr, beating analyst expectations

• Adjusted EBITDA for Q4 increased 38% yr/yr, beating analyst estimates

• Company announced $300 mln share buyback

Outlook

• DLocal expects 2026 TPV growth of 50%-60% year-over-year

• Company sees 2026 gross profit rising 22.5%-27.5% year-over-year

• DLocal expects operating profit to grow 27.5%-32.5% year-over-year in 2026

Result Drivers

• TPV AND E-COMMERCE GROWTH - Record TPV and strong seasonal e-commerce in Brazil, plus solid trends in streaming, advertising, financial services and remittances, drove results

• REGIONAL RECOVERY AND EXPANSION - Partial recovery in Egypt with return of a large merchant and ramp-up of new e-commerce, streaming and ride-hailing merchants; strong volume growth in Mexico and broad-based growth in Other Africa & Asia

Company press release: ID:nGNX8L1Y08

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy"

• Wall Street's median 12-month price target for Dlocal Ltd is $18.00, about 53.5% above its March 17 closing price of $11.73

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 16 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.