DLocal (DLO) Q1 2025 earnings summary

Executive summary

• Achieved record highs in TPV ($8.1B), revenue ($217M), and gross profit ($85M) for Q1 2025, with strong execution across commercial, operational, and regulatory initiatives despite macroeconomic volatility.

• Net income surged to $47M, up 163% year-over-year and 57% quarter-over-quarter, aided by positive non-cash mark-to-market effects and lower finance costs.

• Strategic investments in technology, automation, and AI enhanced operational efficiency, customer experience, and integration speed.

• Continued geographic diversification and efficient scaling, supported by robust cash generation and operational leverage.

• Partnerships with major merchants like Temu, Zepz, and Rappi expanded, supporting global merchant growth in Africa, Asia, and Latin America.

Financial highlights

• TPV reached $8.1B, up 53% year-over-year and 5% quarter-over-quarter; in constant currency, TPV grew 72% year-over-year.

• Revenue grew 18% year-over-year (36% in constant currency) to $217M, with gross profit up 35% year-over-year to $85M.

• Adjusted EBITDA was $58M (27% margin), up 2% quarter-over-quarter and 57% year-over-year; net income was $47M, up 57% quarter-over-quarter and 163% year-over-year.

• Free cash flow was $40M, up 200% year-over-year and 22% sequentially; cash and equivalents totaled $512M, with $125M in short-term investments.

• Gross profit margin was 39%, up from 34% year-over-year but down from 41% quarter-over-quarter.

Outlook and guidance

• Full-year guidance reaffirmed, with expectations of continued growth and margin expansion, supported by innovation and operational leverage.

• Macro trends in emerging markets remain volatile but within expectations; no significant slowdown observed in Q2 to date.

• Take rate compression expected to continue at a slower pace, offset by expansion into higher take rate frontier markets and product innovation.

• Market trends remain favorable, with digital payment adoption and demographic shifts supporting growth.

• Recent tariff discussions may present strategic opportunities in emerging and frontier markets.