MercadoLibre Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −8.52%.
Did MELI Beat Earnings? Q4 2025 Results
MercadoLibre closed Q4 2025 with a characteristically split scorecard, delivering revenue of $8.76 billion, up 44.6% year-over-year and ahead of the $8.49 billion consensus, while earnings per share of $11.03 fell short of the $11.85 estimate by 6.92%, as the company's deliberate investment surge weighed heavily on the bottom line. The core story behind the earnings miss was margin compression driven by management's decision to lower free shipping thresholds in Brazil, scale cross-border trade, expand first-party operations, and aggressively grow its credit card business, a combination management estimated cost 5 to 6 percentage points of operating margin in the quarter alone. Net income declined 13% year-over-year to $559 million, compounded by tax rate normalization versus unusually favorable conditions a year earlier. Still, <a href="https://247wallst.com/investing/2026/02/17/mercadolibre-vs-alibaba-which-e-commerce-giant-is-the-better-buy-in-2026/">the Latin American e-commerce giant</a> signaled its 2026 investment posture will remain equally bold, with management expressing confidence that these early-stage initiatives will scale into durable competitive advantages as e-commerce penetration across the region remains roughly half that of mature markets.
- Extension of free shipping in Brazil to items starting from R$19 driving new buyer acquisition and higher retention
- FX-neutral GMV growth of 35% YoY in Brazil and Mexico, 42% in Argentina
- Credit portfolio grew 90% YoY to $12.5 billion with improving risk metrics
- Advertising revenue grew 67% FX-neutral (70% USD) in Q4
- Total Payment Volume grew 42.1% YoY to $83.7 billion
- Sold items grew 45% YoY in Brazil and Mexico
- Unique active buyers reached 121 million for the year, 83 million in Q4
- Fintech MAU reached 78 million, up 28% YoY
- AUM grew 78% YoY to nearly $19 billion
- Unit shipping costs in local currency fell 11% YoY in Brazil in Q4
Forward Guidance & Outlook
MercadoLibre signaled that its 2026 investment plan will be consistent with its 'bold and disciplined approach to investing behind long-term growth.' The company expects the China-to-LatAm corridor to be an area of incremental growth and investment in 2026 as it scales its fulfilled-from-China model. Management acknowledged that early-stage strategic investments (lower free shipping threshold, CBT, 1P, credit card) put pressure on operating margins in the short term but expressed confidence that as these initiatives scale, their profitability will mature while reinforcing competitive advantages. The company sees its GMV as potentially 'multiple times larger over the long term' given e-commerce penetration in Latin America is roughly half the level of the US, UK, and China.
MELI YoY Financials
MELI Revenue by Segment
MELI Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.