Shares of DLocal Limited (DLO) soared 19.14% in Wednesday's trading session following the release of its impressive first-quarter 2025 financial results and a surprise dividend announcement. The Uruguay-based fintech company, which specializes in cross-border payment solutions, delivered a remarkable performance that surpassed analysts' expectations across key metrics.
DLocal reported quarterly earnings of $0.15 per share, significantly beating the analyst consensus estimate of $0.11 by 36.36%. This represents a substantial 150% increase from $0.06 per share in the same period last year. The company's revenue for Q1 reached $216.8 million, up 17.55% year-over-year and exceeding the analyst forecast of $210.08 million. Most notably, DLocal's net profit more than doubled to $46.63 million compared to the previous year, showcasing the company's strong profitability growth.
Adding to the positive sentiment, DLocal announced an extraordinary dividend totaling $150 million, or approximately $0.5251 per share. The company also revealed plans to implement an annual dividend policy, intending to distribute 30% of its free cash flow from the prior year to common shareholders. This move signals confidence in DLocal's financial stability and commitment to returning value to investors. The combination of strong financial results and the unexpected dividend announcement likely fueled the significant stock price surge, as investors reacted positively to the company's growth trajectory and shareholder-friendly initiatives.
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