MercadoLibre Q2 Revenue Tops $10B for First Time, but Profit Sinks on Credit Costs
MELI sits 24% above its 52-week low of $1,495.
Summary
MercadoLibre's Q2 revenue exceeded $10 billion for the first time, growing 50% YoY, but net income fell 11% as surging credit costs and operating expenses compressed margins.
Key Events · Earnings and Guidance · MELI
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Revenue Tops $10B for First Time
Q2 net revenues and financial income surged 50% YoY to $10.2 billion, driven by 44% GMV growth and 56% total payment volume growth.
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Net Income Falls on Credit Costs
Net income dropped 11% to $466 million as provision for doubtful accounts nearly doubled to $1.28 billion, reflecting rapid expansion of the credit card and lending portfolio.
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Operating Margin Compresses
Operating margin fell to 6.7% from 12.2% a year ago, pressured by higher shipping costs, marketing spend, and credit provisions.
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Credit Portfolio Expansion Drives Risk
Gross loans receivable grew to $16.4 billion, with the allowance for doubtful accounts rising to $4.4 billion. Off-balance sheet credit card commitments reached $14.0 billion.
Analysis · MELI · Trade & Services
MercadoLibre delivered its strongest revenue quarter ever, with sales jumping 50% to $10.2 billion, crossing the $10 billion mark for the first time. Commerce and fintech volumes surged across Brazil, Mexico, and Argentina. However, net income fell 11% as the company's aggressive expansion of its credit card and lending business drove loan loss provisions to $1.28 billion, nearly double last year. Operating margin compressed to 6.7% from 12.2%, reflecting the cost of growth. The results highlight a trade-off: rapid market share gains are coming at the expense of near-term profitability as the company invests heavily in credit and logistics.
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In the 30 days to Sep 16, 2026, 35.8% of the 1190 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.45%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, MELI was trading at $1,850.00 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $97.5B. The 52-week trading range was $1,495.00 to $2,548.50. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.