dLocal Ltd (NASDAQ: DLO)

DLocal Limited is a technology company that was founded in 2016 with the goal of building online payment infrastructure for merchants in emerging markets. The company’s mission is to enable global merchants to connect seamlessly with billions of users in those markets. It operates through its One dLocal model which provides a single application programming interface a single platform and a single contract to access its services. As of the end of 2025 DLocal Limited supported payments in forty four countries and offered access to more than one hundred sixty local pay in payment methods and nine hundred thirty nine local pay out payment methods. The platform processes both cross border and local to local transactions and includes features such as foreign exchange management compliance tax handling and fraud prevention.

DLocal Limited generates revenue mainly from fees charged to merchants for each transaction that is successfully processed on its platform. These fees are applied either as a fixed amount per transaction or as a percentage of the transaction value and they include components such as a processing fee a foreign exchange service fee an installment fee a chargeback fee a refund fee and various setup or maintenance fees. In the fiscal year 2025 the company reported total revenue of one thousand ninety three point six million United States dollars and total processed volume of forty point eight billion United States dollars. Revenue increased by forty six point six percent compared to the prior year while processed volume grew by fifty nine point six percent over the same period. The company’s adjusted EBITDA margin was twenty five point four percent for 2025 reflecting its ability to convert transaction volume into profit.

Within the emerging market payments sector DLocal Limited distinguishes itself by offering a unified API based solution while many competitors continue to rely on fragmented legacy systems. The company’s competitive advantages include its scalable cloud based architecture its direct integration with large enterprise merchants and its extensive network of local payment methods secured through partnerships with banks and alternative payment providers. DLocal Limited holds thirty seven licences and or authorizations across twenty six markets which supports its compliance with local regulations. Its use of machine learning for fraud detection and for dynamic transaction routing helps to improve approval rates and reduce costs in ways that are difficult for traditional payment processors to replicate. The company also competes with global and regional banks for pay out services and with specialized pay out providers that often depend on DLocal for last mile connectivity to bank accounts.

DLocal Limited serves a customer base that consists primarily of large global enterprises operating in industries such as e commerce retail travel ride hailing financial services and digital content. As of the end of 2025 the company had relationships with more than seven hundred sixty merchants across the world. Its top ten customers accounted for approximately sixty one percent of total revenue in 2025 and the top fifty merchants processed transactions in an average of twelve countries and used around fifty different payment methods each year. Specific customers that have been disclosed include Shein Didi Payoneer Temu Google Facebook Rappi Deel Uber SpaceX Worldpay and Spotify. The company emphasizes that it works with merchants that process more than six million United States dollars of transaction volume per period which represents the vast majority of its business.