DLocal (DLO) Q3 2025 earnings summary

Executive summary

• Achieved record TPV of $10.4 billion, up 59% year-over-year and 13% quarter-over-quarter, with revenue rising 52% year-over-year to $282.5 million and gross profit surpassing $100 million for the first time, up 32% year-over-year.

• Net income grew 93% year-over-year to $52 million, driven by lower finance costs after reducing exposure to Argentine peso-denominated bonds.

• Adjusted EBITDA rose 37% year-over-year to $72 million, representing 25% of revenue and 69% of gross profit.

• Business diversification increased, with half of the top 10 merchants being new compared to 24 months ago and net revenue retention at 149%.

• Continued product innovation with BNPL Fuse now live in 6 countries and 27 APMs on file across 16 markets.

Financial highlights

• TPV reached $10.4 billion (+59% YoY, +13% QoQ), revenue $282.5 million (+52% YoY, +10% QoQ), and gross profit $103 million (+32% YoY, +4% QoQ).

• Adjusted EBITDA was $72 million (+37% YoY), with a 69% Adjusted EBITDA/Gross Profit ratio.

• Net income totaled $52 million for the quarter, with an effective tax rate of 15%.

• Adjusted free cash flow was $38 million (+28% YoY, -22% QoQ), impacted by regulatory changes in Argentina.

• Net take rate declined to 0.99% due to mix shifts and margin pressure in Argentina and Mexico.

Outlook and guidance

• Guidance reiterated, with TPV and revenue expected to exceed the high end of previous ranges for the year.

• Gross profit and adjusted EBITDA are likely to be between the midpoint and upper end of guidance.

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

• Results are sensitive to macroeconomic volatility, regulatory changes, and seasonality, especially in Argentina, Mexico, and Brazil.

• Risks include evolving macro, currency, and trade conditions, including tariffs in Mexico and potential fiscal changes in Brazil.