Q3 2025 Dlocal Ltd Earnings Call Transcript
Key Points
- DLocal Ltd (DLO) achieved a record quarter with TPV surpassing $10 billion and gross profit exceeding $100 million, indicating strong growth and diversification.
- TPV grew nearly 60% year over year in dollars and 66% on a constant currency basis, marking the fourth consecutive quarter of TPV growth above 50%.
- Gross profit increased by 32% year over year, driven by strong volume growth in Brazil, Colombia, and other LatAm, Africa, and Asia segments.
- Adjusted EBITDA reached $72 million, representing 70% of gross profit, showcasing disciplined expense management and healthy operating leverage.
- DLocal Ltd (DLO) continues to innovate with new product launches like Buy Now, Pay Later Fuse and expanding APMs-on-file capabilities, enhancing merchant offerings and potential revenue streams.
- The company faced a volatile macroeconomic situation in Argentina, impacting gross profit due to lower interest rate spreads and increased processing costs.
- Temporary cost pressures in Mexico and potential headwinds from tariffs affected the quarter's performance.
- The net take rate was down sequentially, influenced by lower share from Egypt, volatility in Argentina, and payment mix shifts in Mexico.
- There are ongoing risks related to evolving global macroeconomic conditions, currency fluctuations, and trade barriers in emerging markets.
- Concerns about potential aggressive discounting by competitors during peak shopping seasons could impact future profitability.
(Operator Instructions) I will now hand the call over to the company.
Good afternoon, everyone, and thank you for joining the third-quarter 2025 earnings call. If you have not seen the earnings release, a copy is posted in the financial section of the Investor Relations website.
On the call today, you have Pedro Arnt, Chief Executive Officer; Jeffrey Brown, Interim Chief Financial Officer; Chris Stromeyer, SVP of Corporate Development; and Mirele Aragao, Head of Investor Relations.
A slide presentation has been provided to accompany the prepared remarks. This event is being broadcast live via webcast, and both the webcast and presentation may be accessed through the Dlocal website at investor.dlocal.com. The recording will be available shortly after the event is concluded.
Before proceeding, let me mention that any forward-looking statements included in the presentation or mentioned in this conference call are based on currently available information and Dlocal's current
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