greeksoup/ stock research
Stock research / United States / MELI / FY2025

MercadoLibre (MELI) FY2025 results: revenue $28.9 billion, up 39.1% on the year

MercadoLibre, Inc. (MELI) reported revenue of $28.9 billion for fiscal 2025, the year ended 31 December 2025, up 39.1% on the year before. Net income was $2.0 billion, up 4.5%, and diluted earnings per share $39.40. The figures are the company's own, from the 10-K it filed with the SEC on 25 February 2026.

Revenue
$28.9 billion
+39.1% on the year
FY2018FY2025
Operating margin
11.1%
12.7% a year earlier
FY2018FY2025
Net income
$2.0 billion
+4.5% on the year
FY2018FY2025
Diluted EPS
$39.40
+4.5% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

  • Revenue grew 45% year over year: Net revenues and financial income were $8,759 million, up 45% YoY and 47% FX-neutral. Full-year 2025 revenue grew 39% YoY, according to the letter.
  • Operating income includes one-off tax credits: Income from operations was $889 million, including $99 million of one-off Brazil tax credits. Excluding the credits, income from operations fell 4% YoY and the margin was 9.0%.
  • Credit card delinquency fell to 4.4%: Credit card 15-90 day NPL fell by more than 300bps over three years to 4.4% in Q4 2025, which the letter calls a historic low. Management linked this to higher marketplace-buyer penetration and better underwriting.
  • Operating margin down 450bps year over year: Excluding the tax credits, the operating margin was 9.0%, down 80bps from Q3 2025. Management said the 450bps YoY decline is mostly explained by strategic investments.
  • Strategic investments cost 5-6 points of margin: Management estimated the combined impact of Brazil free shipping, CBT, 1P and the credit card at 5-6 percentage points of operating margin in Q4 2025.
Read the Q4 FY2025 earnings call summary

From this 10-K

MercadoLibre runs an online commerce and financial services ecosystem across Latin America. Its marketplace is present in 18 countries and its fintech platform, Mercado Pago, in 8. The filing describes the commerce platform as the largest in the region by the value of goods sold through it, and Mercado Pago as the largest fintech business by monthly active users in Argentina, Chile and Mexico and the second largest in Brazil. The region has a population of over 650 million people.

MercadoLibre, Inc., the 10-K for 2025

MercadoLibre runs an online commerce and financial services ecosystem across Latin America. Its marketplace is present in 18 countries and its fintech platform, Mercado Pago, in 8. The filing describes the commerce platform as the largest in the region by the value of goods sold through it, and Mercado Pago as the largest fintech business by monthly active users in Argentina, Chile and Mexico and the second largest in Brazil. The region has a population of over 650 million people.

The marketplace

Third-party sellers account for most of what is transacted. The company also sells from its own inventory in selected categories, which is less than 10% of the total. Categories run from consumer electronics and apparel to home goods, car accessories, toys, books and packaged groceries, with international goods mainly from sellers in China and the United States through cross-border trade. Vehicles, property and services are listed separately through Mercado Libre Classifieds, where only a placing fee is charged and no final value fee. Mercado Envios carries the parcels: more than half of shipments go through fulfillment centers holding seller inventory, the rest through cross-docking, collected from sellers directly or dropped at thousands of partner stores the company calls MELI Places, which also handle collection and returns. Dedicated aircraft, trucks and thousands of last-mile vans move the goods, the vast majority of them owned and run by third-party carriers.

Mercado Pago

Mercado Pago began as the way to settle transactions on the marketplace and still settles all of them in the countries where it operates. It then went outside: online payment processing for other merchants, then point-of-sale devices and QR codes for shops taking cash. Through its digital account it now sells utility and phone top-up payments, peer-to-peer transfers, prepaid and debit cards, credit cards, insurance such as extended warranties and theft cover, savings and investment products, and a feature for buying and holding selected digital assets in Brazil, Mexico and Chile, among them Meli Dólar, a stablecoin pegged to the US dollar. Lending runs in Argentina, Brazil, Mexico and Chile, to merchants and consumers already on the platform, scored on credit models the company built itself from what it sees of their sales and behaviour. Because an online merchant's business flows through Mercado Pago, principal and interest payments can be collected from their existing sales on the Marketplace, which the filing states meaningfully reduces the risk of uncollectability on those loans.

Ads, membership and video

Mercado Ads sells advertisers access to the shoppers on the marketplace and to the first-party data their browsing generates, in four formats: sponsored listings, brand carousels, display banners and video, the last two also placed off the platform. Meli+, the loyalty programme, reached Argentina, Chile and Colombia in 2025 after Brazil and Mexico in 2024, with tiers running from shipping benefits and cashback up to bundled access to streaming services. Mercado Play, an advertising-funded video service launched in 2023, reached connected televisions in 2025, its content licensed from third-party studios on revenue-sharing terms.

Where it earns

Commerce earns from marketplace fees, which include final value fees covering the payment solution, flat fees on transactions below a certain value, shipping and storage fees, classifieds fees, advertising and membership subscriptions, and separately from selling its own merchandise. Fintech earns from commissions on payments taken off the platform and on the asset management product, from offering instalments, from interest on cash and investments held for Mercado Pago, from debit card commissions and insurance fees, from interest on loans and credit card balances, and from selling point-of-sale devices. Segments are geographic, and in 2025 Brazil was 52.6% of consolidated net revenues and financial income, Mexico 22.4%, Argentina 20.6% and the other countries 4.4%.

People

There were 123,670 employees at the end of 2025, of whom 61,139 were in Brazil, 34,336 in Mexico and 16,726 in Argentina, with smaller numbers in Colombia, Chile, Uruguay and elsewhere; operations in the remaining countries are run remotely. Some employees in Brazil, Argentina, Mexico, Uruguay and Chile are represented by labor unions. The company traces its culture back to its early days in a garage in Buenos Aires.

From MercadoLibre's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 25 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue28,89320,77715,107+39.1%
Cost of revenue16,03511,2007,517+43.2%
Gross profit12,8589,5777,590+34.3%
Gross margin44.5%46.1%50.2%
Research and development2,2691,9341,831+17.3%
Operating income3,2012,6312,207+21.7%
Operating margin11.1%12.7%14.6%
Pre-tax income2,8422,4321,553+16.9%
Income tax845521569+62.2%
Effective tax rate29.7%21.4%36.6%
Net income1,9971,911987+4.5%
Net margin6.9%9.2%6.5%
Diluted EPS$39.40$37.69$19.46+4.5%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow12,1167,9185,140+53.0%
Capital expenditure1,343860509+56.2%
Free cash flow10,7737,0584,631+52.6%
Free cash flow margin37.3%34.0%30.7%
Cash from investing-6,179-8,287-3,450
Cash from financing2,9041,959-267+48.2%
Depreciation and amortisation818617524+32.6%
Buybacks1.01.03560.0%
Diluted shares, weighted51m51m51m-0.0%
Shares outstanding at period end51m51m51m-0.0%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity6,7484,3513,071+55.1%
Trading liabilitiesn/a0.0n/a
Debt9,1935,7154,495+60.9%
Operating lease liabilities1,769894672+97.9%
Finance lease liabilities82.081.096.0+1.2%
Other liabilities24,87514,1559,312+75.7%
Total liabilities and equity42,66725,19617,646+69.3%
Fixed assets2,3031,3801,250+66.9%
Goodwill163149163+9.4%
Intangible assets33.012.011.0+175.0%
Investments4,3935,6883,642-22.8%
Loansn/an/a2,694
Cash and equivalents3,6702,6352,556+39.3%
Receivables369255156+44.7%
Inventory570296238+92.6%
Other assets31,16614,7816,936+110.9%
Total assets42,66725,19617,646+69.3%

10-K for the year ended 31 December 2025, filed 25 February 2026: the filing.