dLocal Ltd

3. Accounting estimates and judgments

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgment in applying the group’s accounting policies.

This note provides an overview of the areas that involve a higher degree of judgment or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be wrong. Detailed information about each of these estimates and judgments is included in other notes together with information about the basis of calculation for each affected line item in the financial statements.

3.1. Provisions

Where applicable, the Group recognizes a provision for contingent claims related to civil matters and potential labor matters. Such provisions include an assessment of the probability that a past event has given rise to a present obligation, as well as an analysis of labor lawsuits and claims, including available evidence and jurisprudence, the hierarchy of laws and recent court decisions. The Group applies its professional judgment while considering the opinion of its legal advisors.

Provisions are reviewed and adjusted to consider changes in circumstances such as the applicable limitation period, inspection findings and additional exposures identified based on new issues or court decisions.

3.2. Share-based payment transactions

Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which depends on the terms and conditions of the grant. The estimate also requires determination of the most appropriate inputs to the valuation model, including the expected life of share option or appreciation right.

Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of certain conditions could change in the near term due to one or more future confirming events. Situations or sets of circumstances existing at the date of these consolidated financial statements, which management considered in formulating its estimates, may be subject to revisions based on new information or evolving conditions. For more information, see Note 29. Share-based payment.

4. Consolidation of subsidiaries

dLocal Limited is the Group parent and acts as a holding company for all subsidiaries. dLocal main activity is the processing of cross-border and local payments, enabling international merchants to access end customers in emerging markets. Its principal sources of revenue include dividends from subsidiaries and profit-sharing payments from subsidiary partnerships.

The Consolidated Financial Statements of the Group include the following subsidiaries, each of which serves different vertical and/or provides a specific service according to the needs of the Group:

(1) New subsidiary incorporated or acquired during 2025, under which the Group controls, according to IFRS 10. The Group has determined that the incorporation of this subsidiary during 2025 do not constitute a business combination according to IFRS 3.

(2) Although dLocal is the owner of 49% of Demerge (Thailand) Co. LTD, the Group controls its operations and has de facto control according to the guidelines in IFRS 10.

(3) The subsidiary was dissolved during the period ended on December 31, 2025.

(4) As of December 31, 2025, the Company was dormant and did not carry out any operating activities.

5. Segment reporting

The Group operates as a single operating segment, “payment processing”. Operating segments are defined as components of an enterprise for which separate financial information is regularly evaluated by the chief operating decision maker which is the group’s executive team represented by executive officers and directors. The Group has determined that its Executive Team is the chief operating decision maker as they determine the allocation of resources and assess performance.

The Executive Team evaluates the Group’s financial information and resources, and assesses the financial performance of these resources based on consolidated Revenue, Adjusted EBITDA and Adjusted EBITDA margin as further described below.

Adjusted EBITDA and Adjusted EBITDA Margin

The Executive Team assesses the financial performance of the Group’s sole segment by Revenues, Adjusted EBITDA and Adjusted EBITDA Margin. Adjusted EBITDA is defined as the consolidated profit from operations before financing and taxation for the applicable reporting period before depreciation of PP&E, amortization of right-of-use assets and intangible assets. It also excludes adjustments applied to subsidiaries operating hyperinflationary environments, other operating losses, impairment gain/loss on financial assets, other non-recurring costs and share-based payment non-cash charges. The Group defines Adjusted EBITDA Margin as the Adjusted EBITDA divided by Revenue.

The Group reconciles its Adjusted EBITDA and Adjusted EBITDA Margin to profit for the year as presented in the Consolidated Statement of Comprehensive Income as follows:

(i)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.

(ii)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.

(iii)Corresponds to expenses incurred by dLocal in connection with an offering of its Class A common shares in 2025.

The Group’s revenue, results and assets for this one reportable segment can be determined by reference to the consolidated statement of income and of comprehensive income and consolidated balance sheet. Disaggregated information is only reviewed at the revenue level with no corresponding detail at any margin or profitability levels.

As required by IFRS 8: Operating Segments, below are presented applicable entity-wide disclosures related to dLocal’s revenues.

Disaggregated Revenue by region

The Group derives its revenues from delivering services to international merchants (mainly in the United States, Europe, and China), enabling them to receive payments and facilitate payments in emerging markets. The Group has operations in more than 40 countries, where its merchant customers operate.

The following table presents the Group’s revenue by region based on the country in which the end users of our merchant customers executed their payments. This presentation does not imply that revenue is generated, sourced, or subject to taxation in the respective country. Revenue recognition is based on IFRS principles and reflects the contractual relationships between the Group, its merchants, and its operating companies. For financial reporting purposes, regions are disclosed separately only if payments from/to merchant customers in a given region represented at least 10% of Total Revenues during the preceding four quarters.

During the years ended December 31, 2025, 2024 and 2023, the Group had no revenues from customers domiciled in the Cayman Islands. The Group’s revenues are derived from payment processing services provided to merchants, regardless of the geographic location of their customers. As previously stated, dLocal does not engage with or provide services directly to the end-users of its merchants.

Revenue with large customers

During the year ended December 31, 2025, the Group’s revenue from its top 10 merchants represented 61% of its total revenue (62% and 60% of revenue in the years ended December 31, 2024 and 2023, respectively). In 2025 two merchants (one in 2024 andnone in 2023) individually accounted for more than 10% of the Group’s total revenue.

Non-current assets by country

The Company does not have any non-current assets located in the Cayman Islands.

Material non-current assets are the Intangible Assets described in Note 20 to these Consolidated Financial Statements and are located in Malta.

6. Revenues and Cost of Services

(a)Revenue and Gross profit description

dLocal derives revenue by processing payments for international merchants who operate in selected emerging markets.

The breakdown of revenue from contracts with customers per type of service is as follows:

(i)Transaction revenues consist of processing, foreign exchange, installment, advances granted to merchants, chargebacks, refunds and other transactional fees as described innote 2.15. These fees are recognized as revenue at a point in time when a payment transaction, or its reversal in the case of chargebacks and refunds, has been processed.

(ii)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.

(b)Revenue recognized at a point in time and over time

Transaction revenues are recognized at a point in time when the payment transaction, or in the case of chargeback and refunds, its reversal, has been processed. Other revenues are recognized as revenue at a point in time when the respective performance obligation is satisfied. The Group did not recognize revenues over time during the years ended December 31, 2025, 2024 and 2023.

(c)Cost of services

Cost of services are comprised of the following:

(i)Include fees from financial institutions (e.g., banks, local acquirers or payment methods) charged the Group, typically as 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. For further details related to the effect of hedging results see Note 24. Derivative financial instruments

(ii)Expenses related to hosting services for the Group’ s payment platform.

(iii)Represents the amortization of capitalized internally generated software (i.e., dLocal’ s payment platform). For further detail refer to Note 20. Intangible Assets.

(iv)Consist of salaries and wages of the operations department directly involved in the day-to-day operations. For further detail refer to Note 9. Employee Benefits.

7. Technology and development expenses

Technology and development expenses consist of the following:

(i)Consists primarily of full-time equivalents (“FTE”)’ compensation related to product and technology development, excluding capitalized salaries and wages related to internally generated software. For further detail on total salaries and wages refer to Note 9. Employee Benefits.

(ii)Consists of software licenses used exclusively by the technology development department for the development of the platform.

(iii)Represents information technology costs to support the Group’s infrastructure and back-office operations.

(iv)Represents expenses incurred to monitor the security of our network and platform.

8. Sales and marketing expenses and General and administrative expenses

Sales and marketing expenses and General and administrative expense are comprised of the following:

(i)Represents salaries and wages related to FTEs the Group’s Sales and marketing department. For further detail on total salaries and wages refer to Note 9. Employee Benefits.

(ii)Represents expenses related to trade marketing events, the distribution and production of marketing and advertising campaigns mostly related to public relations expenses, third-party sales commissions, and online performance marketing.

(iii)Represents salaries and wages related to administrative FTEs. For further detail on total salaries and wages refer to Note 9. Employee Benefits.

(iv)Includes Advisors’ fees, Legal fees, Auditors’ fees and Human resources’ fees.

(v)Includes 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.

9. Employee Benefits

Employee benefits costs were comprised of the following:

(i)Salaries, wages and contractor fees include social security costs and annual bonuses. During the year ended December 31, 2025, US$34,265 of salaries, wages and contract fees were capitalized (US$19,809 in 2024 and US$16,694 in 2023).

(ii)Represents compensation expenses stemming from share-based arrangements settled in the Group’s common shares. For further information refer to Note 2.11. Share-based payments and warrants contracts.

10. Amortization and depreciation

Amortization and depreciation expenses are composed of the following:

For further information related to amortization of intangible assets refer to Note 20. Intangible Assets.

11. Other results

Other results consist of the following categories:

(i)Includes financial income and gains resulting from the remeasurement of short-term liquid financial instruments and financial assets measured at fair value through profit and loss and financial assets measured at amortized cost. For further detail refer to Note 15. Financial assets.

(ii)Represents the rate implicit in derivative financial instruments not designated as hedging instruments. The Group elected to separate the spot element from the forward element of the derivative foreign exchange instruments and designated as a hedging instrument the changes in the fair value of the spot element. Changes in the fair value of the hedging portion of the derivative contract are recognized within Costs of Services while changes in the fair value of the non-designated portion; i.e. the forward element, are presented within Finance Costs. For further information refer to Note 24. Derivative financial instruments.

(iii)Mainly represented by net effects of foreign exchange results in subsidiaries and in an intra-group loan denominated in US Dollars between subsidiaries located in Argentina and Malta, the fair value adjustments of other financial arrangements.

(iv)Finance costs associated with lease liabilities resulting from the application of IFRS 16 Leases. For further information refer to Note 19. Leases.

(v)As required by IAS 29, the financial statements of the Group’s Argentina subsidiary was restated to reflect the purchasing power of the hyperinflationary currency. Therefore, a loss on net monetary position was recognized during the years ended December 31, 2025 and 2024.

12. Income Tax

In October 2021, members of the Organization for Economic Cooperation and Development (OECD) inclusive framework released the statement on a Two-Pillar solution to address the tax challenges arising from the digitalization of the economy. On 23 May 2023, the International Accounting Standards Board (IAS) issued “International Tax Reform – Pillar Two Model Rules – Amendments to IAS 12” which clarify that IAS 12 applies to income taxes arising from tax law enacted or substantively enacted to implement the Pillar Two model rules published by the OECD, including tax law that implements Qualified Domestic Minimum Top-up Taxes. The Group has adopted these amendments. However, these amendments are not yet applicable for the current reporting year, as the Group's consolidated revenue has remained below the €750 million threshold, which is assessed based on the revenue over the last four reporting periods.

The income tax charge recognized in profit and losses included the following:

Deferred Tax Assets

The balance comprises temporary differences attributable to:

The recognized tax loss carry-forwards have a maximum expiration of 5 years.

Movements:

Deferred Tax Liabilities

The balance of Deferred Tax Liabilities is comprised of temporary differences attributable to:

Movements:

As of December 31, 2025 and 2024, no deferred tax liability has been recognized for temporary differences related to investments in the Group subsidiaries. The Group has concluded it has the ability and intention to control the timing of any distribution from its subsidiaries and that it is probable there will be no reversal in the foreseeable future in a way that would result in a material charge to taxable profit.

Reconciliation of effective tax rate

The tax on the Group’s profit before tax differs from the theoretical amount that would arise using the weighted average tax rate applicable to the profits of the consolidated entities. The income tax provision is determined based on the income tax rates in effect in each country where the Group operates. The following is a reconciliation of the income tax expense to the profit (loss) for the year, considering the applicable statutory tax rates in the jurisdictions where the Group has taxable operations. These rates range from 0% in jurisdictions such as the Cayman Islands to 35% in Argentina and Colombia. Other key tax rates include 5% in Malta,21% in the United States,25% in Ecuador, Panama, the United Kingdom and Uruguay,30% in Kenya, Mexico, and Nigeria, and 34% in Brazil. In the remaining countries, tax rates range from 0% to 30%.

The Group’s effective Income Tax rate in 2025 was 11.5% (20.2% and 16.5% in the years ended December 31, 2024 and 2023, respectively). For 2025 and 2024, the Group applied for fiscal consolidation in Malta resulting in a domestic rate of 5%. 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 rate. The reconciliation between the effective Income Tax rate and the statutory rate in Malta of 5% in 2025, 2024 and 2023 was as follows:

(1) Represents foreign withholding taxes incurred in various jurisdictions, including dividend withholding taxes. As these amounts do not give rise to a tax credit or future tax benefit, they are presented as permanent differences in the income tax reconciliation.

(2) During the year ended December 31, 2025, other permanent differences included non-deductible expenses, the effect of income taxes accrued in subsidiaries and non taxable income.

In December 2024, the Company recorded an income tax expense of US$4,543 related to a claim from the Uruguayan Tax Authority concerning income taxes on foreign activities and transactions under the Free Zone regime held in 2022. Despite having strong arguments for its position, during the last quarter of 2024, the Company chose to settle with local tax authorities to resolve the matter. The Company and its external tax advisors are confident that there is no significant risk related to prior or subsequent periods. The related amount was paid in 2025 and no additional impact on income tax was recognized in 2025.

13. Capital Management

(a)Share capital and share premium

At the date of these consolidated financial statements, the total authorized share capital of the Group was US$3,000,000, divided into 1,500,000,000 shares par value US$0.002 each, of which:

•1,000,000,000 shares are designated as Class A common shares; and

•250,000,000 shares are designated as Class B common shares.

The remaining 250,000,000 authorized but unissued shares are presently undesignated and may be issued by our board of directors as common shares of any class or as shares with preferred, deferred or other special rights or restrictions.

The rights of the holders of Class A Common Shares and Class B Common Shares are identical, except with respect to voting, conversion and transfer restrictions applicable to the Class B Common Shares. Each Class A Common Share is entitled to one vote while Class B Common Shares are entitled to five votes each. Each Class B Common Share is convertible into one Class A Common Share automatically upon transfer, subject to certain exceptions. Holders of Class A Common Shares and Class B Common Shares vote together as a single class on all matters unless otherwise required by law.

Authorized shares, as well as issued and fully paid-up shares, are presented below:

(b)Share Premium

As of December 31, 2025 and 2024, dLocal issued 1,299.314 and 1,067.176 new Class A Common Shares receiving total proceeds of US$4,371 and US$1,853, respectively, related to the exercise of share-options.

(c)Treasury Shares

On May 13, 2024, the Board of Directors of Dlocal approved a share buyback program. The Company is authorized, but not obligated to purchase up to US$200 million of its Class A common shares from May 15, 2024, to May 31, 2025.

On August 13, 2025, the Board of Directors approved the cancellation of 18,754,887 Class A common shares held in treasury. The total amount of US$200,980 related to these shares was deducted for an amount of US$198,956 from the Share Premium until it was fully utilized, and the remaining US$2,024 was charged to Retained Earnings.

(d)Capital reserve

The Capital Reserve corresponds to reserves related to share-based payment plans, as described in Note 2.11. Share-based payments and warrants contracts of the Annual Financial Statements. As of December 31, 2025, the net effect of share-based payments amounts to US$9,203 comprising US$24,136 in share-based expenses and US$12,766 related to the exercise and vesting of share-based plans.

(e)Other Reserves

The reserves for the Group relate to cumulative translation adjustment representing differences on conversion of assets and liabilities at the reporting date.

(f)Earnings per share

The Group calculates basic and diluted earnings per share as discussed in Note 2.13. Equity. The calculations performed to derive basic and diluted EPS during the years ended December 31, 2025, 2024 and 2023 are as follows:

(1)As of December 31, 2025, reflects to the dilutive effect of i)3,305,330 average shares related to share-based payments (8,129,577 and 8,560,918 , respectively for the year ended December 31, 2024 and December 31, 2023); and ii)7,468,246 average shares related to share-based payment plans with employees (6,992,694 and 2,415,205 , respectively for the years ended December 31, 2024 and 2023).

14. Cash and cash equivalents

As of December 31, cash and cash equivalents were as follows:

As of December 31, 2025, US$719,897 (US$425,172 on December 31, 2024) represents cash on hand, demand deposits and other short-term liquid financial instruments

(i)Merchant cash and cash equivalents includes freely available funds which belong to the merchants or their customers but are held by the Company.

15. Financial assets

(a)Classification of financial assets

Financial assets at Fair Value through Profit or Loss

Financial assets at fair value through profit or loss include the following:

*Stabilization Reference Coefficient adjusted by inflation

Financial assets at Amortized Cost:

(i) As of December 31, 2025 and December 31, 2024, certain financial assets with a carrying amount of US$74,478 and US$42,052, respectively, were held as security for the borrowings detailed in Note 22. Financial Liabilities.

(b)Amounts reco gnized in profit or loss

Information about the Group’s impact on profit or loss of bonds is discussed in Note 11. Other results

(c)Risk exposure and fair value measurements

Information about the Group’s exposure to price risk is discussed in Note 30. Financial risk management.

16. Trade and Other Receivables

Trade and Other Receivables of the Group are composed of the following:

(i) Trade Receivables represent uncollateralized amounts due from acquirers, processors, merchants and collection entities for services performed that will be collected in less than one year. As a result, they are classified as current. No financial assets are past due. All Trade and other receivables have been assigned in “normal” credit risk rating which applies to financial assets for which a significant increase in credit risk has not occurred since initial recognition.

(ii) Advances and other receivables include payments made in advance to third parties, such as processors, tax authorities and others. In 2025, the Company recognized US$2,077 write-off of Advances and other receivables due from a third-party payment processor. The Company filed a legal claim against such payment processor for the entirety of the amounts (including the written-off balance and the unpaid installments disclosed in Note 17. Other assets).The Company, together with its external legal counsel, continues to believe that it has good prospects of recovering the written-off balance and the amounts due (see Note 17 – Other assets) and that this matter should not result in any material additional loss to the Company.

Loss allowance and impairment losses

The following table presents the evolution of the Group’s loss allowance:

Initial recognition and subsequent measurement the Group applies the simplified approach to determine expected credit losses on trade receivables.

To measure the expected credit losses, trade and other receivables have been grouped based on shared credit risk characteristics and the days past due.

The expected loss rates are based on the payment profiles of debtors over a period of 48 months before year end and the corresponding historical credit losses experienced within this period. The historical loss rate is adjusted to reflect current and forward-looking information on credit risk ratings of the countries in which the Group sells its services which affects the ability of the debtors to settle the receivables. On that basis, the average expected credit loss rate was determined at 0.3% for December 31, 2025 (0.1% on December 31, 2024).

17. Other Assets

Other assets are composed of the following:

(i)Includes own funds and investments held in escrow and guarantees required by processors, credit cards, and merchants. In 2024, some merchants entered into stand by credit letters with banks that required the Group to maintain certain collaterals in such banks. Amounts held in escrow also include funds held in a pledge account to collateralize overdrafts and pre-settlements agreements with a bank. Finally, it also includes guarantees issued to processors and credit cards institutions. These agreements have short-term maturities.

(ii)In December 2024 and in June 2025, dLocal entered into short-term credit facility agreements with AZA Finance, a fintech company specializing in cross-border payments and foreign exchange solutions in Africa, as a working capital facility at 7% and 15% annual interest rates. The total principal outstanding credit facility balance in December 2025 was US$22,500 and accrued interest was US$1,599. These agreements encompass a call option (the "Call Option") that grants dLocal the right to acquire designated entities or groups of assets from the borrower group The exercise of the Call Option is strictly subject to prior approval by relevant regulatory authorities to the extent that entities are acquired in certain jurisdictions. As of December 31, 2025, dLocal maintained no potential voting rights or significant influence over AZA Finance. These instruments are classified and measured at fair value through profit or loss (FVPL) in accordance with IFRS 9. The recoverability of these assets is reassessed on a recurring basis. On February 27, 2026, the Company exercised the Call Option acquiring shares of an entity and certain assets (see Note 32 - Subsequent events).

(iii)The financial asset measured at FVPL relates to amounts contractually due from a third-party payment processor. During 2025, the Company reassessed the recoverable amount of this asset and recognized a fair value adjustment in financial results. As of December 31, 2025, the carrying amount totaled US$5,604. The Company has formally initiated a legal claim against the third-party payment processor. While the legal proceedings are ongoing, dLocal continues to monitor developments and assess the recoverability of the remaining balance in accordance with the accounting policies and applicable accounting standards. The Company, together with its external legal counsel, continues to believe that it has good prospects of recovering the total amounts, including the written off (see Note 16 – Trade and other receivables) and that this matter should not result in any material additional loss to the Company.