DLocal Limited (DLO) shares plummeted 8.53% during intraday trading on Friday, as the market reacted negatively to the company's first-quarter 2026 financial results.
The fintech company reported a 10% year-over-year decline in net profit to $41.9 million, missing analyst estimates. Earnings per share of $0.14 fell short of expectations, with the results impacted by a one-off tax charge of $9.7 million and higher expenses from a recent investment cycle.
Despite reporting revenue of $335.9 million that beat forecasts and a 73% surge in total payment volume to $14.1 billion, investor sentiment was weighed down by the deteriorating profitability metrics. The company's guidance for future periods remained unchanged, but the earnings miss prompted a sell-off.
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