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Mercado Libre Delivers Another Strong Performance in Q2'25, Reporting $6.8 billion Revenue and $825 million Income from Operations

1. MELI reported $6.8 billion revenue, a 34% YoY increase. 2. Operating income reached a record $825 million, growing 14% YoY. 3. User base for Mercado Pago grew 30% YoY, reaching 68 million users. 4. S&P Global upgraded MELI to a BBB- investment grade in July. 5. Advertising revenue increased by 38% YoY, indicating strong market position.

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Why Very Bullish?

MELI's strong performance indicates sustained growth and market dominance, reminiscent of its historical profits surge.

How important is it?

The article details MELI's outstanding financial performance and credit rating upgrade, crucial for investor confidence.

Why Short Term?

Recent upgrades and quarterly results typically influence stock prices in the short term.

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Montevideo, Aug. 04, 2025 (GLOBE NEWSWIRE) -- Mercado Libre Delivers Another Strong Performance in Q2'25, reporting $6.8 billion revenue and $825 million income from operations In Commerce, items sold rose 31% YoY driven by the fastest pace of growth in nearly two years in Mexico and the positive impact of the lower free shipping threshold in Brazil In Fintech, the user base grew 30% YoY, reaching 68 million monthly active users, and Mercado Pago's credit portfolio grew 91% YoY, with the credit card as the highlight In Advertising, revenue grew strongly, up 38% YoY, and the launch of an integration with Google Ad Manager further enhances our value prop for advertisers Montevideo, Uruguay August 4, 2025 — Mercado Libre (NASDAQ: MELI), Latin America’s leading e-commerce and fintech platform, today announced its second quarter 2025 financial results that delivered another quarter of double-digit growth with revenue of $6.8 billion, up 34% YoY. Both Commerce and Fintech  maintained strong momentum and growth rates. Income from operations reached a quarterly record of $825 million, growing 14% YoY. This growth occurred alongside key strategic investments in our credit card offerings, to build principality among users, and the expansion of our free shipping offering in Brazil, to keep reducing friction in the transition to online commerce and boost purchase frequency on our platform. These initiatives were supported by disciplined cost management, resulting in $523 million net income for the quarter. Mercado Libre’s commerce business continued to outperform the broader market as ongoing investments in free shipping, user experience and assortment drove outstanding growth in Brazil, Argentina, and Mexico. In Brazil, the lower free shipping threshold boosted items sold growth to 34% YoY in June, and drove a 29% YoY increase in Q2 GMV on an FX-neutral basis, with market share rising YoY. FX-neutral GMV growth in Brazil has now remained around 30% YoY for eight consecutive quarters – a testament to our strong momentum in the country. Argentina registered unique buyer growth above 30% YoY for the second consecutive quarter and items sold rose 46% YoY, supporting FX-neutral GMV growth of 75% YoY. This underscores the attractiveness of Mercado Libre's value proposition versus physical retail in Argentina as the economy stabilizes, confidence returns and consumption strengthens. Mexico also delivered an excellent performance with items sold growing 36% YoY - the fastest pace in nearly two years - accelerating FX-neutral GMV growth to 32% YoY. Growth was boosted by the acceleration of cross-border trade and increased fulfillment penetration. Mercado Libre's fulfillment network handled 57% of shipments across the region this quarter, and more than 75% in Mexico. Its 30 fulfillment centers enable the company to operate the fastest shipping network in the region, resulting in record levels of same-day delivery in Argentina and a higher share of same- and next-day delivery in Mexico.    Mercado Ads’ integration with Google Ad Manager went live in April. This expands our reach beyond Mercado Libre's ecosystem and enables advertisers to seamlessly and simultaneously manage campaigns inside and outside our ecosystem. They can leverage our rich first-party data and we can provide attribution for branding campaigns, unique capabilities that are core to the company’s vision of becoming a major media player in Latin America. In Q2'25, advertising revenue grew 38% YoY in USD and 59% YoY on an FX-neutral basis with Display & Video products almost doubling YoY. Mercado Pago, the company’s fintech arm, reached almost 68 million monthly active users (+30% YoY), with the average number of products per user rising across Brazil, Mexico and Argentina. Attractive yields on deposits fueled record growth in assets under management, which more than doubled YoY to $13.8 billion. The credit portfolio expanded 91% YoY to $9.3 billion, led by a 118% YoY increase in the credit card portfolio to $4.0 billion, with asset quality and profitability continuing to improve. Acquiring total payment volume grew to $44.4 billion, resulting in market share gains across key geographies.
 "Mercado Libre delivered another strong quarter, with revenue up 34% year-over-year and a record $825 million in operating income. Our disciplined investments and consistent execution continue to strengthen our leadership in e-commerce, fintech, and digital advertising across Latin America. Highlights this quarter included the expansion of our free shipping program in Brazil, high-impact marketing campaigns for Mercado Pago, and the integration with Google Ad Manager to broaden our reach among advertisers." said Mercado Libre CFO, Martin de los Santos. In July, S&P Global upgraded Mercado Libre to investment grade with a BBB- rating, which comes after last year's upgrade to investment grade at Fitch. These upgrades are testament to the company’s operational strength and prudent financial management. In May, the company announced that our Founder and CEO Marcos Galperin will assume the role of Executive Chairman and Ariel Szarfsztejn will become CEO, effective January 1st, 2026. This planned transition ensures continuity in leadership and reinforces our long-term strategic vision Highlights for Q2 2025 Financial: Net revenue of $6.8 billion, up 34% YoY in USD.Income from operations reached $825 million, with a 12.2% margin.Net income of $523 million, reflecting a 7.7% margin.S&P upgraded Mercado Libre's credit rating to BBB- investment grade.
 Commerce: Net revenue from the commerce business in the second quarter reached $3.8 billion, growing 16.3% in USD YoY and 45% FXN YoY.Gross Merchandise Value (GMV), the total value of merchandise sold on our platform, rose to $15.3 billion, 21% in USD YoY and 37% FXN YoY.Unique buyers across the region rose 25% YoY to almost 70.8 million.Items sold rose 31% this quarter, reaching 550.1 million units. Almost 52% of shipments were delivered within the same day and next day, up 28% YoY even with the increase in penetration of slow shipments.In Brazil, items sold grew 26% YoY, and FX-neutral GMV increased 29% YoY.In Mexico, items sold were up 36% YoY, with FX-neutral GMV growing 32% YoY.In Argentina, items sold grew 46% YoY and FX-neutral GMV surged 75% YoY.Advertising revenue rose 38% YoY in USD. Fintech: Net revenue from Mercado Pago in the second quarter of $3 billion, up 12% in USD YoY, and 63% FXN YoY.Total payment volume (TPV) reached $64.6 billion, up 39.4% YoY in USD.Mercado Pago monthly active users reached almost 68 million, a 30% YoY increase.Assets under management more than doubled, +109% YoY, reaching $13.8 billion.Credit portfolio grew 91% YoY to $9.3 billion.Credit card portfolio increased 118% YoY, reaching $4.0 billion; now constituting 43% of the credit book.Acquiring total payment volume (TPV), which represents all payments processed and settled via Mercado Pago, both on the marketplace and outside of it (MPOS devices, online payments and QR codes) grew 31% YoY in USD to reach $44.4 billion.
 About Mercado Libre Founded in 1999, MercadoLibre, Inc (NASDAQ: MELI) is the leading company in e-commerce and financial technology in Latin America, with operations in 18 countries. It offers a complete ecosystem of solutions for individuals and businesses to buy, sell, advertise, obtain credit and insurance, collect, send money, save, and pay for goods and services both online and offline. Mercado Libre looks to facilitate access to commerce and financial services in Latin America, a market that offers great opportunities and high growth potential. It uses world-class technology to create intuitive solutions tailored to the local culture to transform the lives of millions of people in the region. More information at http://investor.mercadolibre.com/ Janelle Laigneletjlaignelet@milltownpartners.com

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