Why Did Fintech DLocal’s Stock Surge After-Hours?

DLocal has raised its projections for total payment volume (TPV) growth in 2025 to a range of 40% to 50%, compared with its earlier forecast of 35% to 45%.

DLocal (DLO) stock jumped nearly 26% in extended trading on Wednesday after the company raised its 2025 forecasts after topping Wall Street’s estimate for second-quarter revenue.

The Montevideo, Uruguay-based payments firm reported quarterly revenue of $256.5 million for the quarter ended June 30, which exceeded the $229.7 million analysts had expected, according to FinChat data. Its total payment volume (TPV) surged to a record high of $9.2 billion.

The company attributed the rise in revenue to strong volume growth, driven by a recovery in Brazil and Mexico, a substantial increase in Argentina, and notable contributions from Turkey, South Africa, and Pakistan. This was slightly offset by tepid growth in Egypt.

Retail sentiment on Stocktwits DLocal was in the ‘extremely bullish’ territory at the time of writing, while retail chatter was ‘extremely high.’

Its net income for the second quarter fell to $42.8 million, or $0.14 per share, compared with $46.2 million, or $0.15 per share, for the same quarter last year. The company said its earnings were impacted by the devaluation of the Argentine peso in its bond portfolio.

“Given the shifting market dynamics, we took the opportunity to expatriate funds from Argentina more efficiently, reducing our position by over 80% and reallocating to U.S. treasuries,” the company said in a statement.

DLocal has raised its projections for TPV growth in 2025 to a range of 40% to 50%, compared with its earlier forecast of between 35% and 45%. It also raised its revenue projections to a range of 30% to 40%, compared with the earlier forecast of 25% to 35%.

The company also dismissed any potential negative impact from the increased adoption of stablecoins. In a conference call with analysts, CEO Pedro Arnt said DLocal already allows its merchants to settle transactions in stablecoins, thereby quickening settlement times of cross-border flows.

He added that it was unlikely that all of global trade would suddenly happen in U.S.-denominated stablecoins. “We currently see stablecoin as an opportunity, much more than a threat,” Arnt said.

One Stocktwits user said, “[Quarterly] Numbers are amazing. Buy as much as you can at these levels.”

“It’s less about the beat, more about the consistent 50% top line growth in a huge addressable market,” another user wrote.

Separately, the company named Guillermo Lopez Perez, a former executive of Visa and American Express, as its Chief Financial Officer, who will join the firm in the coming months.

DLocal stock has gained 7.8% this year.

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