EX-99.1 2 dlo-ex99_1.htm EX-99.1 EX-99.1

 

Exhibit 99.1

img175954462_0.jpg

 

dLocal Reports 2025 Second Quarter Financial Results

TPV at record high of US$9.2 billion, growing more than 50% YoY for the third consecutive quarter.

Brazil and Mexico posted solid results, while growth remains fastest in the rest of our geographies, leading to increased diversification.

Consistent operational leverage with Adjusted EBITDA over Gross Profit increasing for the fifth straight quarter (71% for the second quarter of 2025).

Continued strong cash flow generation with US$48 million of FCF (free cash flow).

Upward adjustment on our full-year 2025 guidance for TPV, Revenue, Gross Profit and Adjusted EBITDA.

Montevideo, Uruguay, August 13, 2025 — DLocal Limited (“dLocal”, “we”, “us”, and “our”) (NASDAQ:DLO), a technology - first payments platform, today announced its financial results for the second quarter ended June 30, 2025.

dLocal’s management team will host a conference call and audio webcast on August 13, 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 are pleased to report another quarter of solid growth and disciplined execution, with significant acceleration across our key financial metrics. These results are a testament to our high-growth, expanding margin, and healthy free cash flow business model, and they demonstrate the substantial value we provide to our merchants,” said Pedro Arnt, CEO of dLocal.

Governance changes

Board of Directors structure change: we are committed to transitioning to a majority independent Board. We have begun the search for additional independent directors, and we are also constituting Nominating & Corporate Governance and Compensation Committees.
Cancellation of treasury shares: we will cancel the treasury shares currently held on our balance sheet, underscoring our ability to deliver strong growth while returning excess capital to shareholders.

2025 guidance update (year-over-year growth rates versus 2024):

TPV: 40%-50% YoY
Revenue: 30%-40% YoY
Gross profit: 27.5%-37.5% YoY
Adjusted EBITDA: 40%-50% YoY

Our updated guidance reflects the strong performance in the first half of the year and the sustained momentum anticipated across our business. While we remain optimistic, we encourage careful consideration of the outlined risks:

The evolving macroeconomic, currency and trade landscape globally and its potential impact on emerging markets.

 


 

The recent increase in tariffs in Mexico, along with potential trade barriers in other markets.
Shifting fiscal regimes in Brazil.
The potential for currency devaluations and/or changes in FX regimes in Argentina and Egypt.

Second 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$9.2 billion in the second quarter, up 53% year-over-year compared to US$6.0 billion in the second quarter of 2024 and up 14% compared to US$8.1 billion in the first quarter of 2025. In constant currency, TPV growth for the period would have been 65% year-over-year.
Revenues amounted to US$256.5 million, up 50% year-over-year compared to US$171.3 million in the second quarter of 2024 and up 18% compared to US$216.8 million in the first quarter of 2025. The quarter-over-quarter increase, exceeding TPV growth, was driven by a higher share of pay-ins. This positive result was partly offset by Egypt, where we experienced a partial volume loss due to a large merchant implementing redundancies in the market in addition to lower FX spreads as a result of the currency devaluation. In constant currency, revenue growth for the period would have been 63% year-over-year.
Gross profit was US$98.9 million in the second quarter of 2025, up 42% compared to US$69.8 million in the second quarter of 2024 and up 17% compared to US$84.9 million in the first quarter of 2025. The quarter-over-quarter comparison was primarily due to (i) performance in Brazil, given a higher share of installment payments and the recovery of one-off processing costs from the previous quarter; (ii) Argentina's strong performance, driven by higher volumes and increase in advancements, fully offsetting the impact of lower FX spreads; and (iii) performance in other Africa & Asia markets, particularly in South Africa, due to volume growth and lower processing costs. This positive result was offset by Egypt, as mentioned previously, and Other LatAm markets, that despite volume growth across various countries, were adversely affected by retry costs invoiced during this quarter in Chile and Colombia. Excluding Chile and Colombia, these markets grew 9%. In constant currency, gross profit growth for the period would have been 55% year-over-year.
As a result, gross profit margin was 39% in this quarter, compared to 41% in the second quarter of 2024 and 39% in the first quarter of 2025.
Gross profit over TPV was at 1.07% decreasing from 1.16% in the second quarter of 2024 and increasing from 1.05% compared to the first quarter of 2025.
Operating profit was US$55.8 million, up 85% compared to US$30.2 million in the second quarter of 2024 and up 22% compared to US$45.8 million in the first quarter of 2025. Operating expenses grew by 9% year-over-year, as we continue to invest in our capabilities. On the sequential comparison, operating expenses increased by 10% quarter-over-quarter, primarily linked to increase in headcount, especially in tech, and higher third party services.
As a result, Adjusted EBITDA was US$70.1 million, up 64% compared to US$42.7 million in the second quarter of 2024 and up 21% compared to US$57.9 million in the first quarter of 2025.
Adjusted EBITDA margin was 27%, compared to the 25% recorded in the second quarter of 2024 and 27% in the first quarter of 2025. Adjusted EBITDA over gross profit of 71% increased compared to 61% in the second quarter of 2024 and 68% in the first quarter of 2025, marking the fifth consecutive quarter of improvement.
EBITDA was US$61.3 million, up 79% compared to US$34.3 million in the second quarter of 2024 and up 20% compared to US$50.9 million in the first quarter of 2025.
Net financial result was US$3.8 million loss, compared to a net finance gain of US$28.0 million in the second quarter of 2024 and a net finance gain of US$7.0 million in the first quarter of 2025, as explained in the Net Income section.
Our effective income tax rate increased to 16% from 10% last quarter, as a result of higher local-to-local share of pre-tax income. As mentioned in the previous quarter, the effective tax rate in the first quarter of 2025 was favorably impacted by a one-off cost in Brazil.
Net income for the second quarter of 2025 was US$42.8 million, or US$0.14 per diluted share, down 7% compared to a

 


 

profit of US$46.2 million, or US$0.15 per diluted share, for the second quarter of 2024 and down 8% compared to a profit of US$46.7 million, or US$0.15 per diluted share for the first quarter of 2025. During the current period, net income was negatively impacted by the Argentine peso’s devaluation on our bond portfolio. Given the shifting market dynamics, we took the opportunity to expatriate funds from Argentina more efficiently, reducing our position by over 80% and reallocating to US treasuries.
Free cash flow for the second quarter of 2025 amounted to US$48.4 million, up 156% year-over-year compared to US$19.0 million in the second quarter of 2024 and up 22% compared to US$39.7 million in the first quarter of 2025. The variation quarter-over-quarter is primarily explained by improved operational results, partially offset by higher income tax paid.
As of June 30, 2025, dLocal had US$476.9 million in cash and cash equivalents, which includes US$253.8 million of Corporate cash and cash equivalents. The Corporate cash and cash equivalents increased by US$1.1 million from US$252.7 million as of June 30, 2024. When compared to the US$355.9 million Corporate cash and cash equivalents position as of March 31, 2025, it decreased by US$102.1 million quarter-over-quarter, explained by the payment of US$150.0 million in dividends in June 2025.

The following table summarizes our key performance metrics:

Three months ended June 30

Six months ended June 30

2025

2024

% change

2025

2024

% change

Key Performance metrics

(In millions of US$ except for %)

TPV

9,212

6,035

53%

17,319

11,346

53%

Revenue

256.5

171.3

50%

473.2

355.7

33%

Gross Profit

98.9

69.8

42%

183.8

132.8

38%

Gross Profit margin

39%

41%

-2p.p

39%

37%

2p.p

Adjusted EBITDA

70.1

42.7

64%

128.0

79.5

61%

Adjusted EBITDA margin

27%

25%

2p.p

27%

22%

5p.p

Adjusted EBITDA/Gross Profit

71%

61%

10p.p

70%

60%

10p.p

Profit

42.8

46.2

-7%

89.5

64.0

40%

Profit margin

17%

27%

-10p.p

19%

18%

1p.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 June 30

Six months ended June 30

2025

2024

2025

2024

Profit for the period

42,808

46,239

89,475

63,957

Income tax expense

8,188

10,060

13,450

17,174

Depreciation and amortization

5,540

4,089

10,602

7,851

Finance income and costs, net

3,785

(28,045)

(3,184)

(28,344)

Share-based payment non-cash charges

4,911

6,776

10,931

11,237

Other operating loss¹

2,480

1,553

2,902

3,372

Impairment loss / (gain) on financial assets²

1,415

76

1,801

(101)

Inflation adjustment

984

1,941

1,869

4,309

Other non-recurring costs

-

-

123

-

Adjusted EBITDA

70,111

42,689

127,969

79,455

Note: 1 The company wrote-off certain amounts mainly related to merchants/processors off-boarded by dLocal. 2 Refer to Note 17 - Trade and Other Receivables in the Financial Statements dated June 30, 2025, for detailed information.

 


 

dLocal Limited

Certain financial information

Consolidated Statements of Comprehensive Income for the three-month and six-month periods ended June 30, 2025 and 2024

(All amounts in thousands of U.S. Dollars except share data or as otherwise indicated)

Three months ended June 30

Six months ended June 30

2025

2024

2025

2024

Continuing operations

Revenues

256,458

171,279

473,217

355,709

Cost of services

(157,573)

(101,468)

(289,453)

(222,927)

Gross profit

98,885

69,811

183,764

132,782

Technology and development expenses

(7,380)

(6,408)

(14,147)

(11,873)

Sales and marketing expenses

(4,842)

(4,505)

(11,977)

(9,136)

General and administrative expenses

(27,003)

(27,074)

(51,327)

(51,406)

Impairment (loss)/gain on financial assets

(1,415)

(76)

(1,801)

101

Other operating loss

(2,480)

(1,553)

(2,902)

(3,372)

Operating profit

55,765

30,195

101,610

57,096

Finance income

11,110

29,247

23,338

47,504

Finance costs

(14,895)

(1,202)

(20,154)

(19,160)

Inflation adjustment

(984)

(1,941)

(1,869)

(4,309)

Other results

(4,769)

26,104

1,315

24,035

Profit before income tax

50,996

56,299

102,925

81,131

Income tax expense

(8,188)

(10,060)

(13,450)

(17,174)

Profit for the period

42,808

46,239

89,475

63,957

Profit attributable to:

Owners of the Group

42,810

46,244

89,440

63,952

Non-controlling interest

(2)

(5)

35

5

Profit for the period

42,808

46,239

89,475

63,957

Earnings per share (in USD)

Basic Earnings per share

0.15

0.16

0.31

0.22

Diluted Earnings per share

0.14

0.15

0.30

0.21

Other comprehensive Income

 


 

Items that are or may be reclassified to profit or loss:

Exchange difference on translation on foreign operations

4,303

(5,604)

7,829

(6,273)

Other comprehensive income for the period, net of tax

4,303

(5,604)

7,829

(6,273)

Total comprehensive income for the period

47,111

40,635

97,304

57,684

Total comprehensive income for the period is attributable to:

Owners of the Group

47,010

40,642

97,184

57,678

Non-controlling interest

101

(7)

120

6

Total comprehensive income for the period

47,111

40,635

97,304

57,684

 


 

dLocal Limited

Certain financial information

Consolidated Condensed Interim Statements of Financial Position as of June 30, 2025 and March 31, 2025

(All amounts in thousands of U.S. dollars)

Three months ended June 30

2025

2025

June 30, 2025

March 31, 2025

ASSETS

Current Assets

Cash and cash equivalents

476,939

511,506

Financial assets at fair value through profit or loss

125,526

125,487

Trade and other receivables

487,320

477,349

Derivative financial instruments

691

463

Other assets

29,888

28,001

Total Current Assets

1,120,364

1,142,806

Non-Current Assets

Trade and other receivables

14,698

15,518

Deferred tax assets

5,961

5,468

Property, plant and equipment

4,208

4,007

Right-of-use assets

4,124

3,852

Intangible assets

68,165

65,301

Other assets

3,792

4,695

Total Non-Current Assets

100,948

98,841

TOTAL ASSETS

1,221,312

1,241,647

LIABILITIES

Current Liabilities

Trade and other payables

691,081

614,133

Lease liabilities

1,201

1,107

Tax liabilities

14,330

20,631

Derivative financial instruments

2,555

1,098

Financial liabilities

56,806

54,248

Provisions

544

543

Total Current Liabilities

766,517

691,760

Non-Current Liabilities

Deferred tax liabilities

3,918

1,862

Lease liabilities

2,697

2,825

Total Non-Current Liabilities

6,615

4,687

TOTAL LIABILITIES

773,132

696,447

EQUITY

Share Capital

587

570

Share Premium

192,820

187,671

Treasury Shares

(200,980)

(200,980)

Capital Reserve

39,241

38,556

Other Reserves

(13,190)

(17,390)

Retained earnings

429,482

536,654

Total Equity Attributable to owners of the Group

447,960

545,081

Non-controlling interest

220

119

TOTAL EQUITY

448,180

545,200

TOTAL EQUITY AND LIABILITIES

1,221,312

1,241,647

 


 

dLocal Limited

Certain interim financial information.

Consolidated Statements of Cash flows for the three-month and six-month periods ended June 30, 2025 and 2024

(All amounts in thousands of U.S. dollars)

Three months ended June 30

Six months ended June 30

2025

2024

2025

2024

Cash flows from operating activities

Profit before income tax

50,996

56,299

102,925

81,131

Adjustments:

Interest Income from financial instruments

(5,976)

(6,473)

(11,083)

(13,915)

Interest charges for lease liabilities

41

44

82

87

Other interests charges

1,568

1,673

2,452

1,800

Finance expense related to derivative financial instruments

3,177

2,446

3,591

12,324

Net exchange differences

9,765

(1,469)

13,908

6,168

Fair value loss/(gain) on financial assets at FVPL

(4,791)

(22,774)

(12,134)

(33,589)

Amortization of Intangible assets

5,055

3,690

9,639

7,114

Depreciation and disposals of PP&E and right-of-use

485

348

1,188

748

Share-based payment expense, net of forfeitures

4,911

6,776

10,931

11,237

Other operating gain

2,480

1,553

2,902

3,372

Net Impairment loss/(gain) on financial assets

1,415

76

1,801

(101)

Inflation adjustment and other financial results

3,180

(5,982)

9,265

(11,874)

72,306

36,207

135,467

64,502

Changes in working capital

Increase in Trade and other receivables

(13,046)

(69,322)

8,036

(102,158)

Decrease / (Increase) in Other assets

1,176

(716)

2,200

2,503

Increase / (Decrease) in Trade and Other payables

76,948

67,268

93,294

113,232

Increase / (Decrease) in Tax Liabilities

(2,928)

8,870

(1,963)

7,750

Increase / (Decrease) in Provisions

1

(90)

44

(86)

Cash (used) / generated from operating activities

134,457

42,218

237,078

85,743

Income tax paid

(9,998)

(13,409)

(17,206)

(16,967)

Net cash (used) / generated from operating activities

124,459

28,808

219,872

68,776

Cash flows from investing activities

Acquisitions of Property, plant and equipment

(515)

(440)

(1,460)

(1,226)

Additions of Intangible assets

(7,919)

(4,842)

(14,486)

(9,864)

Acquisition of financial assets at FVPL

(92,090)

(96,841)

(133,464)

(96,841)

Collections of financial assets at FVPL

86,555

98,544

133,970

98,301

Interest collected from financial instruments

5,976

6,473

11,083

13,915

Payments for investments in other assets at FVPL

(2,500)

-

(12,500)

-

Net cash (used in) / generated investing activities

(10,493)

2,894

(16,857)

4,285

Cash flows from financing activities

Repurchase of shares

-

(81,751)

-

(81,751)

Share-options exercise paid

940

92

940

92

Dividends paid

(149,982)

-

(149,982)

-

Interest payments on lease liability

(41)

(44)

(82)

(87)

Principal payments on lease liability

(478)

26

(1,141)

(69)

Finance expense paid related to derivative financial instruments

(1,948)

(888)

(5,080)

(11,039)

Net proceeds from financial liabilities

6,223

-

12,014

-

Interest payments on financial liabilities

(3,835)

-

(6,001)

-

Other finance expense paid

(1,399)

(272)

(2,113)

(399)

Net cash used in by financing activities

(150,520)

(82,837)

(151,445)

(93,253)

Net increase in cash flow

(36,554)

(51,135)

51,570

(20,192)

Cash and cash equivalents at the beginning of the period

511,506

572,357

425,172

536,160

Net (decrease)/increase in cash flow

(36,554)

(51,135)

51,570

(20,192)

Effects of exchange rate changes on inflation and cash and cash equivalents

1,987

10,398

197

15,652

Cash and cash equivalents at the end of the period

476,939

531,620

476,939

531,620

 

 


 

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