dLocal Reports 2025 Third Quarter Financial Results
Record-setting quarter, one more example of our strong growth and continued diversification.
TPV at record high of US$10.4 billion, growing nearly 60% year-over-year, the 4th straight quarter above 50% year-over-year.
Revenue up +52% year-over-year reaching US$282 million for the quarter.
Gross profit surpassed US$100 million for the first time, reaching US$103 million, up +32% year-over-year.
Adjusted EBITDA up +37% year-over-year, representing 69% of gross profit as we continue our margin discipline.
Net income growth at 93% year-over-year. Continued healthy cash generation with US$38 million of Adjusted Free cash flow.
MONTEVIDEO, Uruguay, Nov. 12, 2025 (GLOBE NEWSWIRE) -- DLocal Limited (“dLocal”, “we”, “us”, and “our”) (NASDAQ:DLO), a technology - first payments platform, today announced its financial results for the third quarter ended September 30, 2025.
dLocal’s management team will host a conference call and audio webcast on November 12, 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 delivered another record quarter, the first time with TPV above US$10 billion and gross profit that surpassed US$100 million, one more example of our strong growth and continued diversification, all of which underscore the potential and resilience of our business model,” said Pedro Arnt, CEO of dLocal.
Third 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$10.4 billion in the third quarter, up 59% year-over-year compared to US$6.5 billion in the third quarter of 2024 and up 13% compared to US$9.2 billion in the second quarter of 2025. In constant currency, TPV growth for the period would have been 66% year-over-year.
- Revenues amounted to US$282.5 million, up 52% year-over-year compared to US$185.8 million in the third quarter of 2024 and up 10% compared to US$256.5 million in the second quarter of 2025. The quarter-over-quarter increase is explained by volume growth. In constant currency, revenue growth for the period would have been 63% year-over-year.
- Gross profit was US$103.2 million in the third quarter of 2025, up 32% compared to US$78.2 million in the third quarter of 2024 and up 4% compared to US$98.9 million in the second quarter of 2025. The quarter-over-quarter comparison is explained by (i) volume growth across frontier markets, with strong performance in Colombia, Bolivia, and Nigeria; and (ii) Brazil's solid growth across streaming, e-commerce and advertising coupled with a higher share of pay-ins. This positive result was offset by (i) Egypt, given the full‑quarter impact of previously referenced share‑of‑wallet losses; (ii) Argentina, reflecting lower interest-rate spreads, temporary increase in processing costs, and non-cash IFRS inflation adjustment; and (iii) payment mix shift towards an APM with temporary margin pressure in Mexico, as well as a slowdown in TPV growth likely driven by increased tariffs on imports. In constant currency, gross profit growth for the period would have been 41% year-over-year.
- As a result, gross profit margin was 37% in this quarter, compared to 42% in the third quarter of 2024 and 39% in the second quarter of 2025.
- Gross profit over TPV was at 0.99%, decreasing from 1.20% in the third quarter of 2024 and 1.07% compared to the second quarter of 2025.
- Operating profit was US$55.6 million, up 35% compared to US$41.1 million in the third quarter of 2024 and flat compared to US$55.8 million in the second quarter of 2025. Operating expenses grew by 28% year-over-year, as we continue to invest in our capabilities. On the sequential comparison, operating expenses increased by 10% quarter-over-quarter, driven mostly by salaries and wages, especially in sales & marketing and technology, partially offset by a US$1 million decrease in impairment losses on financial assets.
- As a result, Adjusted EBITDA was US$71.7 million, up 37% compared to US$52.4 million in the third quarter of 2024 and up 2% compared to US$70.1 million in the second quarter of 2025.
- Adjusted EBITDA margin was 25%, compared to the 28% recorded in the third quarter of 2024 and 27% in the second quarter of 2025. Adjusted EBITDA over gross profit of 69% increased compared to 67% in the third quarter of 2024 and decreased compared to 71% in the second quarter of 2025.
- Net financial result was US$6.4 million gain, compared to a net finance loss of US$10.1 million in the third quarter of 2024 and a net finance loss of US$3.8 million in the second quarter of 2025, as explained in the Net Income section.
- Our effective income tax rate for the period was 15%, broadly in line with the prior quarter’s 16%.
- Net income for the third quarter of 2025 was US$51.8 million, or US$0.17 per diluted share, up 93% compared to a profit of US$26.8 million, or US$0.09 per diluted share, for the third quarter of 2024 and up 21% compared to a profit of US$42.8 million, or US$0.14 per diluted share for the second quarter of 2025. During the current period, net income was impacted by lower finance costs following the reduction of our exposure to Argentine peso denominated bonds.
- Adjusted Free cash flow for the third quarter of 2025 amounted to US$37.6 million, up 28% year-over-year compared to US$29.3 million in the third quarter of 2024 and down -22% compared to US$48.4 million in the second quarter of 2025. The variation quarter-over-quarter is mostly affected by a short term impact of $13.1 million expected to reverse over next few quarters from the structuring used to expatriate flows from Argentina after regulatory changes during the third quarter 2025.
- As of September 30, 2025, dLocal had US$604.5 million in cash and cash equivalents, which includes US$333.1 million of Corporate cash and cash equivalents. The Corporate cash and cash equivalents increased by US$59.7 million from US$273.4 million as of September 30, 2024. When compared to the US$253.8 million Corporate cash and cash equivalents position as of June 30, 2025, it increased by US$79.3 million quarter-over-quarter.
The following table summarizes our key performance metrics:
| Three months ended September 30 | Nine months ended September 30 | |||||
| 2025 | 2024 | % change | 2025 | 2024 | % change | |
| Key Performance metrics | (In millions of US$ except for %) | |||||
| TPV | 10,390 | 6,516 | 59% | 27,709 | 17,861 | 55% |
| Revenue | 282.5 | 185.8 | 52% | 755.7 | 541.5 | 40% |
| Gross Profit | 103.2 | 78.2 | 32% | 287.0 | 211.0 | 36% |
| Gross Profit margin | 37% | 42% | -6p.p | 38% | 39% | -1p.p |
| Adjusted EBITDA | 71.7 | 52.4 | 37% | 199.7 | 131.8 | 51% |
| Adjusted EBITDA margin | 25% | 28% | -3p.p | 26% | 24% | 2p.p |
| Adjusted EBITDA/Gross Profit | 69% | 67% | 2p.p | 70% | 62% | 7p.p |
| Profit | 51.8 | 26.8 | 93% | 141.3 | 90.8 | 56% |
| Profit margin | 18% | 14% | 4p.p | 19% | 17% | 2p.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 September 30 | Nine months ended September 30 | ||
| 2025 | 2024 | 2025 | 2024 | |
| Profit for the period | 51,790 | 26,811 | 141,265 | 90,768 |
| Income tax expense | 9,388 | 2,286 | 22,838 | 19,460 |
| Depreciation and amortization | 6,129 | 4,438 | 16,731 | 12,289 |
| Finance income and costs, net | (6,383) | 10,085 | (9,566) | (18,259) |
| Share-based payment non-cash charges | 6,840 | 6,204 | 17,771 | 17,441 |
| Other operating loss¹ | 2,398 | 578 | 5,300 | 3,950 |
| Secondary offering expenses | 739 | - | 739 | - |
| Impairment loss / (gain) on financial assets | (5) | 8 | 1,796 | (93) |
| Inflation adjustment | 794 | 1,954 | 2,663 | 6,263 |
| Other non-recurring costs | - | - | 123 | - |
| Adjusted EBITDA | 71,690 | 52,364 | 199,659 | 131,819 |
Note: 1 The Company wrote off certain amounts primarily related to merchants and processors that have been off-boarded or for which the balances are no longer considered recoverable by dLocal.
Adjusted Free Cash Flow reconciliation
We calculate “Adjusted Free Cash Flow” as net cash (used in) / generated from cash flows from operating activities, less (i) changes in working capital (merchant), and (ii) capital expenditures. The working capital (merchant) is defined as (i) changes in Trade receivables net (disclosed in note 17 to our 3Q25 Financial Statements), plus (ii) changes in Trade payables (disclosed in note 20 to our 3Q25 Financial Statements), plus (iii) changes in Other tax liabilities (disclosed in note 21 to our 3Q25 Financial Statements). Capital expenditures consist of acquisitions of property, plant and equipment and additions of intangible assets.
Management uses Adjusted Free Cash Flow as a measure for evaluating the corporate cash generation and the cash available for distribution to our shareholders as dividends pursuant to our dividend policy. Adjusted Free Cash Flow is not a financial measure recognized under IFRS and does not purport to be an alternative to cash generated from operating activities or as a measure of liquidity. Our presentation of Adjusted Free Cash Flow has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under IFRS. See below for a reconciliation of our Adjusted Free Cash Flow to the nearest IFRS measure.
The table below presents a reconciliation of dLocal’s Adjusted Free Cash Flow reconciliation:
| $ in thousands (except percentages) | Three months ended September 30 | Nine months ended September 30 | ||
| 2025 | 2024 | 2025 | 2024 | |
| Net cash (used in ) / generated from operating activities | 95,174 | 39,571 | 315,044 | 108,347 |
| Changes in working capital (merchant)¹ | (48,226) | (4,847) | (163,974) | (33,726) |
| Capital expenditures² | (9,349) | (5,431) | (25,295) | (16,521) |
| Adjusted Free Cash Flow | 37,599 | 29,293 | 125,775 | 58,100 |
Note: 1 Changes in working capital (merchant) consists of (i) changes in the period in the balance of trade receivables net, plus (ii) changes in the period in the balance of trade payables, plus (iii) changes in the period in the balance of other tax liabilities. 2 Capital expenditures consist of acquisitions of property, plant and equipment and Additions of Intangible Assets.
dLocal Limited
Certain financial information
Consolidated Statements of Comprehensive Income for the three-month and nine-month periods ended September 30, 2025 and 2024
(All amounts in thousands of U.S. Dollars except share data or as otherwise indicated)
| Three months ended September 30 | Nine months ended September 30 | |||
| 2025 | 2024 | 2025 | 2024 | |
| Continuing operations | ||||
| Revenues | 282,483 | 185,774 | 755,700 | 541,483 |
| Cost of services | (179,294) | (107,594) | (468,747) | (330,521) |
| Gross profit | 103,189 | 78,180 | 286,953 | 210,962 |
| Technology and development expenses | (8,844) | (6,930) | (22,991) | (18,803) |
| Sales and marketing expenses | (8,139) | (6,892) | (20,116) | (16,028) |
| General and administrative expenses | (28,224) | (22,636) | (79,551) | (74,042) |
| Impairment (loss)/gain on financial assets | 5 | (8) | (1,796) | 93 |
| Other operating loss | (2,398) | (578) | (5,300) | (3,950) |
| Operating profit | 55,589 | 41,136 | 157,199 | 98,232 |
| Finance income | 10,418 | 7,335 | 33,756 | 54,839 |
| Finance costs | (4,035) | (17,420) | (24,189) | (36,580) |
| Inflation adjustment | (794) | (1,954) | (2,663) | (6,263) |
| Other results | 5,589 | (12,039) | 6,904 | 11,996 |
| Profit before income tax | 61,178 | 29,097 | 164,103 | 110,228 |
| Income tax expense | (9,388) | (2,286) | (22,838) | (19,460) |
| Profit for the period | 51,790 | 26,811 | 141,265 | 90,768 |
| Profit attributable to: | ||||
| Owners of the Group | 51,825 | 26,782 | 141,265 | 90,734 |
| Non-controlling interest | (35) | 29 | - | 34 |
| Profit for the period | 51,790 | 26,811 | 141,265 | 90,768 |
| Earnings per share (in USD) | ||||
| Basic Earnings per share | 0.18 | 0.09 | 0.49 | 0.31 |
| Diluted Earnings per share | 0.17 | 0.09 | 0.47 | 0.30 |
| Other comprehensive Income | ||||
| Items that are or may be reclassified to profit or loss: | ||||
| Exchange difference on translation on foreign operations | (2,619) | (498) | 5,210 | (6,771) |
| Other comprehensive income for the period, net of tax | (2,619) | (498) | 5,210 | (6,771) |
| Total comprehensive income for the period | 49,171 | 26,313 | 146,475 | 83,997 |
| Total comprehensive income for the period is attributable to: | ||||
| Owners of the Group | 49,257 | 26,301 | 146,441 | 83,979 |
| Non-controlling interest | (86) | 12 | 34 | 18 |
| Total comprehensive income for the period | 49,171 | 26,313 | 146,475 | 83,997 |
dLocal Limited
Certain financial information
Consolidated Condensed Interim Statements of Financial Position as of September 30, 2025 and June 30, 2025
(All amounts in thousands of U.S. dollars)
| Three months ended September 30 | ||
| 2025 | 2025 | |
| September 30, 2025 | June 30, 2025 | |
| ASSETS | ||
| Current Assets | ||
| Cash and cash equivalents | 604,467 | 476,939 |
| Financial assets at fair value through profit or loss | 95,026 | 125,526 |
| Trade and other receivables | 576,389 | 487,320 |
| Derivative financial instruments | 828 | 691 |
| Other assets | 30,328 | 29,888 |
| Total Current Assets | 1,307,038 | 1,120,364 |
| Non-Current Assets | ||
| Trade and other receivables | 13,823 | 14,698 |
| Deferred tax assets | 5,428 | 5,961 |
| Property, plant and equipment | 4,116 | 4,208 |
| Right-of-use assets | 3,212 | 4,124 |
| Intangible assets | 71,754 | 68,165 |
| Other assets | 3,383 | 3,792 |
| Total Non-Current Assets | 101,716 | 100,948 |
| TOTAL ASSETS | 1,408,754 | 1,221,312 |
| LIABILITIES | ||
| Current Liabilities | ||
| Trade and other payables | 816,729 | 691,081 |
| Lease liabilities | 1,147 | 1,201 |
| Tax liabilities | 14,806 | 14,330 |
| Derivative financial instruments | 1,606 | 2,555 |
| Financial liabilities | 63,079 | 56,806 |
| Provisions | 388 | 544 |
| Total Current Liabilities | 897,755 | 766,517 |
| Non-Current Liabilities | ||
| Deferred tax liabilities | 3,768 | 3,918 |
| Lease liabilities | 2,566 | 2,697 |
| Total Non-Current Liabilities | 6,334 | 6,615 |
| TOTAL LIABILITIES | 904,089 | 773,132 |
| EQUITY | ||
| Share Capital | 588 | 587 |
| Share Premium | - | 192,820 |
| Treasury Shares | - | (200,980) |
| Capital Reserve | 40,418 | 39,241 |
| Other Reserves | (15,758) | (13,190) |
| Retained earnings | 479,283 | 429,482 |
| Total Equity Attributable to owners of the Group | 504,531 | 447,960 |
| Non-controlling interest | 134 | 220 |
| TOTAL EQUITY | 504,665 | 448,180 |
| TOTAL EQUITY AND LIABILITIES | 1,408,754 | 1,221,312 |
dLocal Limited
Certain interim financial information.
Consolidated Statements of Cash flows for the three-month and nine-month periods September 30, 2025 and 2024
(All amounts in thousands of U.S. dollars)
| Three months ended September 30 | Nine months ended September 30 | |||
| 2025 | 2024 | 2025 | 2024 | |
| Cash flows from operating activities | ||||
| Profit before income tax | 61,178 | 29,097 | 164,103 | 110,228 |
| Adjustments: | ||||
| Interest Income from financial instruments | (8,424) | (7,430) | (19,506) | (21,345) |
| Interest charges for lease liabilities | 64 | 44 | 146 | 131 |
| Other interests charges | (167) | 1,220 | 2,284 | 3,020 |
| Finance expense related to derivative financial instruments | 1,497 | 7,765 | 5,088 | 20,089 |
| Net exchange differences | 2,632 | 12,705 | 16,539 | 18,873 |
| Fair value loss/(gain) on financial assets at FVPL | (2,115) | 95 | (14,250) | (33,494) |
| Amortization of Intangible assets | 5,540 | 4,033 | 15,179 | 11,147 |
| Depreciation and disposals of PP&E and right-of-use | 1,244 | 484 | 2,432 | 1,232 |
| Share-based payment expense, net of forfeitures | 6,840 | 6,204 | 17,771 | 17,441 |
| Other operating loss | 2,397 | 578 | 5,300 | 3,950 |
| Net Impairment loss/(gain) on financial assets | (5) | 8 | 1,796 | (93) |
| Inflation adjustment and other financial results | (3,570) | 515 | 5,693 | (11,359) |
| 67,111 | 55,318 | 202,576 | 119,820 | |
| Changes in working capital | ||||
| Increase in Trade and other receivables | (90,587) | 48,999 | (82,551) | (53,159) |
| Decrease / (Increase) in Other assets | 1,049 | (1,204) | 3,249 | 1,299 |
| Increase / (Decrease) in Trade and Other payables | 125,649 | (49,489) | 218,943 | 63,743 |
| Increase / (Decrease) in Tax Liabilities | (2,695) | (7,099) | (4,658) | 651 |
| Increase / (Decrease) in Provisions | (156) | 2 | (112) | (84) |
| Cash (used) / generated from operating activities | 100,371 | 46,528 | 337,447 | 132,270 |
| Income tax paid | (5,198) | (6,956) | (22,403) | (23,923) |
| Net cash (used) / generated from operating activities | 95,174 | 39,571 | 315,044 | 108,347 |
| Cash flows from investing activities | ||||
| Acquisitions of Property, plant and equipment | (220) | (52) | (1,680) | (1,278) |
| Additions of Intangible assets | (9,129) | (5,379) | (23,615) | (15,243) |
| Acquisition of financial assets at FVPL | (13,904) | (9,775) | (147,369) | (106,616) |
| Collections of financial assets at FVPL | 45,056 | 9,796 | 179,027 | 108,097 |
| Interest collected from financial instruments | 8,424 | 7,430 | 19,506 | 21,345 |
| Payments for investments in other assets at FVPL | - | - | (12,500) | - |
| Net cash (used in) / generated investing activities | 30,227 | 2,020 | 13,369 | 6,305 |
| Cash flows from financing activities | ||||
| Repurchase of shares | - | (19,316) | - | (101,067) |
| Share-options exercise paid | 474 | 1,403 | 1,414 | 1,495 |
| Dividends paid | - | - | (149,982) | - |
| Interest payments on lease liability | (64) | (44) | (146) | (131) |
| Principal payments on lease liability | (370) | (371) | (1,511) | (440) |
| Finance expense paid related to derivative financial instruments | (2,584) | (3,970) | (7,665) | (15,009) |
| Net proceeds from financial liabilities | 10,908 | 16,775 | 22,922 | 16,775 |
| Interest payments on financial liabilities | (4,621) | (648) | (10,622) | (648) |
| Other finance expense paid | (25) | (724) | (2,138) | (1,123) |
| Net cash used in by financing activities | 3,718 | (6,895) | (147,728) | (100,148) |
| Net increase in cash flow | 129,118 | 34,696 | 180,685 | 14,504 |
| Cash and cash equivalents at the beginning of the period | 476,939 | 531,620 | 425,172 | 536,160 |
| Net (decrease)/increase in cash flow | 129,118 | 34,697 | 180,685 | 14,504 |
| Effects of exchange rate changes on inflation and cash and cash equivalents | (1,590) | (5,784) | (1,390) | 9,868 |
| Cash and cash equivalents at the end of the period | 604,467 | 560,532 | 604,467 | 560,532 |
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
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