$MELI · MERCADOLIBRE INC
MercadoLibre reported Q3'26 results: net revenues & financial income of $10,750M, up 45% YoY (41% FX-neutral). Income from operations was $676M, down 6% YoY with a 6.3% margin, 40bps below Q2'26. Net income was $448M (4.2% margin). TPV reached $109B (+53% YoY) and GMV $23B (+38% YoY).
- Net revenues & financial income $10,750M, +45% YoY (41% FX-neutral)
- Income from operations $676M, -6% YoY, 6.3% margin (40bps below Q2'26)
- Net income $448M, 4.2% margin; diluted EPS $8.83 vs $8.32 a year ago
- TPV $109B (+53% YoY); GMV $23B (+38% YoY)
- Credit portfolio ~$18B, +62% YoY; 15-90 day NPL 7.0%
Extended-hours last trade $1629.15, down 6.36% vs the $1739.88 regular close, despite the +45% revenue growth — investors are pricing in the margin compression from free-shipping and fulfillment investment.
MercadoLibre's 45% revenue growth is being met with a 6% operating-income decline, testing whether its ecosystem investment thesis can convert scale into margin.
MercadoLibre is trading growth for margin to deepen its commerce-fintech ecosystem, a strategy contrast with peers prioritizing near-term profitability.
Operating margin fell 40bps QoQ on free-shipping threshold costs and new fulfillment capacity added ahead of peak season; net shipping margin contracted ~200bps of GMV since Q1'25. Mexico growth slowed on tax reform and weaker consumption.