Mercado Libre Hits US$6.7 Billion Revenue in 2Q25, Up 34% YoY

Mercado Libre reported net revenue and financial income of US$6.7 billion in 2Q25, marking a 34% year-over-year increase and 53% growth on a foreign exchange-neutral basis. Growth was driven by strong expansion in both its commerce and fintech segments.

Operating income rose 14% to US$825 million, yielding a 12.2% margin. Net income was US$523 million, with a 7.7% margin. The slight decline in net income year-over-year was attributed to higher foreign exchange losses and a normalized tax rate.

Total Payment Volume (TPV) reached US$64.6 billion, a 39% increase year over year and 61% FX-neutral growth. Gross Merchandise Volume (GMV) grew 21% to US$15.3 billion, or 37% on an FX-neutral basis.

In commerce, investments in logistics and updated shipping policies in Brazil, such as extending free shipping to items over R$19 helped boost sales by 26% year over year and increased GMV by 29% (FX-neutral) during the quarter.

Argentina’s GMV grew 75% on an FX-neutral basis, supported by a 46% increase in items sold and over 30% growth in unique buyers for a second consecutive quarter. Mexico also performed strongly, with items sold up 36% and GMV up 32% (FX-neutral).

Mercado Libre’s first-party retail business surpassed US$1 billion in quarterly GMV for the first time, doubling year over year (103% FX-neutral growth).

Advertising revenue rose 38% year over year (59% FX-neutral), boosted by the April integration with Google Ad Manager and AdMob. Display and video ad revenues nearly doubled.

Mercado Pago’s monthly active users grew 30% to nearly 68 million, with average product usage per user increasing by approximately 50% over 2.5 years. Assets under management more than doubled to US$13.8 billion, the largest nominal quarter-over-quarter gain to date.

The credit card portfolio expanded 118% year over year to US$4 billion. The total credit portfolio reached US$9.3 billion, up 91%, with credit cards now comprising 43% of the book. Profitability improved, with the entire 2023 Brazil cohort achieving NIMAL positivity.

Acquiring TPV increased 53% (FX-neutral). New features in Mexico, including bill payments and dynamic currency conversion, contributed to growth. AI platform Verdi was deployed to enhance merchant support and operational efficiency.

Adjusted free cash flow totaled US$454 million. Capital expenditures amounted to US$287 million, with US$816 million invested in fintech funding. Reduced receivables discounting in Brazil was noted due to access to lower-cost financing.

S&P upgraded Mercado Libre to investment grade (BBB-) in July, following Fitch’s similar upgrade in 2024.

A leadership transition was also announced: effective January 1, 2026, Ariel Szarfsztejn, current President of Commerce, will become CEO, with Marcos Galperin moving to Executive Chairman.