Fintech firm DLocal lifts 2025 outlook on strong Q2 growth

Uruguayan fintech dLocal raised its 2025 forecasts after reporting strong Q2 results, driven by growth in Brazil and Mexico.

DLocal, which processes payments across emerging markets, now expects total payment volume (TPV) to rise 40%-50% from last year’s US$25.6 billion.

The company also revised its guidance for revenue, gross profit, and adjusted EBITDA, the latter now projected to rise 40%-50% from 2024, when it shrank 7% to US$189 million.

Previous guidance was for TPV growth of 35%-45% and adjusted EBITDA growth of 20%-30%.

For Q2, dLocal reported adjusted EBITDA up 64% to US$70.1 million, and revenues up 50% to US$256.5 million, in line with analyst forecasts.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Emerging market fintechs buck broader sector deceleration trends

dLocal’s performance stands out against a backdrop of moderating growth across the global fintech sector.

While a World Economic Forum survey of 240 fintech firms showed customer growth stabilizing at 37% and revenue growth at 40% industry-wide, dLocal reported 53% growth in total payment volume and 50% revenue growth 1.

This outperformance suggests that emerging market payment processors may still be in earlier growth phases compared to their developed market counterparts.

The company’s decision to raise guidance mid-year, increasing TPV projections from 35%-45% to 40%-50%, demonstrates management confidence despite acknowledging risks from currency volatility and fiscal policy changes across key markets.

dLocal’s focus on over 40 countries across Africa, Asia, and Latin America with more than 900 payment methods positions it to capture growth in markets where traditional financial infrastructure remains underdeveloped 2.

2️⃣ Strong fundamentals don’t always translate to market valuations

dLocal’s financial performance illustrates the disconnect between operational excellence and public market valuation in the current environment.

Despite consistent strong growth metrics and raising guidance, the company’s market value has fallen from approximately $9 billion at its 2021 IPO to around $3.1 billion today.