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News  ›  Benzinga

Tariffs, Inflation Hit DLocal Margins; Stock Plunges

Benzinga Logo Benzinga By Lekha Gupta
Tariffs, Inflation Hit DLocal Margins; Stock Plunges

dLocal reported Q3 2025 earnings with record Total Payment Volume of $10.4 billion, beating analyst estimates, but experienced margin pressures from inflation, tariffs, and regional market challenges, leading to stock price decline.

Insights
KMB   neutral

Facing pressure from private label brands, but beat earnings expectations, 54 consecutive years of dividend increases, attractive valuation at 15x forward earnings


DLO   negative

Despite strong revenue growth and record TPV, the company experienced gross margin decline from 42% to 37%, facing challenges in markets like Egypt, Argentina, and Mexico due to higher processing costs, lower rate spreads, and import tariffs