DLocal (DLO) Q2 2025 earnings summary

Executive summary

• Achieved record TPV of $9.2B, up 53% year-over-year and 14% quarter-over-quarter, with broad-based growth across geographies and verticals, especially in Brazil, Mexico, and new markets, driving diversification.

• Revenue reached an all-time high of $256.5M, up 50% year-over-year and 18% sequentially, driven by strong performance in Brazil, Mexico, Argentina, and new markets.

• Gross profit hit a record $98.9M, up 42% year-over-year, with margin expansion and operational leverage despite ongoing investment in product and technology.

• Adjusted EBITDA grew 64% year-over-year to $70.1M, with margin at 27% and Adjusted EBITDA over gross profit at 71%, marking five consecutive quarters of improvement.

• Net income was $42.8M, down 7% year-over-year, impacted by Argentine peso devaluation and bond portfolio reallocation; excluding this, net income would have been $53M.

Financial highlights

• TPV: $9.2B (+53% YoY, +14% QoQ); Revenue: $256.5M (+50% YoY, +18% QoQ); Gross profit: $98.9M (+42% YoY, +17% QoQ).

• Adjusted EBITDA: $70.1M (+64% YoY, +21% QoQ); Adjusted EBITDA margin: 27%; Adjusted EBITDA/Gross Profit ratio: 71%.

• Net income: $42.8M (-7% YoY, -8% QoQ); EPS (diluted): $0.14; Free cash flow: $48.4M (+156% YoY, +22% QoQ).

• Cash and equivalents at $254M as of June 30, 2025, down due to $150M dividend payments and share repurchases.

• Net take rate increased to 1.07% quarter-over-quarter, driven by higher pay-ins and cost recovery.

Outlook and guidance

• Raised full-year 2025 guidance: TPV growth 40–50% YoY, revenue growth 30–40% YoY, gross profit growth 27.5–37.5% YoY, Adjusted EBITDA growth 40–50% YoY.

• Guidance reflects strong H1 performance and anticipated sustained momentum.

• Optimistic for H2 2025, with continued strong momentum and business resilience.

• Expect to exceed prior upper limits for gross profit and adjusted EBITDA.

• Risks include global macroeconomic shifts, new tariffs in Mexico, regulatory changes, fiscal regime shifts in Brazil, and potential currency devaluations.