Will AI-driven tools and rising costs change the emerging market payments narrative for DLocal (DLO)?

• DLocal Limited was recently highlighted by analysts as one of the best mid-cap stocks around AI, reflecting its recent solid financial results as well as its use of artificial intelligence in areas such as fraud detection and trade optimization.
• Although Truist raised concerns about rising operating expenses, the combination of AI-powered efficiency tools and resilient revenue performance keep DLocal in the spotlight for investors evaluating emerging market payments platforms.
• Here, we assess how the growing use of AI in DLocal’s payments platform is likely to impact the company’s existing investment story and prospects.

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D Local investment story summary

To own DLocal, you need to believe that cross-border digital payments in emerging markets are likely to continue to grow, and that the company’s AI tools can manage fraud and complexity without wasting cost. Recent AI-related recognition and Truist’s concerns about rising operating expenses don’t appear to change important near-term factors, such as execution against its 2026 profit outlook and its biggest current risks around rising compliance and regulatory costs.

The second quarter 2026 results, scheduled for August 13, look particularly relevant here. Get a clearer read on whether AI-powered transaction optimization is leading to healthier operating leverage, or whether expense growth is still outpacing profits. This is important both to the company’s cost discipline story and how much room it has to continue investing in new products and markets.

However, even with the focus on the AI ​​story, investors should be aware that rising regulatory and compliance demands across multiple emerging markets could still have a significant impact.

Read the full story on DLocal (it’s free!)

The DLocal story projects revenue of $2.5 billion and revenue of $427.3 million by 2029.

We reveal how DLocal’s projections yield a fair value of $17.65, a 50% increase over the current price.

explore other perspectives

Some of the bottom-ranked analysts take a harder view than the consensus, arguing that it’s worth weighing their concerns about fragmentation and rising compliance costs against a more optimistic reaction to recent AI-focused news, as rising protectionism and regulatory burdens could hamper DLocal’s growth even as revenue grows towards around US$2.1 billion and profits around US$372 million by 2029.

Check out 17 other fair value estimates on DLocal – see why this stock has the potential to become a multibagger!

The verdict is yours

Don’t just follow the ticker, dig deep into the data and truly build your own beliefs.

• A great starting point for DLocal research is an analysis that reveals four key perks that can influence your investment decision.
• Our free DLocal research report provides comprehensive fundamental analysis compiled into a single visual (Snowflake), making it easy to assess DLocal’s overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.

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