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MONTEVIDEO - DLocal Limited (NASDAQ:DLO) shares surged 16% after the emerging markets payment processor reported second-quarter results that exceeded analyst expectations, driven by record payment volumes and improved operational efficiency.
The Uruguay-based fintech company posted adjusted earnings of $0.14 per share for the second quarter, beating analyst estimates of $0.13. Revenue jumped 50% year-over-year to $256.5 million, significantly outpacing the consensus estimate of $232.16 million. Total Payment Volume (TPV) reached a record $9.2 billion, up 53% YoY, marking the third consecutive quarter of 50%+ growth.
"We are pleased to report another quarter of solid growth and disciplined execution, with significant acceleration across our key financial metrics," said Pedro Arnt, CEO of DLocal. "These results are a testament to our high-growth, expanding margin, and healthy free cash flow business model."
The company’s gross profit increased 42% YoY to $98.9 million, while Adjusted EBITDA rose 64% to $70.1 million. Operational leverage continued to improve, with Adjusted EBITDA over Gross Profit reaching 71%, marking the fifth consecutive quarter of improvement. Free cash flow more than doubled YoY to $48.4 million.
Brazil and Mexico delivered solid results, while the company’s fastest growth came from other geographies, contributing to increased market diversification. The strong performance prompted DLocal to raise its full-year 2025 guidance across all key metrics, now expecting TPV growth of 40-50%, revenue growth of 30-40%, and Adjusted EBITDA growth of 40-50%.
The company also announced plans to transition to a majority independent board and will cancel treasury shares currently held on its balance sheet, demonstrating its commitment to returning excess capital to shareholders while maintaining strong growth.
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