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MercadoLibre revenue tops $10B as growth weighs on profit
Quarterly revenue exceeded $10 billion for the first time, while operating income declined to $683 million and the operating margin fell to 6.7% from 12.2% a year earlier.
MercadoLibre crossed $10 billion in quarterly revenue for the first time, but the stock remains about 30% below its prior high as the company continues to prioritize growth over near term profitability, according to results discussed on its latest earnings call. The company also reported net revenue growth of 50% year over year in the quarter ended June 30, supported by a 44% increase in gross merchandise volume and a 56% rise in total payment volume.
Management pointed to engagement improvements following its free shipping threshold change in Brazil, saying items per buyer climbed 19% year over year and conversion rose 1.1 percentage points. It attributed stronger performance to deeper activity among existing shoppers, including so called ecosystemic users, people who use both the marketplace and Mercado Pago.
Ecosystemic users generated 70% more GMV and 55% more items sold per user than shoppers who use the marketplace only, with contribution profit per ecosystemic user described as running at multiples above marketplace or fintech users alone. The credit book reached $16.4 billion, up 75% year over year, while delinquency rates were near historical lows, and net interest margin after losses improved from 18% to 21% between the first and second quarters.
Despite the revenue and credit growth, profitability moved in the opposite direction. Operating income fell from $825 million to $683 million, and operating margin narrowed from 12.2% to 6.7%, a 550 basis point drop from a year earlier, with management indicating the trade off is deliberate to support long term engagement and scale. For the first half of 2026, net income fell 13% year over year to $883 million while revenue rose 50% to $19 billion.