DLocal Limited

Latest Report Overview

DLocal Limited (DLO) reported for the fiscal year ended December 31, 2025 (Issuer fiscal FY2025) total revenues of $1,093.6 million, an increase of 46.6% year-over-year, and a profit for the year of $196.9 million. Adjusted EBITDA for the period reached $278.1 million, reflecting an Adjusted EBITDA Margin of 25.4%. The company's performance was driven by the continued expansion of its enterprise merchant base, which processed $40.8 billion in total payments volume (TPV), a 59.6% increase compared to 2024. Management highlighted successful growth in remittances, SaaS, commerce, ride-hailing, and on-demand delivery verticals. The company continues to invest in AI-driven technologies to enhance fraud detection, operational efficiency, and software development productivity. Management reiterated a commitment to disciplined growth and capital allocation, noting that the company returned $150 million to shareholders via dividends in 2025. Despite facing macroeconomic headwinds in some Latin American jurisdictions, dLocal remains focused on broadening its product suite, including 'SmartAPMs' and stablecoin-backed payout solutions, to maintain competitive differentiation in emerging market payments.

Key Takeaways for Dlocal Ltd.

• DLocal successfully transitioned to a nine-person, majority-independent Board of Directors, appointing five new independent members to enhance corporate governance.
• The company reported strong FY2025 financial performance with revenue of $1,093.6 million and TPV of $40.8 billion, representing 46.6% and 59.6% YoY growth, respectively.
• Legal proceedings involving securities class action lawsuits were partially resolved; the court dismissed the Zappia and Hunt actions on March 20, 2025, although plaintiffs filed an appeal in April 2025.
• DLocal exercised a call option to acquire certain assets and 100% share capital of Mint Code Solution S.A. (Cameroon) in February 2026, following a strategic restructuring of the originally planned AZA Finance acquisition.
• The 2026 Repurchase Program was authorized on March 13, 2026, with a capacity of up to $300 million, expiring in March 2027.
• Management noted a transition to stablecoin-backed funding for certain payout operations and improved efficiency via AI-driven compliance and software development.

What Does Dlocal Ltd. Do?

DLocal is a technology-focused payment processing provider enabling global enterprise merchants to conduct business in 44 emerging markets across Latin America, Africa, and Asia. The company's 'One dLocal' model uses a single API and contract to offer pay-in and pay-out solutions, significantly simplifying the complex payments landscape for global merchants in emerging markets. Their platform supports over 160 pay-in and 939 pay-out methods, catering to verticals such as e-commerce, streaming, ride-hailing, and financial services. With a cloud-based infrastructure and deep connectivity to local financial institutions and alternative payment methods, dLocal provides a comprehensive suite of value-added services, including tax handling, fraud management, and FX services. The company's primary customers are large global enterprises, with their top 50 merchants representing a significant share of transaction volumes. DLocal distinguishes itself through its ability to handle cross-border and local-to-local payments with high acceptance rates and seamless integration, making it a critical partner for merchants navigating high-growth but complex emerging markets.