The following discussion of our financial condition and results of operations should be read in conjunction with our Audited Consolidated Financial Statements as of December 31, 2025, and 2024 and for the years ended December 31, 2025, 2024 and 2023, and the notes thereto, included elsewhere in this annual report. The following discussion contains forward-looking statements that involve risks and uncertainties. Our actual results and the timing of events may differ materially from those expressed or implied in such forward-looking statements as a result of various factors, including those set forth in “Cautionary Statement Regarding Forward-Looking Statements” and “Risk Factors.” Key business metrics We review the following key metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions: For the Year Ended December 31, In thousands of US$ 2025 2024 2023 TPV(1) 40,816,394 25,574,926 17,677,388 Revenues 1,093,587 745,974 650,351 Gross profit for the year 402,756 294,673 276,859 Adjusted EBITDA (2) 278,078 188,725 202,331 Adjusted EBITDA margin (3) 25.4 % 25.3 % 31.1 % Profit for the year 196,902 120,469 149,086 Profit Margin (4) 18.0 % 16.1 % 22.9 % (1)For information on how we define TPV, see “Presentation of Financial and Other Information—TPV.” (2)For information on how we define Adjusted EBITDA, see “Presentation of Financial and Other Information—Special Note Regarding Non-GAAP Financial Measures.” (3)For information on how we define Adjusted EBITDA Margin, see “Presentation of Financial and Other Information—Special Note Regarding Non-GAAP Financial Measures.” (4)Profit Margin results from dividing Profit for the year by Revenues reported in our Consolidated Statements of Comprehensive Income for the years ended December 31, 2025, 2024 and 2023. We have included below a reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin to profit for the periods presented. Adjusted EBITDA and Adjusted EBITDA margin are treated by the Company as IFRS measures. See “Presentation of Financial and Other Information—Special Note Regarding Adjusted EBITDA and Adjusted EBITDA Margin. DLocal Limited 79 Table of Contents For the Year Ended December 31, In thousands of US$ 2025 2024 2023 Profit for the year (1) 196,902 120,469 149,086 Income tax expense 31,752 30,550 29,428 Inflation adjustment 4,204 6,655 12,537 Finance income (40,798) (66,875) (128,228) Finance costs 27,855 49,701 116,834 Other operating loss 4,715 5,257 — Impairment loss / (gain) on financial assets 2,189 440 (3,136) Depreciation and amortization 26,260 17,177 12,225 Other non-recurring costs (2) 124 1,571 1,663 Share-based payment non-cash charges, net of forfeitures 24,136 23,780 11,922 Offering expenses 739 — — Adjusted EBITDA 278,078 188,725 202,331 Revenues 1,093,587 745,974 650,351 Gross profit 402,756 294,673 276,859 Adjusted EBITDA 278,078 188,725 202,331 Profit for the year 196,902 120,469 149,086 Adjusted EBITDA Margin 25.4 % 25.3 % 31.1 % Profit Margin 18.0 % 16.1 % 22.9 % (1)Includes a net gain related to the effective portion of the change in the spot rate of the hedged foreign currency risk. For further information refer to Note 24. Derivative financial instruments. (2)Refers to costs not directly associated with our core business activities, including costs associated with addressing the allegations made by a short-seller report and certain class action proceedings and other legal and regulatory expenses (which include fees from counsel, global expert services and a forensic accounting advisory firm) in 2023, 2024 and 2025. TPV We believe that TPV is an indicator of the success of our global merchants, the satisfaction of their end users, and the scale and growth of our business. As our global merchants increase their transaction volume on our platform, our TPV will also grow. Our revenue depends significantly on the total value of transactions processed through our platform. dLocal’s TPV growth is directly impacted by secular trends, including the ongoing shift to digital payments, the growth of our merchants’ business in emerging markets, as well as the continued traction gained by e-commerce. Furthermore, a large, growing, and increasingly complex payments ecosystem continues to drive demand for an integrated and comprehensive online payments infrastructure such as dLocal’s platform. Our ability to maintain and expand strong relationships with existing global merchants, as well as to attract new ones into our platform, also drives our TPV. For the year ended December 31, 2025, global merchants who were on-boarded and have transacted on our platform for more than two years generated 98.8% of our TPV. From 2016 through 2025, we have successfully added on average two new pay-in merchants per month and two new pay-out merchants per month. In the year ended December 31, 2025, our TPV amounted to US$40.8 billion, representing a year-over-year growth of 59.6%. In the year ended December 31, 2024, our TPV amounted to US$25.6 billion, representing a year-over-year growth of 44.7% Furthermore, we grew TPV at a 88% CAGR from 2016 to 2025. DLocal Limited 80 Table of Contents The following chart sets forth the evolution of our TPV for the periods indicated. Pay-in TPV is generated in transactions where we enable global merchants to receive payments from their customers located in emerging markets for the sale of goods or services. We process the payments locally in the emerging markets where the merchants’ consumers are located and after expatriating the funds we settle the payments in the jurisdiction and currency of preference of our global merchants, which is typically in North America, Europe or China, and generally in U.S. dollars or Euros. We refer to these transactions as cross-border. However, when the merchants have a local presence in the countries where their consumers are located, we offer our merchants the ability to settle transactions in the local currencies of such countries, which we call local-to-local transactions. Pay-out TPV is generated in transactions where we enable global merchants to make payments, both cross-border and local-to-local, to their vendors, contractors, partners, drivers, apartment renters, marketplace sellers, and refund recipients, some of which can be paid in their partners’ (i.e., the ultimate recipients’) preferred method for receipt of payment by type of account or type of method, such as transfer to bank accounts or payment to digital wallets, while the merchant retains control over the overall interface. Pay-in and pay-out transactions (cross-border and local-to-local in both cases) each involve different transaction counterparties, payment flows, and services, as well as distinct overall pricing dynamics. Revenues Our revenues are derived on a per approved transaction basis as either a fixed percentage per transaction or a fixed fee per transaction. Revenue is a key metric of focus for our management team as it directly reflects the scale, growth, and trajectory of our business, as well as the strength and structure of our merchant relationships and the stability of our pricing. DLocal Limited 81 Table of Contents Revenues deriving from pay-ins and pay-outs depend on the agreed-upon rates we negotiate with each global merchant, and may ultimately vary, depending on the amount of volume such merchants process, the markets where they use our services, the type of payment methods we facilitate, and whether such payment relates to cross-border or local transactions. We manage our merchant accounts on an overall dollar profitability basis, in order to assure maximizing revenues from each merchant customer, and not particularly on each of the products, payment methods or geographies in which we process payments for them. Revenues may be generated by existing merchants, which we measure by means of our NRR, or from new merchants. Gross Profit Gross Profit is an IFRS measure. We consider this measure to be relevant as it shows how efficiently we are servicing our clients and to monitor the growth in our direct costs in comparison to growth in revenue. We believe Gross Profit is useful in evaluating our operating performance compared to other companies in the same industry. We calculate Gross Profit by deducting the cost of services from revenue, each of which is measured in accordance with IFRS Accounting Standards. Adjusted EBITDA We define Adjusted EBITDA as the consolidated profit from operations before financing and taxation for the year or period, as applicable, before depreciation of property, plant and equipment, amortization of right-of-use assets and intangible assets. It also excludes adjustments applied to subsidiaries operating in hyperinflationary environments, other operating losses, impairment gain/loss on financial assets, secondary offering expenses, other non-recurring costs and share-based payment non-cash charges. We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by consolidated revenue. For the year ended December 31, 2025, we recorded Adjusted EBITDA of US$278 million, equivalent to an Adjusted EBITDA Margin of 25.4%. For the year ended December 31, 2024, we recorded Adjusted EBITDA of US$189 million, equivalent to an Adjusted EBITDA Margin of 25.3%. For the year ended December 31, 2023, Adjusted EBITDA was US$202 million equivalent to an Adjusted EBITDA Margin of 31.1%. See “Presentation of Financial and Other Information—Special Note Regarding Adjusted EBITDA and Adjusted EBITDA Margin.” See “Item 5. Operating and Financial Review and Prospects—Key business metrics” for a reconciliation of our Adjusted EBITDA and Adjusted EBITDA Margin to our profit for the period. Growth from existing and new merchants Given the success-based nature of our business model, our growth is driven by our ability to secure, retain, and expand our relationships with our merchants. The success of their business in emerging markets directly impacts our performance. Our merchants’ own growth, our experience and expertise in upselling and cross-selling new products, and our ability to expand the number of markets in which we serve them, determines our revenue from existing clients. Furthermore, our team’s demonstrated ability to add new merchants on an ongoing basis to our platform complements our overall growth. DLocal Limited 82 Table of Contents The chart below presents a summary of our revenue growth by existing and new merchants. Revenue growth in 2025 from existing and new merchants (in US$ millions) In the chart above, “Existing Merchants” represents the increase in revenues in 2025 attributable to merchants that were customers in the prior year, and “New Merchants” represents the increase in revenues in 2025 attributable to selling services to new merchants added after December 31, 2024. Our NRR was 145% for the year ended December 31, 2025, and 113% for the year ended December 31, 2024. Revenue broken down by existing merchants and new merchants: For the year ended December 31, 2025 December 31, 2024 December 31, 2023 In thousands of US$ Existing Merchants 1,080,850 732,894 628,479 New Merchants 12,737 13,080 21,872 Total Revenue 1,093,587 745,974 650,351 Key factors affecting our performance We believe our operating and business performance is driven by various factors that affect the global economy and the economies of the countries in which we operate, trends affecting digital payments markets, the broader financial technology solutions industry, and the specific markets and customer base that we target. The following key factors may affect our future performance. DLocal Limited 83 Table of Contents Retention and growth of our existing global merchant base We believe our long-term revenue growth is correlated with the growth of our existing global enterprise merchants and PSP partners. We strive to maintain industry-leading customer service levels and platform capabilities to maximize client success and retention. Our revenue grows partially in line with the volume of transactions processed through our platform. As global merchants engage with more end users and increase the level of volume processed through our platform, we are able to increase our revenues. As the level of volume processed with some of our global merchants increases, our revenue may grow to a lesser extent due to tiered pricing in our contracts with such merchants. We continually evaluate the ongoing relationship we have with our existing global merchants, as well as opportunities to engage with them in new markets where we have a presence, both of which allow us to sustain and drive further growth. Increasing our merchant base To continue growing our revenues, we intend to increase the number of global merchants using our platform. We believe we are positioned to grow significantly through our own sales and marketing initiatives, including through our demonstrated ability to win competitive RFPs. We believe our current clients will continue to be our best advocates, helping us to continue growing our global merchant base across multiple attractive verticals. We may also seek to expand our merchant base through selective acquisitions of cross-border payment processing companies. Evolution and adoption of our products and ecosystem A key part of our strategy is to keep improving our payment solutions through innovation and relentless focus on our clients, helping us continuously provide more efficient and effective means for settling cross-border and local-to-local payment transactions. We intend to grow revenue by developing new and complementary solutions and capabilities to our existing product portfolio, expanding the value and scope of existing partnerships, selling and marketing payment solutions to our seller base, and acquiring and cultivating high-value relationships with new clients. We believe our cloud-based platform, our e-commerce-focused solutions, and our dedication to continuously offer the best possible customer service and most innovative capabilities are the foundation of our relationship with our global merchants. Successful international expansion Our operations in emerging markets in Latin America, Asia, and Africa have grown rapidly since the commencement of our business. We may further expand our operations in the countries in which we operate in the coming years, as well as to commence operations in new countries in these regions. Our expansion has also been driven by the needs and at the request of our merchant customers. For each new country where we seek to establish a presence, we focus on understanding the needs of the local market and investment to develop partnerships with local APMs and financial institutions, while gaining an appreciation for the appropriate local regulatory and compliance frameworks. Over time, we believe we will be able to develop a presence and offer a comprehensive and integrated offering across all emerging markets which are relevant for our global enterprise merchants and our partners. Fluctuations in direct processing costs Our cost of services includes fees that financial institutions charge us, typically as a percentage of the transaction value processed. Such costs vary from one institution to another, and usually depend on the settlement period contracted with each such institution and the payment method used. We are unable to predict if or when financial institutions will increase or decrease their fees or what the amount of any such variations may be. Our ability to adjust our pricing remains subject to a variety of factors, including competition from other payment providers, market conditions and, in certain cases, direct price negotiations with the merchant. As a result, at times, we might not be able or willing to pass through all increases or decreases in direct processing costs to our global merchants. Realizing operating leverage from our investments We have made significant investments in our cloud-based platform and our global infrastructure, which we believe will yield future operating leverage and profit margin expansion. Given the nature of our non-variable cost of services, we believe we will achieve operating leverage over time by expanding the use of our platform and increasing the volume of transactions that we process. We believe we will be able to run our business more efficiently as we continue to grow operating scale. Macroeconomic environment of the markets where we have a presence We operate across a number of emerging economies in Latin America, Asia, and Africa. As a result, our revenues and profitability are affected by political and economic developments in these countries and the effect that these factors have on the availability of credit, disposable income, employment rates, and average wages in these countries. Our operations are sensitive to changes in economic conditions in each of the countries in which we operate. DLocal Limited 84 Table of Contents The volume of digital payments transactions is also influenced by general economic conditions. As examples, during recessionary periods, economic downturns, or periods of high inflation or high currency volatility, consumers may experience a reduced ability to spend and card issuers may reduce credit limits and new issuance authorizations, both of which can have a negative impact on the overall transaction payment volume. While the above-mentioned shifts in general economic conditions may have a negative impact on payment volume, the ongoing secular shift from cash to card and digital payments, along with the ongoing shift to online commerce, as well as the growth of tech related global merchants, may partially offset this impact. Changes in and increasing complexity of regulatory environments An ever evolving global, local, and industry-specific regulatory environment has a direct impact on how global merchants conduct business in emerging markets. Furthermore, such changes continue to directly impact overall tax compliance, which varies materially from jurisdiction to jurisdiction. While we remain committed to continue to invest in ensuring we retain the utmost up-to-date understanding of all applicable regulatory frameworks that may be relevant for the markets in which we have a presence, such future changes may impact the way in which we engage with global merchants, how we establish our overall contracts, and the way in which we earn revenue. Managing our exposure to foreign exchange risk Our monetary balances in foreign currencies are subject to exchange rate fluctuations, which can impact our results of operations. It is difficult to predict the fluctuations of foreign currency exchange rates and how those fluctuations will impact our consolidated statements of comprehensive income in the future. We continually monitor our balances in foreign currencies in order to minimize our exposure using currency derivatives to hedge such positions, or discounting receivables to accelerate the process of converting such balances to U.S. dollars, or implementing natural hedges to reduce our net exposure to foreign currencies. Description of Principal Line Items The following is a summary of the principal line items comprising our consolidated statements of comprehensive income. Revenues We provide payment processing services to merchants as follows: •We specialize in local payments so that merchants can reach consumers located in emerging markets. On a recurring basis, merchants and their customers are exchanging goods and services while we provide the payment solution to that relationship. We do not have any obligation to provide such goods or services between the merchant and its customer but are responsible for processing payments through our platform; •We only process the payment through our platform when a complete authorization request was made by the merchant. The authorization request is made by transmitting the authorization data of the transaction to us; •We contract with service providers for the authorization, processing and settlement services performed by payment schemes networks and card issuers; •We are not responsible for the credit risk or the chargebacks risk of the cardholder (i.e., the merchant customer). The merchant is responsible for the credit checks. We earn revenues from fees charged to merchants in connection with payment processing services for cross-border and local payment transactions in emerging markets. These fees are primarily generated on a per approved transaction basis as either a fixed fee per transaction or fixed percentage per transaction. We also earn foreign exchange fees on cross-border transactions defined as transactions in which the merchant and its customer are in different countries and we convert currencies and transfer funds between countries, as required by the merchant. Foreign exchange fees are usually determined based on a percentage or a fixed fee. Our service offering comprises a single performance obligation to complete payments via our platform for merchants and their customers. We do not engage with or provide services to our merchants’ end-users. Revenues from contracts with customers are recognized as control of services is transferred to the customer at an amount that reflects the consideration to which we expect to be entitled in exchange for those services in the ordinary course of our activities. DLocal Limited 85 Table of Contents We apply the following five steps: •Identification of the contract with a client (i.e., merchant). •Identification of the performance obligations in the contract. •Determination of the transaction price. •Allocation of the transaction price to the performance obligations in the contract. •Recognition of revenue when or as the entity satisfies a performance obligation. We perform two types of transactions: •Pay-ins: are transactions where we collect money in local currency in emerging markets countries and make it available for merchants in their requested currency and country, after a settlement period. Revenue for this type of transaction is recognized when the authorized transaction is processed. This type of revenue is recognized at a point in time. •Pay-outs: are transactions where we collect money from merchants in the countries and currencies of preference and then we disburse money in local currency in emerging markets countries according to the merchants’ instructions. Revenue for this type of transaction is recognized upon completing the pay-out of an authorized transaction in local currency. This type of revenue is recognized at a point in time. Our contracts with merchants are usually open-ended and can be terminated by either party without a termination penalty after the notice period has lapsed. Our contracts are, therefore, defined at the transaction level and do not extend beyond the service already provided. Revenue from contracts with merchants comprises: Transaction revenues We recognize fees charged to merchants as transaction revenue and fees incurred in processing payments as cost of services. Fees earned from merchants are presented as gross revenue due to the following considerations which indicate that we control the payment processing services and act as the Principal: •We bear primary responsibility to merchants for the fulfillment of the payment service; •We contract directly with merchants and there is no contractual relationship between merchants and payment processors (i.e., the service providers); •We have independently negotiated arrangements with payment processors; •The established fees are independent of the costs incurred from payment processors and we, therefore, have full margin risk for each transaction; •In cross-border transactions, we or the merchants may bear foreign exchange risk depending on each agreement. The foreign exchange fees charged to merchants are based on a fixed fee per transaction or fixed percentage of the transaction value. When we bear the foreign exchange risk, it runs from the time the transaction in local currency is authorized until we convert the money to foreign currency (USD or EUR for pay-ins) and from the time we receive the money from the merchant until we convert the money to local currency (for pay-outs); •We bear credit risk from the agents and third-party processors, acquirers and collection entities for the payment settlement. These processors collect funds from the end consumers’ financial institutions and are required to pay the proceeds from these transactions. We are not insured against credit losses. If a processor or acquirer becomes insolvent, files for bankruptcy, commits fraud or otherwise fails to pay amounts owed to us when due, we must nonetheless process the payment transaction for the benefit of merchants and end consumers. Merchants are liable for any charges properly reversed by the card issuer on behalf of the cardholder. Transaction revenues are recognized as revenue at a point in time when an authorized payment transaction is processed. Transaction revenues are those that are directly related to the volume of payments processed in dollars or in quantity of transactions. DLocal Limited 86 Table of Contents Transaction revenues are comprised of: •Processing fees: based on a percentage or fixed fee per approved transaction; •Installment and advances fees: corresponds to fees related to advances that may be granted to merchants, including advances associated with installment transactions; •Foreign Exchange Fees: in cross-border transactions, a spread is applied to the exchange rate used for the currency conversion and can be based on a percentage or fixed fee; •Other transactional fees: mainly correspond to fees charged for each chargeback and refund we have to manage and dispute and other transactional fees. Other revenues Other revenues are comprised mainly of fees related to transactional taxes, minimum monthly fees, transfer fees and initial setup fees. Other revenues are recognized at a point in time when the performance obligation is satisfied. Cost of services Our cost of services consists of: •processing costs: fees that financial institutions (e.g., banks, local acquirers, or payment method providers) charge us typically as a percentage of the transaction value (but in certain cases, as a fixed fee in the case of pay-outs in relation to payment processing, cash advances, installment payments and merchant advances finance cost). Such fees vary by financial institution and typically depend on the settlement period contracted with such institution, the payment method used and the type of product (e.g., pay-in or a pay-out). These fees also include conversion and expatriation or repatriation costs charged by banks and brokers and the corresponding hedging results. •Hosting expenses: costs related to hosting services for our payment platform. •Amortization of intangible assets: amortization of capitalized internally-developed software. •Salaries and wages: salaries and wages of employees and contractors directly involved in our day-to-day operations. Technology and development expenses Technology and development expenses consist of the following: •Salaries and wages: primarily compensation of FTEs engaged in or related to product and technology development, excluding capitalized salaries and wages related to internally generated software. •Software licenses: software licenses used exclusively by the technology development department for the development of the platform. •Infrastructure expenses: information technology costs incurred to support our infrastructure and back-office operations. •Information and technology security expenses: costs incurred to monitor the security of our network and platform. •Other technology expenses Sales and marketing expenses Our sales and marketing expenses consist of the following: •Salaries and wages: compensation of FTEs engaged in the sales and marketing department. •Marketing expenses: expenses related to trade marketing events, the distribution and production of marketing and advertising campaigns, public relations expenses, third-party sales commissions, and online performance marketing. General and administrative expenses General and administrative expenses consist primarily of the following: •Salaries and wages: salaries and wages related to administrative FTEs. DLocal Limited 87 Table of Contents •Third-party services: advisors’ fees, legal fees, auditors’ fees and human resources fees. •Other operating expenses: office rent and related expenses, amortization of right-of-use assets, intangible assets and depreciation of property, plant and equipment, taxes, travel and other expenses. Impairment (loss)/gain on financial assets Impairment (loss)/gain on financial assets refers to the impairment recognized from the allowance for expected credit losses (“ECLs”) for all debt instruments not held at fair value through profit or loss. ECLs are measured based on the difference between the cash flows that we are contractually entitled to less cash flows that we expect to receive, discounted at the instrument’s original effective interest rate. The expected cash flows include cash flows resulting from the sale of collateral held or other credit enhancements integral to the instrument’s contractual terms. We apply a simplified approach for trade and other receivables when calculating ECLs. Specifically, we recognize a loss allowance equal to the lifetime ECLs based on the segmentation of trade receivables. We use our historical loss experience, adjusted to reflect current, reasonable and bearable forecasts of future economic conditions, when measuring ECLs. Other operating loss Operating Loss includes losses from operational activities not part of our regular revenue-generating or core business. Other results Other results can be broken down into the following categories: •Finance income includes interest income from short-term liquid financial instruments and fair value gains and losses from financial assets measured at fair value through profit and loss. •Finance costs are comprised mainly of finance expenses related to derivative financial instruments, foreign exchange losses on intra-group loans, fair value adjustments of other financial arrangements and interest expense associated with lease liabilities accounted for following IFRS 16 Leases. •Inflation adjustment represents adjustments necessary to restate the financial statements of our subsidiaries operating in hyperinflationary economies to reflect the erosion of the purchasing power of the local currency as required by IAS 29. Income tax expense Income tax expense consists of current and deferred income tax recognized in profit or loss. Current income tax is based on the amount payable to the tax authorities on the taxable income or loss for the period, using tax rates enacted or substantively enacted at the reporting date in the countries where we operate and generate taxable income. Deferred income tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred income tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date and tax loss carry forwards, to the extent that it is probable that taxable profit will be available against which they can be offset. DLocal Limited 88 Table of Contents A.Operating results. Year Ended December 31, 2025, compared to Year Ended December 31, 2024 The following table sets forth our income statement data for the periods indicated. For the Year Ended December 31, 2025 2024 (in thousands of US$) Revenues 1,093,587 745,974 Cost of services (690,831) (451,301) Gross profit 402,756 294,673 Technology and development expenses (30,707) (25,625) Sales and marketing expenses (26,457) (21,626) General and administrative expenses (118,773) (101,225) Impairment (loss)/gain on financial assets (2,189) (440) Other operating loss (4,715) (5,257) Operating profit 219,915 140,500 Finance income 40,798 66,875 Finance costs (27,855) (49,701) Inflation adjustment (4,204) (6,655) Other results 8,739 10,519 Profit before income tax 228,654 151,019 Income tax expense (31,752) (30,550) Profit for the year 196,902 120,469 Revenues Revenues for the year ended December 31, 2025, were US$1,093.6 million, an increase of US$347.6 million, or 46.6%, from revenues of US$746.0 million generated during the year ended December 31, 2024. The increase in revenue was driven by growth in revenues from existing merchants, demonstrated by our NRR of 144% in 2025 and, to a lesser extent, by the growth in revenues from new merchants, which accounted for 2% of our revenues, or US$17 million. Growth in our revenues was primarily attributable to the performance and continued growth of our enterprise merchants across most verticals, with accelerated growth in remittances, SaaS, commerce, ride hailing, financial services, and on-demand delivery. Cost of services Cost of services for the year ended December 31, 2025, was US$690.8 million, an increase of US$239.5 million, or 53.1%, from US$451.3 million for the year ended December 31, 2024, primarily driven by (i) a US$227.9 million increase in processing costs associated with our TPV growth of 53.4% during the year ended December 31, 2025 as compared to 2024, and (ii) US$11.6 million related to an increase in hosting expenses, amortization of intangible assets, and salaries and wage directly related to our services. Gross profit For the reasons described above, our gross profit for the year ended December 31, 2025, was US$402.8 million, an increase of US$108.1 million, or 36.7%, from US$294.7 million for the year ended December 31, 2024. Technology and development expenses Technology and development expenses for the year ended December 31, 2025, were US$30.7 million, an increase of US$5.1 million, or 19.8%, from US$25.6 million for the year ended December 31, 2024. The increase in technology and development expenses was primarily attributable to (i) an increase of US$2.6 million, or 20.9%, year over year, in salaries and wages mainly due to the strengthening of our Technology and Development department to support our growth and expansion and to an increase in FTEs (from 371 employees as of December 31, 2024 to 458 employees as of December 31, 2025) and (ii) an increase of US$1.7 million or 30.0% year over year increase in third-party software licensed in connection with the operation and maintenance of our platform. DLocal Limited 89 Table of Contents Sales and marketing expenses Sales and marketing expenses for the year ended December 31, 2025, were US$26.5 million, an increase of US$4.8 million, or 22.3%, from US$4.5 million for the year ended December 31, 2024. The increase in sales and marketing expense was primarily attributable to (i) an increase of US$3.0 million in salaries and wages related to an increase in our sales and marketing headcount from 187 FTEs for the year ended December 31, 2024 to 212 for the year ended December 31, 2025, and (ii) to an increase of US$1.9 million in marketing expenses. General and administrative expenses General and administrative expenses for the year ended December 31, 2025, were US$118.8 million, an increase of US$17.5 million, or 17.3%, from US$101.2 million for the year ended December 31, 2024. The increase in general and administrative expenses was primarily attributable to (i) an increase of US$9.3 million, or 17.0% year over year, in salaries and wages as result of strengthening of our operating capabilities to support our growth and expansion and an increase in our headcount from 470 employees as of December 31, 2024 to 528 as of December 31, 2025, (ii) an increase of US$1.7 million in third-party services and (iii) an increase of US$6.6 million related to other operating expenses. Impairment (loss)/gain on financial assets Net impairment losses on financial assets for the year ended December 31, 2025, were US$2.2 million, as described in Note 16 to our Audited Consolidated Financial Statements. Net impairment losses on financial assets for the year ended December 31, 2024, amounted to US$0.4. Other operating loss Other operating losses for the year ended December 31, 2025, amounted to US$4.7 million, mainly driven by the write-off of certain balances related to certain merchants and processors, a decrease of US$0.5, or 10.3%, from US$5.3 for the year ended December 31, 2024. Operating profit For the reasons described above, our operating profit for the year ended December 31, 2025, was US$219.9 million, an increase of US$79.4 million, or 56.5%%, from US$140.5 million for the year ended December 31, 2024. Finance income For the year ended December 31, 2025, finance income was US$40.8 million, a decrease of US$26.1 million, or 39.0%, from US$66.9 million for the year ended December 31, 2024. The decrease in finance income was primarily due to a decrease of US$24.1 million in fair value gains of financial assets at Fair Value through Profit or Loss (“FVPL”), which are mainly comprised of Argentine treasury bonds and notes and to a decrease of US$2.0 million in interest income from financial instruments. Finance costs For the year ended December 31, 2025, we recognized finance costs of US$27.9 million, a decrease of US$21.8 million, or 44.0%, from US$49.7 million of finance costs recognized during the year ended December 31, 2024. The decrease in finance costs was primarily attributable to the decrease of US$12.5 million in finance expenses related to fair value changes of the forward element of derivative financial instruments not designated as hedging instruments and the decrease in foreign exchange loss of US$9.1 million which was primarily generated by an intra-group loan between Dlocal Argentina S.A. and Dlocal Group. Inflation adjustment A US$4.2 million loss was recognized during the year ended December 31, 2025, as compared to a US$6.7 million loss for the year ended December 31, 2024, as a result of inflation in Argentina coming down from 118% in 2024 as compared to 32% in 2025. Profit before income tax For the reasons described above, our profit before income tax for the year ended December 31, 2025, was US$228.7 million, an increase of US$77.6 million, or 51.4%, from US$151.0 million for the year ended December 31, 2024. DLocal Limited 90 Table of Contents Income tax expense Our income tax expense for the year ended December 31, 2025, was US$31.8 million, a decrease of US$1.2 million, or 3.9%, from US$30.6 million for the year ended December 31, 2024. For the years ended December 31, 2025, and December 31, 2024, our effective income tax rate was 13.9% and 20.2%, respectively. The decrease in our effective income tax rate is mainly attributable to an increase in revenues generated in jurisdictions with lower statutory income tax rates, combined with lower revenues in jurisdictions with higher statutory income tax rates, as explained in note 12 to our Audited Consolidated Financial Statements. Profit for the year For the reasons described above, our profit for the year ended December 31, 2025, was US$196.9 million, an increase of US$76.4 million, or 63.4%, from US$120.5 million for the year ended December 31, 2024. Year Ended December 31, 2024, compared to Year Ended December 31, 2023 For discussion related to our financial condition, changes in financial condition, and the results of operations for the year ended December 31, 2024, compared to 2023, refer to Part I, Item 5. Operating and Financial Review and Prospects, in our Annual Report on Form 20-F for the fiscal year ended December 31, 2024, which was filed with the SEC on April 24, 2025. B.Liquidity and capital resources. For the year ended December 31, 2025, we had US$719.9 million in cash and cash equivalents. We believe our current available cash and cash equivalents and the cash flows from our operating activities will be sufficient to meet the business’s ordinary course working capital requirements and capital expenditures for the next 12 months. The following table reflects the sources and uses of cash during the periods indicated: For the Year Ended December 31, 2025 2024 2023 (in thousands of US$) Cash Flow Data Net cash (used in) / generated from operating activities 415,457 (32,784) 293,453 Net cash (used in) / generated from investing activities 5,312 (17,752) (84,667) Net cash used in financing activities (121,073) (68,587) (133,871) Net (decrease) / increase in cash flow 299,695 (119,123) 74,915 Our cash and cash equivalents include cash on hand, deposits held at call with banks and other short-term, highly liquid financial instruments with original maturities of three months or less. We classify financial instruments that can be immediately converted into a known amount of cash as cash and cash equivalents. Given the short-term nature of these instruments, we determined fair value approximates carrying value. Cash and cash equivalents are measured at amortized cost and/or fair value through profit or loss depending on its nature, and are included in current assets due to their short-term nature. Cash and cash equivalents are held in the currencies of each country in which we operate, primarily the U.S. dollar, Euro, Brazilian real, Mexican peso, Argentine peso, South African rand, and Colombian peso. For more information, see Note 14. Cash and cash equivalents and Note 30 (c) to our Audited Consolidated Financial Statements included elsewhere in this annual report. Operating Activities The majority of our operating cash flow consists of movements in merchant funds (corresponding to the line items “trade and other receivables” and “trade and other payables” in our Statements of Financial Position) held by us for a short period before being paid out to the merchant. For the year ended December 31, 2025, our net cash flow from operating activities increased by US$448.2 million, from US$32.8 million cash used in 2024 to US$415.5 million cash generated in 2025. This increase was primarily due to an increase of US$72.5 million in working capital (mostly merchant funds), to an increase of US$116.3 million in profit before income tax adjusted for non-cash items, and to a decrease of US$1.7 million in income tax paid. DLocal Limited 91 Table of Contents Net changes in working capital amounted to an inflow of US$163.1 million for the year ended December 31, 2025, as compared to an outflow of US$167.2 million for the year ended December 31, 2024. The increase in working capital of US$330.3 million was driven by an increase of US$263.6 million of trade and other payables, a decrease of US$3.2 million of other assets, an increase of US$72.5 million of trade and other receivables, a decrease of US$2.4 million of tax liabilities and a decrease of US$0.2 million of provisions. Investing Activities For the year ended December 31, 2025, our net cash generated in investing activities increased by US$23.1 million, from US$17.8 million used during the year ended December 31, 2024, to US$5.3 million generated in 2025. The increase in cash generated in investing activities during 2025 was driven by (i) US$203.8 million increase in cash collections related to financial assets, (ii) US$162.1 million increase in acquisitions of financial assets, (iii) US$13.6 million increase in additions to intangible assets, (iv) US$2.5 million increase in payments for investments in other assets at FVPL, (v) US$2.0 million decrease in interest collected from financial instruments, and (vi) US$0.6 million increase in the acquisition of property, plant and equipment. Financing Activities For the year ended December 31, 2025, net cash used in financing activities increased by US$52 million, from US$69 million used during the year ended December 31, 2024, to US$121 million used during the year ended December 31, 2025. The increase in cash used in financing activities during 2025 was driven by (i) US$150 million increase in dividends paid, (ii) US$14 million increase in interest payments on financial liabilities and (iii) US$2.5 million increase in collections from share-options exercises, (iv) US$0.2 increase in principal and interest payments on lease liabilities, partially compensated by decrease in cash used driven by (iv) US$101 million decrease in repurchase of shares, (v) US$6 million decrease in finance expense paid related to derivative financial instruments, and (vi) US$1 million in net proceeds from financial liabilities. See “Item 8. Financial Information—A. Consolidated Statements and Other Financial Information—Dividends Distribution Policy.” Capital Expenditures For the years ended December 31, 2025 and 2024, we made capital expenditures of US$36.8 million and US$22.6 million, respectively. Total capital expenditures as a percentage of revenues were 3% and 3% in 2025 and 2024, respectively. These capital expenditures mainly include expenditures related to the capitalization of internally generated software and investments in computer hardware. Off-Balance Sheet Arrangements For the years ended December 31, 2025 and 2024, we did not have any off-balance sheet arrangements. C.Research and development, patents and licenses, etc. Innovation is at the core of our culture. We have a deeply talented employee base of highly qualified engineers dedicated to the development, improvement and evolution of our online payment platform capabilities and product development. We consistently invest in developing new feature functionality to enhance and maintain the relevance and value of our solutions. Furthermore, we are an agile organization, capable of rapidly reacting to a fast-paced payments and regulatory environment that is constantly evolving. dLocal seeks to continuously improve its products and has a regular software release schedule with improvements typically deployed on a daily basis (whereas the industry norm is to release software updates only a few times a year). This frequent update release schedule aims to ensure that merchants will benefit from immediate access to the latest developments and is an integral part of our technology strategy. We also continue to focus on developing new products as we scale. Our previous experience adding local-to-local and marketplaces is a testament to our ability to keep innovating and responding to global merchants’ needs. We will attempt to capitalize on new market opportunities by launching new products. D.Trend information. Other than as disclosed in this report, we are not aware of any trends, uncertainties, demands, commitments, or events since December 31, 2025, that are reasonably likely to have a material adverse effect on our revenues, income, profitability, liquidity, or capital resources, or that would cause the disclosed financial information to be not necessarily indicative of future operating results or financial conditions. DLocal Limited 92 Table of Contents E.Critical Accounting Estimates. Our management bases its estimates on historical experience and other assumptions that it believes are reasonable based upon information available to us at the time that these judgments, assumptions and estimates are made. In order to provide an understanding regarding the manner in which our management forms its judgments about future events, including the variables underlying our judgments, estimates and assumptions, we summarize our critical accounting estimates and judgments in Note 3 to our Audited Consolidated Financial Statements.