DLocal: A Payments Powerhouse Quietly Rebuilding Its Trend
Behind the charts sits a company with fortress cash reserves, double-digit margins, and a runway in emerging-market payments. The next wave higher could be fueled by both structure and story.
Introduction
Some names move on hype, others on balance-sheet strength. DLocal DLO 0.00%↑ has been the latter. After a bruising downtrend, the company has quietly reset, rebuilt, and is showing signs of an impulsive recovery. The stock isn’t in the headlines, but the underlying narrative is attractive: a net cash balance sheet, consistent free cash flow, and a footprint in one of the fastest-growing areas of global payments.
Technicals suggest the market may finally be re-aligning with that story. With higher lows across multiple timeframes, the structure points toward another impulsive leg higher, that could carry the stock into the high teens or even back toward $20.
Company Overview
DLO 0.00%↑ isn’t your typical payments name chasing volume in saturated markets. Instead, it builds bridges in places where many global players struggle to operate: Latin America, Africa, Asia. Its “connect once, scale globally” model allows merchants to plug in and instantly access local acceptance and payout capabilities across dozens of markets.
The result has been steady revenue growth through cycles. $863M TTM today, nearly 3.5x what it posted just three years ago. And unlike many fintech peers that burn cash to chase market share, DLO 0.00%↑ generates consistent operating profit and free cash flow. It runs lean, with an asset-light model and minimal capital expenditure needs. Most importantly for investors, it carries over $600M in cash against just $4M of debt, making it one of the cleanest balance sheets in its space.
That combination of growth, profitability, and balance-sheet strength gives the stock real staying power. Which is why the technical setup right now is worth paying attention to.
Fundamental Analysis
Revenue Growth & Scale
TTM revenue is $863M, up from $746M in FY24, and $650M in FY23 (around 33% revenue expansion in two years).
Growth is driven by transaction volumes across its core markets, with diversification across multiple geographies limiting reliance on any one economy.
Margins & Profitability
Gross profit: $346M TTM, with a 40% gross margin.
Operating margin: ~22% (TTM operating income $187M). Compare that to many peers running below breakeven.
Net margin: ~17% ($146M TTM). Again, well above sector averages.
EBITDA: $195M TTM, up ~15% vs. FY24.
Cash Flow Dynamics
Operating cash flow: $118M TTM.
Free cash flow: $91M TTM (FCF margin ~10.5%).
The FCF figure reflects both capital discipline (Capex ~$28M) and scalability of the model.
Working capital swings can distort quarterly CFO, but over the TTM DLO 0.00%↑still brought in $100M in clean free cash.
Balance Sheet
Cash & equivalents: $602M.
Total debt: $3.9M. Essentially debt-free.
Working capital: ~$354M; liquidity is not an issue.
Net tangible assets: ~$380M, providing real equity backing.
Takeaway: DLO 0.00%↑ is moving faster and stronger than fintech peers with slower growth, lower profitability, and heavier leverage that trade in similar valuation ranges. Here, the net cash position and consistent FCF generation justify the premium. The combination of double-digit growth, 20%+ operating margins, and zero leverage gives DLocal resilience. Even in a weaker macro backdrop, downside risk is cushioned by the company’s financial strength.
Technical Analysis
The technical structure complements the fundamentals. Across timeframes, the stock is carving a textbook impulsive recovery.
Weekly Chart
Reclaimed its 20- and 50-week EMAs, now support lines.
The 200-week EMA around $19.5 is the first major resistance zone to watch.
Fibonacci extensions from the base project upside to $17.9 (1.618x), $22.8 (2.618x), $27.8 (3.618x).
Daily Chart
Elliott Wave shows a Wave 5 underway, aiming for $17.6 and $20.6.
RSI has reset from overbought back into the low 60s, a constructive base.
MACD has turned back up from the zero line, signaling renewed momentum.
Short-Term Charts
Key retrace levels: $14.11 (38.2%), $13.98 (50%), $13.85 (61.8%).
A push through $15.00–$15.10 should confirm Wave 5 underway on intra-day timeframes.
Micro-projections align: $14.73 and $15.11 are near-term targets.
Tactical invalidation: hourly 200 EMA at $13.34.
Structural invalidation: daily close below $12.70–$12.20 (50–100D EMA cluster).
Takeaway: Short-term pullback is healthy, not destructive. Any breakout confirmation in the near term will be above $15. On the higher timeframe, $17–$21 are realistic targets, with $19.5 (200W EMA) the likely first test of strength.
Trade Plan
Accumulation: $14.11–$13.85, stop under $13.20.
Add on momentum above $15.00.
Targets: $17.6, $20.6
Conclusion
This is the type of setup that deserves attention: a payments company with fortress fundamentals, net cash, double-digit margins, and recurring free cash flow, that is now aligning with a clear impulsive recovery in price.
The buyable pullback into $14s offers defined risk, while the upside opens to $17–$21 over the coming weeks. For traders who want both story and structure, DLO 0.00%↑ fits the bill.