DLocal Limited (DLO): A Bull Case Theory 

We came across a bullish thesis on DLocal Limited on wallstreetbets subreddit by  Ok_Neat9473. In this article, we will summarize the bulls’ thesis on DLO. DLocal Limited’s share was trading at $14.51 as of September 25th. DLO’s trailing and forward P/E were 30.23 and 20.28 respectively according to Yahoo Finance.

DLocal (DLO) has emerged as a standout fintech in the high-growth emerging markets payments space, positioning itself as critical infrastructure for global companies like Amazon, Nike, and Spotify. The company’s single API seamlessly connects clients to dozens of fragmented local systems, including cards, wallets, cash, and bank transfers, while handling complex compliance and regulatory requirements across 40+ countries.

This regulatory moat, combined with established local partnerships and licenses, creates significant barriers to entry and ensures strong client stickiness, as switching away from DLO would be costly and time-consuming.The company reported a strong Q2 2025, with total payment volume (TPV) of $9.2 billion, up 53% year-over-year, revenue of $256.5 million, up 50%, and adjusted EBITDA of $70.1 million, up 64%. Free cash flow surged 156% YoY to $48.4 million, while gross profit grew 42%. Net income fell 7% due to a one-time FX impact from Argentina, which DLO has since mitigated by reducing peso exposure. Following the quarter, guidance was raised, with TPV expected to grow 40–50%, revenue 30–40%, and EBITDA 40–50% for FY25.

DLO is further strengthening its position through the acquisition of AZA Finance, expanding operations into 17 additional African countries and enhancing treasury, FX management, and stablecoin capabilities. This mitigates currency risk and turns FX exposure into a competitive advantage. With a market cap around $4 billion and a forward P/E of 16, DLO trades like a distressed company despite its 50%+ revenue and TPV growth. Even in conservative scenarios, shares offer significant upside, with modest re-rates potentially reaching $25–28 and aggressive growth cases $32–36. Overall, DLO combines robust growth, high barriers to entry, and a strategic expansion plan, making it a compelling investment in the emerging markets fintech landscape.

Previously we covered a bullish thesis on DLocal Limited (DLO) by Ray Myers in May 2025, which highlighted strong revenue growth, expanding client base, and geographic diversification in emerging markets. The stock has appreciated approximately 26.6% since then, as DLO continued delivering robust results. Ok_Neat9473 shares a similar view but emphasizes Q2 2025 performance, the AZA Finance acquisition, and FX risk mitigation, reinforcing DLO’s growth and strategic positioning.

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Disclosure: None.