DLocal's Q2 2025: Unpacking Contradictions in Growth and Take Rate Strategies Across Latin America

Growth in Argentina and Mexico, take rate sustainability in Argentina, take rates and pricing pressures, growth from new merchants, and growth sustainability and rate expectations are the key contradictions discussed in DLocal Limited's latest 2025Q2 earnings call.



Revenue and Growth:
- DLocal Limited reported revenue of $256 million for Q2 2025, with a 50% year-over-year growth and 63% on a constant currency basis.
- This was driven by strong volume growth, particularly in Brazil and Mexico, and significant contributions from markets like Argentina and Turkey.

Profitability and Financial Performance:
- The company's gross profit reached a record $99 million, up 42% year-over-year or approximately 55% on a constant currency basis.
- This is a result of volume growth in Argentina, Brazil, Egypt, and Mexico, along with contributions from other emerging markets like Bolivia, South Africa, and Turkey.

Operational Efficiency and Cost Management:
- DLocal improved its adjusted EBITDA to gross profit ratio, with this ratio reaching 71%, up 2.7 percentage points from the first quarter.
- This highlights the company's disciplined approach to cost management and operational leverage, despite ongoing investments in product, tech, and operations.

Expansion and Licensing:
- The company added three new licenses: UAE, Turkey, and the Philippines, expanding its portfolio of financial services licenses across the global south.
- This strategic move aims to offer merchants access to more financial services and payment methods, enhancing dLocal's value proposition.