10-Q · May 8, 2026
MercadoLibre reported strong Q1 2026 results with revenues of $8.845 billion, representing a 49% year-over-year increase, outpacing expectations. However, diluted EPS of $8.23 fell slightly short of the consensus…
Earnings analysis · 10-Q
MELI earnings analysis
Filed November 4, 2026 · Our reading of the company's report
The latest report
MercadoLibre delivered strong scale growth, with $10.750 billion of revenue, 53% TPV growth and 38% GMV growth, but profitability deteriorated as operating margin fell to 6.3% and EPS of $8.83 missed consensus of $9.30.…
Read full summary
MercadoLibre delivered strong scale growth, with $10.750 billion of revenue, 53% TPV growth and 38% GMV growth, but profitability deteriorated as operating margin fell to 6.3% and EPS of $8.83 missed consensus of $9.30. Credit, interest-rate and foreign-exchange exposure remain material, including $13.040 billion of net loans receivable and a $72 million quarterly foreign-currency loss. The new $735 million IFC facility supports Brazilian receivables growth but adds debt and covenant exposure; no quantitative forward guidance was provided.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $8.83
- Operating margin
- 6.3%
- Segment
- Payments: total payment volume (TPV) grew 53% year over year.
- Segment
- Commerce: gross merchandise volume (GMV) grew 38% year over year.
What stood out
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Revenue growth remained strong
Revenue was $10.750 billion, up approximately 5.7% from $10.17 billion in Q2 2026 and approximately 45.1% from $7.41 billion in Q3 2025; revenue exceeded consensus of $10.704 billion by approximately 0.4%.
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Payments and commerce scaled
TPV increased 53% year over year and GMV increased 38% year over year, indicating continued expansion across payments and commerce.
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Brazil led regional growth
Brazil was identified as the leading regional growth contributor, while consolidated revenue reached $10.750 billion.
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Investment compressed profitability
Operating margin declined to 6.3% from 6.7% in Q2 2026 and 9.8% in Q3 2025; operating income fell 6% year over year as shipping and marketing investments increased.
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Large financial platform scale
The company had $17.338 billion of cash, restricted cash and cash equivalents denominated in foreign currencies, plus $22.679 billion of foreign-currency receivables, credit-card receivables and loans receivable as of September 30, 2026.
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New funding supports Brazil credit
The company entered into IFC loan agreements for $735 million of senior unsecured term loans to finance early settlement of Brazilian credit-card receivables for micro, small and medium-sized businesses in the Amazon Region.
What to watch
-
Profitability and EPS miss
Diluted EPS was $8.83, below the $9.30 consensus estimate by approximately 5.1%, while operating margin fell to 6.3% from 9.8% a year earlier.
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Credit and funding exposure
As of September 30, 2026, loans receivable from the lending solution totaled $13.040 billion net of allowance, and credit-card receivables and other means of payment totaled $9.200 billion, increasing exposure to credit losses and funding conditions.
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Interest-rate sensitivity
A 100-basis-point increase in interest rates would have increased the nine-month income-statement charge by approximately $63 million; variable-rate loans payable and other financial liabilities totaled $8.860 billion.
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Currency volatility
The company recorded a foreign-currency loss of $72 million in Q3 2026 and $111 million for the nine-month period; a 10% depreciation of the Mexican peso would have produced an approximately $98 million foreign-currency loss in Mexican subsidiaries.
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Equity-linked compensation liability
The outstanding LTRP variable-payment obligation had a fair value of $641 million as of September 30, 2026 and would rise to $897 million under a 40% increase in the stock price.
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Incremental leverage and covenants
The IFC financing adds $735 million of senior unsecured debt, bearing interest at six-month Term SOFR plus 1.05%; the agreements include a $200 million cross-acceleration and judgment-default threshold. The filing states there were no material changes to risk factors from the 2025 10-K.
Management's outlook
No quantitative forward revenue or EPS guidance was provided in the 10-Q. Management expects the first disbursement under the $735 million IFC loan agreements to occur in November 2026.
Earlier filings 4
10-K · February 25, 2026
MercadoLibre, Inc. reported strong growth in 2025 with total net revenues and financial income increasing 39.1% year-over-year to $28.89 billion, driven by an increase in commerce and fintech revenues. However,…
10-Q · October 30, 2025
MercadoLibre, Inc. reported strong revenue growth in Q3 2025, achieving $7.41B, a 39.5% increase from $5.31B in Q3 2024, despite a decline in operating margin to 9.8% from 10.5% in the prior year. Earnings Per Share…
10-Q · August 5, 2025
MercadoLibre reported a strong Q2 2025 with revenues of $6.79B, up 33.8% YoY, surpassing analyst estimates. However, EPS fell short at $10.31 versus a consensus of $11.94, amid increased expenses in sales and marketing…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.