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

 

Exhibit 99.1

img175954462_0.jpg

 

dLocal Reports 2025 Third Quarter Financial Results

 

Record-setting quarter, one more example of our strong growth and continued diversification.

TPV at record high of US$10.4 billion, growing nearly 60% year-over-year, the 4th straight quarter above 50% year-over-year.

Revenue up +52% year-over-year reaching US$282 million for the quarter.

Gross profit surpassed US$100 million for the first time, reaching US$103 million, up +32% year-over-year.

Adjusted EBITDA up +37% year-over-year, representing 69% of gross profit as we continue our margin discipline.

Net income growth at 93% year-over-year. Continued healthy cash generation with US$38 million of Adjusted Free cash flow.

 

 

 

Montevideo, Uruguay, November 12, 2025 — DLocal Limited (“dLocal”, “we”, “us”, and “our”) (NASDAQ:DLO), a technology - first payments platform, today announced its financial results for the third quarter ended September 30, 2025.

dLocal’s management team will host a conference call and audio webcast on November 12, 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 delivered another record quarter, the first time with TPV above US$10 billion and gross profit that surpassed US$100 million, one more example of our strong growth and continued diversification, all of which underscore the potential and resilience of our business model,” said Pedro Arnt, CEO of dLocal.

 

 

Third 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$10.4 billion in the third quarter, up 59% year-over-year compared to US$6.5 billion in the third quarter of 2024 and up 13% compared to US$9.2 billion in the second quarter of 2025. In constant currency, TPV growth for the period would have been 66% year-over-year.
Revenues amounted to US$282.5 million, up 52% year-over-year compared to US$185.8 million in the third quarter of 2024 and up 10% compared to US$256.5 million in the second quarter of 2025. The quarter-over-quarter increase is explained by volume growth. In constant currency, revenue growth for the period would have been 63% year-over-year.
Gross profit was US$103.2 million in the third quarter of 2025, up 32% compared to US$78.2 million in the third quarter of 2024 and up 4% compared to US$98.9 million in the second quarter of 2025. The quarter-over-quarter comparison is explained by (i) volume growth across frontier markets, with strong performance in Colombia, Bolivia, and Nigeria; and (ii) Brazil's solid growth across streaming, e-commerce and advertising coupled with a higher share of pay-ins. This positive result was offset by (i) Egypt, given the full‑quarter impact of previously referenced share‑of‑wallet losses; (ii) Argentina, reflecting lower interest-rate spreads, temporary increase in processing costs, and non-cash IFRS inflation adjustment; and (iii) payment mix shift towards an APM with temporary margin pressure in Mexico, as well as a slowdown in TPV growth likely driven by increased tariffs on imports. In constant currency, gross profit growth for the period would have been 41% year-over-year.
As a result, gross profit margin was 37% in this quarter, compared to 42% in the third quarter of 2024 and 39% in the second quarter of 2025.
Gross profit over TPV was at 0.99%, decreasing from 1.20% in the third quarter of 2024 and 1.07% compared to the second quarter of 2025.
Operating profit was US$55.6 million, up 35% compared to US$41.1 million in the third quarter of 2024 and flat

 


 

compared to US$55.8 million in the second quarter of 2025. Operating expenses grew by 28% year-over-year, as we continue to invest in our capabilities. On the sequential comparison, operating expenses increased by 10% quarter-over-quarter, driven mostly by salaries and wages, especially in sales & marketing and technology, partially offset by a US$1 million decrease in impairment losses on financial assets.
As a result, Adjusted EBITDA was US$71.7 million, up 37% compared to US$52.4 million in the third quarter of 2024 and up 2% compared to US$70.1 million in the second quarter of 2025.
Adjusted EBITDA margin was 25%, compared to the 28% recorded in the third quarter of 2024 and 27% in the second quarter of 2025. Adjusted EBITDA over gross profit of 69% increased compared to 67% in the third quarter of 2024 and decreased compared to 71% in the second quarter of 2025.
Net financial result was US$6.4 million gain, compared to a net finance loss of US$10.1 million in the third quarter of 2024 and a net finance loss of US$3.8 million in the second quarter of 2025, as explained in the Net Income section.
Our effective income tax rate for the period was 15%, broadly in line with the prior quarter’s 16%.
Net income for the third quarter of 2025 was US$51.8 million, or US$0.17 per diluted share, up 93% compared to a profit of US$26.8 million, or US$0.09 per diluted share, for the third quarter of 2024 and up 21% compared to a profit of US$42.8 million, or US$0.14 per diluted share for the second quarter of 2025. During the current period, net income was impacted by lower finance costs following the reduction of our exposure to Argentine peso denominated bonds.
Adjusted Free cash flow for the third quarter of 2025 amounted to US$37.6 million, up 28% year-over-year compared to US$29.3 million in the third quarter of 2024 and down -22% compared to US$48.4 million in the second quarter of 2025. The variation quarter-over-quarter is mostly affected by a short term impact of $13.1 million expected to reverse over next few quarters from the structuring used to expatriate flows from Argentina after regulatory changes during the third quarter 2025.
As of September 30, 2025, dLocal had US$604.5 million in cash and cash equivalents, which includes US$333.1 million of Corporate cash and cash equivalents. The Corporate cash and cash equivalents increased by US$59.7 million from US$273.4 million as of September 30, 2024. When compared to the US$253.8 million Corporate cash and cash equivalents position as of June 30, 2025, it increased by US$79.3 million quarter-over-quarter.

 

The following table summarizes our key performance metrics:

 

 

 

Three months ended September 30

Nine months ended September 30

 

2025

2024

% change

2025

2024

% change

Key Performance metrics

(In millions of US$ except for %)

TPV

10,390

6,516

59%

27,709

17,861

55%

Revenue

282.5

185.8

52%

755.7

541.5

40%

Gross Profit

103.2

78.2

32%

287.0

211.0

36%

Gross Profit margin

37%

42%

-6p.p

38%

39%

-1p.p

Adjusted EBITDA

71.7

52.4

37%

199.7

131.8

51%

Adjusted EBITDA margin

25%

28%

-3p.p

26%

24%

2p.p

Adjusted EBITDA/Gross Profit

69%

67%

2p.p

70%

62%

7p.p

Profit

51.8

26.8

93%

141.3

90.8

56%

Profit margin

18%

14%

4p.p

19%

17%

2p.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 September 30

Nine months ended September 30

 

2025

2024

2025

2024

Profit for the period

51,790

26,811

141,265

90,768

Income tax expense

9,388

2,286

22,838

19,460

Depreciation and amortization

6,129

4,438

16,731

12,289

Finance income and costs, net

(6,383)

10,085

(9,566)

(18,259)

Share-based payment non-cash charges

6,840

6,204

17,771

17,441

Other operating loss¹

2,398

578

5,300

3,950

Secondary offering expenses

739

-

739

-

Impairment loss / (gain) on financial assets

(5)

8

1,796

(93)

Inflation adjustment

794

1,954

2,663

6,263

Other non-recurring costs

-

-

123

-

Adjusted EBITDA

71,690

52,364

199,659

131,819

 

Note: 1 The Company wrote off certain amounts primarily related to merchants and processors that have been off-boarded or for which the balances are no longer considered recoverable by dLocal.

 

 

Adjusted Free Cash Flow reconciliation

 


 

 

 

We calculate “Adjusted Free Cash Flow” as net cash (used in) / generated from cash flows from operating activities, less (i) changes in working capital (merchant), and (ii) capital expenditures. The working capital (merchant) is defined as (i) changes in Trade receivables net (disclosed in note 17 to our 3Q25 Financial Statements), plus (ii) changes in Trade payables (disclosed in note 20 to our 3Q25 Financial Statements), plus (iii) changes in Other tax liabilities (disclosed in note 21 to our 3Q25 Financial Statements). Capital expenditures consist of acquisitions of property, plant and equipment and additions of intangible assets.

 

Management uses Adjusted Free Cash Flow as a measure for evaluating the corporate cash generation and the cash available for distribution to our shareholders as dividends pursuant to our dividend policy. Adjusted Free Cash Flow is not a financial measure recognized under IFRS and does not purport to be an alternative to cash generated from operating activities or as a measure of liquidity. Our presentation of Adjusted Free Cash Flow has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under IFRS. See below for a reconciliation of our Adjusted Free Cash Flow to the nearest IFRS measure.

 

The table below presents a reconciliation of dLocal’s Adjusted Free Cash Flow reconciliation:

 

 

 

$ in thousands (except percentages)

Three months ended September 30

Nine months ended September 30

 

2025

2024

2025

2024

Net cash (used in ) / generated from operating activities

95,174

39,571

315,044

108,347

Changes in working capital (merchant)¹

(48,226)

(4,847)

(163,974)

(33,726)

Capital expenditures²

(9,349)

(5,431)

(25,295)

(16,521)

Adjusted Free Cash Flow

37,599

29,293

125,775

58,100

 

 

Note: 1 Changes in working capital (merchant) consists of (i) changes in the period in the balance of trade receivables net, plus (ii) changes in the period in the balance of trade payables, plus (iii) changes in the period in the balance of other tax liabilities. 2 Capital expenditures consist of acquisitions of property, plant and equipment and Additions of Intangible Assets.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

dLocal Limited

Certain financial information

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

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

 

Three months ended September 30

Nine months ended September 30

 

2025

2024

2025

2024

Continuing operations

 

 

 

 

Revenues

282,483

185,774

755,700

541,483

Cost of services

(179,294)

(107,594)

(468,747)

(330,521)

Gross profit

103,189

78,180

286,953

210,962

 

 

 

 

 

Technology and development expenses

(8,844)

(6,930)

(22,991)

(18,803)

Sales and marketing expenses

(8,139)

(6,892)

(20,116)

(16,028)

General and administrative expenses

(28,224)

(22,636)

(79,551)

(74,042)

Impairment (loss)/gain on financial assets

5

(8)

(1,796)

93

Other operating loss

(2,398)

(578)

(5,300)

(3,950)

Operating profit

55,589

41,136

157,199

98,232

Finance income

10,418

7,335

33,756

54,839

Finance costs

(4,035)

(17,420)

(24,189)

(36,580)

Inflation adjustment

(794)

(1,954)

(2,663)

(6,263)

Other results

5,589

(12,039)

6,904

11,996

Profit before income tax

61,178

29,097

164,103

110,228

Income tax expense

(9,388)

(2,286)

(22,838)

(19,460)

Profit for the period

51,790

26,811

141,265

90,768

 

 

 

 

 

Profit attributable to:

 

 

 

 

Owners of the Group

51,825

26,782

141,265

90,734

Non-controlling interest

(35)

29

-

34

Profit for the period

51,790

26,811

141,265

90,768

 

 

 

 

 

Earnings per share (in USD)

 

 

 

 

Basic Earnings per share

0.18

0.09

0.49

0.31

Diluted Earnings per share

0.17

0.09

0.47

0.30

 

 

 

 

 

Other comprehensive Income

 

 

 

 

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

 

 

 

 

Exchange difference on translation on foreign operations

(2,619)

(498)

5,210

(6,771)

Other comprehensive income for the period, net of tax

(2,619)

(498)

5,210

(6,771)

Total comprehensive income for the period

49,171

26,313

146,475

83,997

 

 

 

 

 

Total comprehensive income for the period is attributable to:

Owners of the Group

49,257

26,301

146,441

83,979

Non-controlling interest

(86)

12

34

18

Total comprehensive income for the period

49,171

26,313

146,475

83,997

 

dLocal Limited

 


 

Certain financial information

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

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

 

 

Three months ended September 30

 

2025

2025

 

September 30, 2025

June 30, 2025

ASSETS

 

 

Current Assets

 

 

Cash and cash equivalents

604,467

476,939

Financial assets at fair value through profit or loss

95,026

125,526

Trade and other receivables

576,389

487,320

Derivative financial instruments

828

691

Other assets

30,328

29,888

Total Current Assets

1,307,038

1,120,364

 

 

 

Non-Current Assets

 

 

Trade and other receivables

13,823

14,698

Deferred tax assets

5,428

5,961

Property, plant and equipment

4,116

4,208

Right-of-use assets

3,212

4,124

Intangible assets

71,754

68,165

Other assets

3,383

3,792

Total Non-Current Assets

101,716

100,948

TOTAL ASSETS

1,408,754

1,221,312

 

 

 

LIABILITIES

 

 

Current Liabilities

 

 

Trade and other payables

816,729

691,081

Lease liabilities

1,147

1,201

Tax liabilities

14,806

14,330

Derivative financial instruments

1,606

2,555

Financial liabilities

63,079

56,806

Provisions

388

544

Total Current Liabilities

897,755

766,517

 

 

 

Non-Current Liabilities

 

 

Deferred tax liabilities

3,768

3,918

Lease liabilities

2,566

2,697

Total Non-Current Liabilities

6,334

6,615

TOTAL LIABILITIES

904,089

773,132

 

 

 

EQUITY

 

 

Share Capital

588

587

Share Premium

-

192,820

Treasury Shares

-

(200,980)

Capital Reserve

40,418

39,241

Other Reserves

(15,758)

(13,190)

Retained earnings

479,283

429,482

Total Equity Attributable to owners of the Group

504,531

447,960

Non-controlling interest

134

220

TOTAL EQUITY

504,665

448,180

TOTAL EQUITY AND LIABILITIES

1,408,754

1,221,312

 

 

 

 

dLocal Limited

Certain interim financial information.

Consolidated Statements of Cash flows for the three-month and nine-month periods September 30, 2025 and 2024

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

 


 

 

Three months ended September 30

Nine months ended September 30

 

2025

2024

2025

2024

Cash flows from operating activities

 

 

 

 

Profit before income tax

61,178

29,097

164,103

110,228

Adjustments:

 

 

 

 

Interest Income from financial instruments

(8,424)

(7,430)

(19,506)

(21,345)

Interest charges for lease liabilities

64

44

146

131

Other interests charges

(167)

1,220

2,284

3,020

Finance expense related to derivative financial instruments

1,497

7,765

5,088

20,089

Net exchange differences

2,632

12,705

16,539

18,873

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

(2,115)

95

(14,250)

(33,494)

Amortization of Intangible assets

5,540

4,033

15,179

11,147

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

1,244

484

2,432

1,232

Share-based payment expense, net of forfeitures

6,840

6,204

17,771

17,441

Other operating loss

2,397

578

5,300

3,950

Net Impairment loss/(gain) on financial assets

(5)

8

1,796

(93)

Inflation adjustment and other financial results

(3,570)

515

5,693

(11,359)

 

67,111

55,318

202,576

119,820

Changes in working capital

 

 

 

 

Increase in Trade and other receivables

(90,587)

48,999

(82,551)

(53,159)

Decrease / (Increase) in Other assets

1,049

(1,204)

3,249

1,299

Increase / (Decrease) in Trade and Other payables

125,649

(49,489)

218,943

63,743

Increase / (Decrease) in Tax Liabilities

(2,695)

(7,099)

(4,658)

651

Increase / (Decrease) in Provisions

(156)

2

(112)

(84)

Cash (used) / generated from operating activities

100,371

46,528

337,447

132,270

Income tax paid

(5,198)

(6,956)

(22,403)

(23,923)

Net cash (used) / generated from operating activities

95,174

39,571

315,044

108,347

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

Acquisitions of Property, plant and equipment

(220)

(52)

(1,680)

(1,278)

Additions of Intangible assets

(9,129)

(5,379)

(23,615)

(15,243)

Acquisition of financial assets at FVPL

(13,904)

(9,775)

(147,369)

(106,616)

Collections of financial assets at FVPL

45,056

9,796

179,027

108,097

Interest collected from financial instruments

8,424

7,430

19,506

21,345

Payments for investments in other assets at FVPL

-

-

(12,500)

-

Net cash (used in) / generated investing activities

30,227

2,020

13,369

6,305

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

Repurchase of shares

-

(19,316)

-

(101,067)

Share-options exercise paid

474

1,403

1,414

1,495

Dividends paid

-

-

(149,982)

-

Interest payments on lease liability

(64)

(44)

(146)

(131)

Principal payments on lease liability

(370)

(371)

(1,511)

(440)

Finance expense paid related to derivative financial instruments

(2,584)

(3,970)

(7,665)

(15,009)

Net proceeds from financial liabilities

10,908

16,775

22,922

16,775

Interest payments on financial liabilities

(4,621)

(648)

(10,622)

(648)

Other finance expense paid

(25)

(724)

(2,138)

(1,123)

Net cash used in by financing activities

3,718

(6,895)

(147,728)

(100,148)

Net increase in cash flow

129,118

34,696

180,685

14,504

 

 

 

 

 

Cash and cash equivalents at the beginning of the period

476,939

531,620

425,172

536,160

Net (decrease)/increase in cash flow

129,118

34,697

180,685

14,504

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

(1,590)

(5,784)

(1,390)

9,868

Cash and cash equivalents at the end of the period

604,467

560,532

604,467

560,532

 

 

 

 

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