Core Insights - dLocal achieved a record Total Payment Volume (TPV) of US$10.4 billion in Q3 2025, marking a nearly 60% year-over-year growth and the fourth consecutive quarter with over 50% growth [1][6][5] - Revenue for the quarter reached US$282 million, up 52% year-over-year, driven by volume growth [1][6] - Gross profit exceeded US$100 million for the first time, totaling US$103 million, reflecting a 32% year-over-year increase [1][6] - Net income grew by 93% year-over-year, amounting to US$51.8 million [2][10] Financial Performance - TPV reached US$10.4 billion, a 59% increase from US$6.5 billion in Q3 2024 and a 13% increase from US$9.2 billion in Q2 2025 [6][8] - Revenue was US$282.5 million, up 52% from US$185.8 million in Q3 2024 and up 10% from US$256.5 million in Q2 2025 [6][8] - Gross profit was US$103.2 million, a 32% increase from US$78.2 million in Q3 2024 and a 4% increase from US$98.9 million in Q2 2025 [6][8] - Adjusted EBITDA was US$71.7 million, up 37% year-over-year, representing 25% of revenue [10][12] - Adjusted Free Cash Flow for Q3 2025 was US$37.6 million, a 28% increase year-over-year [10][12] Profitability Metrics - Gross profit margin was 37%, down from 42% in Q3 2024 and 39% in Q2 2025 [6][8] - Operating profit was US$55.6 million, a 35% increase from US$41.1 million in Q3 2024 [6][8] - Net income for the quarter was US$51.8 million, or US$0.17 per diluted share, up 93% from US$26.8 million in Q3 2024 [10][12] Cash Position - As of September 30, 2025, dLocal had US$604.5 million in cash and cash equivalents, including US$333.1 million in corporate cash [10][12] - The corporate cash position increased by US$59.7 million from US$273.4 million as of September 30, 2024 [10][12] Market Position - dLocal operates a technology-first payments platform, facilitating local payments in emerging markets across over 40 countries [23]

Core Insights - dLocal has partnered with Alchemy Pay to enhance payment solutions in Latin America, starting with instant bank transfers in Argentina [1][4] - The collaboration aims to address significant challenges in the crypto industry, particularly in emerging markets, where users face slow transaction times and high fees [2][3] - By leveraging dLocal's local payment infrastructure, Alchemy Pay can offer faster and more localized payment options, improving user experience and facilitating easier transactions [3][5] Company Developments - dLocal's partnership with Alchemy Pay is a strategic move to expand its presence in the crypto payment ecosystem, focusing on emerging markets [1][5] - Alchemy Pay's offerings, including its On & Off-Ramp solution and Web3 Digital Bank, are enhanced through this collaboration, reinforcing its mission to connect crypto with traditional fiat currencies [4][5] - The initial operation in Argentina is expected to pave the way for future expansion across Latin America, democratizing access to the digital economy [4][5] Industry Context - The crypto industry is currently facing hurdles in integrating digital assets with traditional financial systems, particularly in emerging markets [2] - The global average cost of cross-border transactions exceeds 6%, highlighting inefficiencies in existing payment systems that hinder broader adoption of crypto [2] - dLocal's local fiat rails are positioned to reduce complexities in cross-border transactions, enabling more users to participate in both crypto and traditional payment ecosystems [3][5]

Core Insights - The author manages several portfolios that have consistently outperformed the S&P 500 index since 2020, indicating a strong investment strategy focused on business evaluation rather than stock price movements [1]. Group 1: Investment Philosophy - The investment approach emphasizes evaluating companies as businesses rather than mere stock tickers, suggesting a fundamental analysis perspective [1]. - The author believes in investing when the market significantly misprices companies, highlighting a value investing strategy [1]. Group 2: Educational Background - The author holds a degree in Engineering and an MBA, which provides a solid foundation for analytical thinking in investment decisions [1]. - Learning from renowned investors such as Warren Buffet, Charlie Munger, Phil Fisher, and Nick Sleep has shaped the author's investment philosophy [1].

Core Viewpoint - DLocal's stock has seen a significant increase due to an upgrade from Goldman Sachs, which raised its price target from $12 to $19, indicating strong growth potential in the emerging markets payments sector [1][7]. Company Overview - DLocal connects 758 enterprise merchants to over 2 billion potential customers in emerging markets across Latin America, Africa, and Asia, working with major clients like Amazon, Shopify, Spotify, Uber, and Netflix [3]. - The company has experienced substantial growth, with total payment volume increasing by 53% in the latest quarter [3]. Market Potential - The digital payments industry in emerging markets is expected to double from $2.1 trillion to $4.2 trillion by 2030, providing a strong growth tailwind for DLocal [4]. Financial Performance - DLocal's stock has already risen 76% in the last six months, and the company's revenue is growing at a rate of 50% [2][7]. - The company's take rate, which had temporarily suffered due to competitive offers, has shown signs of improvement in the last quarter [5][6]. Valuation - DLocal is currently trading at 22 times forward earnings, which is considered attractive given its revenue growth rate of 50% [8].

Core Viewpoint - DLocal Ltd. (NASDAQ:DLO) has shown strong performance, with a significant price increase following a bullish outlook from Goldman Sachs, which upgraded its recommendation and price target for the stock [1][2]. Group 1: Company Performance - DLocal's stock price increased by 10.42% to close at $15.68, reflecting positive investor sentiment [1]. - Goldman Sachs raised its price target for DLocal from $12 to $17, indicating an upside potential of 8.4% from the last closing price [2]. Group 2: Growth Projections - Goldman Sachs expects DLocal to achieve over 20% growth in EBITDA in the mid-term, driven by geographical diversification and increased market share through partnerships with merchants, including stablecoin operators [3]. - For the full year, DLocal aims to grow its revenues and adjusted EBITDA by 30-40% and 40-50% year-on-year, respectively [3]. Group 3: Upcoming Events - DLocal is scheduled to release its third-quarter earnings results after market close on November 12, 2025 [4].

Core Viewpoint - DLocal's shares have experienced a significant rally, attributed to strong trading volume and positive market sentiment regarding its cross-border payment capabilities in emerging markets [1][2]. Company Overview - DLocal operates in over 40 countries, focusing on providing compliant, localized payment services tailored to emerging markets, which positions it as a trusted partner for global merchants [2]. - The company is pursuing local licenses across Latin America, Africa, and Asia, enhancing its ability to facilitate complex cross-border payments [2]. Technology and Infrastructure - DLocal's scalable infrastructure and proprietary technology enable it to handle high transaction volumes while minimizing fraud risk through advanced risk management tools [3]. - The company's focus on long-term partnerships has resulted in high client retention and consistent growth in net revenue retention [3]. Financial Performance Expectations - DLocal is expected to report quarterly earnings of $0.16 per share, reflecting a year-over-year increase of 6.7%, with revenues projected at $269.66 million, up 45.2% from the previous year [4]. - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in earnings expectations [5]. Industry Context - DLocal is part of the Zacks Financial Transaction Services industry, which includes other companies like CompoSecure, Inc. [6]. - CompoSecure's consensus EPS estimate has also remained unchanged, with a year-over-year change of -14.8%, highlighting varying performance expectations within the industry [7].

Core Thesis - DLocal Limited (DLO) is positioned as a critical infrastructure provider in the high-growth emerging markets payments space, with a strong growth trajectory and strategic expansion plans [2][5] Financial Performance - In Q2 2025, DLocal reported a total payment volume (TPV) of $9.2 billion, representing a 53% year-over-year increase, and revenue of $256.5 million, up 50% [3] - Adjusted EBITDA reached $70.1 million, up 64%, while free cash flow surged 156% year-over-year to $48.4 million [3] - Despite a 7% decline in net income due to a one-time foreign exchange impact from Argentina, the company has mitigated this risk by reducing peso exposure [3] Growth Projections - Following the strong Q2 performance, DLocal raised its guidance, expecting TPV growth of 40-50%, revenue growth of 30-40%, and EBITDA growth of 40-50% for FY25 [3] Strategic Initiatives - DLocal is enhancing its market position through the acquisition of AZA Finance, which expands operations into 17 additional African countries and improves treasury and FX management capabilities [4] - This acquisition helps mitigate currency risk and transforms FX exposure into a competitive advantage [4] Market Valuation - With a market cap around $4 billion and a forward P/E of 16, DLocal is trading at a valuation that suggests it is undervalued despite its strong growth metrics [4] - Conservative scenarios suggest potential share price increases to $25-28, while aggressive growth cases could see prices reach $32-36 [4] Competitive Positioning - DLocal's regulatory moat, established local partnerships, and licenses create significant barriers to entry, ensuring strong client retention [3][5] - The company's single API connects clients to various local payment systems, handling complex compliance across 40+ countries [2]

Core Insights - dLocal Limited, a technology-first payments platform, will release its financial results for Q3 2025 on November 12, 2025, after market close [1] - A conference call and video webcast will be held on the same day at 5:00 p.m. Eastern Time [1] Company Overview - dLocal connects global enterprise merchants with billions of consumers in emerging markets across APAC, the Middle East, Latin America, and Africa [3] - The "One dLocal" concept allows global companies to manage payments, payouts, and fund settlements through a single API, platform, and contract, eliminating the need for multiple local entities and payment processors [3]

Group 1: Market Trends and Trading Strategies - The current market environment is characterized by all-time highs across various asset classes, making it difficult for investors to adhere to their original plans [1] - Investors often face the temptation to hold onto stocks for additional gains, even when their initial objectives have been met [1][2] - A proactive approach to trading, such as preparing for volatility in advance, can help capitalize on short-term opportunities [3] Group 2: Company-Specific Insights - SoundHound AI (NASDAQ:SOUN) has experienced over 250% stock growth in the past year, driven by its focus on Voice AI systems, but remains unprofitable with a larger EPS loss than expected in Q2 2025 [4][6] - Micron Technology (NASDAQ:MU) has seen significant revenue growth, reporting $11.3 billion in Q4, the largest in its history, but technical indicators suggest a potential profit-taking opportunity after a 50% gain in just over a month [7][9] - Dlocal (NASDAQ:DLO) is a profitable fintech startup with consistent sales growth, but faces challenges due to currency devaluation in Argentina, indicating a potential exit point for investors [10][13] - ACM Research (NASDAQ:ACMR) has shown strong performance with an 11% jump recently and annual sales exceeding $780 million, but earnings surprises are slowing, and revenue missed expectations in Q3 for the first time since 2023 [14][16] - Axcelis Technologies (NASDAQ:ACLS) reported over $1 billion in sales last year, but its revenue has declined recently, with Q2 2025 showing a YOY decline of over 20%, suggesting a potential pullback despite a 30% stock increase over the last three months [18][20]

Industry Overview - Emerging markets, which account for 85% of the global population, are driving a digital payments revolution projected to nearly double to $4.2 trillion by 2030 [1] - DLocal is positioned as a leading platform for merchants, providing access to over 900 local payment methods [1] Company Insights - DLocal is recognized as a premier bridge for merchants seeking convenient access to local payment solutions [1]