What is the revenue and EPS growth rate for DLocal year over year?

What is DLocal's latest dividend and current dividend yield?

What factors drove the changes in DLocal's revenue and profit?

What guidance did DLocal's management provide for the next earnings period?

Did DLocal beat or miss consensus estimates last quarter?

What does DLocal do and what are its main business segments?

What were the key takeaways from DLocal's earnings call?

What is DLocal's gross profit margin?

- **Record Growth**: Q3 TPV ($10.4B, +59% YoY) and gross profit ($103M, +32% YoY) driven by Brazil, Colombia, and frontier markets. 
- **Sticky Merchant Base**: NRR jumps to 149%, with 2.5x QoQ BNPL volume growth. 
- **Risk Management**: Reduced Argentine bond exposure limits FX volatility, but Mexico tariffs and Brazil tax changes loom. 
- **Innovation Lead**: APM tokenization boosts conversion rates, while BNPL model avoids credit risk. 


**【CEO Summary Section】**
- Q3 2025 TPV reached $10.4 billion, up 59% YoY and 66% on a constant currency basis, driven by Brazil, Colombia, and frontier markets. Gross profit hit $103 million (+32% YoY), with adjusted EBITDA of $72 million (70% of gross profit). 
- Launched Buy Now, Pay Later (BNPL) aggregator in 6 countries, achieving 2.5x QoQ volume growth. Net retention rate (NRR) rose to 149%, reflecting merchant stickiness. 
- Risks include Mexico tariffs (slowing TPV growth) and Brazil tax regime changes, though current impact is minimal. 

**【CFO Financial Commentary】**
- Revenue: $282 million (+52% YoY), driven by cross-border (+75% YoY) and local-to-local (+46% YoY) flows. 
- Gross margin: 36.5% (down 4bps QoQ due to Argentina FX spread compression and Mexico APM mix shift). 
- Expenses: $48 million (+28% YoY) due to headcount growth, but adjusted EBITDA margin held steady at 70%. 
- Net income: $52 million, up from $38 million in Q2 due to reduced Argentine peso bond exposure. 

**【Q&A Key Highlights】**
- **Argentina FX**: Post-election stabilization led to TPV recovery, but FX volatility remains a risk. 
- **Brazil Tax**: New rules on foreign fund repatriation could benefit dLocal's cross-border model. 
- **Mexico Tariffs**: 15%+ tariffs on e-commerce imports caused Q3 slowdown; potential for further restrictions. 
- **BNPL Strategy**: Revenue share model with local partners avoids credit risk, targeting 60%+ take rate on BNPL volumes. 
- **APM Tokenization**: Yape (Peru) saw 34ppt conversion rate improvement, replicating card-on-file economics. 


DLocal Limited (DLO) Q3 2025 Earnings Call Transcript

- **Record growth**: Q2 2025 TPV ($9.2B, +53% YoY), revenue ($256M, +50% YoY), and gross profit ($99M, +42% YoY) driven by Brazil/Mexico recovery and emerging market expansion.
- **Strategic wins**: UAE/Turkey/Philippines licenses, SmartPix launch, and BNPL integrations boost payment method diversity.
- **Operational strength**: 71% EBITDA margin (vs. 68.3% Q1), $48M free cash flow, and 80% Argentine bond repatriation to reduce volatility.
- **Merchant diversification**: Top 50 merchants use 11 countries/48 payment methods, reducing reliance on top 3 markets (<50% of revenue).
- **Risks and opportunities**: Tariff impacts on cross-border e-commerce, stablecoin growth potential, and cautious cost management for H2.

**【CEO Summary Section】**
- **Record financial performance**: Q2 2025 TPV reached $9.2 billion (53% YoY growth), revenue $256 million (50% YoY), and gross profit $99 million (42% YoY). Brazil and Mexico rebounded strongly, while Africa/Asia markets grew 3x faster YoY.
- **Strategic expansion**: Added UAE, Turkey, and Philippines licenses, enhancing global financial services reach. SmartPix (Brazil) and BNPL integrations drove new payment method adoption.
- **Operational efficiency**: Adjusted EBITDA/Gross Profit ratio improved to 71%, up 2.7pts QoQ, despite $43 million net income hit from Argentine bond devaluation. Free cash flow $48 million, up 22% QoQ.
- **Merchant diversification**: Top 50 merchants now use 11 countries and 48 payment methods (vs. 8/35 18 months ago). Top 3 markets now <50% of revenue.

**【CFO Financial Commentary】**
- **Revenue dynamics**: 63% constant-currency growth, driven by Argentina, Brazil, and emerging markets. 18% QoQ growth due to pay-in dominance, offset by Egypt volume loss.
- **Gross profit**: 55% constant-currency growth, with Brazil recovery and Argentina volume gains. QoQ gross profit +17% despite Chile/Colombia retry costs.
- **Cost management**: OpEx $43 million (+10% QoQ, +9% YoY) due to tech/hiring, but EBITDA margin improved to 71%. Free cash flow $48 million, liquidity $254 million post-dividends.
- **One-time impacts**: Argentine peso devaluation reduced net income by $10 million. 80% bond portfolio repatriated to U.S. treasuries to reduce volatility.

**【Q&A Key Highlights】**
- **Growth sustainability**: Brazil/Mexico rebound, global merchant localization trend, and new product adoption (BNPL, stablecoins) support 50%+ TPV growth. Risks include tariffs, macro volatility, and regulatory changes.
- **Take rate trends**: Long-term downward pressure due to frontier market mix, but short-term stability from high-margin products (BNPL, stablecoins). Q2 take rate +3bps QoQ to 2.7%.
- **Stablecoin strategy**: Positioned as on/off-ramp provider for stablecoins, with partnerships (Circle, BVNK) and merchant settlement solutions. Viewed as opportunity, not threat.
- **Offline expansion**: Developing POS solutions for SMBs in response to merchant RFPs, with contracts pending announcement.
- **Cost outlook**: OpEx growth expected in H2 for product/compliance investments, but cautious management to maintain margin improvements.

DLocal Limited (DLO) Q2 2025 Earnings Call Transcript

- **Record Growth**: Q1 TPV of $8.1B (+53% YoY) fueled by cross-border expansion, with Argentina and Latin America leading.
- **AI-Driven Efficiency**: Automation cuts integration time to hours, improving merchant retention and operational leverage.
- **Dividend Policy**: 30% of free cash flow returned annually, plus $150M one-time dividend, balancing growth and shareholder returns.
- **Market Risks**: Mexico merchant share loss and Brazil processing costs highlight execution challenges, but diversification mitigates impact.

**【CEO Opening Remarks】**
- Q1 2025 TPV reached $8.1 billion, up 53% YoY and 5% QoQ, driven by cross-border growth in remittances, commerce, and streaming. Net retention rate of TPV was 144%, reflecting merchant stickiness.
- Cross-border TPV hit $4 billion for the first time, with strong contributions from Chile, Pakistan, Nigeria, and Brazil. Local-to-local TPV grew 33% YoY but declined 3% QoQ due to seasonality in Mexico.
- AI and automation initiatives improved operational efficiency, including chargeback handling and integration times reduced from days to hours.

**【CFO Financial Highlights】**
- Revenue: $217 million (18% YoY, 36% in constant currency), driven by Argentina and Latin America. Gross profit: $85 million (35% YoY, 60% in constant currency), with a 68% EBITDA-to-gross profit ratio.
- Operating expenses: $39 million (-6% QoQ, +8% YoY), reflecting cost control despite headcount growth. Free cash flow: $40 million (85% of net income), with $512 million in cash.

**【Capital Allocation Update】**
- Board approved a dividend policy returning 30% of free cash flow annually, plus a one-time $150 million dividend. Dividends aim to balance growth reinvestment with shareholder returns.

**【Q&A Key Takeaways】**
- **Argentina Sustainability**: Growth driven by installment payments and merchant diversification; take rate dynamics tied to consumer financing trends.
- **Mexico Challenges**: Share loss from a large merchant, but sequential growth suggests potential recovery with better execution.
- **Brazil Recovery**: Volumes stabilizing post-gateway migration; cross-border and digital wallet innovations expected to drive future growth.
- **M&A Strategy**: Actively evaluating subscale FinTech assets for strategic fit, with cash reserves supporting opportunistic deals.

DLocal Limited (DLO) Q1 2025 Earnings Call Transcript

- **Record Growth**: Q4 TPV of $7.7B (+51% YoY) and revenue of $200M (+9% YoY) highlight strong execution in emerging markets.
- **Profitability Expansion**: Gross profit up 20% YoY to $84M, adjusted EBITDA margin 68%, with free cash flow of $33M.
- **Strategic Investments**: 9 new licenses, including UK FCA, and $41M in R&D to drive long-term scalability.
- **2025 Outlook**: TPV growth sustained via merchant wallet share gains, offsetting 15bps take rate compression.
- **Risk Management**: Hedging and processor renegotiations mitigate currency volatility, with 2025 guidance excluding midterm targets due to macro uncertainty.

**【CEO Summary Section】**
- **Market Leadership & Growth**: Q4 2024 TPV reached $7.7 billion, up 51% YoY and 18% QoQ, driven by cross-border flows (+67% YoY) and local-to-local transactions (+38% YoY). Key markets like Argentina, Egypt, and South Africa contributed to diversification.
- **Financial Highlights**: Revenue hit $746 million for the year, with Q4 revenue at $200 million (+9% YoY). Gross profit reached $84 million in Q4, up 20% YoY. Adjusted EBITDA margin improved to 68%.
- **Investment Strategy**: Expanded license portfolio with 9 new registrations, including a UK FCA payment institution license. Investments in product development and local operations aim to drive long-term scalability.
- **2025 Guidance**: TPV growth expected to remain robust, with focus on capturing share of wallet from large merchants and expanding into frontier markets. Take rate compression anticipated but offset by higher-margin verticals.

**【CFO Financial Commentary】**
- **Revenue & Profitability**: Q4 revenue of $200 million (+9% YoY) reflected growth in Argentina, Egypt, and South Africa. Gross profit of $84 million (+20% YoY) driven by Africa/Asia expansion. Adjusted EBITDA of $57 million (+9% QoQ) highlighted operational efficiency.
- **Cost Management**: Operating expenses rose 12% QoQ to $41 million, with 70% YoY growth in R&D. Free cash flow of $33 million (+25% QoQ) supported liquidity.
- **Currency Impact**: Emerging market currency weakness reduced revenue growth by ~30 points YoY. Hedging strategies and processor renegotiations mitigated take rate decline (1.1% Q4).

**【Q&A Key Themes】**
- **FX Volatility**: Guidance assumes steady FX rates, with potential headwinds from currency depreciation. Q4 saw $7.7B TPV in constant currency, 80% higher YoY.
- **Take Rate Compression**: 15bps YoY decline driven by large merchants hitting pricing tiers. Offset by frontier market expansion (e.g., remittances, ride-hailing) and new products like stablecoins.
- **Cash Flow Dynamics**: Q4 cash decrease due to delayed merchant settlements and shorter payment cycles from new orchestration model. 2025 free cash flow expected to grow with disciplined reinvestment.
- **Market Share & Innovation**: Licensing strategy enhances merchant trust and compliance. Payment orchestration model rolled out in Brazil, with plans for select large markets.
- **Competitive Position**: Retention rate >140% shows merchant loyalty. 2024 cohort TPV retention highest on record, driven by e-commerce and fintech wins.

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