Uruguay-based fintech DLocal Limited (NASDAQ: DLO) is having a volatile week. After closing 2.34% higher at $14.86 on Wednesday following record third‑quarter 2025 results, the stock is down around 9% on Thursday, November 13, trading near $13.5 in late-morning New York, as investors focus on margin pressure and softer economics in key markets. [1]
At the same time, DLocal has announced a high‑profile stablecoin-funded WhatsApp remittance partnership with Félix, underlining its push deeper into cross-border payments and crypto rails across Latin America. [2]
DLO stock: From earnings pop to post-earnings hangover
- Wednesday, Nov. 12: After reporting Q3 numbers, DLocal shares finished the regular session up 2.34% at $14.86, helped by record payment volumes and a near‑doubling of net income. [3]
- Thursday premarket: Benzinga reported the stock down about 11–12% in premarket trading, around $13.1, as traders reacted to weakening margins and comments on tariffs and inflation. [4]
- Thursday session: Intraday data from StockAnalysis shows DLO changing hands around $13.5, off roughly 9% from Wednesday’s close, with heavy volume. [5]
Despite today’s drop, DLocal shares are still up about 29% year to date, according to Zacks data, meaning the stock is pulling back from a strong 2025 rally rather than plunging from lows. [6]
Record Q3 2025 growth: TPV, revenue and profit all hit new highs
By the headline numbers, DLocal’s third quarter ended Sept. 30, 2025 was its strongest ever:
- Total Payment Volume (TPV):
- $10.4 billion, up 59% year over year and 13% quarter over quarter, marking a fourth straight quarter of TPV growth above 50%. [7]
- Revenue:
- $282.5 million, up 52% vs. Q3 2024 and 10% vs. Q2 2025, driven by higher transaction volumes across emerging markets. [8]
- Gross profit:
- $103.2 million, a 32% year‑on‑year increase and the first time DLocal has crossed the $100 million gross‑profit mark in a single quarter. [9]
- Adjusted EBITDA:
- $71.7 million, up 37% year over year, with adjusted EBITDA representing roughly 69–70% of gross profit. [10]
- Net income:
- $51.8 million, up 93% from a year earlier, or $0.17 per diluted share, beating consensus expectations around $0.16. [11]
- Free cash flow and liquidity:
- Adjusted free cash flow came in near $38 million, up close to 30% year over year, and total cash and equivalents reached roughly $604–605 million, including about $333 million of corporate cash. [12]
Management highlighted strong performance in Brazil, Colombia, Bolivia and Nigeria, as well as continued diversification across Latin America, Africa and Asia, as key drivers of volume and gross profit. [13]
Why margins are the weak spot investors can’t ignore
The main issue spooking the market isn’t growth – it’s profitability per dollar of volume.
- Gross margin slipped to about 37%, down from roughly 42% a year ago and 39% in Q2 2025.
- Gross profit over TPV fell to around 0.99%, versus 1.20% in Q3 2024. [14]
According to the company’s detailed commentary and follow‑up coverage:
- Mexico: Margin pressure from a shift toward a specific alternative payment method (APM) and slower TPV growth, with higher import tariffs cited as a likely drag. [15]
- Argentina: Lower interest‑rate spreads, higher processing costs and non‑cash IFRS inflation adjustments weighed on profit; there was also a $13.1 million short‑term cash timing impact tied to regulatory changes and repatriating flows, which management expects to reverse over the next few quarters. [16]
- Egypt: Earlier share‑of‑wallet losses continue to limit contribution from that market. [17]
Benzinga and Investing.com both underscored that record volumes and a near‑doubling of net profit were overshadowed by shrinking margins and a lower “take rate,” sparking a sharp negative reaction in the stock. [18]
In short: growth is booming, but DLocal is earning slightly less on each dollar of volume, especially in more complex, higher‑risk corridors.
New WhatsApp stablecoin remittances could be a long‑term catalyst
Away from the quarterly numbers, DLocal also unveiled a notable crypto-enabled remittance product that could matter for its long‑term story.
On Nov. 13, DLocal and Félix, a U.S. chat‑based remittance service, announced a partnership to enable instant, stablecoin‑funded remittances via WhatsApp across key Latin American corridors:
- Corridors: U.S. to Mexico, Guatemala, Honduras and El Salvador, with direct‑to‑bank payouts in local currency.
- Funding: Félix funds transfers in USD Coin (USDC); DLocal converts to local currency and settles into recipients’ bank accounts.
- Speed: In testing, most transfers were delivered in under two minutes, with a success rate near 99%. [19]
- Compliance: The flow includes KYC and AML checks, and DLocal says it operates within local regulations and cross‑border reporting frameworks. [20]
Given that remittance fees globally still average around 6.4% on a $200 transfer, and countries like Honduras derive roughly 27% of GDP from remittances, the partnership targets a large, fee‑heavy market where faster, cheaper digital rails could be compelling. [21]
For DLocal, this strengthens its positioning in high‑volume migrant corridors and showcases how the company can blend stablecoins, chat apps and local payouts – a combination that could eventually support higher-value services for merchants and fintech partners.
Strategy highlights from the Q3 earnings call
A breakdown of earnings‑call highlights, summarized by GuruFocus/Investing, shows DLocal trying to balance very fast growth with disciplined reinvestment: [22]
- Net Revenue Retention (NRR) rose to about 149%, indicating that existing merchants are expanding their usage meaningfully.
- The company continues to roll out products like “Buy Now, Pay Later Fuse” and expanded APMs‑on‑file capabilities to deepen relationships with global merchants.
- Management reiterated that TPV growth in constant currency (≈66% YoY) remains well above guidance and that diversification beyond its early flagship markets is accelerating, especially in Brazil, Colombia, Nigeria and other frontier markets.
- Despite macro volatility, DLocal kept its effective tax rate around 15%, supporting bottom‑line leverage.
CEO Pedro Arnt framed the quarter as another step in building a “resilient, diversified payments infrastructure for emerging markets,” while acknowledging that regional mix effects and trade frictions can still create volatility in margins and cash flows. [23]
Guidance and analyst views: strong growth, mixed sentiment
On guidance, management signaled that:
- Full‑year 2025 revenue is tracking toward the upper end of its 30–40% year‑on‑year growth range. [24]
- TPV is expected to exceed the high end of prior outlook, helped by continued ramp in frontier markets. [25]
Yet Wall Street’s stance is nuanced:
- Zacks / Nasdaq: DLocal delivered an EPS beat of about 6% and revenue about 5% above consensus, but Zacks currently assigns a Rank #4 (Sell), implying expectations of near‑term underperformance despite the strong quarter and roughly 29% YTD share price gain. [26]
- MarketBeat: A recent options‑flow piece notes 11,509 call options traded, around 57% above typical call volume, and describes the stock’s consensus rating as “Moderate Buy” with an average price target near $15.67 and high institutional ownership (about 90%). [27]
Put simply, fundamental momentum is strong, but valuation, margin direction and country risk keep some analysts cautious, even as others see room for the stock to recover back toward analysts’ price targets.
Key risks DLO investors are watching
For traders and longer‑term shareholders alike, a few themes dominate the risk conversation around DLocal right now:
- Margin compression
- Take‑rate and gross margin have both drifted lower, and further deterioration – particularly in Mexico, Argentina and Egypt – would likely keep pressure on the multiple, even if TPV continues to grow quickly. [28]
- Macro and regulatory volatility in emerging markets
- Currency swings, capital controls, shifting tariff regimes and inflation (especially in Argentina) can distort cash flow and profitability from quarter to quarter. [29]
- Competition and pricing
- As more global and regional players target Latin American and African payments, there is a risk of pricing pressure and discounting, particularly around peak shopping seasons, which DLocal itself flagged as a concern. [30]
- Execution on new products and partnerships
- Initiatives like WhatsApp‑based USDC remittances and BNPL “Fuse” could deepen DLocal’s moat if adoption is strong, but they also come with regulatory complexity and technology risk. [31]
As always, anyone considering the stock should weigh these factors against their own risk tolerance and time horizon. This article is informational only and not investment advice.
Bottom line
As of November 13, 2025, the DLocal story is one of explosive growth colliding with investor anxiety about margins and macro risk:
- The company is posting record TPV, revenue and net income, with strong free‑cash‑flow generation and a rising net revenue retention rate. [32]
- The stock, however, is digesting double‑digit post‑earnings losses as the market refocuses on a lower take‑rate, regional pressures and trade‑related headwinds. [33]
- Strategic moves like the Félix WhatsApp remittance partnership and new credit and APM products hint at long‑run upside if DLocal can stabilize margins while continuing to outgrow peers. [34]
For now, DLO remains a high‑growth, high‑volatility fintech name, squarely in the crosshairs of both momentum traders and long‑term emerging‑markets investors watching whether Thursday’s sell‑off proves to be a buying opportunity or an early warning.
References
1. parameter.io, 2. ffnews.com, 3. parameter.io, 4. www.benzinga.com, 5. stockanalysis.com, 6. www.nasdaq.com, 7. www.stocktitan.net, 8. www.stocktitan.net, 9. www.nasdaq.com, 10. www.nasdaq.com, 11. www.nasdaq.com, 12. www.stocktitan.net, 13. www.nasdaq.com, 14. www.nasdaq.com, 15. www.nasdaq.com, 16. www.nasdaq.com, 17. www.nasdaq.com, 18. www.benzinga.com, 19. ffnews.com, 20. ffnews.com, 21. ffnews.com, 22. ca.investing.com, 23. www.stocktitan.net, 24. www.benzinga.com, 25. www.stocktitan.net, 26. www.nasdaq.com, 27. www.marketbeat.com, 28. www.nasdaq.com, 29. www.nasdaq.com, 30. ca.investing.com, 31. ffnews.com, 32. www.stocktitan.net, 33. www.benzinga.com, 34. ffnews.com
