dLocal's progress across various sectors, as discussed by CEO Pedro Arnt during Q2 2024 financial reports
In a recent announcement, digital payment solutions provider dLocal reported a remarkable Q2 2025 performance, with a total payment volume (TPV) of $9.2 billion—a 53% year-over-year increase—and strong revenue growth of 50% to $256.5 million.
The robust growth was primarily driven by increased demand for dLocal's payment solutions across multiple regions, particularly in Latin America, including Brazil and Mexico. Key drivers of this strong TPV and revenue growth include geographic expansion and scale, increased merchant adoption, operational efficiency, favourable market dynamics, and strong cash flow generation.
Geographic expansion and scale, fueled by continued growth in core markets like Brazil and Mexico, as well as solid demand in other emerging markets, contributed significantly to the volume increase. The company's ability to onboard more merchants leveraging its cross-border payment platform resulted in higher transaction volumes.
Operational efficiency and margin expansion, despite a slight decline in gross margin due to macroeconomic factors, saw dLocal effectively manage costs and realise adjusted EBITDA growth of 64%-85% year-over-year. This reflected operational leverage tied to higher volumes and revenues.
Free cash flow surged 156% year-over-year to $48 million, supporting ongoing investments and financial stability. The growing e-commerce in emerging markets and increased cross-border payments created higher demand for dLocal’s platform.
Company guidance also points to continued momentum, with expected TPV growth of 40%-50% and revenue growth of 30%-40% for the full year 2025. However, some margin pressure was noted due to currency devaluation effects, particularly the Argentine peso, which impacted net income and gross margin slightly despite revenue gains.
Looking back to Q2 2024, dLocal faced challenges such as currency devaluation, volatility, and merchant repricing in some markets. Despite these hurdles, the company's TPV reached a record high of $6.3 billion, with a 38% increase in TPV to $6 billion. The growth was due to the addition of new markets and increased wallet share from the company's global merchant base.
Pay-ins and pay-outs saw significant growth in Q2 2024, contributing to the overall TPV increase, although the exact drivers of this growth were not specified in the article. The Q2 2024 earnings surpassed analyst expectations, leading to an increase in the company's share price.
In an interview, dLocal's CEO Pedro Arnt discussed the drivers of Q2 2024 earnings and dLocal's ongoing strategy, but further details about this discussion were not provided. No information was given about any stock buybacks by dLocal in Q2 2024 or future plans for stock buybacks.
In summary, dLocal's record Q2 2025 payment volume and revenue dynamics were primarily driven by geographic and merchant expansion, strong cross-border payment demand, operational leverage, and favourable emerging market e-commerce trends. The company's robust performance in Q2 2025 and Q2 2024 underscores its position as a leading player in the digital payments industry.
Business expansion in multiple regions, particularly in Latin America, led to increased demand for dLocal's payment solutions, contributing to the impressive Q2 2025 performance. This growth in usage also opened up new opportunities for additional investment in the finance sector.
The company's success in Q2 2025, marked by a significant rise in both payment volume and revenue, reinforced dLocal's position as a key player in business sectors that rely heavily on cross-border digital payments.
