MERCADOLIBRE INC (MELI) Q1 2026 Earnings Call Transcript
Bullish Specialty Retail 101.24B Uruguay
Next Earnings
2026-05-06
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MercadoLibre delivered 45% Q4 revenue growth driven by AI-enabled commerce and fintech expansion, with strong user engagement and ongoing margin pressure from long‑term investments, signaling solid long-term quality and growth potential.
⭐ Key Highlights
Q4 Revenue Growth
MercadoLibre reported 45% year-over-year net revenues growth in Q4 2025.
AI-Driven Growth Acceleration
AI investments boosted ad revenue by 67% FX-neutral and supported demand across commerce and fintech actions.
Brazil and Mexico GMV Growth
GMV grew 35% in both Brazil and Mexico, driven by free shipping and ongoing investments in the logistics and payment ecosystems.
Fintech Momentum
Mercado Pago credit portfolio grew to $12.5 billion with AUM near $19 billion, and monthly active users grew ~30% for 10 consecutive quarters.
Record NPS and Market Share Gains
Company reported record NPS in commerce and fintech across Brazil, Mexico and Argentina, along with significant market-share gains in commerce and acquiring.
✔Positive Signals
- Q4 net revenues grew 45% YoY
- Ads revenue grew 67% FX-neutral, driven by AI-enabled tools
- GMV growth of 35% in Brazil and Mexico
- Mercado Pago credit portfolio nearly doubled YoY to $12.5b, with AUM ~ $19b
- Record NPS in commerce and fintech across Brazil, Mexico and Argentina
✖Negative Signals
- Margin compression of 5–6 percentage points due to investments (shipping, 1P, CBT, credit card expansion)
- Argentina margins compressed by fulfillment costs and credit funding costs
- Ongoing need to scale CBT internationally while maintaining profitability
- NPL uptick in consumer and merchant books in Q4 (though overall NIMAL remains healthy)
- No formal 2026 numerical guidance provided
📊Financial Results
- Full-year 2025 revenue growth: 39%
- Full-year 2025 income from operations growth: 22%
- Q4 2025 net revenues up 45% YoY, marking the 28th consecutive quarter of >30% growth
- Advertising revenue acceleration to 67% FX-neutral; driven by product improvements and AI-enabled bidding/placement tools
- Credit portfolio reached $12.5 billion; AUM near $19 billion; MAUs up ~30% for 10 consecutive quarters
🔮Future Guidance
- No formal numerical 2026 guidance provided; management emphasized long-term margin trajectory remains guided by ongoing investments
- Q1 2026 results will be used to provide additional color on shipping-model changes and their near-term margin impact
💡Interesting Insights
- MercadoPago AI assistant handles 87% of interactions without human support, with potential cross-sell and proactive banking opportunities on the roadmap
- Agentic commerce is viewed as complementary, not a replacement for end-to-end marketplace offers, highlighting a focus on best-in-class discovery, pricing, financing, and support
Detailed Analysis
AI-generated summary of MERCADOLIBRE INC earnings call transcript.
In Q4 2025, MercadoLibre posted 45% revenue growth as AI-enabled enhancements accelerated demand across its commerce and fintech platforms. GMV rose 35% in Brazil and Mexico, aided by lower free-shipping thresholds and expanding logistics capacity. Advertising revenue surged 67% on an FX-neutral basis, driven by improved bidding tools and campaign optimization. The fintech segment saw robust growth in Mercado Pago, with the credit portfolio near $12.5 billion and AUM close to $19 billion, while monthly active users grew almost 30% for ten straight quarters. Management highlighted margin compression of 5–6 percentage points due to deliberate investments in shipping, 1P initiatives, CBT expansion, and credit card rollouts, all aimed at long-term ecosystem strengthening. Net promoter score reached record highs across key markets, reflecting improved customer experience. Management emphasized that the investments are designed to unlock higher long-term growth, despite short-term margin headwinds, and remained confident in continued market-share gains and a growing advertising and payments ecosystem in 2026.
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