Here’s our analysis of the Q&A session with Wall Street analysts. We’ll provide a summary of Wall Street questions and management’s answers.

Q&A — what Wall Street asked, and how management answered

1) Why the guidance raise—and is ~50% payment-volume growth sustainable?

• Question: What surprised you versus the start of the year, and how broad is the strength?

• Answer: Strength is broad-based—Brazil and Mexico recovered, Africa/Asia were strong (Egypt is the exception), and growth is not a single-merchant story; it’s largely the top 20 merchants expanding with dLocal into more countries and more local payment methods. They also see more global merchants moving along the “localization S-curve” (shifting from international acquiring to fully local payment setups).

• Why it matters: Supports the view that growth is coming from many levers (more countries, more methods, more categories), not just one hot client or region.

2) Take rate (revenue or gross profit per dollar of volume): up this quarter—what’s the trend from here?

• Question: You saw a small improvement—how should we think about the path going forward?

• Answer: Long-term, gently down. Merchants keep negotiating prices lower; dLocal pushes its own processor costs lower. Mix can offset this: more “pay-ins,” more frontier markets, and value-added services (like buy-now-pay-later and SmartPix) help. For Q3, they assume a slight decrease vs. Q2.

• Why it matters: Keeps expectations realistic: you shouldn’t model steady take-rate increases, but product mix can cushion the decline.

3) Argentina effects—do narrower FX (foreign-exchange) spreads hurt you?

• Question: You cited spread compression—how big a drag is it?

• Answer: Largely offsets. Narrower spreads reduce fees but also reduce costs; net impact is contained.

• Why it matters: Argentina is volatile; investors want to know if earnings are overly sensitive to currency mechanics.

4) Brazil—was Q2 helped by one-offs, and does that reverse?

• Question: You mentioned recovering one-off processing costs—does that create a tough comparison?

• Answer: Partly a reversal of last quarter’s costs, but not big enough to create a major headwind. Brazil also benefited from more installment payments and is expected to hold momentum into Q3 based on what they see so far.

• Why it matters: Eases fears that Brazil’s rebound was just accounting noise.

5) Egypt and retry costs in Chile/Colombia—are these contained?

• Question: How should we think about the durability of these headwinds?

• Answer: Egypt weakness reflects one large merchant and the devaluation. Chile/Colombia had retry costs that hit this quarter; excluding those, “other LatAm” grew 9%.

• Why it matters: Suggests issues are idiosyncratic, not structural.

6) Stablecoins—threat to your business or opportunity?

• Question: Many worry stablecoins bypass local processors.

• Answer: Management sees a clear opportunity. dLocal is well placed as an on-/off-ramp between local currencies and stablecoins, and that is where much of the margin sits (FX and local liquidity). They already settle in stablecoins for faster cross-border flows and have teams focused on this.

• Why it matters: Reframes a perceived risk into a revenue stream aligned with dLocal’s strengths.

7) New product interest—what are merchants actually asking for?

• Question: Which launches have the most demand?

• Answer: Credit at checkout without merchants taking balance-sheet risk (via buy-now-pay-later partners, revenue-share model); SmartPix to make Pix behave like a saved card; stablecoin services; and, by merchant request, select in-store (POS) solutions through partners.

• Why it matters: These raise attachment per merchant and help support take rates.

8) Tariffs and trade policy—where could it bite?

• Question: You flagged tariffs as a risk—how would they hit the model?

• Answer: Main risk is to cross-border volumes (for example, Mexico’s higher “de minimis” threshold for e-commerce imports). They’ve seen no impact yet; it’s a watch item if tariff “tit-for-tat” escalates or if new digital taxes appear.

• Why it matters: Cross-border commerce is a large category for dLocal; demand shocks would flow through volumes first.

9) Operating expenses—have you “turned the corner” on costs?

• Question: Costs looked well-controlled this quarter—what about the second half?

• Answer: Expect OpEx to rise in 2H: more hiring in product/tech/operations, expansion into new markets and products, and some third-party spend. Even so, the company continues to show operating leverage (profit growing faster than costs).

• Why it matters: Keeps margin expectations prudent while acknowledging continued efficiency.

10) Concentration—are results driven by just a few merchants?

• Question: How broad is the merchant contribution?

• Answer: Growth is not a “single whale”; it’s mainly the top 20. The top 10 are adding new countries and also giving dLocal a bigger share where they were already present.

• Why it matters: Lower reliance on any single customer path-de-risks the story.

Dlocal’s conference call has concluded. Shares are currently up about 20% after hours.

We’ll post our notes from the call shortly.

Dlocal’s conference call starts in 10 minutes. If you leave this blog open we’ll listen in and post the most important notes. That update will appear automatically once the call has ended.

Dlocal ran up 6.6% during the trading day and now shares are up another 16% after-hours.

Investors are clearly very happy with 1.) the company’s revenue figures from last quarter and 2.) the comapny raising guidance for 2025.

DLO | dLocal Q2’25 Earnings Highlights:

• Adj. EPS: $0.14 [✅]; [DOWN] -7% YoY
• Revenue: $256.5M [✅]; [UP] +50% YoY
• Adj. Gross Margin: 39% [❌]; [DOWN] -200 bps YoY
• Net Income: $42.8M [✅]; [DOWN] -7% YoY
• Free Cash Flow: $48.4M; [UP] +156% YoY

 Outlook:

• TPV: 40%-50% YoY
• Revenue: 30%-40% YoY
• Gross profit: 27.5%-37.5% YoY
• Adjusted EBITDA: 40%-50% YoY

• • Upward adjustment on our full-year 2025 guidance for TPV, Revenue, Gross Profit and Adjusted EBITDA.
  • While we remain optimistic, we encourage careful consideration of the outlined risks including macroeconomic factors and potential currency devaluations.

Other Key Q2 Metrics:

• Adj. Operating Income: $55.8M (Est. $X.XB) [✅]; [UP] +85% YoY
• Effective Tax Rate: 16% (vs. 10% YoY)
• Cash and Cash Equivalents: $476.9M; [DOWN] -7% YoY

CEO Commentary:

• Pedro Arnt: “We are pleased to report another quarter of solid growth and disciplined execution, with significant acceleration across our key financial metrics. These results are a testament to our high-growth, expanding margin, and healthy free cash flow business model, and they demonstrate the substantial value we provide to our merchants.”

• Revenue: $256.5 million (expectations were $229.66 million)
• EPS (Normalized): $0.14 (expectations were $.13) 

Massive beat, shares are surging 14%.

We’re fast approaching the closing bell, and DLocal will report shortly after. Here are a few notes:

• You don’t need to refresh this live blog to receive updates. They should post automatically.
• We expect DLocal to report shortly after the bell, with earnings hitting at about 4:05 p.m. ET.
• We will post 5 to 10 updates with share price reaction, highlights from earnings, and more. Once again, you can receive these updates in one central place simply by leaving this live blog open.

Consensus Rating:

• 9 analysts total
• 6 Hold | 2 Buy | 1 Strong Buy
• Net rating: Hold

Price Targets:

• Average Price Target: $12.79
• High: $18.00 | Low: $10.00
• Current Price: $11.12
• Implied upside: +15.0%

DLocal has delivered four consecutive EPS beats, but price reactions have turned more muted since Q1 as investors focus on margin pressure and geographic mix.