DLocal (NASDAQ:DLO) is a fintech company based in Uruguay, specializing in cross-border payments and financial transaction services. It operates primarily in emerging markets, with a strong presence in countries like Brazil and Mexico. DLocal competes with other financial service providers in the Zacks Financial Transaction Services industry, focusing on facilitating seamless payment solutions for global merchants.
On August 14, 2025, HSBC upgraded DLocal's stock from Hold to Buy, with the stock priced at $11.69. This upgrade comes amid positive financial performance, as DLocal reported quarterly earnings of $0.14 per share, surpassing the Zacks Consensus Estimate of $0.13. Although this is a slight decrease from the $0.15 per share reported in the same quarter last year, the earnings surprise for this quarter was +7.69%.
DLocal's revenue for the quarter ending June 2025 reached $256.46 million, exceeding the Zacks Consensus Estimate by 11%. This represents a significant increase from the $171.28 million in revenue from the same period last year. The company has consistently outperformed revenue expectations, surpassing consensus estimates twice in the last four quarters.
The company's strong performance in Brazil and Mexico has contributed to its optimistic outlook for 2025. DLocal has raised its forecasts, anticipating higher revenue and profit growth. This positive sentiment is reflected in the stock's current price of $11.69, which has increased by 6.56% or $0.72. The stock has fluctuated between a low of $11.01 and a high of $11.75 during the day.
DLocal's market capitalization stands at approximately $3.34 billion, with a trading volume of 7,329,703 shares. Over the past year, the stock has reached a high of $14.27 and a low of $7.61. The company's consistent ability to exceed earnings and revenue expectations has likely contributed to HSBC's decision to upgrade the stock to a Buy rating.
