MercadoLibre, Inc.

MercadoLibre reported net revenue and financial income growth of 41% year over year on an FX-neutral basis. Operating income was $676 million, with a 6.3% margin, down 40 basis points from last quarter. In Brazil, GMV grew 36% year over year, items per buyer grew 16%, monthly active users increased 29%, assets under management rose 67%, and the credit portfolio grew 62%; NPLs remained stable. For margins, management said shipping was a roughly 60-basis-point headwind versus last quarter and sales and marketing increased to 11.6% of net revenue. No formal next-quarter or full-year financial guidance was given in the transcript.

Ariel Szarfsztejn said MercadoLibre is leaning into structural shifts in commerce and fintech rather than reacting to short-term volatility. He emphasized that social commerce, quick commerce, AI, and ecosystem integration are all part of the same strategy: being where consumer attention is, improving engagement, and deepening the value proposition across shopping and financial services. His tone was confident and long-term oriented, repeatedly stressing discipline, risk management, and confidence in the company’s ability to keep gaining share.

Martin de los Santos framed the quarter as one of deliberate investment, not accidental margin pressure. He cited 41% FX-neutral growth in net revenue and financial income, $676 million of operating income, and a 6.3% operating margin, explaining the 40-basis-point sequential decline by higher shipping costs and more sales and marketing spend for affiliates. He also pointed to operating leverage in other areas, noting improved logistics efficiency, better card economics, and continued AI investment, including a $30 million sequential increase in AI spending.

Analysts pressed on whether social commerce, affiliate marketing, and quick commerce could become larger and more structural investment areas. Management said affiliates are strategic but the current step-up is tactical, quick commerce is being tested without a new investment inflection, and the company is not planning a major new investment bucket in the near term. Several questions focused on credit quality in Brazil and Desenrola; management said the program helped a little but was small relative to a $19 billion portfolio, and that risk management remains ahead of growth. There were also questions on AI and agentic shopping, and management said AI is already delivering measurable benefits in search, customer support, and developer productivity, while its own agentic shopping experience is being built inside MercadoLibre rather than through third-party inventory access.