📣 Creators, Exciting News!
Gate Square Certified Creator Application Is Now Live!
How to apply:
1️⃣ Open App → Tap [Square] at the bottom → Click your avatar in the top right
2️⃣ Tap [Get Certified] under your avatar
3️⃣ Once approved, you’ll get an exclusive verified badge that highlights your credibility and expertise!
Note: You need to update App to version 7.25.0 or above to apply.
The application channel is now open to KOLs, project teams, media, and business partners!
Super low threshold, just 500 followers + active posting to apply!
At Gate Square, everyone can be a community leader! �
MercadoLibre's revenues (MELI) soar by 34% in the second quarter
Source: The Motley Fool
August 5, 2025 14:16
Key points
Revenues reached $6.790 million in the second quarter of 2025, exceeding analysts' expectations with a year-on-year increase of 33.8%.
Earnings per share were $10.31 in the second quarter of 2025, below analysts' estimates and representing a decrease of 1.6% compared to the same period in 2024.
The operating margin fell to 12.2%, reflecting increased investments in logistics, marketing, and customer growth.
These 10 actions could create the next wave of millionaires ›
MercadoLibre (NASDAQ:MELI), the leading e-commerce and fintech platform in Latin America, released its financial results for the second fiscal quarter of 2025 on August 4. The highlight was the strong revenue increase to $6.790 billion, surpassing the consensus estimate of $6.670 billion. Despite this achievement, earnings per share came in at $10.31, below the expected $11.93, and the operating margin decreased to 12.2%. The quarter showed continued advancements in user growth and business volume, but also highlighted rising costs associated with strategic investments and competitive actions.
Source: Analyst estimates provided by FactSet.
Business Overview and Strategic Approach
MercadoLibre operates one of the largest online commerce and financial technology ecosystems in Latin America. Its marketplace connects millions of buyers and sellers, while its fintech platform (Mercado Pago) offers digital payments, loans, and savings products. It also provides logistics through Mercado Envíos, advertising with Mercado Ads, and various value-added services.
Their recent focus has been on deepening engagement through bundled services and heavily investing in logistics expansion, digital payments, and customer acquisition. I'm surprised they continue to bet so aggressively on growth when they already dominate the market, although I understand that competition doesn't sleep.
Quarterly performance and key developments
Revenue grew by 33.8% to $6.79 billion, driven by expansion in both e-commerce and fintech. Brazil remains its largest market, with a 25% growth in dollars and 35% in constant currency, fueled by the strategic reduction of free shipping thresholds in June. Argentina showed an even stronger performance, with revenue skyrocketing by 77% in dollars and 130% in constant currency, with items sold increasing by 46%. In Mexico, revenue increased by 25% in dollars and 35% on a constant currency basis.
The Commerce segment saw its revenue grow by 29% in dollars and 45% neutral in currencies. Direct sales ( where MercadoLibre sells its own inventory ) doubled year-on-year, helping the company reach over $1 billion in gross merchandise volume from first-party sales for the first time. Logistics remains a strength: 95% of items were delivered through its managed network, with fulfillment centers handling 57% of all shipments.
The Fintech segment, including digital payments and credit offerings, continues to grow rapidly. Revenues increased by 40% in dollars and 63% on a constant currency basis, surpassing the growth of the Commerce segment. Monthly active users reached 68 million, up 30% from the previous year. Their credit card portfolio grew by 118% year-on-year to $4 billion. Net interest margins after losses stabilized at 23.0%, although they fell from 31.1% due to changes in the product mix.
Profit margins faced pressure during the period. The operating margin decreased to 12.2%, down from 14.3% in the second quarter of 2024. This contraction resulted from the direct costs of expanding free shipping, increased marketing spending, and a higher proportion of direct sales with lower margins. Net income was $523 million with a margin of 7.7%, affected by foreign exchange losses of $117 million following a devaluation of the Argentine peso.
Advances in products and platform
MercadoLibre deepened the integration between its commerce and fintech services. It expanded its first-party assortment, launched AI-driven search features, and improved advertising segmentation. In fintech, it boosted digital banking in key markets and promoted high-yield savings products in Brazil. More than 1.5 million credit cards were issued.
The logistics network now includes over 30 fulfillment centers, with record same-day delivery volumes in Argentina. In advertising, the larger scale has nearly doubled revenues in the display and video categories.
Perspectives and Looking Ahead
The management did not provide explicit quantitative guidance for the next quarter or the full fiscal year. They emphasized a continued focus on reinvesting to grow in logistics, fintech, and user acquisition, suggesting that operating margins may remain under pressure as competition intensifies. Personally, I believe that this growth-at-all-costs strategy could prove costly in the long run if they do not manage to balance investment and profitability.
Investors should monitor several issues in the coming quarters: the pace of user and sales acceleration, the evolution of credit quality within the fintech business, and the transition to the new CEO Ariel Szarfsztejn, scheduled for January 2026.
MELI currently does not pay dividends.
Revenues and net income presented in accordance with generally accepted accounting principles in the U.S. (GAAP) unless otherwise stated.