Dlocal Shares Rise on HSBC Upgrade After Q2 Earnings Beat

DLocal shares rise after HSBC upgrades the company following Q2 earnings beat. The Uruguay-based firm enables global merchants to connect with emerging market users through its payment platform. The company's cloud-based platform powers cross-border and local-to-local transactions in 29 countries and enables merchants to connect with over 600 local payment methods. DLocal operates in various verticals and geographies, including retail, streaming, and financial institutions.

Uruguay-based DLocal Limited (NASDAQ: DLO) saw its shares rise following a positive earnings report and an upgrade from HSBC. The company's quarterly results, announced on August 13, 2025, exceeded market expectations, with earnings per share (EPS) of $0.14, compared to the expected $0.13 [1].

DLocal's cloud-based platform enables global merchants to connect with emerging market users through various payment methods. The company operates in 29 countries, supporting over 600 local payment methods and catering to diverse verticals, including retail, streaming, and financial institutions. The firm's platform facilitates cross-border and local-to-local transactions, providing a seamless payment experience for merchants and consumers alike.

The second quarter of 2025 marked a significant milestone for DLocal, with total payment volume (TPV) reaching a record high of $9.2 billion, representing a 53% year-over-year growth and a 14% quarter-over-quarter increase [1]. Revenue and gross profit also hit all-time highs of $256 million and $99 million, respectively. The company's adjusted EBITDA improved consecutively for the fifth quarter, demonstrating its commitment to disciplined investment and operational efficiency.

DLocal's core markets, Brazil and Mexico, rebounded strongly, while the company's other geographies experienced faster growth. The company's merchant base expanded to nearly 760 merchants, with the top 50 clients operating in an average of 11 countries and using 48 payment methods. This increased geographic diversification and merchant diversification reflect DLocal's strategic expansion and commitment to supporting its merchants' growth.

DLocal's platform innovations, such as the launch of SmartPix in Brazil and multiple Buy Now Pay Later integrations, further bolstered its position in the alternative payment method space. The company's stablecoin partnerships with Circle and BVNK also position it as a key player in the emerging stablecoin market.

HSBC's upgrade to a 'buy' rating on DLocal shares, following the positive Q2 earnings report, reflects the market's confidence in the company's growth prospects and operational resilience. The upgrade highlights DLocal's ability to deliver consistent results and maintain a strong financial position, even amidst shifting market dynamics.

DLocal's shares have seen a notable increase in value following the upgrade and earnings beat, reflecting investors' optimism about the company's future growth potential. As DLocal continues to expand its merchant base and diversify its product offerings, it remains well-positioned to capitalize on the growing demand for digital payments in emerging markets.

References:

[1] https://www.insidermonkey.com/blog/dlocal-limited-nasdaqdlo-q2-2025-earnings-call-transcript-1590574