MercadoLibre reported third‑quarter 2025 financial results, posting net revenue of $7.41 billion, a 39 % year‑over‑year increase. Earnings per share were $8.32, below consensus estimates of $9.68. Total payment volume rose 41 % to $71.2 billion, and gross merchandise volume grew 28 % to $16.5 billion.
Revenue from the commerce business reached $4.2 billion, up 33 % YoY, while revenue from Mercado Pago grew 49 % to $3.2 billion. Advertising revenue increased 63 % FX‑neutral, reflecting stronger demand for digital marketing in the region.
Operating margin contracted as the company invested heavily in shipping, logistics, marketing, and credit provisioning. The company cited increased spending on fulfillment center expansion, free‑shipping initiatives, and a growing credit portfolio as the primary drivers of margin pressure. Currency depreciation and inflation in Argentina also weighed on profitability.
Management emphasized that the investments are part of a long‑term strategy to solidify MercadoLibre’s position as the largest digital bank in Latin America and to expand its integrated ecosystem. The company highlighted progress in AI integration and the expansion of its fintech offerings as key growth levers.
Competitive pressure from Amazon and Shopee, particularly in Brazil, remains a factor, but MercadoLibre’s free‑shipping threshold reduction and logistics network expansion have accelerated growth in that market. The company continues to prioritize long‑term value creation over short‑term margin improvement.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.