DLocal Expands, Reports Strong Q2 Results; Hedge Funds Take Notice
DLocal Limited (DLO), a leading fintech company in the high-growth emerging markets payments space, has expanded its reach and reported strong Q2 2025 poll results. The company's shares have gained attention from hedge funds and retail investors alike.
DLocal's expansion includes the acquisition of AZA Finance, enabling it to enter 17 additional African countries. This move enhances its treasury, FX management, and stablecoin capabilities. The company now operates in 40+ countries, serving global clients such as Amazon, Nike, and Spotify through a single API that handles compliance and regulatory requirements.
The hedge fund Marshall Wace LLP has shown confidence in DLocal, increasing its position by 64% in Q2 2025 to own about 2,684,000 shares. This bullish sentiment is echoed on the wallstreetbets subreddit, where user Ok_Neat9473 discussed a bullish thesis on DLocal Limited (DLO).
DLocal's strong performance in Q2 2025 is evident in its election results live. Total Payment Volume (TPV) grew by 53% YoY to $9.2 billion, revenue increased by 50% to $256.5 million, and adjusted EBITDA rose by 64% to $70.1 million. The company has raised its guidance for FY25, expecting TPV to grow 40-50%, revenue 30-40%, and EBITDA 40-50%.
Despite its impressive growth, DLocal trades like a distressed company with a forward P/E of 16 and a market cap around $4 billion. However, analysts see significant upside potential, with shares potentially reaching $25-28 in modest scenarios and $32-36 in aggressive growth cases. The company's regulatory moat, local partnerships, and licenses create strong barriers to entry and ensure client stickiness.
DLocal Limited's expansion and strong Q2 vote results have caught the attention of investors. With its unique business model, robust financial performance, and significant growth potential, the company is poised for further success in the high-growth emerging markets payments space.
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