Company: DLO
Filing Date: 2025-09-04
Form Type: 424B3
Source: 0000950103-25-011286
Chunk: 7

Company: dLocal Ltd
Filing Date: 2025-09-04
Form: 424B3
Chunk 7
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 cash flows from operating activities as a measure of liquidity. Additionally, Adjusted
Operating Profit is not intended to be a measure of free cash flow available for management’s discretionary use, as it does not
consider certain cash requirements such as interest payments, future requirements for capital expenditures, tax payments and debt service
requirements or other contractual commitments. Our presentation of Adjusted Operating Profit and Adjusted Operating Profit to Gross Profit
has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported
under IFRS accounting standards. See below for a reconciliation of our Adjusted Operating Profit and Adjusted Operating Profit to Gross
Profit to the nearest IFRS measure.

Adjusted Free Cash Flow

We calculate “Adjusted Free Cash Flow”
for purposes of this prospectus supplement as net cash (used in) / generated from cash flows from operating activities, less (i) changes
in working capital (merchant), and (ii) capital expenditures. The working capital (merchant) is defined as (i) changes in Trade receivables
net (disclosed in note 17 to our 2Q25 Financial Statements and note 21 to our financial statements for the year ended December 31, 2024
(“FY24 Financial Statements”)), plus (ii) changes in Trade payables (disclosed in note 17 to our 2Q25 Financial Statements
and note 21 to our FY24 Financial Statements), plus (iii) changes in Other tax liabilities (disclosed in note 21 to our 2Q25 Financial
Statements and note 23 to our FY24 Financial Statements). Capital expenditures consist of acquisitions of property, plant and equipment
and additions of intangible assets.

Management uses Adjusted Free Cash Flow as a measure
for evaluating the corporate cash generation and the cash available for distribution to our shareholders as dividends pursuant to our
dividend policy. Adjusted Free Cash Flow is not a financial measure recognized under IFRS and does not purport to be an alternative to
cash generated from operating activities or as a measure of liquidity. Our presentation of Adjusted Free Cash Flow has limitations as
an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under IFRS.
See below for a reconciliation of our Adjusted Free Cash Flow to the nearest IFRS measure.

Special Note Regarding Adjusted EBITDA and Adjusted EBITDA Margin

We define Adjusted EBITDA