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MercadoLibre

MELI · Nasdaq

Credit loss provisions now run at 186.8% of operating income

Provisions of $1.28B, up 84.9%, took 30.7% of gross profit against 22.3% a year earlier, and now exceed the $683M operating income.

Q2 FY2026, the quarter to Jun 30, 2026 · 10-Q filed Aug 6, 2026

Q2 FY2026 · revenue
$10.2B+71.3% on the year
Operating margin
6.7%
Net income
$466.0M
Free cash flow, quarter
$3.2B

Largest source of revenue: Net service revenues and financial income, 85.5% of the total.

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Where MercadoLibre's money goes

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Key insights · Q2 FY2026
  1. 01

    Credit loss provisions now run at 186.8% of operating income

    Provisions of $1.28B, up 84.9%, took 30.7% of gross profit against 22.3% a year earlier, and now exceed the $683M operating income.

    Why it matters

    Provision for doubtful accounts, the expected credit losses on the company's financial assets, mainly loans receivable, rose 84.9% to $1.28B from $690M. That is 12.5% of revenue, against 10.2% a year earlier, and 30.7% of gross profit, against 22.3%. The filing ties the increase to faster originations, "mostly related to the credit cards and consumer".1

    Operating income fell 17.2% to $683M from $825M. A year earlier provisions were 83.6% of operating income; this quarter they were 186.8%. The company says the expansion of its credit portfolio "contributes to the increase in our provision for doubtful accounts" and that, as a result, "we may experience decreases in our operating income margins".1

    AnalysisExpected-loss accounting books a loan's projected losses when the loan is made, before most of its interest is earned. A book growing this fast therefore shows its costs ahead of its income, so the ratio reflects the pace of lending as much as the quality of the loans. The measure that would show whether pricing keeps up is the company's net interest margin after losses, which fell year on year.

  2. 02

    Gross margin gave up 4.7 points to cheaper delivery and goods

    Cost of revenues rose 62.6% against revenue's 49.8%, cutting gross margin to 40.9% from 45.6%, and the filing names Brazil's lower free shipping threshold first.

    Why it matters

    Cost of net revenues and financial expenses rose 62.6% to $6.01B, 59.1% of revenue, 4.67 points more than a year earlier. The filing attributes the lower gross margin to "the reduction of our free shipping threshold in Brazil", higher shipping operating costs and a higher cost of goods sold as a share of revenue, partly offset by lower sales taxes. Gross profit still grew 34.4% to $4.16B, but operating expenses grew 53.2%.1

    The mix is moving toward lower-margin revenue. Net product revenues, the company's own first-party sales, rose 78.8% to $1.48B, against 45.7% for services and financial income, lifting their share of revenue by 2.36 points to 14.5%. The company says gross margin "could continue declining if we maintain the growth of our first-party business, which has a lower pure product margin due to marketing initiatives".1

    This is a trend, not a single quarter. On full-year figures gross margin went from 50.2% in FY2023 to 46.1% in FY2024 and 44.5% in FY2025, before this quarter's 40.9%.1

    AnalysisA lower free shipping threshold is a bet that cheaper delivery on small baskets makes people buy more often. It pays only if volume grows enough for shipping cost per item to fall as the network fills. A gross margin that steadies while volume keeps growing would be the sign it is working; one that keeps sliding at the same growth would say the subsidy is not earning back.

  3. 03

    Operating cash ran 7.9 times net income

    Operating cash flow of $3.66B against net income of $466M reflects customer balances and card payables, not profit the company can freely spend.

    Why it matters

    Operating cash flow was $3.66B in the quarter, 7.9 times net income of $466M. After $441M of capital spending, 4.34% of revenue, free cash flow was $3.22B, or 31.7% of revenue, against a net margin of 4.58%.1

    For the half year, the filing names the increase in funds payable to customers and in amounts payable on credit and debit card transactions among the main sources of operating cash. Loans granted under the lending solution, net of collections, were the main use of investing cash. The company's own adjusted free cash flow, which nets out customer funds, loan growth and fintech borrowing, was far smaller than the reported figure.1

    AnalysisMoney users keep in Mercado Pago accounts is a cheap, sticky source of funds, and it is lent back out to borrowers on the same platform. Reading the 31.7% free cash flow margin as earning power would mistake that float for profit. The useful question is how much of loan growth is funded by earnings and balances, and how much by borrowing.

  4. 04

    Lower tax and currency losses softened the profit fall

    Net income fell 10.9% to $466M while operating income fell 17.2%, because currency losses shrank to $45M from $117M and income tax fell 27.5%.

    Why it matters

    Foreign currency losses were $45M, against $117M a year earlier, which the filing says came mainly from Argentine subsidiaries. Income tax expense fell 27.5% to $140M, 23.1% of pre-tax income against 27.0%, which the company attributes to higher income tax gains in Brazil from an increase in deferred tax assets.1

    Pre-tax income fell 15.4% to $606M and net income 10.9% to $466M, both less than the 17.2% fall in operating income. Diluted earnings per share were $9.19, against $10.31.1

    AnalysisNeither cushion comes from the operating business. Currency results swing with exchange rates and tax gains depend on deferred tax assets, so the operating line is the better guide to how the business itself did this quarter.

Sources

  1. 1.MercadoLibre 10-Q for the period to 2026-06-30 (the filing), Aug 6, 2026, read Nov 2, 2026

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Business performance

Growth, profit and margin

Revenue went from $844.4M in FY2016 to $28.9B in FY2025, the operating margin from 21.4% to 11.1%, over 9 years.

  • Revenue$28.9B
  • Operating income$3.2B
  • Operating margin11.1%
Period
Q2 FY2026
Revenue
$10.2B
Operating income
$683.0M
Operating margin
6.7%
Net income
$466.0M
Free cash flow
$3.2B
Business performance

Does the profit turn into cash?

Q2 FY2026: free cash flow of $3.2B against net income of $466.0M in the quarter.

  • Operating cash flow$12.1B
  • Capital expenditure$1.3B
  • Free cash flow$10.8B
  • Net income$2.0B

Capital expenditure is drawn below the axis as cash out. Cash conversion is operating cash flow over net income, shown in the tooltip for years with a profit.

Financial data and sources

How the revenue mix has shifted

Each breakdown the filing reports, as shares of revenue, for every period it restates.

Interim Condensed Consolidated Statements of Income. The filing restates this breakdown for 1 period.

Click a member to isolate it across the years shown.

The figures

Margins, cash and growth for the period, each with what it was computed from.

Gross margin
40.9%
Source10-Q, Derived from Gross profit and Net revenues and financial income in the 10-Q filed 2026-08-06
Operating margin
6.7%
Source10-Q, Derived from Income from operations and Net revenues and financial income in the 10-Q filed 2026-08-06
Net margin
4.6%
Source10-Q, Derived from Net income and Net revenues and financial income in the 10-Q filed 2026-08-06
Free cash flow, quarter
$3.2B
Source10-Q, Derived from the prior period in the history in the 10-Q filed 2026-08-06
Free cash flow margin, quarter
31.7%
Source10-Q, Derived from the prior period in the history in the 10-Q filed 2026-08-06
Cash conversion, quarter
7.86x
Source10-Q, Derived from the prior period in the history in the 10-Q filed 2026-08-06
Capital spending, quarter
4.3%
Source10-Q, Derived from the prior period in the history in the 10-Q filed 2026-08-06
Revenue growth
+71.3%
From the record's own history, against the prior year.

Where revenue comes from

Every breakdown the filing reports for the period, with each item's share.

Revenue streams

Net service revenues and financial income$8.7B85.5%
Net product revenues$1.5B14.5%

Source10-Q, us-gaap:Revenues, as reported in the 10-Q filed 2026-08-06

Segments

Brazil$5.5B54.4%
Mexico$2.3B23.0%
Argentina$1.8B18.1%
Other Countries$463.0M4.6%

Source10-Q, us-gaap:Revenues, as reported in the 10-Q filed 2026-08-06

Subsegments

Commerce$5.8B56.7%
Fintech$4.4B43.3%

Source10-Q, us-gaap:Revenues, as reported in the 10-Q filed 2026-08-06

What it costs

The cost lines beneath operating income, each as a share of revenue, then the operating result.

Costs are reported by function: what it cost to make what was sold, then the expenses of selling, developing and administering.

Cost lineQ2 FY2026Of revenueSource
Cost of net revenues and financial expenses$6.0B59.1%Source10-Q, us-gaap:CostOfGoodsAndServicesSold, as reported in the 10-Q filed 2026-08-06
Income from operations$683.0M6.7%Source10-Q, us-gaap:OperatingIncomeLoss, as reported in the 10-Q filed 2026-08-06

The statements, as filed

The income statement, cash flow statement and balance sheet in the company's own order and words. Every line links to the filing.

Income statement21 lines, as presented in the 10-Q
LineQ2 FY2026A year earlierChangeOf revenueSource
Income Statement
Net revenues and financial income$10.17B$6.79B+50%100%Source10-Q, us-gaap:Revenues, as reported in the 10-Q filed 2026-08-06
Net service revenues and financial income$8.69B$5.96B+46%85.5%Source10-Q, us-gaap:Revenues [us-gaap:ServiceMember], as reported in the 10-Q filed 2026-08-06
Net product revenues$1.48B$826.0M+79%14.5%Source10-Q, us-gaap:Revenues [us-gaap:ProductMember], as reported in the 10-Q filed 2026-08-06
Cost of net revenues and financial expenses (shown as a deduction)($6.01B)$3.70B+63%59.1%Source10-Q, us-gaap:CostOfGoodsAndServicesSold, as reported in the 10-Q filed 2026-08-06
Gross profit$4.16B$3.09B+34%40.9%Source10-Q, us-gaap:GrossProfit, as reported in the 10-Q filed 2026-08-06
Operating expenses:
Product and technology development (shown as a deduction)($729.0M)$567.0M+29%7.2%Source10-Q, us-gaap:ResearchAndDevelopmentExpense, as reported in the 10-Q filed 2026-08-06
Sales and marketing (shown as a deduction)($1.13B)$751.0M+51%11.1%Source10-Q, us-gaap:SellingAndMarketingExpense, as reported in the 10-Q filed 2026-08-06
Provision for doubtful accounts (shown as a deduction)($1.28B)$690.0M+85%12.5%Source10-Q, us-gaap:ProvisionForDoubtfulAccounts, as reported in the 10-Q filed 2026-08-06
General and administrative (shown as a deduction)($340.0M)$261.0M+30%3.3%Source10-Q, us-gaap:GeneralAndAdministrativeExpense, as reported in the 10-Q filed 2026-08-06
Total operating expenses (shown as a deduction)($3.48B)$2.27B+53%34.2%Source10-Q, us-gaap:OperatingExpenses, as reported in the 10-Q filed 2026-08-06
Income Statement
Income from operations$683.0M$825.0M-17%6.7%Source10-Q, us-gaap:OperatingIncomeLoss, as reported in the 10-Q filed 2026-08-06
Other income (expenses):
Interest income and other financial gains, net$30.0M$44.0M-32%0.3%Source10-Q, us-gaap:InvestmentIncomeInterest, as reported in the 10-Q filed 2026-08-06
Interest expense and other financial losses (shown as a deduction)($62.0M)$36.0M+72%0.6%Source10-Q, meli:InterestExpenseAndOtherFinancialCharges, as reported in the 10-Q filed 2026-08-06
Foreign currency losses, net-$45.0M-$117.0M-62%0.4%Source10-Q, us-gaap:ForeignCurrencyTransactionGainLossBeforeTax, as reported in the 10-Q filed 2026-08-06
Income Statement
Net income before income tax expense$606.0M$716.0M-15%6.0%Source10-Q, us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest, as reported in the 10-Q filed 2026-08-06
Income tax expense (shown as a deduction)($140.0M)$193.0M-27%1.4%Source10-Q, us-gaap:IncomeTaxExpenseBenefit, as reported in the 10-Q filed 2026-08-06
Net income$466.0M$523.0M-11%4.6%Source10-Q, us-gaap:NetIncomeLoss, as reported in the 10-Q filed 2026-08-06
Basic earnings per share
Basic net income available to shareholders per common share (in dollars per share)$9$10-11%0.0%Source10-Q, us-gaap:EarningsPerShareBasic, as reported in the 10-Q filed 2026-08-06
Weighted average of outstanding common shares (in shares)50,697,17150,697,375-0.0%Source10-Q, us-gaap:WeightedAverageNumberOfSharesOutstandingBasic, as reported in the 10-Q filed 2026-08-06
Diluted earnings per share
Diluted net income available to shareholders per common share (in dollars per share)$9$10-11%0.0%Source10-Q, us-gaap:EarningsPerShareDiluted, as reported in the 10-Q filed 2026-08-06
Weighted average of outstanding common shares (in shares)50,697,30150,697,375-0.0%Source10-Q, us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding, as reported in the 10-Q filed 2026-08-06
Cash flow statement3 lines, as presented in the 10-Q

Year to date, as a quarterly filing reports it.

LineQ2 FY2026A year earlierChangeSource
Cash flows from operations:
Net income$466.0M$523.0M-11%Source10-Q, us-gaap:NetIncomeLoss, as reported in the 10-Q filed 2026-08-06
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for doubtful accounts$1.28B$690.0M+85%Source10-Q, us-gaap:ProvisionForDoubtfulAccounts, as reported in the 10-Q filed 2026-08-06
Statement of Cash Flows
Cash, cash equivalents, restricted cash and cash equivalents, end of the period$16.76B$6.89B+143%Source10-Q, us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents, as reported in the 10-Q filed 2026-08-06
Balance sheet43 lines, as presented in the 10-Q
LineQ2 FY2026A year earlierChangeSource
Current assets:
Cash and cash equivalents$3.65BSource10-Q, us-gaap:CashAndCashEquivalentsAtCarryingValue, as reported in the 10-Q filed 2026-08-06
Restricted cash and cash equivalents$13.11BSource10-Q, us-gaap:RestrictedCashAndCashEquivalentsAtCarryingValue, as reported in the 10-Q filed 2026-08-06
Short-term investments$2.08BSource10-Q, us-gaap:ShortTermInvestments, as reported in the 10-Q filed 2026-08-06
Accounts receivable, net$418.0MSource10-Q, us-gaap:AccountsReceivableNetCurrent, as reported in the 10-Q filed 2026-08-06
Credit card receivables and other means of payments, net$8.35BSource10-Q, meli:ReceivableFromCustomerInBrokerageCurrent, as reported in the 10-Q filed 2026-08-06
Loans receivable, net of allowances of $4,251 and $3,057$11.41BSource10-Q, us-gaap:NotesAndLoansReceivableNetCurrent, as reported in the 10-Q filed 2026-08-06
Inventories$822.0MSource10-Q, us-gaap:InventoryNet, as reported in the 10-Q filed 2026-08-06
Other assets$937.0MSource10-Q, us-gaap:OtherAssetsCurrent, as reported in the 10-Q filed 2026-08-06
Total current assets$40.78BSource10-Q, us-gaap:AssetsCurrent, as reported in the 10-Q filed 2026-08-06
Non-current assets:
Long-term investments$1.72BSource10-Q, us-gaap:LongTermInvestments, as reported in the 10-Q filed 2026-08-06
Credit card receivables and other means of payments, net$170.0MSource10-Q, meli:ReceivableFromCustomerInBrokerageNoncurrent, as reported in the 10-Q filed 2026-08-06
Loans receivable, net of allowances of $128 and $86$584.0MSource10-Q, us-gaap:NotesAndLoansReceivableNetNoncurrent, as reported in the 10-Q filed 2026-08-06
Property and equipment, net$2.73BSource10-Q, us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization, as reported in the 10-Q filed 2026-08-06
Operating lease right-of-use assets$2.56BSource10-Q, us-gaap:OperatingLeaseRightOfUseAsset, as reported in the 10-Q filed 2026-08-06
Goodwill$168.0MSource10-Q, us-gaap:Goodwill, as reported in the 10-Q filed 2026-08-06
Intangible assets, net$30.0MSource10-Q, us-gaap:IntangibleAssetsNetExcludingGoodwill, as reported in the 10-Q filed 2026-08-06
Deferred tax assets$2.17BSource10-Q, us-gaap:DeferredIncomeTaxAssetsNet, as reported in the 10-Q filed 2026-08-06
Other assets$455.0MSource10-Q, us-gaap:OtherAssetsNoncurrent, as reported in the 10-Q filed 2026-08-06
Total non-current assets$10.57BSource10-Q, us-gaap:AssetsNoncurrent, as reported in the 10-Q filed 2026-08-06
Assets
Total assets$51.36BSource10-Q, us-gaap:Assets, as reported in the 10-Q filed 2026-08-06
Current liabilities:
Accounts payable and accrued expenses$5.74BSource10-Q, us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent, as reported in the 10-Q filed 2026-08-06
Funds payable to customers$16.04BSource10-Q, srt:PayablesToCustomers, as reported in the 10-Q filed 2026-08-06
Amounts payable due to credit and debit card transactions$5.00BSource10-Q, meli:AmountsPayableDueToCreditAndDebitCardTransactionsCurrent, as reported in the 10-Q filed 2026-08-06
Salaries and social security payable$830.0MSource10-Q, us-gaap:EmployeeRelatedLiabilitiesCurrent, as reported in the 10-Q filed 2026-08-06
Taxes payable$1.22BSource10-Q, us-gaap:TaxesPayableCurrent, as reported in the 10-Q filed 2026-08-06
Loans payable and other financial liabilities$6.48BSource10-Q, us-gaap:LoansPayableCurrent, as reported in the 10-Q filed 2026-08-06
Operating lease liabilities$513.0MSource10-Q, us-gaap:OperatingLeaseLiabilityCurrent, as reported in the 10-Q filed 2026-08-06
Other liabilities$558.0MSource10-Q, us-gaap:OtherLiabilitiesCurrent, as reported in the 10-Q filed 2026-08-06
Total current liabilities$36.37BSource10-Q, us-gaap:LiabilitiesCurrent, as reported in the 10-Q filed 2026-08-06
Non-current liabilities:
Amounts payable due to credit and debit card transactions$188.0MSource10-Q, meli:AmountsPayableDueToCreditAndDebitCardTransactionsNonCurrent, as reported in the 10-Q filed 2026-08-06
Loans payable and other financial liabilities$4.14BSource10-Q, us-gaap:LongTermLoansPayable, as reported in the 10-Q filed 2026-08-06
Operating lease liabilities$2.04BSource10-Q, us-gaap:OperatingLeaseLiabilityNoncurrent, as reported in the 10-Q filed 2026-08-06
Deferred tax liabilities$312.0MSource10-Q, us-gaap:DeferredIncomeTaxLiabilitiesNet, as reported in the 10-Q filed 2026-08-06
Other liabilities$469.0MSource10-Q, us-gaap:OtherLiabilitiesNoncurrent, as reported in the 10-Q filed 2026-08-06
Total non-current liabilities$7.15BSource10-Q, us-gaap:LiabilitiesNoncurrent, as reported in the 10-Q filed 2026-08-06
Liabilities
Total liabilities$43.52BSource10-Q, us-gaap:Liabilities, as reported in the 10-Q filed 2026-08-06
Equity
Common stock, $0.001 par value, 110,000,000 shares authorized, 50,696,802 and 50,697,182 shares issued and outstanding$0Source10-Q, us-gaap:CommonStockValue, as reported in the 10-Q filed 2026-08-06
Additional paid-in capital$1.77BSource10-Q, us-gaap:AdditionalPaidInCapital, as reported in the 10-Q filed 2026-08-06
Treasury stock, 226,593 and 225,931 shares (shown as a deduction)($313.0M)Source10-Q, us-gaap:TreasuryStockCommonValue, as reported in the 10-Q filed 2026-08-06
Retained earnings$6.69BSource10-Q, us-gaap:RetainedEarningsAccumulatedDeficit, as reported in the 10-Q filed 2026-08-06
Accumulated other comprehensive loss-$317.0MSource10-Q, us-gaap:AccumulatedOtherComprehensiveIncomeLossNetOfTax, as reported in the 10-Q filed 2026-08-06
Total equity$7.83B$5.71B+37%Source10-Q, us-gaap:StockholdersEquity, as reported in the 10-Q filed 2026-08-06
Statement of Financial Position
Total liabilities and equity$51.36BSource10-Q, us-gaap:LiabilitiesAndStockholdersEquity, as reported in the 10-Q filed 2026-08-06

About this data

Source
MercadoLibre 10-Q, accession 0001099590-26-000023, filed Aug 6, 2026, read on Nov 2, 2026.
History
From the SEC's XBRL company facts, the value from the latest filing that stated each period.
Reading
Paragraphs marked Analysis are CXProWealth's reading; everything else is the filing's own numbers and words, or a cited source.
Version
methodology business-lens-1.0 · schema 1.2.0 · run business-lens-2026-11-02
Edge and risks

What holds MercadoLibre's model up, and what could bend it

Competitive edge

  • Payments and credit ride on the marketplace's own users

    Commerce earned $5.76B and Fintech $4.41B, 43.3% of revenue, and loans go mostly to people and merchants already on the platform.

    The detail

    Mercado Pago processes and settles every marketplace transaction in the countries where it operates, and sellers pay no separate charge for it: payments are "already included in the Marketplace final value fee". Loans go "mostly to merchants and consumers that already form part of our user base", many of them underserved by banks, and the company says credit strengthens "the engagement and lock-in rate of our users".1

    AnalysisA lender that already sees a borrower's sales and payments has information a bank often lacks, and can collect from flows it already settles. Each product gives users a reason to keep using the others, which is hard for a standalone marketplace or a standalone lender to copy.

  • An owned delivery network makes shipping part of the product

    The filing says Mercado Envios delivers faster and at lower cost than third-party carriers would, with fulfillment centers handling more than half of shipments.

    The detail

    The company calls its logistics "an integral and crucial part of our value proposition": it reduces friction between buyers and sellers, gives control over the full experience and enables "faster deliveries at a more competitive cost than would otherwise be available with third-party carriers". Sellers keep inventory in its fulfillment centers or drop items at thousands of partner stores.1

    AnalysisWhere carriers are slow and costly, delivery speed and price decide where people shop. The network is also the reason shipping costs led this quarter's rise in cost of revenues, so the advantage carries its own cost line.

  • Technology and overhead shrink as a share of revenue

    Product and technology fell to 7.17% of revenue from 8.35%, and general and administrative to 3.34% from 3.84%, as revenue grew 49.8%.

    The detail

    Product and technology development rose 28.6% to $729M and general and administrative 30.3% to $340M, both well below revenue growth of 49.8%. The company calls product and technology development "one of our key competitive advantages" and says it will keep investing in technology and AI capabilities.1

    AnalysisSpreading a shared platform over more transactions is the scale benefit a regional leader has over smaller rivals. This quarter it was outweighed by shipping costs and credit losses, which grow with volume rather than spreading over it.

What to watch

  • Lending growth leans on borrowed money

    Interest expense and other financial losses rose 72.2% to $62M, which the filing attributes to higher indebtedness, mainly in Argentina and Brazil.

    The detail

    The company's main cash requirement is working capital for Mercado Pago financing and lending. It funds it by selling and securitising receivables, bank loans, notes and, in Brazil, deposit certificates. Interest expense and other financial losses were $62M against $36M a year earlier, and the net debt the company reports rose since December. Funding costs for the loan book also sit inside cost of revenues.1

    AnalysisA loan book funded increasingly by debt is exposed to the price of that debt as well as to borrowers' repayment. Higher funding costs and higher loss provisions would hit the same product at once.

  • The company itself warns margins may keep falling

    Operating margin fell to 6.72% from 12.2%, and the filing says first-party growth, logistics and credit expansion may push margins lower.

    The detail

    Gross margin "could continue declining if we maintain the growth of our first-party business" or keep building the logistics network, and continued spending on marketing and the credit portfolio means "we may experience decreases in our operating income margins". The company gives no earnings guidance, saying it focuses on long-term decisions.1

    AnalysisAll three drivers the company names were growing faster than revenue this quarter. A recovery would need higher-margin lines such as advertising and payment fees to outgrow them.

  • Currencies and fintech rules sit outside its control

    Brazil earns 54.4% of revenue in reais, and Mercado Pago faces new crypto, stablecoin and payment rules in Brazil and Argentina.

    The detail

    Revenue is earned in local currencies and translated into dollars, so stronger currencies in Brazil and Mexico lifted this quarter's reported growth. Argentina, 18.1% of revenue, reports in dollars because of its "status as a highly inflationary economy". Currency losses were $45M, against $117M a year earlier.1

    In Brazil, crypto asset services now need central bank authorization, and a new rule prohibits stablecoins as a means of settlement in international payments; the company is "assessing the impact". In Argentina, payment providers now fall under bank-grade technology security and anti-money-laundering rules. The risk factors in the annual report are unchanged.1

Sources

  1. 1.MercadoLibre 10-Q for the period to 2026-06-30 (the filing), Aug 6, 2026, read Nov 2, 2026
Go deeper

MercadoLibre, further in

Member research, then your own questions on ChatGPT.

What could change the outlook

What MercadoLibre's numbers depend on from here, read from the filing: the conditions behind this period's margins and growth, and where a change would show first.

  • What the credit book has to prove from here

    Why a fast-growing card and consumer book shows its costs before its income, and which measures will show whether MercadoLibre is pricing loan losses well.

  • Can cheaper shipping in Brazil earn back its cost?

    What purchase frequency, volume and cost per item would have to do for the lower free shipping threshold to stop pressing on gross margin.

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Questions to start with
  • Why do MercadoLibre's loan loss provisions now exceed its operating income, and what would make them slow down?
  • How much of MercadoLibre's operating cash flow comes from customer balances rather than profit?
  • What would have to happen for MercadoLibre's lower free shipping threshold in Brazil to pay for itself?

Business Lens describes MercadoLibre from its own filings with the SEC. It is not a view on its shares, a target, or advice to buy, sell or hold anything; figures are as filed and may be restated by the company later. The filing, the dates and the version are under the financial data above.