TLDR
- MercadoLibre tops $7.4B revenue with 39% YoY growth in Q3 results.
- Brazil and Mexico power record e-commerce and fintech expansion.
- Operational efficiency lifts margins despite rising investments.
- Credit portfolio surges 83%, fintech users hit 72 million.
- Logistics and delivery efficiency drive cost savings and retention.
MercadoLibre closed at $2,295.92, climbing 0.25% as the company posted solid third-quarter results.
MercadoLibre, Inc., MELI
The e-commerce and fintech leader in Latin America reported $7.4 billion in revenue, up 39% year-over-year. Strong performances in Brazil and Mexico along with growing fintech operations lifted overall business momentum.
Q3 Financials Reflect Strong Operational Performance
MercadoLibre delivered its 27th straight quarter with over 30% year-over-year revenue growth, driven by scale and ecosystem strength. Income from operations rose to $724 million, marking a 9.8% margin despite higher investment costs. Net income stood at $421 million, impacted by FX losses and a higher tax rate.
While revenue climbed 49% FX-neutral, Brazil and Mexico led the surge with 35% and 42% FX-neutral growth, respectively. The company balanced its increased free shipping investment by improving efficiency and reducing unit shipping costs. Gross Merchandise Volume reached $16.5 billion, while Total Payment Volume jumped to $71.2 billion.
These gains came alongside a 28% increase in shipments in Brazil, which were absorbed without slowing service speeds. The company also reported its lowest-ever unit shipping cost in Mexico, driven by fulfillment efficiency. Fulfillment penetration and same-day delivery rates reached new highs across key markets.
Brazil Drives Commerce Expansion with Buyer and Seller Growth
Brazil showed robust e-commerce traction as unique buyers grew 29%, the fastest rate since Q1 2021. Sold items rose 42% year-over-year, while GMV increased 34% FX-neutral, supported by reduced shipping thresholds. The strategy led to increased traffic, higher conversions, and record-breaking buyer retention levels.
The number of merchants in the R$19–79 product range rose by double digits, with new listings tripling year-over-year. These results reflect a dynamic marketplace where buyers and sellers mutually benefit from lower entry points. The company’s logistics network scaled to meet demand, enhancing both fast and slow delivery services.
Lower unit shipping costs in Brazil decreased by 8% quarter-over-quarter, helping to offset reduced shipping revenue. Improved delivery speed also lifted conversion rates to new highs. Combined, these factors strengthened the platform’s flywheel effect of supply, demand, and user engagement.
Fintech Services Fuel Growth Through Payments and Credit Expansion
Fintech momentum remained strong as MercadoLibre grew monthly active users to 72 million, a 29% increase from the previous year. Credit card adoption and usage expanded in Brazil, while Mexico maintained NPS leadership among fintech competitors. Argentina saw a new credit card launch supported by a strong QR network.
The credit portfolio reached $11 billion, rising 83% year-over-year, with over 27 million users now on credit. Brazil led card issuance with record lows in first-payment defaults, while half of its credit card portfolio turned profitable. Delinquency remained stable, supported by improving underwriting and increased principal user engagement.
Acquiring services also gained ground, with Brazil and Mexico posting strong year-over-year TPV growth of 28% and 53%, respectively. Argentina faced softer consumption, yet still posted 70% FX-neutral growth. These results underscore MercadoPago’s growing ecosystem presence and commitment to financial inclusion.
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