TPV at record high of US$9.2 billion, growing more than 50% YoY for the third consecutive quarter.
Brazil and Mexico posted solid results, while growth remains fastest in the rest of our geographies, leading to increased diversification.
Consistent operational leverage with Adjusted EBITDA over Gross Profit increasing for the fifth straight quarter (71% for the second quarter of 2025).
Continued strong cash flow generation with US$48 million of FCF (free cash flow).
Upward adjustment on our full-year 2025 guidance for TPV, Revenue, Gross Profit and Adjusted EBITDA.
MONTEVIDEO, Uruguay, Aug. 13, 2025 (GLOBE NEWSWIRE) -- DLocal Limited ("dLocal", "we", "us", and "our") (NASDAQ:DLO), a technology - first payments platform, today announced its financial results for the second quarter ended June 30, 2025.
dLocal's management team will host a conference call and audio webcast on August 13, 2025 at 5:00 p.m. Eastern Time. Please click here to pre-register for the conference call and obtain your dial in number and passcode.
The live conference call can be accessed via audio webcast at the investor relations section of dLocal's website, at https://investor.dlocal.com/. An archive of the webcast will be available for a year following the conclusion of the conference call. The investor presentation will also be filed on EDGAR at www.sec.gov.
"We are pleased to report another quarter of solid growth and disciplined execution, with significant acceleration across our key financial metrics. These results are a testament to our high-growth, expanding margin, and healthy free cash flow business model, and they demonstrate the substantial value we provide to our merchants," said Pedro Arnt, CEO of dLocal.
Governance changes
- Board of Directors structure change: we are committed to transitioning to a majority independent Board. We have begun the search for additional independent directors, and we are also constituting Nominating & Corporate Governance and Compensation Committees.
- Cancellation of treasury shares: we will cancel the treasury shares currently held on our balance sheet, underscoring our ability to deliver strong growth while returning excess capital to shareholders.
2025 guidance update (year-over-year growth rates versus 2024):
- TPV: 40%-50% YoY
- Revenue: 30%-40% YoY
- Gross profit: 27.5%-37.5% YoY
- Adjusted EBITDA: 40%-50% YoY
Our updated guidance reflects the strong performance in the first half of the year and the sustained momentum anticipated across our business. While we remain optimistic, we encourage careful consideration of the outlined risks:
The evolving macroeconomic, currency and trade landscape globally and its potential impact on emerging markets.
- The recent increase in tariffs in Mexico, along with potential trade barriers in other markets.
- Shifting fiscal regimes in Brazil.
- The potential for currency devaluations and/or changes in FX regimes in Argentina and Egypt.
Second quarter 2025 financial highlights
dLocal reports in US dollars and in accordance with IFRS as issued by the IASB
- Total Payment Volume ("TPV") reached a record US$9.2 billion in the second quarter, up 53% year-over-year compared to US$6.0 billion in the second quarter of 2024 and up 14% compared to US$8.1 billion in the first quarter of 2025. In constant currency, TPV growth for the period would have been 65% year-over-year.
- Revenues amounted to US$256.5 million, up 50% year-over-year compared to US$171.3 million in the second quarter of 2024 and up 18% compared to US$216.8 million in the first quarter of 2025. The quarter-over-quarter increase, exceeding TPV growth, was driven by a higher share of pay-ins. This positive result was partly offset by Egypt, where we experienced a partial volume loss due to a large merchant implementing redundancies in the market in addition to lower FX spreads as a result of the currency devaluation. In constant currency, revenue growth for the period would have been 63% year-over-year.
- Gross profit was US$98.9 million in the second quarter of 2025, up 42% compared to US$69.8 million in the second quarter of 2024 and up 17% compared to US$84.9 million in the first quarter of 2025. The quarter-over-quarter comparison was primarily due to (i) performance in Brazil, given a higher share of installment payments and the recovery of one-off processing costs from the previous quarter; (ii) Argentina's strong performance, driven by higher volumes and increase in advancements, fully offsetting the impact of lower FX spreads; and (iii) performance in other Africa & Asia markets, particularly in South Africa, due to volume growth and lower processing costs. This positive result was offset by Egypt, as mentioned previously, and Other LatAm markets, that despite volume growth across various countries, were adversely affected by retry costs invoiced during this quarter in Chile and Colombia. Excluding Chile and Colombia, these markets grew 9%. In constant currency, gross profit growth for the period would have been 55% year-over-year.
- As a result, gross profit margin was 39% in this quarter, compared to 41% in the second quarter of 2024 and 39% in the first quarter of 2025.
- Gross profit over TPV was at 1.07% decreasing from 1.16% in the second quarter of 2024 and increasing from 1.05% compared to the first quarter of 2025.
- Operating profit was US$55.8 million, up 85% compared to US$30.2 million in the second quarter of 2024 and up 22% compared to US$45.8 million in the first quarter of 2025. Operating expenses grew by 9% year-over-year, as we continue to invest in our capabilities. On the sequential comparison, operating expenses increased by 10% quarter-over-quarter, primarily linked to increase in headcount, especially in tech, and higher third party services.
- As a result, Adjusted EBITDA was US$70.1 million, up 64% compared to US$42.7 million in the second quarter of 2024 and up 21% compared to US$57.9 million in the first quarter of 2025.
- Adjusted EBITDA margin was 27%, compared to the 25% recorded in the second quarter of 2024 and 27% in the first quarter of 2025. Adjusted EBITDA over gross profit of 71% increased compared to 61% in the second quarter of 2024 and 68% in the first quarter of 2025, marking the fifth consecutive quarter of improvement.
- EBITDA was US$61.3 million, up 79% compared to US$34.3 million in the second quarter of 2024 and up 20% compared to US$50.9 million in the first quarter of 2025.
- Net financial result was US$3.8 million loss, compared to a net finance gain of US$28.0 million in the second quarter of 2024 and a net finance gain of US$7.0 million in the first quarter of 2025, as explained in the Net Income section.
- Our effective income tax rate increased to 16% from 10% last quarter, as a result of higher local-to-local share of pre-tax income. As mentioned in the previous quarter, the effective tax rate in the first quarter of 2025 was favorably impacted by a one-off cost in Brazil.
- Net income for the second quarter of 2025 was US$42.8 million, or US$0.14 per diluted share, down 7% compared to a profit of US$46.2 million, or US$0.15 per diluted share, for the second quarter of 2024 and down 8% compared to a profit of US$46.7 million, or US$0.15 per diluted share for the first quarter of 2025. During the current period, net income was negatively impacted by the Argentine peso's devaluation on our 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 US treasuries.
- Free cash flow for the second quarter of 2025 amounted to US$48.4 million, up 156% year-over-year compared to US$19.0 million in the second quarter of 2024 and up 22% compared to US$39.7 million in the first quarter of 2025. The variation quarter-over-quarter is primarily explained by improved operational results, partially offset by higher income tax paid.
- As of June 30, 2025, dLocal had US$476.9 million in cash and cash equivalents, which includes US$253.8 million of Corporate cash and cash equivalents. The Corporate cash and cash equivalents increased by US$1.1 million from US$252.7 million as of June 30, 2024. When compared to the US$355.9 million Corporate cash and cash equivalents position as of March 31, 2025, it decreased by US$102.1 million quarter-over-quarter, explained by the payment of US$150.0 million in dividends in June 2025.
The following table summarizes our key performance metrics:
| Three months ended June 30 | Six months ended June 30 | |||||||||||
| 2025 | 2024 | % change | 2025 | 2024 | % change | |||||||
| Key Performance metrics | (In millions of US$ except for %) | |||||||||||
| TPV | 9,212 | 6,035 | 53 | % | 17,319 | 11,346 | 53 | % | ||||
| Revenue | 256.5 | 171.3 | 50 | % | 473.2 | 355.7 | 33 | % | ||||
| Gross Profit | 98.9 | 69.8 | 42 | % | 183.8 | 132.8 | 38 | % | ||||
| Gross Profit margin | 39 | % | 41 | % | -2p.p | 39 | % | 37 | % | 2p.p | ||
| Adjusted EBITDA | 70.1 | 42.7 | 64 | % | 128.0 | 79.5 | 61 | % | ||||
| Adjusted EBITDA margin | 27 | % | 25 | % | 2p.p | 27 | % | 22 | % | 5p.p | ||
| Adjusted EBITDA/Gross Profit | 71 | % | 61 | % | 10p.p | 70 | % | 60 | % | 10p.p | ||
| Profit | 42.8 | 46.2 | -7 | % | 89.5 | 64.0 | 40 | % | ||||
| Profit margin | 17 | % | 27 | % | -10p.p | 19 | % | 18 | % | 1p.p | ||
Special note regarding Adjusted EBITDA and Adjusted EBITDA Margin
dLocal has only one operating segment. dLocal measures its operating segment's performance by Revenues, Adjusted EBITDA and Adjusted EBITDA Margin, and uses these metrics to make decisions about allocating resources. Adjusted EBITDA as used by dLocal is defined as the profit from operations before financing and taxation for the year or period, as applicable, before depreciation of property, plant and equipment, amortization of right-of-use assets and intangible assets, and further excluding the finance income and costs, impairment gains/(losses) on financial assets, transaction costs, share-based payment non-cash charges,other operating gain/loss,other non-recurring costs, and inflation adjustment. dLocal defines Adjusted EBITDA Margin as the Adjusted EBITDA divided by consolidated revenues. dLocal defines Adjusted EBITDA to Gross Profit Ratio as Adjusted EBITDA divided by Gross Profit. Although Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EBITDA to Gross Profit Ratio may be commonly viewed as non-IFRS measures in other contexts, pursuant to IFRS 8, ("Operating Segments"), Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EBITDA to Gross Profit Ratio are treated by dLocal as IFRS measures based on the manner in which dLocal utilizes these measures. Nevertheless, dLocal's Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EBITDA to Gross Profit Ratio metrics should not be viewed in isolation or as a substitute for net income for the periods presented under IFRS. dLocal also believes that its Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EBITDA to Gross Profit Ratio metrics are useful metrics used by analysts and investors, although these measures are not explicitly defined under IFRS. Additionally, the way dLocal calculates operating segment's performance measures may be different from the calculations used by other entities, including competitors, and therefore, dLocal's performance measures may not be comparable to those of other entities. Finally, dLocal is unable to present a quantitative reconciliation of forward-looking guidance for Adjusted EBITDA because dLocal cannot reliably predict certain of their necessary components, such as impairment gains/(losses) on financial assets, transaction costs, and inflation adjustment.
The table below presents a reconciliation of dLocal's Adjusted EBITDA to net income:
| $ in thousands | Three months ended June 30 | Six months ended June 30 | ||
| 2025 | 2024 | 2025 | 2024 | |
| Profit for the period | 42,808 | 46,239 | 89,475 | 63,957 |
| Income tax expense | 8,188 | 10,060 | 13,450 | 17,174 |
| Depreciation and amortization | 5,540 | 4,089 | 10,602 | 7,851 |
| Finance income and costs, net | 3,785 | (28,045) | (3,184) | (28,344) |
| Share-based payment non-cash charges | 4,911 | 6,776 | 10,931 | 11,237 |
| Other operating loss¹ | 2,480 | 1,553 | 2,902 | 3,372 |
| Impairment loss / (gain) on financial assets² | 1,415 | 76 | 1,801 | (101) |
| Inflation adjustment | 984 | 1,941 | 1,869 | 4,309 |
| Other non-recurring costs | - | - | 123 | - |
| Adjusted EBITDA | 70,111 | 42,689 | 127,969 | 79,455 |
Note: 1 The company wrote-off certain amounts mainly related to merchants/processors off-boarded by dLocal. 2 Refer to Note 17 - Trade and Other Receivables in the Financial Statements dated June 30, 2025, for detailed information.
dLocal Limited
Certain financial information
Consolidated Statements of Comprehensive Income for the three-month and six-month periods ended June 30, 2025 and 2024
(All amounts in thousands of U.S. Dollars except share data or as otherwise indicated)
| Three months ended June 30 | Six months ended June 30 | |||
| 2025 | 2024 | 2025 | 2024 | |
| Continuing operations | ||||
| Revenues | 256,458 | 171,279 | 473,217 | 355,709 |
| Cost of services | (157,573) | (101,468) | (289,453) | (222,927) |
| Gross profit | 98,885 | 69,811 | 183,764 | 132,782 |
| Technology and development expenses | (7,380) | (6,408) | (14,147) | (11,873) |
| Sales and marketing expenses | (4,842) | (4,505) | (11,977) | (9,136) |
| General and administrative expenses | (27,003) | (27,074) | (51,327) | (51,406) |
| Impairment (loss)/gain on financial assets | (1,415) | (76) | (1,801) | 101 |
| Other operating loss | (2,480) | (1,553) | (2,902) | (3,372) |
| Operating profit | 55,765 | 30,195 | 101,610 | 57,096 |
| Finance income | 11,110 | 29,247 | 23,338 | 47,504 |
| Finance costs | (14,895) | (1,202) | (20,154) | (19,160) |
| Inflation adjustment | (984) | (1,941) | (1,869) | (4,309) |
| Other results | (4,769) | 26,104 | 1,315 | 24,035 |
| Profit before income tax | 50,996 | 56,299 | 102,925 | 81,131 |
| Income tax expense | (8,188) | (10,060) | (13,450) | (17,174) |
| Profit for the period | 42,808 | 46,239 | 89,475 | 63,957 |
| Profit attributable to: | ||||
| Owners of the Group | 42,810 | 46,244 | 89,440 | 63,952 |
| Non-controlling interest | (2) | (5) | 35 | 5 |
| Profit for the period | 42,808 | 46,239 | 89,475 | 63,957 |
| Earnings per share (in USD) | ||||
| Basic Earnings per share | 0.15 | 0.16 | 0.31 | 0.22 |
| Diluted Earnings per share | 0.14 | 0.15 | 0.30 | 0.21 |
| Other comprehensive Income | ||||
| Items that are or may be reclassified to profit or loss: | ||||
| Exchange difference on translation on foreign operations | 4,303 | (5,604) | 7,829 | (6,273) |
| Other comprehensive income for the period, net of tax | 4,303 | (5,604) | 7,829 | (6,273) |
| Total comprehensive income for the period | 47,111 | 40,635 | 97,304 | 57,684 |
| Total comprehensive income for the period is attributable to: | ||||
| Owners of the Group | 47,010 | 40,642 | 97,184 | 57,678 |
| Non-controlling interest | 101 | (7) | 120 | 6 |
| Total comprehensive income for the period | 47,111 | 40,635 | 97,304 | 57,684 |
| dLocal Limited Certain financial information Consolidated Condensed Interim Statements of Financial Position as of June 30, 2025 and March 31, 2025 (All amounts in thousands of U.S. dollars) | ||
| Three months ended June 30 | ||
| June 30, 2025 | March 31, 2025 | |
| ASSETS | ||
| Current Assets | ||
| Cash and cash equivalents | 476,939 | 511,506 |
| Financial assets at fair value through profit or loss | 125,526 | 125,487 |
| Trade and other receivables | 487,320 | 477,349 |
| Derivative financial instruments | 691 | 463 |
| Other assets | 29,888 | 28,001 |
| Total Current Assets | 1,120,364 | 1,142,806 |
| Non-Current Assets | ||
| Trade and other receivables | 14,698 | 15,518 |
| Deferred tax assets | 5,961 | 5,468 |
| Property, plant and equipment | 4,208 | 4,007 |
| Right-of-use assets | 4,124 | 3,852 |
| Intangible assets | 68,165 | 65,301 |
| Other assets | 3,792 | 4,695 |
| Total Non-Current Assets | 100,948 | 98,841 |
| TOTAL ASSETS | 1,221,312 | 1,241,647 |
| LIABILITIES | ||
| Current Liabilities | ||
| Trade and other payables | 691,081 | 614,133 |
| Lease liabilities | 1,201 | 1,107 |
| Tax liabilities | 14,330 | 20,631 |
| Derivative financial instruments | 2,555 | 1,098 |
| Financial liabilities | 56,806 | 54,248 |
| Provisions | 544 | 543 |
| Total Current Liabilities | 766,517 | 691,760 |
| Non-Current Liabilities | ||
| Deferred tax liabilities | 3,918 | 1,862 |
| Lease liabilities | 2,697 | 2,825 |
| Total Non-Current Liabilities | 6,615 | 4,687 |
| TOTAL LIABILITIES | 773,132 | 696,447 |
| EQUITY | ||
| Share Capital | 587 | 570 |
| Share Premium | 192,820 | 187,671 |
| Treasury Shares | (200,980) | (200,980) |
| Capital Reserve | 39,241 | 38,556 |
| Other Reserves | (13,190) | (17,390) |
| Retained earnings | 429,482 | 536,654 |
| Total Equity Attributable to owners of the Group | 447,960 | 545,081 |
| Non-controlling interest | 220 | 119 |
| TOTAL EQUITY | 448,180 | 545,200 |
| TOTAL EQUITY AND LIABILITIES | 1,221,312 | 1,241,647 |
| dLocal Limited Certain interim financial information. Consolidated Statements of Cash flows for the three-month and six-month periods ended June 30, 2025 and 2024 (All amounts in thousands of U.S. dollars) | ||||
| Three months ended June 30 | Six months ended June 30 | |||
| 2025 | 2024 | 2025 | 2024 | |
| Cash flows from operating activities | ||||
| Profit before income tax | 50,996 | 56,299 | 102,925 | 81,131 |
| Adjustments: | ||||
| Interest Income from financial instruments | (5,976) | (6,473) | (11,083) | (13,915) |
| Interest charges for lease liabilities | 41 | 44 | 82 | 87 |
| Other interests charges | 1,568 | 1,673 | 2,452 | 1,800 |
| Finance expense related to derivative financial instruments | 3,177 | 2,446 | 3,591 | 12,324 |
| Net exchange differences | 9,765 | (1,469) | 13,908 | 6,168 |
| Fair value loss/(gain) on financial assets at FVPL | (4,791) | (22,774) | (12,134) | (33,589) |
| Amortization of Intangible assets | 5,055 | 3,690 | 9,639 | 7,114 |
| Depreciation and disposals of PP&E and right-of-use | 485 | 348 | 1,188 | 748 |
| Share-based payment expense, net of forfeitures | 4,911 | 6,776 | 10,931 | 11,237 |
| Other operating gain | 2,480 | 1,553 | 2,902 | 3,372 |
| Net Impairment loss/(gain) on financial assets | 1,415 | 76 | 1,801 | (101) |
| Inflation adjustment and other financial results | 3,180 | (5,982) | 9,265 | (11,874) |
| 72,306 | 36,207 | 135,467 | 64,502 | |
| Changes in working capital | ||||
| Increase in Trade and other receivables | (13,046) | (69,322) | 8,036 | (102,158) |
| Decrease / (Increase) in Other assets | 1,176 | (716) | 2,200 | 2,503 |
| Increase / (Decrease) in Trade and Other payables | 76,948 | 67,268 | 93,294 | 113,232 |
| Increase / (Decrease) in Tax Liabilities | (2,928) | 8,870 | (1,963) | 7,750 |
| Increase / (Decrease) in Provisions | 1 | (90) | 44 | (86) |
| Cash (used) / generated from operating activities | 134,457 | 42,218 | 237,078 | 85,743 |
| Income tax paid | (9,998) | (13,409) | (17,206) | (16,967) |
| Net cash (used) / generated from operating activities | 124,459 | 28,808 | 219,872 | 68,776 |
| Cash flows from investing activities | ||||
| Acquisitions of Property, plant and equipment | (515) | (440) | (1,460) | (1,226) |
| Additions of Intangible assets | (7,919) | (4,842) | (14,486) | (9,864) |
| Acquisition of financial assets at FVPL | (92,090) | (96,841) | (133,464) | (96,841) |
| Collections of financial assets at FVPL | 86,555 | 98,544 | 133,970 | 98,301 |
| Interest collected from financial instruments | 5,976 | 6,473 | 11,083 | 13,915 |
| Payments for investments in other assets at FVPL | (2,500) | - | (12,500) | - |
| Net cash (used in) / generated investing activities | (10,493) | 2,894 | (16,857) | 4,285 |
| Cash flows from financing activities | ||||
| Repurchase of shares | - | (81,751) | - | (81,751) |
| Share-options exercise paid | 940 | 92 | 940 | 92 |
| Dividends paid | (149,982) | - | (149,982) | - |
| Interest payments on lease liability | (41) | (44) | (82) | (87) |
| Principal payments on lease liability | (478) | 26 | (1,141) | (69) |
| Finance expense paid related to derivative financial instruments | (1,948) | (888) | (5,080) | (11,039) |
| Net proceeds from financial liabilities | 6,223 | - | 12,014 | - |
| Interest payments on financial liabilities | (3,835) | - | (6,001) | - |
| Other finance expense paid | (1,399) | (272) | (2,113) | (399) |
| Net cash used in by financing activities | (150,520) | (82,837) | (151,445) | (93,253) |
| Net increase in cash flow | (36,554) | (51,135) | 51,570 | (20,192) |
| Cash and cash equivalents at the beginning of the period | 511,506 | 572,357 | 425,172 | 536,160 |
| Net (decrease)/increase in cash flow | (36,554) | (51,135) | 51,570 | (20,192) |
| Effects of exchange rate changes on inflation and cash and cash equivalents | 1,987 | 10,398 | 197 | 15,652 |
| Cash and cash equivalents at the end of the period | 476,939 | 531,620 | 476,939 | 531,620 |
About dLocal
dLocal powers local payments in emerging markets, connecting global enterprise merchants with billions of emerging market consumers in more than 40 countries across Africa, Asia, and Latin America. Through the "One dLocal" platform (one direct API, one platform, and one contract), global companies can accept payments, send pay-outs and settle funds globally without the need to manage separate pay-in and pay-out processors, set up numerous local entities, and integrate multiple acquirers and payment methods in each market.
Forward-looking statements
This press release contains certain forward-looking statements. These forward-looking statements convey dLocal's current expectations or forecasts of future events, including guidance in respect of total payment volume, revenue, gross profit and Adjusted EBITDA. Forward-looking statements regarding dLocal and amounts stated as guidance are based on current management expectations and involve known and unknown risks, uncertainties and other factors that may cause dLocal's actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Certain of these risks and uncertainties are described in the "Risk Factors," "Forward-Looking Statements" and "Cautionary Statement Regarding Forward-Looking Statements" sections of dLocal's filings with the U.S. Securities and Exchange Commission. Unless required by law, dLocal undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date hereof. In addition, dLocal is unable to present a quantitative reconciliation of forward-looking guidance for Adjusted EBITDA, because dLocal cannot reliably predict certain of their necessary components, such as impairment gains/(losses) on financial assets, transaction costs, and inflation adjustment.
Investor Relations Contact:
investor@dlocal.com
Media Contact:
media@dlocal.com
