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MercadoLibre

MELI Q4 2025 Earnings

Reported Feb 24, 2026 at 4:00 PM ET · SEC Source

Q4 25 EPS

$11.03

MISS 6.92%

Est. $11.85

Q4 25 Revenue

$8.76B

BEAT +3.20%

Est. $8.49B

vs S&P Since Q4 25

-3.0%

TRAILING MARKET

MELI +1.0% vs S&P +4.0%

Full Year 2025 Results

FY 25 EPS

$39.40

MISS 1.46%

Est. $39.98

FY 25 Revenue

$28.89B

BEAT +0.95%

Est. $28.62B

Market Reaction

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… Read more 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, the Latin American e-commerce giant 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.

Key Takeaways

  • • 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

MELI 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.

24/7 Wall St

MELI YoY Financials

Q4 2025 vs Q4 2024, source: SEC Filings

24/7 Wall St

MELI Revenue by Segment

Business unit performance breakdown

24/7 Wall St

MELI Revenue by Geography

With YoY comparisons, source: SEC Filings

Q1 25 Q4 25
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