DLocal Limited (DLO) Earnings Call Transcript & Summary

Hello, everybody, and welcome to the call covering our fourth quarter 2025 results. Should you have missed the earnings release, you can find it, as usual, in the financial section over on the Investor Relations site. Joining us today are Pedro Arnt, our Chief Executive Officer; Guillermo Lopez Perez, our Chief Financial Officer; Christopher Stromeyer, SVP of Corporate Development; and Mirele de Aragao, who leads Investor Relations. We've made a slide presentation available that goes along with the prepared remarks. This session is webcast live, and you can reach both the webcast and the presentation by visiting dLocal's site, investor.dlocal.com. A recording should be ready not long after we finish. Before we go further, I should note that forward-looking statements contained in the presentation or made during this call rest on information available right now, together with dLocal's present assumptions, expectations, and projections regarding future events. Although the company considers these assumptions, expectations, and projections reasonable in light of what we know today, you shouldn't rely excessively on such forward-looking statements. Results in reality could vary significantly from what appears in dLocal's presentation or comes up during the call. For a variety of reasons, among them those outlined in the forward-looking statements and Risk Factors sections of dLocal's filings with the Securities and Exchange Commission, all of which can be found on dLocal's Investor Relations website. At this point, I'll hand the conference over to dLocal. Thank you.

Good afternoon, everyone, and thanks for being with us today. 2025 was a year where we executed exceptionally well — one that demonstrated the resilience of our business as we keep working to build a world-leading financial infrastructure platform serving emerging markets. Our business flywheel keeps picking up speed. Rapid expansion within a huge and growing TAM, customers who stay loyal and stick with us, an expanding ability to bring new ideas to market, and a financial model that is asset-light with high cash conversion. We showed just how large the emerging market opportunity is. TPV came in at $41 billion, a 60% increase year-over-year, with momentum building as the year went on. Revenue passed the significant $1 billion milestone for the very first time. We keep strengthening the ties we have with our merchants. TPV retention came in at 158%, while net revenue retention was 145% — both powerful evidence of the value our service delivers and of our capacity to ride the secular waves of emerging market growth together with our merchants. We also keep pushing forward with our developing innovation engine. Buy Now Pay Later fused products are now live across 6 countries, with solid merch adoption. We finished rolling out our full-service stablecoin suite, which lets merchants on- and off-ramp fiat to stablecoins, settle and be settled in stablecoins and collect at checkout in stablecoins; and we keep adding an ever-growing portfolio of APMs, a SmartAPM platform. We also generated strong cash in the year — adjusted free cash flow that ended at $191 million, a 110% increase year-over-year, with a 97% conversion ratio. All of this strength in our P&L came primarily from the sustained TPV growth we saw with merchants in 2025. Flowing on from TPV growth, gross profit was up 37% year-on-year. And even with a still active investment year, we widened adjusted EBITDA as a percentage of gross profit by 5 percentage points, which underscores the operating leverage built into our financial model. As a result, net income hit $197 million, a 63% increase year-over-year. Stepping back, it's worth recognizing how consistent our TPV growth has been across our entire history. Between 2020 and 2025, TPV grew at an 82% compound annual growth rate. It really hasn't slowed much, given the 60%-plus growth we saw in 2025. At the size we are today, these high growth levels generate substantial incremental dollar volumes. For example, during Q4 2025 by itself, the TPV we added quarter-over-quarter exceeded what we added in the prior 3 quarters put together. The magnitude of this deserves a moment of reflection. In 2025, we processed in a single day what we processed in all of 2016. Throughout the year, we processed roughly 3.5 billion pay-in transactions, which works out to about 6,700 payments each minute, around the clock, every day; on the payout side, over 100 million people got paid via dLocal; and although our company is still in its early stages, scale like that positions us strongly for advantages in cost, operating leverage, data accumulation and organizational knowledge; today we handle payments across 44 markets in the Global South, almost doubling our reach in the past 5 years; as a growing number of markets turn into meaningful contributors to total volume, 2025 also brought an acceleration in financial metrics. If we set our 2021 to 2024 gross profit, adjusted EBITDA and net income beside our 2025 growth rates, it becomes obvious that high growth is sustainable at a much bigger size on each line. The business keeps compounding dependable growth even while scaling, and there's a cause for that. Merchants are ever more global, yet financial infrastructure stays local and grows ever more complicated and locally regulated. Emerging markets remain characterized by fragmented payment infrastructure, regulatory complexity and fast-shifting localized consumer behaviors. These structural difficulties are precisely why our platform exists and enjoys such broad adoption among the world's most successful digital companies. We tackle complex financial infrastructure problems our merchants aren't expert in and would rather not concentrate on; and there's ample room to keep at this for a very long time. I want to offer a few illustrations of such complexity. We currently hold 37 licenses spanning 26 markets, with 4 added in 2025 alone, among them Argentina, Chile, the UAE and the Philippines, plus 16 further applications underway, including one for the United States. Absent these, serving customers with the local financial infrastructure their consumers expect couldn't happen. Alternative payment methods now make up the majority of e-commerce volumes throughout EM markets; and our APM volumes keep rising as we deepen capabilities in tokenization, biometrics, improved regulatory compliance and increasingly deliver instant rails being constructed across the Global South. On stablecoins, we provide merchants a complete suite of stablecoin solutions. As for AI agents, a potential new frontier for commerce, we're working with Google on the AP2 open standard for interoperable AI engine payments so that local payment methods throughout emerging markets form part of that infrastructure from the ground up. Above all, we simplify and abstract all this complexity via one unified, world-class platform. Our capacity to deliver a single integration covering the widest and deepest footprint in the Global South, the most markets, the most payment methods per market, is our lasting differentiator. That's the One dLocal proposition; and the more complicated the environment grows, the more valuable it becomes. I believe it's useful to point to several instances just from the quarter we just closed that illustrate the points I've been making. When it comes to stablecoins, merchants can now access a full infrastructure offering for digital assets — spanning treasury and effects, on and off ramps, and acceptance of stablecoins at checkout along with settlement in stable — together with top-tier partners such as Circle, BVNK, Fireblocks and Felix. Regarding Buy Now Pay Later, our Fuse offering expanded 88% from the third to the fourth quarter. That's a strong indication that demand from both merchants and consumers for paying in installments is genuine and speeding up quickly. As for alternative local payment methods, we keep broadening both the depth and the intelligence we bring across markets and use cases, which drives better performance; ranging from biometric authentication and tokenized card on file through to instant payment rails, DHL Express and Open English rank among the newest merchants to launch with these capabilities. APMs right now represent a meaningful share of our quarterly TPV. How much our product and service model is worth to merchants we already have becomes evident when you examine our retention metrics. As a merchant follows the secular trends in our markets, expands into new geographies and takes up new payment methods or extends them into new use cases, dLocal expands alongside them. That compounding quality of our model shows up in our TPV retention rate and net revenue retention. Just as important to how we grow is how large the market we're going after is. Digital payments across the urging markets are estimated to represent a total addressable market above $2 trillion, and that figure is expected to double by 2030. At present we hold under 2% of that market, and our share of wallet among merchants we already serve sits at only about 10%; we're growing quickly, yet the runway in front of us is still huge. This same pattern appears in how broad and deep our merchant base is. The total number of merchants came to over 760 in 2025, and that base keeps growing more diverse. Revenue concentration among our top 3 markets has gone down. Meanwhile our top 10 merchants represent a smaller portion of overall revenue than they did a year earlier, which shows wider platform adoption across geographies and verticals. And though concentration admittedly persists, the business has grown not just more diversified but also stickier. At present we serve our top 50 merchants across an average of 12 countries and 50 payment methods; that engagement spanning multiple countries and multiple payment methods is the strongest demonstration of the resilience and compounding character of what dLocal provides. Throughout, these results have come with best-in-class efficiency. Our gross profit per employee has risen even as investment levels continue, with AI and automation serving as increasingly important enablers. During 2025, automation powered by AI produced productivity equal to about 7% of total headcount, which let us grow without cost rising proportionally. Even more significantly, we anticipate additional progress over the course of this year. There is a clear self-reinforcing logic underlying our business model. Rapid expansion fuels greater scale, greater scale fuels operating efficiency, and operating efficiency produces the money we put back into the business to widen our advantage or deliver bigger returns for shareholders. This carried forward our history of robust cash generation, which puts us in position to put more money into technology, product, and commercial capabilities, all while keeping ample liquidity and giving capital back to shareholders. I'm delighted, as was shared earlier, that Guillermo Lopez Perez has joined us as our new Chief Financial Officer; this marks Guillermo's first earnings call in this position, and everyone here is thrilled to have him at the helm of our finance organization. With that introduction, I'll now turn the call over to him.

Thanks, Pedro. I'm really excited to have come aboard at dLocal and to be part of what this team does next — and good afternoon to all of you. Like I told a number of you in London a few weeks back, what lies ahead for dLocal is massive. And what this team has constructed across the last 10 years is truly remarkable. I'm eager to keep talking with all of you over the months ahead about the ways we're making dLocal stronger and taking it to scale. Pedro already took us through the full year numbers, so let me turn to how we did in Q4. For the quarter, TPV went past $13 billion, which is up 70% versus a year earlier and 26% compared with the prior quarter. That marks the biggest quarterly volume dLocal has ever posted, and it's the fifth quarter in a row where year-over-year TPV growth came in above 50% — a durable pattern showing how solid and steady our business is. You can also see that we're leaving 2025 with a great deal of momentum behind TPV growth. The expansion was widespread across our main markets and verticals; it was especially robust in Brazil, Mexico, South Africa and Colombia. Looking at verticals, on-demand delivery was a standout this quarter, powered by current merchants scaling up expansion deals in Argentina, South Africa, Mexico and Colombia. E-commerce kept moving in a positive direction, giving us a seasonally powerful quarter, most notably in Mexico, Brazil and South Africa. Advertising, meanwhile, bounced back from the prior quarter, helped along by volumes partially coming back in Egypt. From a revenue and gross profit standpoint, Q4 was a powerful way to close out the year. Revenue hit a record $338 million, rising 65% year-on-year and 20% quarter-on-quarter, which shows our TPV momentum is converting into very robust top line results. Gross profit came in at $116 million, up 38% year-on-year and 12% versus Q3; that mirrors the natural margin pressure that comes with scaling volume among established merchants and into new payment methods, products and countries. Yet despite that natural margin pressure, we grew gross profit by $32 million year-over-year in the quarter — close to 40% growth. Sequentially, apart from greater local-to-local volumes and the usual Q4 enrollment seasonality, 5 main contributors drove the gross profit story. Brazil was the growth leader, with very strong seasonal e-commerce growth backed by solid trends in streaming, advertising, financial services and remittances. Egypt partly bounced back from Q3, thanks to a large merchant returning plus new e-commerce, streaming and ride-hailing metals ramping up. Mexico pitched in on the strength of strong volume growth in e-commerce, on-demand delivery and ride hailing, while Other Africa and Asia pitched in with wide-ranging growth, including a notable contribution from South Africa, where we increasingly work with more global merchants. Argentina, by contrast, was the biggest drag on growth. Underlying volume growth was very strong, but higher costs stemming from election-related FX and rate volatility restrained gross profit. Q4 once again showed just how much operating leverage our business has. For the quarter, total operating expenses came to $53 million, which is a 28% increase compared to a year earlier. The main drivers were head count growth tied to our investment cycle, along with higher average salaries after our merit cycle. Adjusted EBITDA came in at $78 million, which is up 38% versus the same period last year and 9% higher than the prior quarter. Beginning in 2026, we will introduce operating profit so that investors get a clearer view of how our operations are performing. As the business grows, adjustments make up a smaller portion of revenue, and we think this metric gives a more standardized way to compare ourselves against peers in the industry. Net income for the quarter was $56 million, an 87% rise from a year ago, and a 7% gain from the previous quarter. The year-over-year increase comes from a lower effective tax rate during the quarter, which resulted from a more favorable jurisdictional mix as well as the fact that a onetime tax settlement booked in Q4 of last year did not repeat. Return on equity hit 35% on a trailing 12-month basis, which is 10% points higher than a year earlier, and it has kept rising each quarter. This ROE improvement stems from stronger profitability as well as our capital return policy, chiefly the inaugural dividend payment made in 2025. Lastly, adjusted free cash flow for the quarter was $65 million, which doubled from a year earlier, with an adjusted free cash flow to net income conversion ratio of 117%. That quarterly conversion figure can move around because of things such as the timing of tax payments. However, measured across a full year, we turned close to 100% of net income into free cash flow; this is a business that turns growth into cash at an exceptional rate. Having said that, I will hand things back to Pedro, who will discuss how we are putting this strength to work.

Thank you, Guillermo. What we've believed for a long time was confirmed in 2025. Emerging markets hold enormous opportunity, our model is the correct one for capturing it, and our team delivers consistently in a complicated, ever-changing environment. We head into 2026 with a defined strategy, a solid platform and a demonstrated record of success. Two milestones are also marked by this year: 5 years as a public company and 10 years since our founding — a reminder of the distance we've traveled in such a short span and how much opportunity remains in front of us. Now let me address our 2026 outlook. We expect total payment volume, our primary gauge of market share and product-market fit, to keep growing strongly. Right now, we're projecting TPV to rise 50% to 60% compared with a year earlier. Greater volume gives us more pricing power when dealing with downstream providers, improves FX liquidity, and generates better data that boosts conversion rates. That compounding dynamic is the thing I find most exciting about where this business can go over the long run. For gross profit, our guidance calls for 22.5% to 27.5% growth year-over-year. As existing merchants grow and big clients continue to scale up, we expect further volume-based discounting to be built into our long-term customer relationships. At the midpoint, that works out to gross profit dollars of $0.5 billion for the year, which is what we achieved. On the profitability side, we're guiding to a year-over-year increase in operating profit of between 27.5% and 32.5%. We went through an investment cycle in 2025, and there's some overhang from that carrying into the early part of 2026, since the salary and wage costs tied to the people we hired in '25 will be annualized. Because of that, we expect operating leverage to start accelerating in a more visible way as we move into the back half of the year, and from there it carries into the next year. Keep in mind that emerging markets are volatile by nature, and our projections take those uncertainties into account. That kind of environment isn't anything new to us. We designed this business to handle exactly that level of complexity, and we remain confident in the guidance. Looking at the bigger picture, it feels like we've barely gotten started on what's possible down the road. So I wanted to give you a framework for thinking about that opportunity well into the future. The first piece is growth from merchants we already have, in the markets where we currently serve them. The world-class businesses we work with are benefiting from some of the most powerful secular trends out there: digitization, rising middle-class incomes, and greater e-commerce penetration. Often, they have whole business lines where their payments infrastructure still hasn't been localized. The second piece is expanding geographically with merchants we already serve. Today, we serve merchants across an average of 12 countries, even though we operate in more than 44. Looking ahead, moving deeper into Asia, the Middle East and Africa—regions where merchant interest keeps climbing—should serve as an even bigger engine of growth. Together, these 2 factors will lift our consolidated share of wallet among merchants we already serve. They also clarify the reason we anticipate TPV retention rates staying high with those merchants; beyond that, new merchants will fuel our expansion. Over the past 2 years, our growth has largely stemmed from the strength of our existing base. Even so, we are seeing healthy commercial momentum among new merchants in priority verticals such as travel, crypto, gaming and AI, as those merchants move further along the emerging market payment adoption curve. Looking ahead over the medium term, we expect the share coming from newly added merchants to grow. And the fourth point is our innovation engine. Even though the impact on the near-term P&L is still expected to be limited, we see TPV opportunities worth multiple billions across our wider financial infrastructure bets — that includes Buy Now Pay Later, improved merchant of record solutions, virtual accounts, and the card-present products we'll be rolling out shortly. Last thing before I finish: I'd like to talk about capital allocation. Our confidence in dLocal's ability to produce cash remains enormous. Since our model doesn't tie up much capital in assets, actually generates cash as we grow rather than consuming it, and should let us scale profits faster than revenue over time, our free cash flow keeps expanding even under cautious assumptions. On top of that, we owe very little right now. We remain prudent, but we're open to tapping that capacity down the road to bring in extra cash or make our capital structure work harder. When it comes to allocating capital, we follow four priorities: one, put money back into the business so we can keep growing at the ambitious pace we're aiming for; two, hold enough liquidity given how choppy our markets can get; three, stay ready to pursue acquisitions on a selective basis when doing so would accelerate our strategy; and four, hand back whatever capital is left over to our shareholders. Regarding that final item, from 2022 through the close of 2025, the portion of adjusted free cash flow we've given back to shareholders comes to 64%, and we intend to maintain this same disciplined strategy for returning capital moving forward. Consequently, we are reaffirming a dividend policy set at 30% of the previous year's free cash flow, which for this year works out to $57 million. Beyond that, following a comprehensive review and discussions, we are confident that over the medium term our operations will produce enough cash to exceed both our minimum liquidity needs and the commitments under our dividend policy, which allows us to boost what we return to shareholders. As a result, the Board has given the green light to a fresh share repurchase program covering as much as $300 million of our Class A common shares. What we're putting forward here is really a starting point. Over several years, we expect it to grow into a framework for allocating capital that pairs the steady, reliable rigor of this approach with additional amounts set aside for repurchasing stock — moves we believe will boost earnings per share. How big these programs end up being depends on a range of considerations. We'll look at how actively dLocal shares trade, making sure there's enough liquidity; at whether we remain confident about generating free cash flow beyond what we need; and at whether other investment opportunities might deliver even greater total returns for shareholders. We hope these corporate finance choices and initiatives make clear how committed we are to managing and safeguarding shareholder capital prudently here at dLocal. And with that, let's turn to the fact that we're in unsettled times. To wrap up, I'd like to point out the things that set our story apart and, even more crucially, give it staying power. We've got a business that's growing fast, generates a great deal of profit when you look at cash, owes very little, and posts a return on equity that's both high and climbing. Growth, the ability to earn, and a solid balance sheet—that combination is precisely where our team remains fully committed to the long-term strategy, steady expansion, continuous work on new products, and creating enduring value for the merchants we serve and for our shareholders. In the developing markets, the opportunities are vast. Our platform has a unique edge that lets us capture them, and everything we've accomplished up to now gives us confidence that we'll continue to deliver on this strategic vision. Thank you all for standing with us, and at this point we are ready to begin the Q&A portion of the call.

I've got a couple of things I want to ask, I suppose, to kick things off. The first one is about the TPV growth guidance — like you said, Pedro, there's still a solid opportunity to keep expanding there. Could you share a bit more detail about where that growth is going to come from during this year? Is it more of the same from Brazil, which has been expanding considerably, plus more in Africa? Any detail you can offer regarding where you expect PPV growth to originate, whether by country or by vertical — e-commerce, for instance, has been performing well. Anything along those lines would be useful, I think. Then my second thing, focused on this quarter specifically, in Argentina: we actually saw really healthy revenues. Gross profit came in lower. I mean, I believe you brought up FX and a few other factors affecting costs; but what's your view on gross margin in Argentina? Should we treat it as a one-time item this quarter, considering all the circumstances there? And ought that gross margin eventually return to the levels we observed previously? Just so we can think through the growth we might expect, not only in revenues but in gross profit too, for Argentina.

Great. Thanks, Tito. I'll handle the first one. The second one I'll hand over to Guillermo. So, when it comes to the guidance, the strength of our business remains broad-based. Latin America is going to keep delivering robust growth. In Africa, we deepen our position further across several key markets there, maintaining growth; Egypt has picked back up, as we saw in the fourth quarter, and we're assuming that carries into the '26 guidance. Beyond that, we're growing more and more ambitious across the Middle East and Asia, where — even though we arrived late — we genuinely see meaningful opportunity and intend to push into that market as a long-term growth vector. Another element we point out, if you turn to Page 27 of the slides, is that within the guidance we're also starting to see growth vectors that are better distributed, whereas our '25 results were heavily concentrated on share of wallet gains and organic growth from existing merchants in existing countries. As we apply our bottoms-up approach and probability adjust our pipeline to arrive at the 26% guidance numbers, we're starting to see greater participation coming from moving those merchants into new countries, which demonstrates how deep the relationships we're building are, and also the rising significance of frontier markets and smaller markets inside the emerging world footprint, along with our footprint expanding into additional parts of the globe — Asia, for instance, as I mentioned a moment ago. And on top of that, we anticipate a pickup in new merchant impact in year 1; so a very strong cohort. And last, still small, but from a midterm perspective, I think our new products represent a very, very important part of what we're building. These give us the ability to drive more monetization and build momentum with the merchants we serve; and even more significantly, a lot of these, in the best case, end up being accretive to take rate, since they're products that carry higher monetization.

All right, I'll begin addressing what you asked about Argentina, and Pedro, please jump in whenever you'd like. During the third quarter, ahead of the elections, Argentina experienced notable foreign exchange swings. That broader macro instability, I believe, was already referenced during the last earnings call. Regrettably, it stayed high right through the fourth quarter, which weighed on the expense of the funding channels we rely on for our attachment business. On the brighter side, though, we keep observing very robust volume expansion, and for us Argentina continues to be a highly appealing market. Among the countries where we're expanding quickest, it ranks as one; and once we work out the returns on the capital we've put to work, they come in well above our cost of capital. So when we think about Argentina, it's a market of high growth and high return, even with the rising volatility we've been witnessing.

All right. That's quite useful, Pedro and Guillermo. If I may, a brief follow-up on each one. So for Argentina, we ought to anticipate that gross margin — which took a hit from FX swings — will bounce back once FX settles down, perhaps nearer to the levels we used to observe. Is that right? Then Pedro, I'm just wondering about stablecoin at this point — or, I'll say, further down the road — since you brought those up as opportunities. When would you expect them to turn into meaningful contributors? Do you already see that happening in '26? Or is this a '27, '28 kind of story? Just to get a sense of the potential there. And what can — how much could that add?

So '26 is more about confirming product market fit plus solid growth. We provided a sense of quarter-on-quarter growth, and Buy Now Pay Later is above 80%. Of course, that starts from a small base, so it still doesn't move the needle — it's unlikely to move the needle in 2026 — but if it compounds sequentially at those growth levels by 2027, ideally that turns material in our P&L. Then regarding Argentina, we'll share thoughts on how the market develops once we get into it. As you know, Argentina is a particularly volatile country. I'd rather not make forward-looking statements. I believe Guillermo's point was that, if we step back from the short term, we look at TPV growth, we look at merchant interest in the country; broadly we look at a country that seems to be on the right track. Over the long term, we expect a lot out of Argentina.

Nice work on the quarter — really impressive results. I've got two things to ask. First, it's specifically about stablecoins. You touched on stablecoins a bit through an operator APMs, but I want to focus on stablecoins themselves. Are you noticing any uptick, Pedro, in table point volumes or not? I suppose when it comes to dLocal's treasury it makes more sense, maybe activity is rising there. But what interests me more is the friction and the adoption side — are we getting any indication that stablecoin technology is already gaining traction in some form? My second question is really just to tick the box on the United States license. Should we interpret that as a U.K.-style license, similar to that move? Or does it relate to a particular service or product?

Regarding stablecoins, we aren't observing meaningful volumes or an uptick in stablecoin usage at checkout; we do start to see merchants growing more interested and grasping the product we've brought to market, grasping regulatory obligations and how every market functions, but I wouldn't claim we've seen volume. The place where volume is greatest inside that vertical is servicing digital asset marketplaces and exchanges with the legs going in and coming out, so what we refer to as pay-ins and payouts. And then there are expanding and growing discussions with corporate treasuries and our clients' treasuries about using stablecoins in specific markets where they might gain a cost advantage or a speed advantage or a 24/7 settlement advantage, which I believe across the next few years will likely be the biggest among those 3 segments we provide products around, namely stablecoins as a payment means or settlement means, stablecoin on and off ramps to fiat and corporate treasury adoption.

Understood.

There's another question, or a second portion to that one, regarding U.S. licenses. Our sole focus remains the global footprint of emerging markets. Like I mentioned, we're quite enthusiastic about our entries into the Middle East and Asia. So no ambition exists on our end to provide solutions for developed markets. We recognize our strength, our differentiation, and our capacity to build on more than 10 years of developing infrastructure and pipelines throughout the emerging world; those licenses merely enable settlements to merchants and let us operate under our own licenses in a way that's increasingly compliant, instead of depending on partners who are licensed.

Congrats on wrapping up the year so strongly. To start, I want to ask about Brazil revenues and gross profits. This quarter, gross profits are climbing a lot quicker than revenues. Could you walk us through a bit of the detail — is that product mix, client mix? Next, if you could expand a little on what pushed up the G&A expenses this quarter. And in the prepared remarks there's a mention that operating leverage ought to show up in the second half of the year, which you see reflected in the profit and gross profit guidance; but should we also be expecting the 4Q level to still be with us during this first half of the year? And let me fit in a third one if I can. Just to get clarity, I believe there was a remark regarding present card operations going forward — if you could go into a bit more detail on that.

Okay. Regarding Brazil, I'd put it this way: Brazil has genuinely started to bounce back. When you look at TPV growth, it demonstrates enormous strength in that market; and on top of that, Brazil gained from really powerful monetization. Part of the reason is that it's among our biggest markets. It's a place where a great deal of our TPV comes from mid-tiered merchants, and those usually carry somewhat higher take rates. The vertical mix there, with advertising doing well, generally tends to carry a somewhat higher take rate too. Still, it was an especially strong quarter. That degree of gap between TPV growth and gross profit growth isn't something you should automatically carry forward into future periods. So overall very strong, strong in a structural sense, and I'm really happy to see Brazil turn around following a tough '24. There's also an easy comp to some degree, but I'd say the team there accomplished the mission. We consistently said we felt confident that '24 was mostly about volatility and that substantial growth still lay ahead for us in Brazil. It was especially strong. I don't believe that sort of strength should automatically be extrapolated into the future. On G&A, very briefly, since I think we attempted to explain this, but it matters to grasp the cadence across the quarter. When you look at our year, much of the head count growth inside our investment cycle came weighted toward the back half of the year rather than the front half — not really by design, just how it unfolded; so what you're seeing is largely a result of stepped-up investment in engineers, in commercial teams and in operational teams. And that carries a spillover into 2026. I'll have Guillermo address that, but I think it's relevant.

Yeah. So I believe your question was focused on G&A specifically — I mean, a few one-time things showed up there, though you'd strip those out anyway. Once you adjust for those nonrecurring pieces, the underlying trend in G&A matches what we're seeing across the other OpEx lines. And the OpEx story really comes down to our Q4. It captures the final phase of hiring tied to the investment cycle Pedro kicked off 2 years back. Headcount was where most of the money went, plus there's an element from our yearly merit cycle raises. Now, to give you a sense of how this plays out in 2026 — at this point in 2016, we don't intend to bring on any meaningful additional head count, aside from a handful of hires we already flagged at the close of '25. That said, since the '25 hiring lands late in the year, you ought to see bigger year-over-year OpEx growth during the opening months, and these costs, as we've discussed, are advertised. That growth ought to show up in the closing months of 2026. On the whole, though, we're expecting OpEx growth across the entire year to land under gross profit growth, and the operating leverage baked into our guidance will likely be a second-half-of-the-year narrative. One more thing worth pointing out: when you stack us against our peers, as our presentation shows, we figure we're our own best-in-class when it comes to the resources needed to operate a business at this scale and growth rate. And I think that also speaks to the operating model we've constructed, and we're quite comfortable with the levels we're holding.