MercadoLibre (MELI) Q1 2026 earnings summary

Executive summary

• Net revenues and financial income rose 49% year-over-year to $8.8B in Q1 2026, driven by strong commerce and fintech growth, especially in Brazil and Mexico.

• Net income was $417M, representing a 4.7% margin, down from $494M in Q1 2025, reflecting higher operating expenses and provisions.

• GMV grew 42% year-over-year to $19.0B, with Brazil leading growth and unique active buyers up 26%.

• Fintech momentum remained robust: Mercado Pago monthly active users rose 29%, AUM grew 77%, and the credit portfolio nearly doubled to $14.6B.

• Strategic investments in logistics, free shipping, and credit expansion are prioritized over short-term margin optimization.

Financial highlights

• Commerce revenues grew 47.4% to $4.9B, while fintech revenues surged 51.1% to $4.0B.

• Operating income margin decreased to 6.9% from 12.9% year-over-year, mainly due to higher COGS and investments.

• Provision for doubtful accounts more than doubled to $1,244M, mainly due to credit card and consumer loan growth.

• Adjusted EBITDA was $857M, down from $935M in Q1'25.

• Gross profit margin was 43.7%, down 300bps year-over-year.

Outlook and guidance

• Investment intensity will remain high, with no material change in margin levels expected in the near term.

• Management is confident that current investments will compound into long-term structural advantages and higher future margins.

• No formal earnings guidance provided due to market uncertainties; emphasis remains on strategic initiatives and market leadership.