dLocal Reports 2025 First Quarter Financial Results

Rhea-AI Summary

dLocal (NASDAQ:DLO) reported strong Q1 2025 financial results with record highs across key metrics. Total Payment Volume (TPV) reached $8.1B, up 53% YoY and 5% QoQ, with 72% YoY growth in constant currency. Revenue grew 18% YoY to $216.8M, while gross profit increased 35% YoY to $84.9M. The company achieved an Adjusted EBITDA of $57.9M, up 57% YoY, with an impressive EBITDA/Gross Profit ratio of 68%. Net income surged 163% YoY to $46.7M ($0.15 per diluted share). Free cash flow showed strong performance at $39.7M, up 200% YoY. The company maintained a robust financial position with $511.5M in cash and cash equivalents, including $355.9M in corporate cash.

Positive

• Record TPV of $8.1B, showing strong 53% YoY growth (72% in constant currency)
• Net income surged 163% YoY to $46.7M
• Strong free cash flow of $39.7M, up 200% YoY
• Adjusted EBITDA increased 57% YoY to $57.9M with improved margin of 27%
• Robust cash position of $511.5M, with corporate cash increasing by $38.1M QoQ

Negative

• Gross profit over TPV decreased to 1.05% from 1.19% YoY
• Increased processing costs in South Africa and Nigeria affecting performance
• Partial volume loss with a large merchant in Mexico
• Higher costs in Brazil due to migration to Payment Orchestration model

Insights

Financial Analyst

dLocal delivered exceptional Q1 results with record TPV of $8.1B (+53% YoY), strong profit growth (+163% YoY), and improving operational efficiency.

dLocal has posted stellar Q1 2025 results, hitting record highs across all key metrics. The Total Payment Volume reached $8.1 billion, growing an impressive 53% year-over-year and 5% quarter-over-quarter. In constant currency terms, TPV growth would have been even more remarkable at 72% YoY, indicating strong underlying business momentum despite currency headwinds.

Revenue performance was equally strong at $216.8 million, up 18% YoY and 6% QoQ. The quarter-over-quarter revenue growth outpacing TPV growth was primarily driven by a higher share of cross-border transactions, which typically carry better economics. However, this was partially offset by seasonal effects in Mexico and partial volume loss from a large merchant.

Profitability metrics showed remarkable improvement. Gross profit reached $84.9 million, increasing 35% YoY with gross margin expanding to 39% from 34% a year ago. This margin expansion demonstrates the company's ability to generate higher-value transactions despite a slight sequential margin compression from Q4's 41%.

The efficiency of dLocal's business model is evident in its operating leverage. Operating profit surged 70% YoY to $45.8 million, with operating expenses growing only 8% YoY despite continued investments in capabilities. Adjusted EBITDA grew 57% to $57.9 million, with EBITDA margin expanding to 27% from 20% a year ago. The ratio of Adjusted EBITDA to gross profit improved to 68%, marking the fourth consecutive quarter of improvement in this efficiency metric.

Net income showed the most dramatic improvement, soaring 163% YoY to $46.7 million ($0.15 per diluted share). This was boosted by the positive mark-to-market effect on Argentine bond investments and lower finance costs. The effective tax rate declined to 10% from 27% in the previous quarter.

From a cash flow perspective, dLocal continues to demonstrate its capital-efficient model with free cash flow of $39.7 million, representing 85% conversion from net income. The corporate cash position strengthened to $355.9 million, an increase of $58 million from the year-ago period despite $100 million in share repurchases during 2024.

Geographic diversification continues, with notable performance in Chile and other Latin American markets, though there were some challenges in Brazil due to migration to a payment orchestration model and increased processing costs in certain African markets.

Record highs across key financial and operational metrics.
TPV milestone of US$8 billion, +53% YoY and +5% QoQ. In constant currency, TPV increased +72% YoY.
Revenue and gross profit record highs of US$217 million and US$85 million. Continued geographic diversification.
Adjusted EBITDA of US$58 million, with Adjusted EBITDA/Gross Profit at 68%, demonstrating our ability to scale efficiently.
Strong cash flow, with free cash flow to net income conversion at 85%, reinforcing cash generating financial model.

MONTEVIDEO, Uruguay, May 14, 2025 (GLOBE NEWSWIRE) -- DLocal Limited (“dLocal”, “we”, “us”, and “our”) (NASDAQ:DLO), a technology - first payments platform, today announced its financial results for the first quarter ended March 31, 2025.

dLocal’s management team will host a conference call and audio webcast on May 14, 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.

“The first quarter of 2025 demonstrated strong execution across many of the levers of our strategic plan. Our commercial team effectively leveraged existing merchant relationships and established new partnerships. Financially, we executed our investment plan in a responsible and efficient manner. In addition, our operations and technology teams delivered improved effectiveness to our merchants, and our legal and regulatory teams focused on expanding our license portfolios,” said Pedro Arnt, CEO of dLocal.

First 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$8.1 billion in the first quarter, up 53% year-over-year compared to US$5.3 billion in the first quarter of 2024 and up 5% compared to US$7.7 billion in the fourth quarter of 2024. In constant currency, TPV growth for the period would have been 72% year-over-year.
• Revenues amounted to US$216.8 million, up 18% year-over-year compared to US$184.4 million in the first quarter of 2024 and up 6% compared to US$204.5 million in the fourth quarter of 2024. This quarter-over-quarter increase, above TPV growth, was driven by higher cross-border share in the mix, and partially offset by Mexico, given the commerce seasonality effect in the fourth quarter and partial volume loss with a large merchant. In constant currency, revenue growth for the period would have been 36% year-over-year.
• Gross profit was US$84.9 million in the first quarter of 2025, up 35% compared to US$63.0 million in the first quarter of 2024 and up 1% compared to US$83.7 million in the fourth quarter of 2024. The quarter-over-quarter comparison was primarily due to (i) Argentina, with gross profit following revenue trends, in addition to increasing advancement volumes (which have higher take rates) and wider FX spreads in Q1 2025 vs Q4 2024; and (ii) Other LatAm markets, with notable performance in Chile. These positive factors were partially offset by (i) Brazil, due to the migration to the Payment Orchestration model, which brings lower take rates, coupled with one-off incremental processing costs; and (ii) Mexico, as explained above. In addition, despite volume growth across various countries, Other Africa and Asia was adversely affected by increased processing costs in South Africa and Nigeria. In constant currency, gross profit growth for the period would have been 59% year-over-year.
• As a result, gross profit margin was 39% in this quarter, compared to 34% in the first quarter of 2024 and 41% in the fourth quarter of 2024.
• Gross profit over TPV was at 1.05% decreasing from 1.19% in the first quarter of 2024 and from 1.09% compared to the fourth quarter of 2024.
• Operating profit was US$45.8 million, up 70% compared to US$26.9 million in the first quarter of 2024 and up 8% compared to US$42.3 million in the fourth quarter of 2024. Operating expenses grew by 8% year-over-year, explained by the increase in headcount, as we continue to invest in our capabilities. On the sequential comparison, operating expenses decreased by 6% quarter-over-quarter, primarily attributed to a reduction in G&A and Technology & Development expenses, driven by the decrease in third-party services, travel expenses and timing of implementation of new initiatives. This decrease was partially offset by the growth in headcount and increase in Sales & Marketing expenses, driven by key commercial events.
• As a result, Adjusted EBITDA was US$57.9 million, up 57% compared to US$36.8 million in the first quarter of 2024 and up 2% compared to US$56.9 million in the fourth quarter of 2024.
• Adjusted EBITDA margin was 27%, compared to the 20% recorded in the first quarter of 2024 and 28% in the fourth quarter of 2024. Adjusted EBITDA over gross profit of 68% increased compared to 58% in the first quarter of 2024 and slightly increased compared to 68% in the fourth quarter of 2024, marking the fourth consecutive quarter of improvement.
• Net financial result was US$7.0 million gain, compared to a net finance gain of US$0.2 million in the first quarter of 2024 and a net finance loss of US$1.1 million in the fourth quarter of 2024, as explained in the Net Income section.
• Our effective income tax rate decreased to 10% from 27% last quarter (or 16% when excluding the tax settlement, as mentioned in the fourth quarter earnings release), as result of higher cross-border share of pre-tax income and a lower pre-tax income in Brazil given the higher costs, as explained previously.
• Net income for the first quarter of 2025 was US$46.7 million, or US$0.15 per diluted share, up 163% compared to a profit of US$17.7 million, or US$0.06 per diluted share, for the first quarter of 2024 and up 57% compared to a profit of US$29.7 million, or US$0.10 per diluted share for the fourth quarter of 2024. During the current period, net income was mostly affected by the positive non-cash mark to market effect related to our Argentine bond investments and lower finance costs.
• Free cash flow for the first quarter of 2025 amounted to US$39.7 million, up 200% year-over-year compared to US$13.2 million in the first quarter of 2024 and up 22% compared to US$32.5 million in the fourth quarter of 2024. The variation quarter-over-quarter is primarily explained by improved operational results, partially offset by normal variability in corporate working capital and higher income tax paid and capex.
• As of March 31, 2025, dLocal had US$511.5 million in cash and cash equivalents, which includes US$355.9 million of Corporate cash and cash equivalents. The Corporate cash and cash equivalents increased by US$58.0 million from US$298.0 million as of March 31, 2024, despite the US$100 million in shares repurchased throughout 2024. When compared to the US$317.8 million Corporate cash and cash equivalents position as of December 31, 2024, it increased by US$38.1 million quarter-over-quarter.

The following table summarizes our key performance metrics:

	Three months ended March 31
	2025		2024		% change
Key Performance metrics	(In millions of US$ except for %)
TPV	8,107		5,310		53%
Revenue	216.8		184.4		18%
Gross Profit	84.9		63.0		35%
Gross Profit margin	39%		34%		5p.p
Adjusted EBITDA	57.9		36.8		57%
Adjusted EBITDA margin	27%		20%		7p.p
Adjusted EBITDA/Gross Profit	68%		58%		10p.p
Profit	46.7		17.7		163%
Profit margin	22%		10%		12p.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 March 31
	2025		2024
Profit for the period	46,667		17,718
Income tax expense	5,262		7,114
Depreciation and amortization	5,062		3,762
Finance income and costs, net	(6,969)		(299)
Share-based payment non-cash charges	6,020		4,461
Other operating loss¹	422		1,819
Impairment loss / (gain) on financial assets	386		(177)
Inflation adjustment	885		2,368
Other non-recurring costs²	123		-
Adjusted EBITDA	57,858		36,766

Note: ¹ The company wrote-off certain amounts related to merchants/processors off-boarded by dLocal. ² Other non-recurring costs consist of costs not directly associated with the Company’s core business activities, including costs associated with addressing the allegations made by a short-seller report and certain class action and other legal and regulatory expenses (which include fees from counsel, global expert services and a forensic accounting advisory firm) in 2025.

dLocal Limited Certain financial information Consolidated Condensed Interim Statements of Comprehensive Income for the three-month period ended March 31, 2025 and 2024 (All amounts in thousands of U.S. Dollars except share data or as otherwise indicated)
	Three months ended March 31
	2025		2024
Continuing operations
Revenues	216,759		184,430
Cost of services	(131,880)		(121,459)
Gross profit	84,879		62,971
Technology and development expenses	(6,767)		(5,465)
Sales and marketing expenses	(7,135)		(4,631)
General and administrative expenses	(24,324)		(24,332)
Impairment (loss)/gain on financial assets	(386)		177
Other operating (loss)/gain	(422)		(1,819)
Operating profit	45,845		26,901
Finance income	12,228		18,257
Finance costs	(5,259)		(17,958)
Inflation adjustment	(885)		(2,368)
Other results	6,084		(2,069)
Profit before income tax	51,929		24,832
Income tax expense	(5,262)		(7,114)
Profit for the period	46,667		17,718
Profit attributable to:
Owners of the Group	46,630		17,708
Non-controlling interest	37		10
Profit for the period	46,667		17,718
Earnings per share (in USD)
Basic Earnings per share	0.16		0.06
Diluted Earnings per share	0.15		0.06
Other comprehensive income
Items that may be reclassified to profit or loss:
Exchange difference on translation on foreign operations	3,526		(669)
Other comprehensive income for the period, net of tax	3,526		(669)
Total comprehensive income for the period, net of tax	50,193		17,049
Total comprehensive income for the period
Owners of the Group	50,174		17,036
Non-controlling interest	19		13
Total comprehensive income for the period	50,193		17,049

dLocal Limited Certain financial information Consolidated Condensed Interim Statements of Financial Position as of March 31, 2025 and December 31, 2024 (All amounts in thousands of U.S. dollars)
		March 31, 2025		December 31, 2024
ASSETS
Current Assets
Cash and cash equivalents		511,506		425,172
Financial assets at fair value through profit or loss		125,487		129,319
Trade and other receivables		477,349		496,713
Derivative financial instruments		463		2,874
Other assets		28,001		18,805
Total Current Assets		1,142,806		1,072,883
Non-Current Assets
Trade and other receivables		15,518		18,044
Deferred tax assets		5,468		5,367
Property, plant and equipment		4,007		3,377
Right-of-use assets		3,852		3,645
Intangible assets		65,301		63,318
Other assets		4,695		4,695
Total Non-Current Assets		98,841		98,446
TOTAL ASSETS		1,241,647		1,171,329
LIABILITIES
Current Liabilities
Trade and other payables		614,133		597,787
Lease liabilities		1,107		1,137
Tax liabilities		20,631		21,515
Derivative financial instruments		1,098		6,227
Financial liabilities		54,248		50,455
Provisions		543		500
Total Current Liabilities		691,760		677,621
Non-Current Liabilities
Deferred tax liabilities		1,862		1,858
Lease liabilities		2,825		2,863
Total Non-Current Liabilities		4,687		4,721
TOTAL LIABILITIES		696,447		682,342
EQUITY
Share Capital		570		570
Share Premium		187,671		186,769
Treasury Shares		(200,980)		(200,980)
Capital Reserve		38,556		33,438
Other Reserves		(17,390)		(20,934)
Retained earnings		536,654		490,024
Total Equity Attributable to owners of the Group		545,081		488,887
Non-controlling interest		119		100
TOTAL EQUITY		545,200		488,987
TOTAL EQUITY AND LIABILITIES		1,241,647		1,171,329

dLocal Limited Certain interim financial information Consolidated Statements of Cash flows for the three-month period ended March 31, 2025 and 2024 (All amounts in thousands of U.S. dollars)
	Three months ended March 31
	2025		2024
Cash flows from operating activities
Profit before income tax	51,929		24,832
Adjustments:
Interest Income from financial instruments	(5,106)		(7,442)
Interest charges for lease liabilities	41		43
Other interests charges	883		127
Finance expense related to derivative financial instruments	414		9,878
Net exchange differences	4,142		7,637
Fair value loss/(gain) on financial assets at FVPL	(7,343)		(10,815)
Amortization of Intangible assets	4,584		3,424
Depreciation and disposals of PP&E and right-of-use	703		400
Share-based payment expense, net of forfeitures	6,020		4,461
Other operating gain	422		1,819
Net Impairment loss/(gain) on financial assets	386		(177)
Inflation adjustment and other financial results	6,083		(5,892)
	63,158		28,295
Changes in working capital
Increase in Trade and other receivables	21,082		(32,836)
Decrease / (Increase) in Other assets	1,025		3,219
Increase / (Decrease) in Trade and Other payables	16,346		45,964
Increase / (Decrease) in Tax Liabilities	965		(1,120)
Increase / (Decrease) in Provisions	43		4
Cash (used) / generated from operating activities	102,619		43,526
Income tax paid	(7,208)		(3,558)
Net cash (used) / generated from operating activities	95,411		39,968
Cash flows from investing activities
Acquisitions of Property, plant and equipment	(945)		(786)
Additions of Intangible assets	(6,567)		(5,022)
Acquisition of financial assets at FVPL	(41,374)		-
Collections of financial assets at FVPL	47,416		(243)
Interest collected from financial instruments	5,106		7,442
Payments for investments in other assets at FVPL	(10,000)		-
Net cash (used in) / generated investing activities	(6,364)		1,391
Cash flows from financing activities
Interest payments on lease liability	(41)		(43)
Principal payments on lease liability	(663)		(95)
Finance expense paid related to derivative financial instruments	(3,132)		(10,151)
Net proceeds from financial liabilities	5,790		-
Interest payments on financial liabilities	(2,166)		-
Other finance expense paid	(714)		(127)
Net cash used in by financing activities	(926)		(10,416)
Net increase in cash flow	88,121		30,943
Cash and cash equivalents at the beginning of the period	425,172		536,160
Net (decrease)/increase in cash flow	88,121		30,943
Effects of exchange rate changes on inflation and cash and cash equivalents	(1,787)		5,254
Cash and cash equivalents at the end of the period	511,506		572,357

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

FAQ

What were dLocal's (DLO) key financial results for Q1 2025?

dLocal reported Q1 2025 revenue of $216.8M (+18% YoY), TPV of $8.1B (+53% YoY), and net income of $46.7M (+163% YoY). Adjusted EBITDA reached $57.9M with a 27% margin.

How much cash does dLocal (DLO) have as of Q1 2025?

dLocal had $511.5M in total cash and cash equivalents, including $355.9M in corporate cash as of March 31, 2025.

What was dLocal's (DLO) earnings per share in Q1 2025?

dLocal reported diluted earnings per share of $0.15, up from $0.06 in Q1 2024.

How did dLocal's (DLO) free cash flow perform in Q1 2025?

Free cash flow reached $39.7M, showing significant growth of 200% year-over-year and 22% quarter-over-quarter.

What were the main challenges for dLocal (DLO) in Q1 2025?

Key challenges included increased processing costs in South Africa and Nigeria, partial volume loss with a large merchant in Mexico, and higher costs in Brazil due to Payment Orchestration model migration.