Companies /Consumer Cyclical

MercadoLibre Inc

NASDAQ: MELI Internet Retail
$1,966.25
â–² $35.50 (+1.84%) today
Markets closed · 6:10pm ET

Q3 2025 Earnings

Reported Oct 29, 2025, 4:00pm ET · SEC source
$8.32
Miss −10.51%
EPS · est. $9.30
$7.4B
Beat +2.81%
Revenue · est. $7.2B
−10.6%
Trailing market
MELI vs S&P since report
2 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+3%+6%Oct 29Oct 30report 4:00pm ETearnings−0.6%+3.9%
0+3%+6%Oct 29Oct 30earnings−0.6%+3.9%
MELI +3.9%S&P 500 −0.6%
0+3%+6%Oct 29Oct 30report 4:00pm ETearnings−0.8%+3.9%
0+3%+6%Oct 29Oct 30earnings−0.8%+3.9%
MELI +3.9%NASDAQ −0.8%
−4%0+4%Oct 28Nov 6report 4:00pm ETearnings−2.1%−5.7%
−4%0+4%Oct 28Nov 6earnings−2.1%−5.7%
MELI −5.7%S&P 500 −2.1%
−4%0+4%Oct 28Nov 6report 4:00pm ETearnings−3.4%−5.7%
−4%0+4%Oct 28Nov 6earnings−3.4%−5.7%
MELI −5.7%NASDAQ −3.4%
+2.82%
Day of report
−1.42%
Next session
−9.85%
One week
−10.37%
30 days

S&P 500 over the same 30 days: +0.25%.

Did MELI Beat Earnings? Q3 2025 Results

MercadoLibre posted a split verdict in Q3 2025, beating revenue expectations while falling short on the bottom line, a combination that reflects the complexity of operating at scale across Latin America's volatile currency landscape. The company reported revenue of $7.41 billion, topping the $7.21 billion consensus by 2.81% and extending a remarkable streak to <a href="https://247wallst.com/investing/2025/10/29/live-mercadolibre-meli-earnings-coverage/">27 consecutive quarters</a> of growth above 30% year-over-year, with the latest print clocking in at 39.5%. Yet diluted EPS of $8.32 missed the $9.30 consensus by 10.51%, as Argentine peso depreciation drove outsized foreign currency losses and a higher effective tax rate squeezed net income growth to just 6% year-over-year. The fintech segment was a standout, with the credit portfolio growing 83% year-over-year to $11.00 billion, while commerce momentum in Brazil and Mexico accelerated sharply. Management acknowledged near-term margin pressure from heavy investment in free shipping, logistics, and credit expansion, but pointed to Latin America's mid-teens e-commerce penetration rate as evidence the company remains in the early innings of a much larger opportunity.

Key Takeaways
  • Reduction of free shipping threshold in Brazil from R$79 to R$19 drove record unique buyer additions and 42% sold items growth
  • Credit portfolio grew 83% YoY to $11 billion with stable asset quality (NPL at 6.8%)
  • Fintech MAUs reached 72 million, up 29% YoY
  • Mercado Ads FX-neutral revenue grew 63% YoY with Display & Video growing near triple-digits
  • Total Payment Volume up 41% YoY to $71.2 billion
  • Unit shipping costs in Brazil fell 8% QoQ in local currency
  • Mexico achieved lowest-ever unit fulfillment shipping cost, down over 12% YoY in local currency
  • Record conversion rates and customer retention across the marketplace

Forward Guidance & Outlook

MercadoLibre believes it is still in the early stages of realizing its full potential, with ecommerce penetration at only mid-teens in Latin America and single-digit — in some cases low-single-digit — market shares in many fintech businesses and advertising. The company is committed to continued strategic investment in free shipping expansion, credit products, 1P retail, social commerce, and logistics to improve its value proposition for individuals and merchants. Management acknowledges these investments create short-term margin pressure but expects maturing investments (such as the Brazil credit card) to ease margin headwinds over time. Ecommerce penetration has the potential to double in the coming years, implying the ecommerce market more than doubling, and MercadoLibre's ambition is to grow ahead of the market.

MELI YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$3.0B$6.0B$5.3B$7.4BRevenue$2.4B$3.2BGross Profit$557.0M$724.0MOperating Income$397.0M$421.0MNet Income
$0$3.0B$6.0BRevenueGross ProfitOperating IncomeNet Income

MELI Revenue by Segment

Service Revenues and Financial Income
Commerce
Fintech
Product Revenues

MELI Revenue by Geography

Brazil$4.0B+38.0%
Mexico$1.7B+44.0%
Argentina$1.4B+39.0%
Rest of World$308.0M

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