Fintech dLocal hikes 2025 guidance after growth beats expectations

By Sarah Morland

Aug 13 (Reuters) - Uruguayan fintech dLocal DLO.O on Wednesday raised its growth forecasts for 2025, after its second-quarter earnings topped analyst forecasts, helped by more diversified operations and solid results in Brazil and Mexico.

The payments provider, which operates across emerging markets, now predicts a total payment volume (TPV) up 40%-50% compared with the $25.6 billion it recorded last year.

dLocal also raised its guidance for revenue and gross profit, and forecast that adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, would rise by 40%-50% from 2024, when it shrunk by 7% to $189 million.

The company had previously forecast a rise of 35%-45% for TPV and a rise in adjusted EBITDA of 20%-30%.

"We're being somewhat cautious in our guidance," Chief Executive Pedro Arnt said in a call, saying that momentum had so far carried into the current quarter.

Arnt highlighted potential risks from higher tariffs - including Mexico's e-commerce tariffs - shifting fiscal policies in Brazil and currency fluctuations in Argentina and Egypt.

But he said he remained confident on growth as the company predicts that the payments ecosystem in emerging markets is set to double to over $4 trillion by 2030.

"The shifting landscape geopolitically has shone a greater light and greater relevance on emerging markets," he said.

dLocal is developing offline offerings - like cash and card transactions in physical stores - and already has some contracts in the works, he added.

The company said it is focusing on stablecoin payments and "buy now, pay later" products, and has seen significant interest from merchants for credit offerings, particularly models under which they do not underwrite credit themselves.

Take rates - the portion of transactions dLocal earns as revenue - are expected to edge down as dLocal scales up, it said.

For the second quarter, dLocal posted adjusted EBITDA up 64% at $70.1 million on revenues that climbed 50% to $256.5 million, both landing comfortably above the forecasts of analysts polled by LSEG.

STRONGER GOVERNANCE

In the second half of 2025, the company expects higher operating expenses as it invests in new products and third-party costs, interim Chief Financial Officer Jeffrey Brown said.

Guillermo Lopez, a former American Express executive, is set to join as CFO in the coming months.

dLocal also said it was looking to strengthen its governance by appointing new independent board members.

Shortseller Muddy Waters had in 2022 accused dLocal of malpractice including limited oversight, battering shares. dLocal denied the accusations and commissioned an independent review committee that found no evidence of wrongdoing.