MercadoLibre Reports Strong Earnings, Exceeds Revenue Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy MELI?
Source: seekingalpha
- Significant Revenue Growth: MercadoLibre's quarterly revenue surged 44.6% year-over-year to $8.8 billion, exceeding consensus estimates by $300 million, which underscores its robust performance in the Latin American e-commerce market and solidifies its market leadership.
- Transaction Volume Increase: The gross merchandise volume on the platform rose 37% year-over-year, with Mexico seeing a 49% increase and Brazil a 46% rise, indicating a significant boost in market penetration and user engagement in key regions, driving overall business growth.
- Net Income and Cash Flow: Although net income stood at $559 million, down from $626 million last year, and earnings per share (EPS) of $11.03 missed expectations, the company generated $763 million in free cash flow, demonstrating strong cash generation capabilities.
- Subscription Service Performance: The MELI+ subscription service experienced accelerated growth in Brazil, driven by reduced shipping costs and the launch of a premium subscription plan that includes multiple streaming services, enhancing user retention and conversion rates, thereby further boosting revenue growth.
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Analyst Views on MELI
Wall Street analysts forecast MELI stock price to rise
11 Analyst Rating
10 Buy
1 Hold
0 Sell
Strong Buy
Current: 1864.460
Low
2500
Averages
2783
High
2950
Current: 1864.460
Low
2500
Averages
2783
High
2950
About MELI
MercadoLibre Inc is a Uruguay-based e-commerce business facilitator of Argentinian origins. The e-commerce products enable retail and wholesale via Internet platforms designed to provide users with a portfolio of services to facilitate commercial transactions. The Company's geographic coverage includes 18 countries of Latin America. The primary offer is an ecosystem of six integrated e-commerce services: the Mercado Libre Marketplace, the Mercado Libre Classifieds service, the Mercado Pago payments solution, the Mercado Credito financial solutions, the Mercado Envios logistic solutions including shipping, the Mercado Ads advertising platform and the Mercado Shops digital storefront solution.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
MercadoLibre Q4 Earnings Beat Expectations with Strong Revenue Growth
- Earnings Highlights: MercadoLibre reported a Q4 GAAP EPS of $11.03, missing expectations by $0.41; however, revenue reached $8.76 billion, reflecting a 44.6% year-over-year increase and beating market expectations by $300 million, indicating robust performance in the Latin American market.
- Stock Reaction: Following the earnings release, MercadoLibre's shares rose by 2%, demonstrating investor confidence in the company's ongoing growth potential, particularly in its leadership in e-commerce and fintech sectors.
- Market Outlook: With the rapid growth of the e-commerce market in Latin America, MercadoLibre, as a leading player, is expected to continue benefiting from the shift in consumer shopping habits towards online platforms, further solidifying its market share.
- Investor Focus: Analysts maintain an optimistic outlook on MercadoLibre's future growth, believing the company has significant potential for expansion, especially in fintech innovations and market penetration by 2026.
See More
MercadoLibre Reports Mixed Q4 Earnings Results
- Earnings Highlights: MercadoLibre reported earnings of $11.03 per share, missing the analyst consensus of $11.59, indicating potential pressure on profitability that may affect investor confidence.
- Revenue Growth: Quarterly revenue reached $8.76 billion, exceeding the analyst estimate of $8.47 billion and up 45.5% from $6.06 billion last year, demonstrating strong market performance.
- Operating and Net Income: Operating income was $889 million with a 10.1% margin, while net income stood at $559 million with a 6.4% margin, reflecting challenges in cost control that could impact future investment decisions.
- Payment and GMV Growth: Total payment volume reached $83.7 billion, up 42.1% year-over-year, while gross merchandise volume was $19.9 billion, up 36.8%, showcasing the company's sustained growth potential in the e-commerce sector.
See More
Lucid Group Reports Wider Loss, Shares Drop Over 4%
- Lucid Group Earnings Miss: Lucid reported a wider-than-expected loss of $3.62 per share in Q4, despite revenue growth exceeding estimates, leading to a more than 4% drop in shares, highlighting ongoing profitability challenges for the company.
- Workday Revenue Outlook Disappoints: Workday's forecast for Q1 subscription revenue at $2.34 billion fell short of the $2.35 billion expected by analysts, resulting in nearly a 10% decline in shares, reflecting market concerns about its future growth prospects.
- Cava Group Strong Performance: Cava reported Q4 earnings of 4 cents per share on revenue of $275 million, surpassing analyst expectations, which led to an 8% increase in shares, and the company anticipates a 3% to 5% rise in same-store sales in 2026, indicating enhanced market competitiveness.
- First Solar Guidance Misses Expectations: First Solar's Q4 earnings of $4.84 per share fell short of the $5.15 expected, although revenue of $1.68 billion exceeded forecasts; however, its full-year guidance of $4.9 billion to $5.2 billion significantly underperformed the $6.12 billion expected, causing an 11% drop in shares.
See More
Mercado Libre Reports Strong Q4 and Full Year 2025 Results
- Significant Revenue Growth: Mercado Libre achieved net revenue and financial income of $8.8 billion in Q4 2025, marking a 45% year-over-year increase, while full-year revenue rose 39%, reflecting strong growth momentum in the Latin American market.
- Record User Growth: Unique buyers surpassed 80 million for the first time in Q4, with an increase of 16 million year-over-year, indicating the effectiveness of the company's investments in user acquisition and retention, further solidifying its market position.
- Logistics Network Advantage: Mercado Libre's fulfillment network remains the fastest in Latin America, with 75% of fast shipments delivered within 48 hours, and unit shipping costs decreased year-over-year, enhancing overall operational efficiency.
- Fintech Achievements: Mercado Pago's monthly active users approached 78 million, with assets under management growing 78% year-over-year to nearly $19 billion, and the credit portfolio rising 90% to $12.5 billion, showcasing its strong potential and market acceptance in the digital banking sector.
See More
Mercado Libre Reports Strong 2025 Financial Results with Record Growth
- Financial Performance Surge: Mercado Libre achieved net revenue of $8.8 billion in Q4 2025, a 45% YoY increase, with full-year revenue reaching $28.9 billion, up 39%, reflecting robust growth in Latin America's e-commerce and fintech sectors.
- E-commerce Business Success: The commerce segment reported net revenue of $5.0 billion in Q4, growing 40% YoY, with GMV hitting $19.9 billion, a 37% increase, as unique buyers surpassed 80 million for the first time, indicating successful user acquisition and retention strategies.
- Fintech User Growth: Mercado Pago's monthly active users reached nearly 78 million, a 27% YoY increase, while the credit portfolio surged 90% to $12.5 billion, demonstrating strong demand for financial services in Latin America, with a historic low NPL rate of 4.4%.
- Strategic Investment Impact: Investments in user experience, free shipping, and fulfillment networks have driven performance, particularly in Brazil and Mexico, where FX-neutral GMV grew 35%, further solidifying Mercado Libre's market leadership.
See More
MercadoLibre Reports Strong Earnings, Exceeds Revenue Expectations
- Significant Revenue Growth: MercadoLibre's quarterly revenue surged 44.6% year-over-year to $8.8 billion, exceeding consensus estimates by $300 million, which underscores its robust performance in the Latin American e-commerce market and solidifies its market leadership.
- Transaction Volume Increase: The gross merchandise volume on the platform rose 37% year-over-year, with Mexico seeing a 49% increase and Brazil a 46% rise, indicating a significant boost in market penetration and user engagement in key regions, driving overall business growth.
- Net Income and Cash Flow: Although net income stood at $559 million, down from $626 million last year, and earnings per share (EPS) of $11.03 missed expectations, the company generated $763 million in free cash flow, demonstrating strong cash generation capabilities.
- Subscription Service Performance: The MELI+ subscription service experienced accelerated growth in Brazil, driven by reduced shipping costs and the launch of a premium subscription plan that includes multiple streaming services, enhancing user retention and conversion rates, thereby further boosting revenue growth.
See More
MercadoLibre Q4 Earnings Beat Expectations with Strong Revenue Growth
- Earnings Highlights: MercadoLibre reported a Q4 GAAP EPS of $11.03, missing expectations by $0.41; however, revenue reached $8.76 billion, reflecting a 44.6% year-over-year increase and beating market expectations by $300 million, indicating robust performance in the Latin American market.
- Stock Reaction: Following the earnings release, MercadoLibre's shares rose by 2%, demonstrating investor confidence in the company's ongoing growth potential, particularly in its leadership in e-commerce and fintech sectors.
- Market Outlook: With the rapid growth of the e-commerce market in Latin America, MercadoLibre, as a leading player, is expected to continue benefiting from the shift in consumer shopping habits towards online platforms, further solidifying its market share.
- Investor Focus: Analysts maintain an optimistic outlook on MercadoLibre's future growth, believing the company has significant potential for expansion, especially in fintech innovations and market penetration by 2026.
See More
MercadoLibre Reports Mixed Q4 Earnings Results
- Earnings Highlights: MercadoLibre reported earnings of $11.03 per share, missing the analyst consensus of $11.59, indicating potential pressure on profitability that may affect investor confidence.
- Revenue Growth: Quarterly revenue reached $8.76 billion, exceeding the analyst estimate of $8.47 billion and up 45.5% from $6.06 billion last year, demonstrating strong market performance.
- Operating and Net Income: Operating income was $889 million with a 10.1% margin, while net income stood at $559 million with a 6.4% margin, reflecting challenges in cost control that could impact future investment decisions.
- Payment and GMV Growth: Total payment volume reached $83.7 billion, up 42.1% year-over-year, while gross merchandise volume was $19.9 billion, up 36.8%, showcasing the company's sustained growth potential in the e-commerce sector.
See More
Lucid Group Reports Wider Loss, Shares Drop Over 4%
- Lucid Group Earnings Miss: Lucid reported a wider-than-expected loss of $3.62 per share in Q4, despite revenue growth exceeding estimates, leading to a more than 4% drop in shares, highlighting ongoing profitability challenges for the company.
- Workday Revenue Outlook Disappoints: Workday's forecast for Q1 subscription revenue at $2.34 billion fell short of the $2.35 billion expected by analysts, resulting in nearly a 10% decline in shares, reflecting market concerns about its future growth prospects.
- Cava Group Strong Performance: Cava reported Q4 earnings of 4 cents per share on revenue of $275 million, surpassing analyst expectations, which led to an 8% increase in shares, and the company anticipates a 3% to 5% rise in same-store sales in 2026, indicating enhanced market competitiveness.
- First Solar Guidance Misses Expectations: First Solar's Q4 earnings of $4.84 per share fell short of the $5.15 expected, although revenue of $1.68 billion exceeded forecasts; however, its full-year guidance of $4.9 billion to $5.2 billion significantly underperformed the $6.12 billion expected, causing an 11% drop in shares.
See More
Mercado Libre Reports Strong Q4 and Full Year 2025 Results
- Significant Revenue Growth: Mercado Libre achieved net revenue and financial income of $8.8 billion in Q4 2025, marking a 45% year-over-year increase, while full-year revenue rose 39%, reflecting strong growth momentum in the Latin American market.
- Record User Growth: Unique buyers surpassed 80 million for the first time in Q4, with an increase of 16 million year-over-year, indicating the effectiveness of the company's investments in user acquisition and retention, further solidifying its market position.
- Logistics Network Advantage: Mercado Libre's fulfillment network remains the fastest in Latin America, with 75% of fast shipments delivered within 48 hours, and unit shipping costs decreased year-over-year, enhancing overall operational efficiency.
- Fintech Achievements: Mercado Pago's monthly active users approached 78 million, with assets under management growing 78% year-over-year to nearly $19 billion, and the credit portfolio rising 90% to $12.5 billion, showcasing its strong potential and market acceptance in the digital banking sector.
See More
Mercado Libre Reports Strong 2025 Financial Results with Record Growth
- Financial Performance Surge: Mercado Libre achieved net revenue of $8.8 billion in Q4 2025, a 45% YoY increase, with full-year revenue reaching $28.9 billion, up 39%, reflecting robust growth in Latin America's e-commerce and fintech sectors.
- E-commerce Business Success: The commerce segment reported net revenue of $5.0 billion in Q4, growing 40% YoY, with GMV hitting $19.9 billion, a 37% increase, as unique buyers surpassed 80 million for the first time, indicating successful user acquisition and retention strategies.
- Fintech User Growth: Mercado Pago's monthly active users reached nearly 78 million, a 27% YoY increase, while the credit portfolio surged 90% to $12.5 billion, demonstrating strong demand for financial services in Latin America, with a historic low NPL rate of 4.4%.
- Strategic Investment Impact: Investments in user experience, free shipping, and fulfillment networks have driven performance, particularly in Brazil and Mexico, where FX-neutral GMV grew 35%, further solidifying Mercado Libre's market leadership.
See More
MercadoLibre Reports Strong Earnings, Exceeds Revenue Expectations
- Significant Revenue Growth: MercadoLibre's quarterly revenue surged 44.6% year-over-year to $8.8 billion, exceeding consensus estimates by $300 million, which underscores its robust performance in the Latin American e-commerce market and solidifies its market leadership.
- Transaction Volume Increase: The gross merchandise volume on the platform rose 37% year-over-year, with Mexico seeing a 49% increase and Brazil a 46% rise, indicating a significant boost in market penetration and user engagement in key regions, driving overall business growth.
- Net Income and Cash Flow: Although net income stood at $559 million, down from $626 million last year, and earnings per share (EPS) of $11.03 missed expectations, the company generated $763 million in free cash flow, demonstrating strong cash generation capabilities.
- Subscription Service Performance: The MELI+ subscription service experienced accelerated growth in Brazil, driven by reduced shipping costs and the launch of a premium subscription plan that includes multiple streaming services, enhancing user retention and conversion rates, thereby further boosting revenue growth.
See More
