dLocal Delivers Record Growth in 2025—Net Income Surges 63% as Free Cash Flow Doubles
All-Time Highs Across Key Metrics: Revenue, TPV, and Net Income Surge
dLocal’s 2025 financial results reveal a company firing on all cylinders. For the year, total payment volume (TPV) surged to an all-time high of $41 billion—up 60% year-over-year—while revenue climbed 47% to break the $1 billion milestone for the first time. The fourth quarter was particularly strong, with TPV at $13.1 billion (up 70% year-over-year) and revenue reaching $338 million (up 65%).
Net income growth outpaced top-line gains, soaring 63% annually to $197 million. Adjusted free cash flow doubled to $191 million for the year, pushing the free cash flow to net income ratio to a robust 97%. The table below gives a concise look at the headline metrics driving the company’s impressive performance.
| Metric | Q4 2025 | Q4 2024 | 2025 | 2024 | % Change (Year) |
|---|---|---|---|---|---|
| TPV (US$B) | 13.1 | 7.7 | 40.8 | 25.6 | 60% |
| Revenue (US$M) | 337.9 | 204.5 | 1,093.6 | 746.0 | 47% |
| Gross Profit (US$M) | 115.8 | 83.7 | 402.8 | 294.7 | 37% |
| Net Income (US$M) | 55.6 | 29.7 | 196.9 | 120.5 | 63% |
| Adj. Free Cash Flow (US$M) | 64.9 | 32.5 | 190.7 | 90.6 | 110% |
| Gross Profit Margin | 34% | 41% | 37% | 40% | -3pp |
| Adjusted EBITDA Margin | 23% | 28% | 25% | 25% | 0pp |
| Net Income Margin | 16% | 15% | 18% | 16% | 2pp |
Earnings Growth Accompanied by High Operating Leverage
Even as the company invested in new capabilities, operating profit rose 56%, reaching $220 million for the year. Adjusted EBITDA grew 47% to $278 million. These gains highlight dLocal’s ability to combine rapid growth with efficiency—Adjusted EBITDA accounted for 68% of gross profit in the fourth quarter, underscoring best-in-class operating leverage.
Some margin compression was visible as volume discounts to large merchants and expansion into new geographies took hold. Gross profit margin slipped from 41% to 34% year-over-year for the quarter, and the adjusted EBITDA margin declined from 28% to 23%. While investors should watch these trends, management suggests this is a natural effect of scaling with established global merchants and expanding product offerings in new regions.
Cash Generation Soars and Shareholder Returns Strengthened
Free cash flow stood out, with a 110% jump year-over-year. Cash and cash equivalents ended the year at $719.9 million (up markedly from $425.2 million a year earlier), providing a comfortable liquidity cushion. True to its dividend policy, dLocal’s board declared a $57 million cash dividend, about $0.19 per share, and announced an additional $300 million share repurchase program—underscoring management’s confidence in ongoing cash generation.
Strategic Outlook: Sustained High Growth Expected in 2026
Looking ahead to 2026, dLocal continues to target industry-leading growth: TPV is projected to increase by 50–60%, with gross profit growth of 22.5–27.5% and operating profit expected to climb 27.5–32.5% year-over-year. The company does caution that volatility from emerging market macro, FX, and regulation—in Brazil, Argentina, and Mexico in particular—remains a watchpoint for investors.
| Metric | 2025 Actual | 2026 Guidance |
|---|---|---|
| TPV | $40.8B | +50% to +60% YoY |
| Gross Profit | $403M | +22.5% to +27.5% YoY |
| Operating Profit | $220M | +27.5% to +32.5% YoY |
Key Takeaway: Profitability, Growth, and Robust Cash Remain in Focus
dLocal closes 2025 as a standout among payments players in emerging markets, pairing rapid top-line expansion with disciplined cost management and robust cash generation. Rising volumes and revenue come with margin pressures, but the company’s high net income growth and strong cash generation give management ample firepower to reward shareholders and invest in further scale. Investors should keep an eye on dLocal’s ability to balance margin stability with its winning growth trajectory as it looks to 2026 and beyond.
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