MercadoLibre

MercadoLibre (MELI) Q1 2026 Earnings

Reported May 7, 2026 at 4:00 PM ET · SEC Source

Q1 26 EPS

$8.23

BEAT +0.35%

Est. $8.20

Q1 26 Revenue

$8.85B

BEAT +6.27%

Est. $8.32B

vs S&P Since Q1 26

-5.8%

TRAILING MARKET

MELI -0.9% vs S&P +4.8%

Market Reaction

Did MELI Beat Earnings? Q1 2026 Results

MercadoLibre posted a robust first quarter for 2026, delivering revenue of $8.85 billion, a 49% year-over-year surge that beat the $8.32 billion consensus by 6.27%, while earnings per share of $8.23 edged past the $8.20 estimate by 0.35%, underscorin… Read more MercadoLibre posted a robust first quarter for 2026, delivering revenue of $8.85 billion, a 49% year-over-year surge that beat the $8.32 billion consensus by 6.27%, while earnings per share of $8.23 edged past the $8.20 estimate by 0.35%, underscoring the strength of its integrated commerce and fintech flywheel across Latin America. The headline driver was Brazil, where revenue accelerated to 55% year-over-year growth in USD as a lower free shipping threshold fueled a 56% jump in items sold and unique buyer growth hit its fastest pace in five years. Yet the quarter came with a deliberate trade-off: operating income fell 20% to $611 million, margin compressed roughly 600 basis points, and adjusted free cash flow turned negative at $56 million as the company plowed capital into credit cards, logistics, and first-party commerce, framing the moment as a rare generational opportunity in Latin American digital finance and retail. Management signaled no intention to ease that investment posture, instead pointing to AI-driven productivity gains and maturing credit and logistics investments as the pathway to significantly higher margins and cash flow over time.

Key Takeaways

  • Lower free shipping threshold in Brazil driving items sold growth of 56% YoY and unique buyer growth of 32% YoY
  • Credit card portfolio grew 104% YoY to $6.6bn with 2.7mn cards issued in Q1
  • First-party (1P) business grew 69% YoY FX-neutral, tripling market share in cellphones in Brazil
  • Advertising revenue grew 73% YoY in USD and 63% FX-neutral
  • Fintech MAUs reached 83mn, up 29% YoY, with AUM up 77% YoY to nearly $20bn
  • Unit shipping costs in Brazil declined 17% YoY in local currency, accelerating from 11% in Q4 2025
  • Cross-border trade GMV grew 68% YoY FX-neutral
  • AI-driven productivity gains with engineering productivity KPIs growing 7-10x faster than 8% headcount growth
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MELI YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

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MELI Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q1 26
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MELI Revenue by Geography

With YoY comparisons, source: SEC Filings

Q1 25 Q2 26