Q4 2025 Dlocal Ltd Earnings Call Transcript
Key Points
- DLocal Ltd (DLO) achieved a significant milestone with revenue surpassing $1 billion for the first time, driven by a 60% year-over-year increase in Total Payment Volume (TPV) to $41 billion.
- The company demonstrated strong customer loyalty and retention, with TPV retention at 158% and net revenue retention at 145%, indicating the value of their services.
- DLocal Ltd (DLO) expanded its innovation engine, launching Buy Now Pay Later products across six countries and a full-service stablecoin suite, enhancing its product offerings.
- The company reported strong cash generation, with adjusted free cash flow reaching $191 million, up 110% year-over-year, and a 97% conversion ratio.
- DLocal Ltd (DLO) continues to expand its global footprint, now processing payments in 44 markets across the Global South, nearly doubling its reach over the last five years.
- Despite strong revenue growth, DLocal Ltd (DLO) faces natural margin pressure due to scaling volume with established merchants and expanding into new payment methods and countries.
- Argentina's gross profit was negatively impacted by higher costs amid election-related FX and rate volatility, despite strong volume growth.
- The company anticipates operating leverage acceleration to become evident more towards the second half of 2026, indicating potential short-term pressure on operating expenses.
- DLocal Ltd (DLO) remains concentrated in terms of merchant partnerships, which could pose a risk if any major client relationship changes.
- The adoption of new products like stablecoins and Buy Now Pay Later is still in early stages, with significant contributions to revenue expected only in the medium term.
Good day. Thank you for standing by. Welcome to the dLocal Fourth Quarter 2025 Results. [Operator Instructions] Please be advised that today's call is being recorded.
I would now like to hand it over to the company for opening remarks.
Good afternoon, everyone, and thank you for joining the fourth quarter 2025 earnings call. If you have not seen the earnings release, as always, a copy is posted in the financial section of the Investor Relations website. On the call today, we have Pedro Arnt, Chief Executive Officer; Guillermo Lopes Perez, Chief Financial Officer; Christopher 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 dLocal's website at investor.dlocal.com. The recording will be available shortly after the event concluded.
Before proceeding, let me
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
