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DERIVATIVE INSTRUMENTS
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS DERIVATIVE INSTRUMENTS
Cash flow hedges
The Company uses foreign currency exchange contracts to hedge the foreign currency effects related to the forecasted purchase of MPOS devices in U.S. dollars, hosting, licenses, fraud prevention, LTRP expenses, air logistics services and lease payments, which are payable in U.S. dollars (or in local currency linked to the U.S. dollar exchange rate) owed by Brazilian and Mexican subsidiaries, whose functional currencies are the Brazilian Real and the Mexican Peso, respectively. The Company designated the foreign currency exchange contracts as cash flow hedges, the derivatives’ gain or loss is initially reported as a component of accumulated other comprehensive loss and subsequently reclassified into the consolidated statements of income in the “Cost of net revenues and financial expenses,” “Product and technology development,” “Sales and marketing ," “General and administrative expenses" and “Foreign currency losses, net” line items, in the same period the forecasted transaction affects earnings. As of June 30, 2026, the Company estimated that the whole amount of net derivative gains or losses related to its cash flow hedges included in accumulated other comprehensive loss will be reclassified into the consolidated statements of income within the next 12 months.
The Company has also entered into a currency swap contract to hedge the foreign currency exchange effects related to a foreign currency financial debt issued by one of its Brazilian subsidiaries. The Company designated the currency swap contract as cash flow hedge, the derivative’s gain or loss is initially reported as a component of accumulated other comprehensive loss and subsequently reclassified into the consolidated statements of income in the “Cost of net revenues and financial expenses” and “Foreign currency losses, net” line items in the same period the forecasted transaction affects earnings. The derivative’s gain or loss is initially reported as a component of accumulated other comprehensive loss and subsequently reclassified into earnings within the next 12 months.
Fair value hedges
The Company has entered into swap contracts to hedge the interest rate and the foreign currency exposure of its fixed-rate, foreign currency financial debt held by its Brazilian subsidiaries. The Company designated the swap contracts as fair value hedges. The derivatives’ gain or loss is reported in the consolidated statements of income in the same line items as the change in the value of the financial debt due to the hedged risks. Since the terms of the interest rate swaps match the terms of the hedged debts, changes in the fair value of the interest rate swaps are offset by changes in the fair value of the hedged debts attributable to changes in interest rates. Accordingly, the net impact in current earnings is that the interest expense associated with the hedged debts is recorded at the floating rates.
The Company also uses future contracts to hedge the interest rate exposure of its asset-backed loan portfolio originated in Brazil. In these cases, where the assets included in the portfolio share the same risk exposure, the Company designated the future contracts as fair value hedges under the portfolio layer method. The derivatives’ gain or loss is reported in the consolidated statements of income in the same line item as the change in the value of the financial assets due to the hedged risk. Accordingly, the Company unlocks its portfolio’s fixed-rate to mitigate the effect of interest rate fluctuations.
Derivative instruments not designated as hedging instruments
The Company entered into certain foreign currency exchange contracts to hedge the foreign currency fluctuations related to certain transactions and balances denominated in U.S. dollars of certain of its Brazilian and Mexican subsidiaries, whose functional currencies are the Brazilian Real and the Mexican Peso, respectively. These transactions were not designated as hedges for accounting purposes.
The Company entered into certain foreign currency exchange contracts to hedge the foreign currency fluctuations related to commercial notes denominated in U.S. dollars issued by a certain Argentine subsidiary. As explained through Note 2. Summary of significant accounting policies, the Company changed the functional currency for Argentine subsidiaries from Argentine Pesos to U.S. dollars under US GAAP, as a consequence of hyperinflation status, so these transactions were not designated as hedges for accounting purposes, as no foreign exchange risk exists under U.S. GAAP related to U.S. dollar denominated commercial notes in Argentina.
Finally, as of June 30, 2026, the Company entered into swap contracts to hedge the interest rate fluctuation of a certain portion of its financial debt in one of its Brazilian subsidiaries. These transactions were not designated as hedges for accounting purposes.
The following table presents the notional amounts of the Company’s outstanding derivative instruments:
Notional Amount as of
June 30, 2026December 31, 2025
(In millions)
Designated as hedging instrument
Foreign exchange contracts$1,290 $789 
Cross currency swap contracts631 611 
Future contracts507 328 
Not designated as hedging instrument
Interest rate swap contracts$123 $116 
Foreign exchange contracts313 100 
Future contracts3 — 
Derivative instrument contracts
The fair values of the Company’s outstanding derivative instruments as of June 30, 2026 and December 31, 2025 were as follows:
Derivative instrumentsBalance sheet locationJune 30, December 31,
20262025
(In millions)
Foreign exchange contracts designated as cash flow hedgesOther current assets$5 $4 
Foreign exchange contracts not designated as hedging instrumentsOther current assets2 — 
Future contracts designated as fair value hedgesOther current assets3 — 
Interest rate swap contracts not designated as hedging instrumentsOther current assets15 14 
Cross currency swap contracts designated as fair value hedgeOther current assets— 4 
Interest rate swap contracts not designated as hedging instrumentsOther non-current assets22 19 
Cross currency swap contracts designated as fair value hedgeOther current liabilities57 12 
Interest rate swap contracts not designated as hedging instrumentsOther current liabilities24 23 
Foreign exchange contracts not designated as hedging instrumentsOther current liabilities1 7 
Future contracts designated as fair value hedgesOther current liabilities4 — 
Cross currency swap contracts designated as cash flow hedgesOther current liabilities19 — 
Foreign exchange contracts designated as cash flow hedgesOther current liabilities62 36 
Interest rate swap contracts not designated as hedging instrumentsOther non-current liabilities7 5 
The effects of derivative contracts on the interim condensed consolidated statement of comprehensive income for the six-month periods ended June 30, 2026 and 2025 were as follows:
December 31,
2025		Amount of loss recognized in other comprehensive incomeAmount of loss reclassified from accumulated other comprehensive lossJune 30,
2026
(In millions)
Derivative contracts designated as cash flow hedges$(30)$(95)$82 $(43)
$(30)$(95)$82 $(43)

December 31,
2024		Amount of loss recognized in other comprehensive incomeAmount of loss reclassified from accumulated other comprehensive lossJune 30,
2025
(In millions)
Derivative contracts designated as cash flow hedges$5 $(42)$3 $(34)
$5 $(42)$3 $(34)

The effect of the Company’s fair value hedge relationships over its fixed-rate financial debt on the interim condensed consolidated statements of income for the six and three-month periods ended June 30, 2026 and 2025 were as follows:
Six Months Ended June 30,Three Months Ended June 30,
2026202520262025
(In millions)(In millions)
Cost of net revenues and financial expenses$(16)$(19)$(8)$(11)
Interest expense and other financial losses(11)— (6)— 
Foreign currency losses, net(36)(30)(5)(8)
$(63)$(49)$(19)$(19)
The carrying amount of the hedged items for fair value hedges over its fixed-rate financial debt included in the “Loans payable and other financial liabilities” line items of the interim condensed consolidated balance sheets as of June 30, 2026 and December 31, 2025 was $516 million and $486 million, respectively.
The effects of the Company’s fair value hedge relationships over its fixed-rate financial debt on the interim condensed consolidated balance sheets related to cumulative basis adjustments for fair value hedges as of June 30, 2026 and December 31, 2025 are $1 million and less than $1 million, respectively, reducing the carrying value of the hedged debt as of June 30, 2026 and December 31, 2025.
The effects of derivative contracts not designated as hedging instruments on the interim condensed consolidated statements of income for the six and three-month periods ended June 30, 2026 and 2025 were as follows:
Six Months Ended June 30,Three Months Ended June 30,
2026202520262025
(In millions)(In millions)
Foreign exchange contracts not designated as hedging instruments recognized in Foreign currency losses, net$13 $— $10 $— 
Interest rate contracts not designated as hedging instruments recognized in Interest expense and other financial losses— 1 (1)— 
Foreign exchange contracts not designated as hedging instruments recognized in Interest expense and other financial losses(21)(1)(5)(1)
$(8)$— $4 $(1)