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MercadoLibre's Q4 Earnings Miss Estimates, Revenues Rise Y/Y
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Key Takeaways
MELI reported Q4 EPS of $11.03, down 12.5% YoY, missing estimates despite 44.6% revenue growth.
MELI's commerce and fintech revenues rose 40% and 51%, with GMV up 37% and TPV up 42% YoY.
MELI saw ad revenues jump 70% and its credit portfolio surge 90%, as margins contracted and expenses climbed.
MercadoLibre (MELI - Free Report) reported fourth-quarter 2025 earnings of $11.03 per share, which missed the Zacks Consensus Estimate by 6.29% and declined 12.53% year over year. Revenues rose 44.55% on a year-over-year basis (47% on an FX-neutral basis) to $8.76 billion. The top line surpassed the Zacks Consensus Estimate by 2.86%.
Total revenues were driven by continued strength across commerce and fintech segments, which grew 40% and 51% year over year to $4.98 billion and $3.78 billion, respectively. In the commerce segment, Brazil and Mexico each delivered foreign exchange-neutral GMV growth of 35% year over year, while Argentina posted foreign exchange-neutral GMV growth of 42% year over year. Items sold grew 43.1% year over year to 751.8 million. Unique buyer growth was 23.6% year over year, with the number reaching 83.2 million.
Fintech Monthly Active Users rose 27.3% year over year to 77.9 million. Engagement with Mercado Pago continued to strengthen, with Assets Under Management growing 78% year over year to $18.81 billion. The credit portfolio expanded 90% year over year to $12.5 billion.
Revenues from MELI's advertising services rose 70% year over year on a reported basis and 67% on a foreign exchange-neutral basis.
MercadoLibre, Inc. Price, Consensus and EPS Surprise
Brazil: Net revenues in the fourth quarter reached $4.64 billion (52.9% of total revenues), up 47.9% year over year.
Mexico: The market generated revenues of $2.10 billion (23.9% of total revenues), which increased 55.6% year over year.
Argentina: Net revenues in the reported quarter were $1.61 billion (18.4% of total revenues), reflecting an increase of 23.3% year over year.
Other countries: The markets generated revenues of $414 million (4.7% of total revenues), representing growth of 53.9% on a year-over-year basis.
Key Metrics for MELI
Gross Merchandise Volume of $19.9 billion increased 37% year over year and 36.5% on a foreign exchange-neutral basis.
The number of successful items sold was 751.8 million, up 43.1% year over year.
Total Payment Volume rose 42.1% year over year and 52.6% on a foreign exchange-neutral basis to $83.7 billion. Acquiring Total Payment Volume grew 33% year over year to $55.7 billion.
Total payment transactions increased 35.5% year over year to 4.51 billion.
The credit portfolio reached $12.5 billion, growing 90% year over year. The portfolio composition consisted of 36% consumer lending, 45% credit card, 16% merchant lending and 2% asset-backed financing.
MercadoLibre’s Operating Details
In the fourth quarter, the gross margin contracted 220 basis points on a year-over-year basis to 43.2%.
Total operating expenses were approximately $2.9 billion, which increased 50.1% year over year. The operating margin contracted 340 basis points from the year-ago period to 10.1%. It is worth noting that income from operations of $889 million includes $99 million of one-off tax credits in Brazil booked mostly within cost of net revenues; excluding these credits, the operating margin was approximately 9%.
Net Interest Margin After Losses improved sequentially to 23.3%, up from 21% in the third quarter of 2025, driven by higher spreads in consumer and merchant loan portfolios. The 15-90 day non-performing loan ratio edged up to 7.6% from 6.8% in the prior quarter.
Balance Sheet of MELI
As of Dec. 31, 2025, cash and cash equivalents were $3.67 billion, up from $3.01 billion as of Sept. 30, 2025.
Short-term investments were $2.63 billion as of Dec. 31, 2025, compared to $3.72 billion as of Sept. 30, 2025. Net debt increased to $4.68 billion at the end of the quarter compared to $4.61 billion as of Sept. 30, 2025, reflecting continued funding for Mercado Pago operations and credit portfolio expansion.
MELI’s Zacks Rank & Stocks to Consider
Currently, MercadoLibre carries a Zacks Rank #3 (Hold).
Etsy’s shares have declined 5.1% in the past six months. The Zacks Consensus Estimate for Etsy’s EPS for the upcoming quarter is pegged at 75 cents, indicating a year-over-year increase of 63.04%.
FIGS’ shares have surged 58.6% in the past six months. The Zacks Consensus Estimate for FIGS’ EPS for the upcoming quarter is pegged at 2 cents, indicating a year-over-year increase of 100%.
Five Below’s shares have surged 57.6% in the past six months. The Zacks Consensus Estimate for Five Below’s EPS for the upcoming quarter is pegged at $3.98, indicating a year-over-year increase of 14.37%.
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MercadoLibre's Q4 Earnings Miss Estimates, Revenues Rise Y/Y
Key Takeaways
MercadoLibre (MELI - Free Report) reported fourth-quarter 2025 earnings of $11.03 per share, which missed the Zacks Consensus Estimate by 6.29% and declined 12.53% year over year. Revenues rose 44.55% on a year-over-year basis (47% on an FX-neutral basis) to $8.76 billion. The top line surpassed the Zacks Consensus Estimate by 2.86%.
Total revenues were driven by continued strength across commerce and fintech segments, which grew 40% and 51% year over year to $4.98 billion and $3.78 billion, respectively. In the commerce segment, Brazil and Mexico each delivered foreign exchange-neutral GMV growth of 35% year over year, while Argentina posted foreign exchange-neutral GMV growth of 42% year over year.
Items sold grew 43.1% year over year to 751.8 million. Unique buyer growth was 23.6% year over year, with the number reaching 83.2 million.
Fintech Monthly Active Users rose 27.3% year over year to 77.9 million. Engagement with Mercado Pago continued to strengthen, with Assets Under Management growing 78% year over year to $18.81 billion. The credit portfolio expanded 90% year over year to $12.5 billion.
Revenues from MELI's advertising services rose 70% year over year on a reported basis and 67% on a foreign exchange-neutral basis.
MercadoLibre, Inc. Price, Consensus and EPS Surprise
MercadoLibre, Inc. price-consensus-eps-surprise-chart | MercadoLibre, Inc. Quote
MELI’s Q4 in Detail
Brazil: Net revenues in the fourth quarter reached $4.64 billion (52.9% of total revenues), up 47.9% year over year.
Mexico: The market generated revenues of $2.10 billion (23.9% of total revenues), which increased 55.6% year over year.
Argentina: Net revenues in the reported quarter were $1.61 billion (18.4% of total revenues), reflecting an increase of 23.3% year over year.
Other countries: The markets generated revenues of $414 million (4.7% of total revenues), representing growth of 53.9% on a year-over-year basis.
Key Metrics for MELI
Gross Merchandise Volume of $19.9 billion increased 37% year over year and 36.5% on a foreign exchange-neutral basis.
The number of successful items sold was 751.8 million, up 43.1% year over year.
Total Payment Volume rose 42.1% year over year and 52.6% on a foreign exchange-neutral basis to $83.7 billion. Acquiring Total Payment Volume grew 33% year over year to $55.7 billion.
Total payment transactions increased 35.5% year over year to 4.51 billion.
The credit portfolio reached $12.5 billion, growing 90% year over year. The portfolio composition consisted of 36% consumer lending, 45% credit card, 16% merchant lending and 2% asset-backed financing.
MercadoLibre’s Operating Details
In the fourth quarter, the gross margin contracted 220 basis points on a year-over-year basis to 43.2%.
Total operating expenses were approximately $2.9 billion, which increased 50.1% year over year.
The operating margin contracted 340 basis points from the year-ago period to 10.1%. It is worth noting that income from operations of $889 million includes $99 million of one-off tax credits in Brazil booked mostly within cost of net revenues; excluding these credits, the operating margin was approximately 9%.
Net Interest Margin After Losses improved sequentially to 23.3%, up from 21% in the third quarter of 2025, driven by higher spreads in consumer and merchant loan portfolios. The 15-90 day non-performing loan ratio edged up to 7.6% from 6.8% in the prior quarter.
Balance Sheet of MELI
As of Dec. 31, 2025, cash and cash equivalents were $3.67 billion, up from $3.01 billion as of Sept. 30, 2025.
Short-term investments were $2.63 billion as of Dec. 31, 2025, compared to $3.72 billion as of Sept. 30, 2025. Net debt increased to $4.68 billion at the end of the quarter compared to $4.61 billion as of Sept. 30, 2025, reflecting continued funding for Mercado Pago operations and credit portfolio expansion.
MELI’s Zacks Rank & Stocks to Consider
Currently, MercadoLibre carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Retail-Wholesale sector are Etsy (ETSY - Free Report) , FIGS (FIGS - Free Report) and Five Below (FIVE - Free Report) .
Etsy, FIGS and Five Below each sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Etsy’s shares have declined 5.1% in the past six months. The Zacks Consensus Estimate for Etsy’s EPS for the upcoming quarter is pegged at 75 cents, indicating a year-over-year increase of 63.04%.
FIGS’ shares have surged 58.6% in the past six months. The Zacks Consensus Estimate for FIGS’ EPS for the upcoming quarter is pegged at 2 cents, indicating a year-over-year increase of 100%.
Five Below’s shares have surged 57.6% in the past six months. The Zacks Consensus Estimate for Five Below’s EPS for the upcoming quarter is pegged at $3.98, indicating a year-over-year increase of 14.37%.