DLocal (DLO) Q4 2025 earnings summary

Executive summary

• Achieved record TPV of $41 billion in 2025, up 60% year-over-year, with Q4 TPV at $13.1 billion, and revenue surpassed $1 billion for the first time, reaching $1.09 billion.

• Net income grew 63% year-over-year to $197 million, with Q4 net income up 87% to $56 million.

• Adjusted free cash flow rose 110% year-over-year to $191 million, with a 97% conversion rate.

• Expanded to 44 markets, nearly doubling footprint in five years, and diversified merchant base to over 760.

• AI-driven automation improved productivity, equivalent to 7% of total headcount.

Financial highlights

• Q4 2025 TPV reached $13.1 billion, up 70% year-over-year and 26% quarter-over-quarter.

• Q4 revenue was $338 million, up 65% year-over-year and 20% sequentially; gross profit was $116 million, up 38% year-over-year.

• Adjusted EBITDA for Q4 was $78 million, up 38% year-over-year; full year Adjusted EBITDA was $278 million, up 47%.

• Return on equity reached 35% in 2025, up 10 percentage points year-over-year.

• Adjusted free cash flow for Q4 was $65 million, doubling year-over-year with a 117% conversion ratio.

Outlook and guidance

• 2026 TPV growth expected at 50%-60% year-over-year; gross profit growth guided at 22.5%-27.5%; operating profit growth of 27.5%-32.5%.

• Margin pressure expected in 1H26 due to new OPEX baseline, with operating leverage improvements in 2H26.

• Continued high TPV retention rates and increasing contributions from new merchants and products anticipated.

• Key risks include emerging market volatility, FX risk, regulatory changes in Brazil, and tariff sensitivity in Mexico.