Is DLocal (DLO) One of the Best New Tech Stocks With Highest Upside Potential?

DLocal Limited (NASDAQ:DLO) is one of the best new tech stocks with highest upside potential. On May 14, DLocal Limited reported strong Q1 2026 financial results, with Total Payment Volume/TPV surpassing $14 billion for the first time, marking a 73% year-over-year increase. Revenues rose 55% year-over-year to $335.9 million, driven by robust base business momentum and secular tailwinds across emerging markets.

The company recorded a one-off, prior-period tax adjustment of $9.7 million during the quarter, which impacted net and operating results. Excluding this non-recurring item, operating profit grew 25% year-over-year to $57.2 million, and net income increased 11% year-over-year to $51.6 million. Normalized operating expenses grew 58% year-over-year due to the expected carry-over of investment cycle costs from late 2025, though operating leverage is expected to improve in H2 2026.

Adjusted free cash flow for the quarter was $14.7 million, down from prior periods due to temporary working capital effects and timing variations that management expects to reverse. As of March 31, DLocal Limited (NASDAQ:DLO) maintained a solid liquidity position with $815.6 million in total cash and cash equivalents, including $451.8 million in corporate cash. CEO Pedro Arnt expressed confidence in the company’s long-term outlook, confirming that full-year guidance remains unchanged.

DLocal Limited (NASDAQ:DLO) is a fintech company that provides a cross-border payment processing platform, allowing global merchants to accept payments and make payouts in emerging markets.

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