DLO Stock Tumbles On Q1 Profit Miss: Retail Turns Bullish On ‘Undervalued’ Stock

• The financial technology company posted a 55% increase in quarterly revenue, to $336 million.
• Its total payment value reached a record of $14.1 billion in the quarter.
• The stock garnered significant retail attention on Stocktwits, with chatter surging 220% in 24 hours.

Shares of DLocal Limited (DLO) fell more than 6.7% in the overnight session heading into Friday after the company’s net income decline overshadowed a record payment volume in the first quarter (Q1) of 2026.

The stock garnered significant retail attention on Stocktwits, with chatter surging 220% in 24 hours, according to platform data, with users largely dismissing the selloff.

DLO’s Q1 Snapshot

The financial technology company posted a 55% year-on-year increase in quarterly revenue, to about $336 million. Its total payment value (TPV), or the total gross dollar amount of transactions processed, reached a record of $14.1 billion in the quarter, up 73% year-over-year.

However, the company’s net income for the first quarter declined about 10% YoY to $41.9 million due to an out-of-period tax adjustment. The company said that its first quarter of 2025 benefited from about $7 million in non-cash mark-to-market gains on its Argentine bond holdings, as well as a low 10% effective tax rate.

DLocal, which acts as a payment bridge between global merchants like Amazon, Microsoft, and Spotify, and consumers in emerging markets across Latin America, Asia, and Africa, operates in more than 60 countries, and holds 38 licenses and authorizations across 26 markets, with 16 additional applications in process. Its platform reaches approximately 70% of the world's population, as per the company.

“The combination of strong base business momentum, a product roadmap that is gaining traction, and secular tailwinds across our markets as merchants increasingly convert to local processing, gives us confidence that the next decade can be as impressive as the last,” CEO Pedro Arnt said in a statement.

DLO Guidance

The company has reiterated its full-year 2026 guidance, forecasting 50% to 60% YoY growth in TPV. Meanwhile, it said it expects gross profit to increase to 27.5% YoY and operating profit to grow to 32.5% YoY.

Retail Stance On DLO Stock

Despite the results, retail sentiment around DLO stock on Stocktwits jumped from ‘neutral’ to ‘extremely bullish’ over the past 24 hours amid ‘extremely high’ message volumes.

One user said that the company’s revenue growth and guidance were strong. “If anything you should buy if this gets punished below $12 tomorrow. I’m in this long term…” the user said.

Another bullish user called it an “undervalued stock.”

A third user cited the company’s TPV growth, adding, “Honestly, I’m kinda impressed looking at these numbers.”

DLO stock has risen more than 12% in the last year.

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