Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
MercadoLibre (MELI) delivered strong FY2025 revenue growth of 39.1% to $28.9B, driven by continued expansion across its e-commerce and fintech segments, though net income grew only 4.5% to $2.0B as cost pressures compressed margins.
Revenue
$28.89B
+39.06% YoY
EPS (Diluted)
$39.40
+4.54% YoY
Gross Margin
44.5%
-1.6 pts YoY
Operating Income
$3.2B
+21.66% YoY
Source: SEC XBRL
Mercadolibre (MELI) reported FY2025 revenue of $28.89B, up 39.1% year over year. Operating margin was 11.1%, down 1.6 points from 12.7% a year earlier. Operating cash flow was $12.12B, up 53.0% year over year.
Last 4 quarters: 1 beat
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 9.19 | 8.83 | Beat +4.1% |
| Mar 2026 | 8.23 | 8.83 | Miss -6.8% |
| Dec 2025This filing | 11.03 | 11.70 | Miss -5.7% |
| Sep 2025 | 8.32 | 9.52 | Miss -12.6% |
Reported EPS of $11.03 versus the $11.70 analyst consensus — a -5.7% miss for Dec 2025.
Compiled by AI from this SEC filing
Total revenue grew from $20.8B to $28.9B year-over-year, reflecting robust demand across MercadoLibre's marketplace and fintech (Mercado Pago) platforms in Latin America. This top-line acceleration underscores the company's continued market share gains in the region.
Source: 10-K Income Statement, Financial Data
Gross margin declined from 46.1% to 44.5%, as cost of revenue grew faster (43.2%) than revenue (39.1%). This reflects higher fulfillment, logistics, and credit-related costs associated with scaling operations across multiple markets.
Source: 10-K Income Statement & Key Ratios, Financial Data
Operating cash flow expanded significantly from $7.9B to $12.1B, demonstrating strong cash generation capability even as the company invests heavily in growth. This provides ample liquidity to fund ongoing expansion and technology investments.
Source: 10-K Cash Flow Statement, Financial Data
Research and development expenses rose to $2.3B, reflecting continued investment in technology infrastructure, AI capabilities, and product innovation across the marketplace and payments ecosystem. R&D as a share of revenue declined slightly, suggesting improving operating leverage on this line.
Source: 10-K Income Statement, Financial Data
Total assets grew from $25.2B to $42.7B, largely driven by growth in current assets (up 66.7% to $33.6B), which likely reflects expansion of the fintech loan portfolio and payment processing volumes. Long-term debt also rose 60.9% to $9.2B to fund this growth.
Source: 10-K Balance Sheet, Financial Data
Compiled by AI from this SEC filing · 3 high, 2 medium, 0 low
Cost of revenue grew 43.2% versus revenue growth of 39.1%, causing gross margin to decline ~1.6 percentage points to 44.5%. Operating margin also fell ~1.6 percentage points to 11.1%, and net margin stands at only 6.9%, indicating that scaling costs are outpacing revenue growth. Sustained cost pressure could further erode profitability if not managed carefully.
Source: 10-K Income Statement & Key Ratios, Financial Data
Total liabilities surged 72.3% to $35.9B, outpacing asset growth of 69.3%, resulting in a debt-to-equity ratio of 5.32x. Long-term debt alone rose 60.9% to $9.2B, increasing the company's financial obligations and interest burden. A deterioration in operating performance or credit market conditions could strain debt servicing capacity.
Source: 10-K Balance Sheet & Key Ratios, Financial Data
The current ratio stands at only 1.17x, meaning current assets of $33.6B cover current liabilities of $28.6B by a slim margin. Given the rapid growth in current liabilities (up 72.5%), any unexpected cash demand or credit market disruption could pressure short-term liquidity. This is particularly relevant given the large fintech loan book embedded in current assets.
Source: 10-K Balance Sheet & Key Ratios, Financial Data
Despite 39.1% revenue growth, net income grew only 4.5% to $2.0B, suggesting that operating leverage is not materializing as expected. Higher costs across fulfillment, credit losses, and technology are absorbing a disproportionate share of incremental revenue. This divergence may concern investors focused on bottom-line profitability.
Source: 10-K Income Statement, Financial Data
MercadoLibre operates primarily in Brazil, Argentina, and Mexico, markets subject to significant currency volatility, inflation, and political risk. Currency devaluations—particularly in Argentina—can materially impact reported USD revenues and earnings. Macroeconomic instability in key markets could suppress consumer spending and credit quality in the fintech segment.
Source: 10-K Financial Data (inferred from company operations)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 28.89 $B | 20.78 $B | +39.06% |
Cost of Revenue $B | 16.04 $B | 11.20 $B | +43.17% |
Gross Profit $B | 12.86 $B | 9.58 $B | +34.26% |
Operating Income $B | 3.20 $B | 2.63 $B | +21.66% |
Net Income $B | 2.00 $B | 1.91 $B | +4.50% |
EPS (Basic) $ | 39.40 $ | 37.69 $ | +4.54% |
EPS (Diluted) $ | 39.40 $ | 37.69 $ | +4.54% |
R&D Expense $B | 2.27 $B | 1.93 $B | +17.32% |
Answers draw on this SEC filing and the data on this page
MercadoLibre posted a 49.8% revenue increase in Q2 FY2026 on booming e-commerce and fintech demand, but surging costs drove a 10.9% net income decline and margin contraction.
MercadoLibre delivered 49% revenue growth in Q1 FY2026 to $8.85B, but operating income fell 19.9% to $611M as aggressive investment in fintech, logistics, and R&D compressed margins significantly.