Uruguay's DLocal Q3 revenue misses estimates amid mix shifts and cost pressures
Overview
Uruguay cross-border payments firm's Q3 revenue grew 41% yr/yr, but missed analyst expectations
Gross profit for Q3 rose 28% yr/yr to a record high
Company repurchased 9.1 mln shares under $300 mln buyback program
Outlook
Company maintains 2026 TPV growth guidance of 60%-70% year-over-year
DLocal reiterates 2026 gross profit growth guidance of 25%-30% year-over-year
Company expects 2026 operating profit growth of 27.5%-32.5% year-over-year
Result Drivers
BROAD-BASED VOLUME GROWTH - Co said Q3 performance was driven by strong payment volume growth across Africa and Asia, with one-off cost recovery in Nigeria and FX hedge gains
MIX SHIFTS AND COST PRESSURES - Co cited negative margin impact from payment method mix shifts in Brazil, higher processing costs in Mexico, and increased local-to-local flows in some LatAm markets
COST DISCIPLINE AND AUTOMATION - Co said operating expenses declined sequentially due to lower third-party spend, reduced headcount, and automation initiatives
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $398 mln | $412.02 mln (6 Analysts) |
Q3 Gross Margin | 33.00% | ||
Q3 Gross Profit | $132 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 1 "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 Limited is $18.00, about 28.9% above its November 11 closing price of $13.96
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 16 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)