A payments technology company that lets global merchants—like streaming, ride-hailing, and e-commerce giants—accept local payment methods in emerging markets across Latin America, Africa, and Asia, all through one platform. It was founded in 2016 in Montevideo, Uruguay, by Sergio Fogel and Andrés Bzurovski, who had earlier built the payments firm AstroPay. The name comes from its focus on "localizing" cross-border payments, and dLocal became Uruguay's first unicorn before listing on Nasdaq in 2021.
20-F · Fiscal year ended Dec 31, 2025 · SEC filing ↗
Revenue rose 47% to $1.09B and operating cash flow swung to a $415.5M inflow, reversing the prior year's negative result.
The cash flow story flipped. rose 47% to $1.09 billion and climbed 57% to $219.9 million, but the defining move was a $448 million swing in to a $415.5 million inflow, driven by a recovery tied to merchant funds. The business is growing again, but its dependence on a handful of large merchants deepened.
Key takeaways
swung to a $415.5 million inflow from a $32.8 million outflow in 2024, a $448.3 million reversal driven by a $330.3 million positive swing in , primarily from merchant funds.
rose 46.6% to $1,093.6 million, driven by existing merchants, which generated a of 144%, up from 113% in 2024.
Total Payment Volume rose 59.6% to $40.8 billion, but the continued to compress as grew more slowly than volume, indicating each dollar of volume generated less revenue.
increased 36.7% to $402.8 million, though contracted as the cost of services rose 53.1%, outpacing growth.
rose 56.5% to $219.9 million, supported by as technology, sales, and general and administrative expenses grew more slowly than .
Customer concentration remained elevated, with the top 10 merchants accounting for 61% of , and two individually exceeding 10%.
What changed
The , flagged in 2024 for further compression, continued to decline as TPV rose 59.6% while rose 46.6%, extending the trend of volume growth becoming less efficient at generating revenue.
The , which had decelerated from 165% in 2022 to 150% in 2023 to 113% in 2024, rebounded to 144%, indicating renewed expansion within the existing merchant base rather than the feared decline below 100%.
, which had swung to negative $32.8 million in 2024 due to a $271.5 million drag, recovered to a $415.5 million inflow as the working capital swing reversed.
What to watch
Monitor the for further compression, which would indicate that volume growth continues to become less efficient at generating .
Track the to see if the 144% level is sustainable or if expansion within the existing merchant base decelerates again.
Watch whether customer concentration remains above 60% for the top 10 merchants, which would sustain dependency risk at elevated levels.
Section summaries
Quantitative and Qualitative Disclosures About Market Risk
We are exposed to a variety of risks in the ordinary course of our business, including, but not limited to, credit risk, market risk and liquidity risk. We regularly assess each of these risks to minimize any adverse effects on our business as a result of those factors. For disc…
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We are exposed to a variety of risks in the ordinary course of our business, including, but not limited to, credit risk, market risk and liquidity risk. We regularly assess each of these risks to minimize any adverse effects on our business as a result of those factors. For discussion and sensitivity analyses of our exposure to these risks, see Note 30 to the consolidated financial statements included in this Annual Report.
dLocal faces material risks from emerging-market concentration, evolving regulations, intense competition, and reliance on a few large merchants.
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Customer concentration, which had risen from 50% in 2022 to 60% in 2023 to 62% in 2024, edged down slightly to 61% for the top 10 merchants, though two merchants still individually exceeded 10% of .
A new risk factor highlights potential adverse business impact from the 2026 U.S. military and economic intervention in Venezuela, given the company's significant Latin American operations.
Observe the impact of the 2026 U.S. intervention in Venezuela on the company's Latin American operations and , given that 80% of revenue comes from the region.
A substantial portion of (80% in 2025) comes from merchants whose end-users are in Latin America, exposing the business to disproportionate political, economic, and currency risks in countries like Argentina, Brazil, and Mexico.
The top 10 customers generated 61% of 2025 revenues, with two individually exceeding 10%; the loss or volume reduction from these large merchants could materially harm the business.
The company may not hold or be able to maintain required regulatory licenses across all 40 operating countries, risking fines, penalties, or forced operational shutdowns.
Intense and increasing competition from larger, better-resourced players and the commoditization of payments processing may force price reductions and erode profitability.
A newly emphasized risk highlights the potential adverse business impact from the 2026 U.S. military and economic intervention in Venezuela, given the company's significant Latin American operations.
The company is exposed to credit losses from over 100 third-party processors and acquirers, with the top 10 handling 40% of , and these exposures are generally uninsured.
dLocal provides a unified payments platform enabling global enterprise merchants to process pay-ins and pay-outs across 44 emerging markets through a single API and contract.
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dLocal operates the 'One dLocal' model, offering pay-in, pay-out, and platform solutions for cross-border and local-to-local transactions in 44 countries, primarily serving large global enterprise merchants.
The company's is primarily generated from fees on approved transactions, with reaching $40.8 billion in 2025, a 59.6% increase .
dLocal's competitive strengths include a single direct API integration, a proprietary cloud-based platform with AI-driven fraud and routing tools, and deep local connectivity with over 160 pay-in and 939 pay-out methods.
The merchant base is concentrated among large enterprises, with the top 10 merchants representing 61% of total in 2025, and the company focuses on growing these relationships through cross-selling and geographic expansion.
Growth strategy centers on deepening existing merchant relationships, acquiring new global enterprise clients, expanding into new emerging markets, and broadening product offerings including adjacent services like BNPL and stablecoin settlements.
The company holds 37 licenses across 26 markets and is subject to complex regulatory oversight, including as an Electronic Money Institution in the EEA and a Money Services Business in the U.S.
Revenue rose 47% to $1.09B in FY2025 driven by existing merchant growth, with profit up 63% to $197M.
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Total grew 46.6% to $1,093.6M, primarily from existing merchants, which generated a net revenue retention rate of 144%.
Total payment volume surged 59.6% to $40.8B, fueled by accelerated growth in remittances, SaaS, commerce, and ride-hailing verticals.
increased 36.7% to $402.8M, though contracted as cost of services rose 53.1%, outpacing growth.
rose 56.5% to $219.9M, supported by as technology, sales, and G&A expenses grew slower than .
Net swung to a $415.5M inflow from a $32.8M outflow, driven by a $330.3M positive swing in , mainly merchant funds.
The company held $719.9M in cash and equivalents at year-end and believes existing resources are sufficient to fund operations and for the next 12 months.