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- **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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

DLO

DLO fundamentals

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