DLocal Limited Q4 FY2025 earnings call

• 2025 was a year of exceptional execution with a strong business flywheel. TPV grew significantly, revenue crossed $1 billion. TPV retention reached 158% and net revenue retention 145%. Advanced innovation engine with Buy Now Pay Later Fuse products live in six countries, full - service stablecoin suite launched, and added APMs to the smart APM platform. Delivered strong cash generation. Handed over the call to new CFO Guillermo López - Pérez.

In 2025, TPV reached $41 billion, up 60% year-over-year. Revenue crossed $1 billion. Gross profit grew 37% year-on-year. Adjusted free cash flow was $191 million, up 110% year-over-year with a 97% conversion ratio. In Q4 2025, TPV surpassed $13 billion, growing 70% year-on-year and 26% quarter-on-quarter. Revenue reached $338 million, up 65% year-on-year and 20% quarter-on-quarter. Gross profit reached $116 million, up 38% year-on-year and 12% over Q3. Adjusted EBITDA reached $78 million, up 38% year-on-year and 9% quarter-on-quarter. Net income totaled $56 million for the quarter, up 87% year on year and 7% quarter on quarter. Return on equity reached 35% on a last 12-month basis. Adjusted free cash flow for the quarter was $65 million, doubling year over year.

• Expect continued strong growth in TPV, with growth in the range of 50% to 60% year over year. - Guide for gross profit growth of 22.5% to 27.5% year over year. - Guide for operating profit growth of 27.5% to 32.5% year over year, with operating leverage acceleration expected more towards the second half of 2026. - Capital allocation priorities include investing to sustain growth, ensuring liquidity buffers, selectively being prepared for M&A, and returning excess capital to shareholders. Confirmed dividend policy of 30% of prior year's free cash flow and approved a new share repurchase program of up to 300 million of Class A common shares.

• Emerging markets remain inherently volatile, which can impact projections. - Dependence on delivering on net new ads in terms of markets and payment methods as part of large global contracts is a risk. - Macro geopolitical and FX factors can have an impact on results.

• Q: On TPV growth guidance, where is growth coming from?

A: Growth is broad - based, including Latin America, Africa, Egypt, the Middle East, Asia; new merchants and new products also contribute.

Q: On Argentina's gross margin, is it a one - off?

A: Argentina is a high - growth, high - return market despite volatility, but hard to make forward - looking statements on margin recovery specifically. - Q: On stablecoins and US licenses?

A: Not seeing significant stablecoin volumes at checkout, focused on emerging market global footprint, US licenses for compliant operations. - Q: On Brazil's gross profit and G&A expenses?

A: Brazil had strong growth due to product and client mix; G&A growth driven by investment in teams, with OPEX growth expected to reduce later in 2026. - Q: On card present operations and Egypt merchant return?

A: Card present offering is embryonic, built with merchant contracts; Egypt merchant returned due to regaining share after initial loss. - Q: On share of wallet and new merchants?

A: Share of wallet increase from existing merchants, new merchants expected to contribute more in 2026, new products also impactful but take rate depends on merchant and product. - Q: On OPEX and risks to guidance?

A: OPEX growth due to annualization of late - year hirings, risks include global macro, geopolitical, and FX factors, and delivery on large merchant contracts.