Companies /Consumer Cyclical

MercadoLibre Inc

NASDAQ: MELI Internet Retail
$1,930.75
▼ $19.69 (−1.01%) today
Markets closed · 5:11am ET

Q2 2025 Earnings

Reported Aug 4, 2025, 4:01pm ET · SEC source
$10.31
Miss −13.26%
EPS · est. $11.89
$6.8B
Beat +1.90%
Revenue · est. $6.7B
−2.7%
Trailing market
MELI vs S&P since report
2 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+3%+6%Aug 4Aug 5report 4:01pm ETearnings−0.5%+4.5%
0+3%+6%Aug 4Aug 5earnings−0.5%+4.5%
MELI +4.5%S&P 500 −0.5%
0+3%+6%Aug 4Aug 5report 4:01pm ETearnings−0.7%+4.5%
0+3%+6%Aug 4Aug 5earnings−0.7%+4.5%
MELI +4.5%NASDAQ −0.7%
−3%0+3%+6%Aug 4Aug 12report 4:01pm ETearnings+1.6%+2.3%
−3%0+3%+6%Aug 4Aug 12earnings+1.6%+2.3%
MELI +2.3%S&P 500 +1.6%
−3%0+3%+6%Aug 4Aug 12report 4:01pm ETearnings+2.6%+2.3%
−3%0+3%+6%Aug 4Aug 12earnings+2.6%+2.3%
MELI +2.3%NASDAQ +2.6%
+0.51%
Day of report
−3.77%
Next session
−2.37%
One week
+0.39%
30 days

S&P 500 over the same 30 days: +3.07%.

Did MELI Beat Earnings? Q2 2025 Results

MercadoLibre posted a mixed second quarter for 2025, delivering a revenue beat while falling short on the bottom line, a combination that reflects the deliberate cost of its aggressive regional expansion. The Latin American e-commerce and fintech giant reported Q2 revenue of $6.79 billion, topping the $6.66 billion consensus estimate by 1.90% and marking 33.9% growth year-over-year, yet earnings per share of $10.31 missed the $11.89 consensus by 13.26%, weighed down by $117 million in foreign currency losses tied largely to Argentine peso devaluation and a higher effective tax rate. Operating margin compressed 210 basis points to 12.2% as the company dramatically expanded free shipping eligibility in Brazil and ramped Mercado Pago marketing campaigns, investments that are already showing results, with Mexico items sold growth hitting a nearly two-year high of 36% and the credit portfolio surging 91% year-over-year to $9.30 billion. Analysts <a href="https://247wallst.com/investing/2025/08/04/live-mercadolibre-meli-earnings-analysis-after-the-bell/">tracking the quarter closely</a> noted S&P's subsequent investment-grade upgrade as a signal that the company's balance sheet can sustain this growth trajectory well into 2026.

Key Takeaways
  • Expanded free shipping in Brazil to items from R$19 (previously R$79) driving items sold acceleration to 34% YoY in June
  • Argentina economic stabilization driving unique buyer growth above 30% YoY and items sold growth of 46% YoY
  • Mexico fulfillment penetration exceeded 75% for the first time, driving fastest items sold growth in nearly two years at 36% YoY
  • 1P business surpassed $1bn quarterly GMV for the first time, growing 103% YoY FX-neutral
  • Credit card portfolio grew 118% YoY to $4.0bn and achieved NIMAL breakeven
  • Fintech MAUs reached 68mn, up 30% YoY, with AUM more than doubling YoY to $13.8bn
  • Advertising revenue growth accelerated to 38% YoY (59% FX-neutral)
  • Acquiring TPV growth of 53% YoY FX-neutral with market share gains across all major geographies

Forward Guidance & Outlook

MercadoLibre announced a CEO transition: founder Marcos Galperin will move to Executive Chairman effective January 1, 2026, with Ariel Szarfsztejn (President of Commerce) becoming CEO, emphasizing continuity in mission, strategy, and culture. The company remains confident in its long-term growth potential and continues to invest in expanding free shipping, scaling its fintech platform through marketing campaigns, growing its credit card and lending portfolios, and building its advertising business into a major media company in Latin America. S&P's July upgrade to investment grade (BBB-) underscores the company's strengthening balance sheet to support long-term growth ambitions.

MELI YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$2.0B$4.0B$6.0B$5.1B$6.8BRevenue$2.4B$3.1BGross Profit$726.0M$825.0MOperating Income$531.0M$523.0MNet Income
$0$2.0B$4.0B$6.0BRevenueGross ProfitOperating IncomeNet Income

MELI Revenue by Segment

Service Revenues and Financial Income$6.0B
Commerce
Fintech
Product Revenues$826.0M

MELI Revenue by Geography

Brazil$3.5B+25.0%
Mexico$1.5B+25.0%
Argentina$1.5B+77.0%
Rest of World$284.0M

Figures from SEC filings and company reports. Not investment advice.