DLocal Ltd. Sees 30-40% Revenue Growth, Optimism Boosts Shares

DLocal (DLO) shares surged 31.31% to $15.35 on Thursday, driven by an optimistic outlook for full-year 2025 revenue growth of 30-40% and adjusted EBITDA growth of 40-50%. Despite potential macroeconomic uncertainties, the company expects sustained momentum across its business.

DLocal (DLO) shares surged 31.31% to $15.35 on Thursday, driven by an optimistic outlook for full-year 2025 revenue growth of 30-40% and adjusted EBITDA growth of 40-50%. The company's second-quarter 2025 results, released on August 13, 2025, highlighted robust performance across key financial metrics.

Key Highlights

- Total Payment Volume (TPV): DLocal reported a record high TPV of $9.2 billion, representing a 53% year-over-year (YoY) growth, marking the third consecutive quarter of over 50% YoY growth [1].
- Revenue: Revenue reached $256 million, up 50% YoY, with gross profit at $99 million, up 42% YoY [1].
- Adjusted EBITDA: Adjusted EBITDA grew 64% YoY to $70 million [1].
- Free Cash Flow: DLocal generated $48 million in free cash flow for the quarter [1].
- Outlook: The company raised its full-year 2025 guidance, predicting TPV growth of 40%-50%, revenue growth of 30%-40%, and adjusted EBITDA growth of 40%-50% [3].

Market Conditions and Risks

Despite the positive outlook, DLocal acknowledged potential macroeconomic uncertainties, including evolving currency risks, trade barriers, and shifting fiscal regimes in key markets such as Brazil, Argentina, and Egypt. The company also noted the impact of the Argentine peso devaluation on net income [1].

Expansion and Innovation

DLocal expanded its global footprint by adding three new licenses in the UAE, Turkey, and Philippines, and launched innovative products like SmartPix in Brazil and multiple Buy Now, Pay Later integrations [1]. The company's strategy to mitigate the impact of declining take rates through new product introductions and stablecoins highlights its focus on innovation and market diversification.

Conclusion

DLocal's strong performance in the second quarter of 2025, coupled with an optimistic outlook for the remainder of the year, has driven investor confidence. The company's ability to navigate potential macroeconomic risks and maintain robust growth underscores its resilience and potential for sustained success in the fintech sector.

References

[1] https://finance.yahoo.com/news/dlocal-ltd-dlo-q2-2025-071513682.html
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3U50UX:0-fintech-dlocal-hikes-2025-guidance-after-growth-beats-expectations/
[3] https://finance.yahoo.com/news/dlocal-reports-2025-second-quarter-200500152.html