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

Rhea-AI Summary

Mercado Libre (NASDAQ: MELI) reported strong Q2 2025 financial results, with revenue reaching $6.8 billion, up 34% year-over-year, and record operating income of $825 million. The company's net income stood at $523 million.

The e-commerce segment showed remarkable growth with 550.1 million items sold (+31% YoY) and GMV of $15.3 billion. The fintech division, Mercado Pago, reached 68 million monthly active users (+30% YoY) and grew its credit portfolio by 91% YoY to $9.3 billion.

Notable developments include S&P Global's upgrade to investment grade (BBB-) and the announcement of a leadership transition, with CEO Marcos Galperin moving to Executive Chairman and Ariel Szarfsztejn becoming CEO effective January 2026.

Positive

• Revenue growth of 34% YoY to $6.8 billion
• Record quarterly operating income of $825 million, up 14% YoY
• Strong e-commerce performance with 31% growth in items sold
• Fintech user base expanded 30% YoY to 68 million monthly active users
• Credit portfolio grew 91% YoY to $9.3 billion
• S&P Global upgraded MELI to investment grade (BBB-)
• Assets under management more than doubled YoY to $13.8 billion

Negative

• Operating income margin declined to 12.2% from previous year
• Net income margin of 7.7% shows relatively thin profitability

Insights

Financial Analyst

Mercado Libre delivers exceptional Q2 with 34% revenue growth and 14% operating income growth, fueled by commerce and fintech expansion.

Mercado Libre has delivered outstanding Q2'25 results with revenue reaching $6.8 billion (up 34% YoY) and operating income hitting a record $825 million (up 14% YoY). The 12.2% operating margin and $523 million net income (7.7% margin) demonstrate solid profitability alongside aggressive growth investments.

The commerce business continues to outperform broader Latin American retail markets with GMV reaching $15.3 billion (up 21% YoY). Particularly impressive is the 31% YoY growth in items sold, reaching 550.1 million units. The regional performance shows remarkable strength: Brazil maintained around 30% YoY FX-neutral GMV growth for eight consecutive quarters, Mexico accelerated to 32% GMV growth (the fastest pace in nearly two years), and Argentina achieved an exceptional 75% FX-neutral GMV growth.

On the fintech side, Mercado Pago is showing extraordinary momentum. Monthly active users grew 30% YoY to 68 million, while assets under management more than doubled to $13.8 billion. The credit portfolio expansion of 91% YoY to $9.3 billion is particularly noteworthy, with the credit card segment growing 118% YoY to $4.0 billion while improving asset quality.

The company's strategic investments in logistics are paying dividends, with 57% of shipments now handled by their own fulfillment network. This has enabled industry-leading delivery speeds, with 52% of shipments delivered same or next day. The expansion of free shipping in Brazil catalyzed 34% YoY growth in items sold for June alone.

The advertising business represents another high-margin growth vector, with revenue up 38% YoY. The integration with Google Ad Manager expands their addressable market beyond the Mercado Libre ecosystem, positioning them to become a major media player in Latin America.

S&P Global's upgrade to investment grade (BBB-) following Fitch's similar move last year validates the company's financial strength. The planned leadership transition in January 2026 appears well-orchestrated, with founder Marcos Galperin becoming Executive Chairman while Ariel Szarfsztejn assumes the CEO role.

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 Laignelet
jlaignelet@milltownpartners.com

FAQ

What were Mercado Libre's (MELI) Q2 2025 earnings results?

Mercado Libre reported $6.8 billion in revenue (+34% YoY), $825 million in operating income (+14% YoY), and $523 million in net income for Q2 2025.

How many active users does Mercado Pago have in 2025?

Mercado Pago reached 68 million monthly active users in Q2 2025, representing a 30% increase year-over-year.

What is Mercado Libre's (MELI) credit portfolio size?

MELI's credit portfolio grew 91% YoY to $9.3 billion, with the credit card portfolio increasing 118% YoY to $4.0 billion.

Who will be Mercado Libre's new CEO in 2026?

Ariel Szarfsztejn will become CEO effective January 1st, 2026, while current CEO Marcos Galperin will assume the role of Executive Chairman.

What is Mercado Libre's (MELI) current credit rating?

S&P Global upgraded Mercado Libre to investment grade with a BBB- rating in July 2025, following a previous upgrade to investment grade by Fitch.

How many items were sold on Mercado Libre's platform in Q2 2025?

Mercado Libre sold 550.1 million items in Q2 2025, representing a 31% increase year-over-year.