Why Q1 2026 is in Focus for DLocal (DLO)

DLocal (DLO) is back on investor radar after reporting Q1 2026 results that paired Total Payment Volume and revenue growth with maintained full year guidance, despite a one off tax adjustment.

Total Payment Volume moved past US$14b for the quarter, with revenue of US$335.9 million, supported by what management described as base business momentum in emerging markets and secular growth trends across its key geographies.

DLocal’s share price is US$12.06, with the stock up 9.54% on a 7 day share price return but down 14.29% year to date. The 1 year total shareholder return is 12.19%, suggesting recent momentum has picked up after a weaker stretch.

If Q1’s payment volumes and upcoming dividend have you reassessing growth ideas, it can be useful to broaden your search with 20 top founder-led companies

With Q1 growth in payments and revenue, a modest payout ratio, ongoing buybacks and the stock trading below some valuation estimates, investors now face a key question: Is there still a buying opportunity here, or is future growth already priced in?

Most Popular Narrative: 46.4% Undervalued

At a last close of $12.06 versus a narrative fair value of $22.49, DLocal is framed as heavily undervalued, presenting a sharp valuation gap for readers to assess.

The trading narrative for dLocal (DLO), based on the DCF Valuation - HatedMoats article, is that the stock is significantly undervalued.

Intrinsic Value (Base Case): $22.49 per share.

According to cracken25, this fair value rests on a capital light model, strong returns on invested capital, and a wide emerging markets payments footprint. Readers may want to examine which growth, margin, and cash flow assumptions would need to hold to support that type of discount. The narrative also lays out distinct bull and bear cases that bracket this $22.49 figure.

Result: Fair Value of $22.49 (UNDERVALUED)

However, the narrative can break quickly if take-rate compression squeezes margins, or if regulatory changes in key markets disrupt payment flows and merchant activity.

Another View: Market Multiple Sends a Mixed Signal

While both the user narrative and our SWS DCF model see DLocal as undervalued, the current P/E of 18.4x tells a more cautious story. It sits slightly above the US Diversified Financial industry average of 17.9x, yet well below the peer average of 40.4x and almost in line with the 18.5x fair ratio. For you, that mix points to some valuation upside but also the risk that expectations are already running ahead of slower revenue growth. Which signal matters more in your playbook?

Next Steps

All of this sets a clear tone, but your view matters more than any single model or ratio. Move quickly and review the 4 key rewards

Looking for more investment ideas?

If DLocal has sharpened your focus, do not stop here. Broaden your watchlist with stocks that fit clear, disciplined criteria across risk, value, and income.

• Target lower-volatility opportunities by scanning 66 resilient stocks with low risk scores that may offer more stability when markets feel unsettled.
• Pursue value candidates that combine quality with a potential discount using the 49 high quality undervalued stocks.
• Strengthen your income stream by reviewing 10 dividend fortresses that pair higher yields with a focus on resilience.

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.