Mercadolibre Inc 10-Q for FY2026 Q2

Mercadolibre Inc (MELI)

10-Q 2026-08-06 For: 2026-06-30

Added on August 07, 2026

About this 10-Q

Mercadolibre Inc filed this 10-Q on August 6, 2026, covering the quarter ended June 30, 2026 (FY2026 Q2).

Headline figures

Quarter ended June 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $10.17B; up 49.8% from $6.79B a year earlier
Net income: $466M; down 10.9% from net income of $523M a year earlier
Diluted EPS: $9.19; down 10.9% from $10.31 a year earlier

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Delaware			98-0212790
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification Number)


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐


			Page
PART I. FINANCIAL INFORMATION

ITEM 1 — UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS			1

Interim Condensed Consolidated Balance Sheets as of June 3 0 , 2026 and December 31, 2025			1

Interim Condensed Consolidated Statements of Income for the six and three-month periods ended June 3 0 , 2026 and 2025			2

Interim Condensed Consolidated Statements of Comprehensive Income for the six and three-month periods ended June 3 0 , 2026 and 2025			3

Interim Condensed Consolidated Statements of Equity for the six and three-month periods ended June 3 0 , 2026 and 2025			4

Interim Condensed Consolidated Statements of Cash Flows for the six -month periods ended June 3 0 , 2026 and 2025			5

Notes to Interim Condensed Consolidated Financial Statements (unaudited)			7

ITEM 2 — MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS			38

ITEM 3 — QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK			60

ITEM 4 — CONTROLS AND PROCEDURES			62

PART II. OTHER INFORMATION			63

ITEM 1 — LEGAL PROCEEDINGS			63

ITEM 1A — RISK FACTORS			63

ITEM 2 — UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS			64

ITEM 5 — OTHER INFORMATION			64

ITEM 6 — EXHIBITS			64

INDEX TO EXHIBITS			65

SIGNATURES			66


	June 30, 2026		December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$	3,649	$	3,670
Restricted cash and cash equivalents	13,114		9,867
Short-term investments	2,081		2,629
Accounts receivable, net	418		369
Credit card receivables and other means of payments, net	8,349		6,893
Loans receivable, net of allowances of $4,251 and $3,057	11,412		8,855
Inventories	822		570
Other assets	937		720
Total current assets	40,782		33,573
Non-current assets:
Long-term investments	1,715		1,764
Credit card receivables and other means of payments, net	170		153
Loans receivable, net of allowances of $128 and $86	584		510
Property and equipment, net	2,725		2,303
Operating lease right-of-use assets	2,560		2,201
Goodwill	168		163
Intangible assets, net	30		33

Deferred tax assets	2,167		1,541
Other assets	455		426
Total non-current assets	10,574		9,094
Total assets	$	51,356	$	42,667
Liabilities
Current liabilities:
Accounts payable and accrued expenses	$	5,739	$	4,502
Funds payable to customers	16,035		13,029
Amounts payable due to credit and debit card transactions	4,996		3,584
Salaries and social security payable	830		916
Taxes payable	1,219		1,140
Loans payable and other financial liabilities	6,482		4,623
Operating lease liabilities	513		430
Other liabilities	558		409
Total current liabilities	36,372		28,633
Non-current liabilities:
Amounts payable due to credit and debit card transactions	188		187
Loans payable and other financial liabilities	4,144		4,570
Operating lease liabilities	2,037		1,769
Deferred tax liabilities	312		372
Other liabilities	469		388
Total non-current liabilities	7,150		7,286
Total liabilities	$	43,522	$	35,919
Commitments and contingencies (Note 8)
Equity
Common stock, $0.001 par value, 110,000,000 shares authorized, 50,696,802 and 50,697,182 shares issued and outstanding	$	—	$	—
Additional paid-in capital	1,772		1,771
Treasury stock, 226,593 and 225,931 shares	(313)		(312)
Retained earnings	6,692		5,809
Accumulated other comprehensive loss	(317)		(520)
Total equity	7,834		6,748
Total liabilities and equity	$	51,356	$	42,667


	Six Months Ended June 30,				Three Months Ended June 30,
	2026		2025		2026		2025
Net service revenues and financial income	$	16,407	$	11,284	$	8,692	$	5,964
Net product revenues	2,607		1,441		1,477		826
Net revenues and financial income	19,014		12,725		10,169		6,790
Cost of net revenues and financial expenses	(10,993)		(6,860)		(6,010)		(3,696)
Gross profit	8,021		5,865		4,159		3,094
Operating expenses:
Product and technology development	(1,428)		(1,118)		(729)		(567)
Sales and marketing	(2,113)		(1,350)		(1,131)		(751)
Provision for doubtful accounts	(2,520)		(1,293)		(1,276)		(690)
General and administrative	(666)		(516)		(340)		(261)
Total operating expenses	(6,727)		(4,277)		(3,476)		(2,269)
Income from operations	1,294		1,588		683		825

Other income (expenses):
Interest income and other financial gains, net	57		81		30		44
Interest expense and other financial losses	(127)		(75)		(62)		(36)
Foreign currency losses, net	(39)		(172)		(45)		(117)
Net income before income tax expense	1,185		1,422		606		716

Income tax expense	(302)		(405)		(140)		(193)

Net income	$	883	$	1,017	$	466	$	523


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Six Months Ended June 30,				Three Months Ended June 30,
	2026		2025		2026		2025
Net income	$	883	$	1,017	$	466	$	523
Other comprehensive income (loss), net of tax:
Currency translation adjustment	210		371		83		210
Unrealized gains on investments	—		4		(1)		—
Tax expense on unrealized gains on investments	—		(1)		—		—
Unrealized losses on hedging activities	(95)		(42)		(37)		(34)
Tax benefit on unrealized losses on hedging activities	32		11		12		7
Less: Reclassification adjustment for losses on hedging activities included in cost of net revenues and financial expenses, Product and technology development expenses, interest expense and other financial losses and foreign currency losses, net	(82)		(3)		(43)		(4)
Less: Reclassification adjustment for estimated tax benefit on unrealized losses	26		1		13		1
Total other comprehensive income, net of tax	203		345		87		186
Total comprehensive income	$	1,086	$	1,362	$	553	$	709


	Common stock			Additional paid-in capital		Treasury Stock		Retained Earnings		Accumulated other comprehensive loss		Total Equity
	Shares	Amount
Balance as of December 31, 2025	50	$	—	$	1,771	$	(312)	$	5,809	$	(520)	$	6,748
Net income	—	—		—		—		417		—		417
Other comprehensive income	—	—		—		—		—		116		116
Balance as of March 31, 2026	50	$	—	$	1,771	$	(312)	$	6,226	$	(404)	$	7,281
Stock-based compensation — restricted shares issued	—	—		1		—		—		—		1
Common Stock repurchased	—	—		—		(1)		—		—		(1)
Net income	—	—		—		—		466		—		466
Other comprehensive income	—	—		—		—		—		87		87
Balance as of June 30, 2026	50	$	—	$	1,772	$	(313)	$	6,692	$	(317)	$	7,834


	Common stock			Additional paid-in capital		Treasury Stock		Retained Earnings		Accumulated other comprehensive loss		Total Equity
	Shares	Amount
Balance as of December 31, 2024	50	$	—	$	1,770	$	(311)	$	3,812	$	(920)	$	4,351
Net income	—	—		—		—		494		—		494
Other comprehensive income	—	—		—		—		—		159		159
Balance as of March 31, 2025	50	$	—	$	1,770	$	(311)	$	4,306	$	(761)	$	5,004
Net income	—	—		—		—		523		—		523
Other comprehensive income	—	—		—		—		—		186		186
Balance as of June 30, 2025	50	$	—	$	1,770	$	(311)	$	4,829	$	(575)	$	5,713


	June 30, 2026		December 31, 2025
	(In millions)
Cash in bank accounts and digital wallets	$	1,511	$	2,182
Money market (1)	1,159		856
Time deposits	979		570
U.S. government debt securities	—		46
Foreign government debt securities	—		16
Total cash and cash equivalents	3,649		3,670

Securitization transactions (2)	311		387

Cash in bank accounts (Central Bank of Brazil mandatory guarantee)	11,174		7,865
Cash in bank accounts (Argentine Central Bank mandatory guarantee)	360		394
Cash in bank accounts (Mexican National Banking and Securities Commission mandatory guarantee)	39		127
Time deposits (Mexican National Banking and Securities Commission mandatory guarantee)	853		682
Cash in bank accounts (Chilean Commission for the Financial Market mandatory guarantee)	244		288
Time deposits (Chilean Commission for the Financial Market mandatory guarantee)	46		44





Money market (held for Meli Dólar holders)	67		50
Cash in bank accounts and digital wallets (held for Meli Dólar holders)	11		12
Other restricted cash and cash equivalents	9		18
Total restricted cash and cash equivalents	13,114		9,867
Total cash, cash equivalents, restricted cash and cash equivalents (3)	$	16,763	$	13,537


	June 30, 2026
	Loans receivable		Allowance for doubtful accounts		Loans receivable, net
	(In millions)
Merchant	$	2,537	$	(1,009)	$	1,528
Consumer	5,772		(1,905)		3,867
Credit cards	7,676		(1,440)		6,236
Asset-backed	390		(25)		365
Total	$	16,375	$	(4,379)	$	11,996


	June 30, 2025
	Merchant		Consumer		Credit cards		Asset-backed		Total
	(In millions)
Balance at beginning of year	$	417	$	696	$	557	$	8	$	1,678
Net charged to Net Income	318		491		471		7		1,287
Currency translation adjustments	53		75		85		1		214
Write-offs (1)	(190)		(314)		(210)		(2)		(716)
Balance at end of period	$	598	$	948	$	903	$	14	$	2,463


	Six Months Ended June 30, 2026
	Brazil		Mexico		Argentina		Chile		Colombia		Other countries		Total
	(In millions)
Balance, beginning of the year	$	62	$	44	$	14	$	35	$	6	$	2	$	163
Currency translation adjustments	3		2		—		(1)		1		—		5
Balance, end of the period	$	65	$	46	$	14	$	34	$	7	$	2	$	168

	Year Ended December 31, 2025
	Brazil		Mexico		Argentina		Chile		Colombia		Other countries		Total
	(In millions)
Balance, beginning of the year	$	56	$	39	$	14	$	33	$	5	$	2	$	149

Currency translation adjustments	6		5		—		2		1		—		14
Balance, end of the year	$	62	$	44	$	14	$	35	$	6	$	2	$	163



For year to be ended December 31, 2026	$	5
For year to be ended December 31, 2027	7
For year to be ended December 31, 2028	7
For year to be ended December 31, 2029	6
Thereafter	1
	$	26


	Six Months Ended June 30,				Three Months Ended June 30,
	2026		2025		2026		2025
Basic earnings per share
Basic net income available to shareholders per common share	$	17.42	$	20.06	$	9.19	$	10.31
Weighted average of outstanding common shares	50,697,176		50,697,375		50,697,171		50,697,375

Diluted earnings per share
Diluted net income available to shareholders per common share	$	17.42	$	20.06	$	9.19	$	10.31
Weighted average of outstanding common shares	50,697,299		50,697,375		50,697,301		50,697,375


	Six Months Ended June 30,
	2026		2025
Non-cash transactions:
Right-of-use assets obtained under operating leases	$	449	$	568
Property and equipment obtained under finance leases	8		2
Investments in intangible assets not paid	—		23


	June 30, 2026		December 31, 2025
	(In millions)
1-14 days past due	$	435	$	247
15-30 days past due	287		278
31-60 days past due	415		343
61-90 days past due	441		329
91-120 days past due	456		333
121-150 days past due	403		286
151-180 days past due	398		256
181-210 days past due	336		228
211-240 days past due	372		206
241-270 days past due	317		206
271-300 days past due	299		187
301-330 days past due	256		210
331-360 days past due	223		186
Total past due	4,638		3,295
To become due	11,737		9,213
Total	$	16,375	$	12,508


	June 30, 2026		December 31, 2025
	(In millions)
Goodwill	$	168	$	163
Intangible assets with indefinite lives
Trademarks	4		4
Amortizable intangible assets
Naming rights	31		29
Licenses and others	19		18
Non-compete agreements	3		3
Customer lists	15		15
Trademarks	8		7
Hubs network	4		4
Others	4		4
Total intangible assets	88		84
Accumulated amortization	(58)		(51)
Total intangible assets, net	$	30	$	33


	Six Months Ended June 30, 2025
	Brazil		Mexico		Argentina		Other Countries		Total
	(In millions)
Net service revenues and financial income	$	5,632	$	2,418	$	2,759	$	475	$	11,284
Net product revenues	923		310		150		58		1,441
Net revenues and financial income	6,555		2,728		2,909		533		12,725

Local operating expenses	(5,291)		(2,138)		(1,561)		(438)		(9,428)
Depreciation and amortization	(181)		(105)		(39)		(22)		(347)
Total segment costs	(5,472)		(2,243)		(1,600)		(460)		(9,775)
Direct contribution	1,083		485		1,309		73		2,950
Operating expenses and indirect costs of net revenues and financial expenses									(1,362)
Income from operations									1,588
Other income (expenses):
Interest income and other financial gains, net									81
Interest expense and other financial losses									(75)
Foreign currency losses, net									(172)
Net income before income tax expense									$	1,422


	Three Months Ended June 30, 2026
	Brazil		Mexico		Argentina		Other Countries		Total
	(In millions)
Net service revenues and financial income	$	4,592	$	1,996	$	1,717	$	387	$	8,692
Net product revenues	938		341		122		76		1,477
Net revenues and financial income	5,530		2,337		1,839		463		10,169

Local operating expenses	(4,845)		(1,936)		(1,187)		(384)		(8,352)
Depreciation and amortization	(135)		(95)		(29)		(14)		(273)
Total segment costs	(4,980)		(2,031)		(1,216)		(398)		(8,625)
Direct contribution	550		306		623		65		1,544
Operating expenses and indirect costs of net revenues and financial expenses									(861)
Income from operations									683
Other income (expenses):
Interest income and other financial gains, net									30
Interest expense and other financial losses									(62)
Foreign currency losses, net									(45)
Net income before income tax expense									$	606


	Three Months Ended June 30, 2025
	Brazil		Mexico		Argentina		Other Countries		Total
	(In millions)
Net service revenues and financial income	$	2,959	$	1,311	$	1,446	$	248	$	5,964
Net product revenues	514		195		81		36		826
Net revenues and financial income	3,473		1,506		1,527		284		6,790

Local operating expenses	(2,834)		(1,178)		(847)		(245)		(5,104)
Depreciation and amortization	(98)		(60)		(19)		(11)		(188)
Total segment costs	(2,932)		(1,238)		(866)		(256)		(5,292)
Direct contribution	541		268		661		28		1,498
Operating expenses and indirect costs of net revenues and financial expenses									(673)
Income from operations									825
Other income (expenses):
Interest income and other financial gains, net									44
Interest expense and other financial losses									(36)
Foreign currency losses, net									(117)
Net income before income tax expense									$	716


	Balances as of June 30, 2026		Quoted Prices in active markets for identical Assets (Level 1)		Significant other observable inputs (Level 2)		Unobservable inputs (Level 3)		Balances as of December 31, 2025		Quoted Prices in active markets for identical Assets (Level 1)		Significant other observable inputs (Level 2)		Unobservable inputs (Level 3)
	(In millions)
Cash and Cash Equivalents:
Money Market	$	1,159	$	1,159	$	—	$	—	$	856	$	856	$	—	$	—
U.S. government debt securities (1)	—		—		—		—		46		46		—		—
Foreign government debt securities (1)	—		—		—		—		16		16		—		—
Restricted Cash and Cash Equivalents:
Money Market (2)	224		224		—		—		259		259		—		—
Foreign government debt securities (1)	4		4		—		—		14		14		—		—
Investments:
U.S. government debt securities (1)	1,968		1,968		—		—		1,982		1,982		—		—
Foreign government debt securities (1) (3)	880		880		—		—		1,661		1,661		—		—
Corporate debt securities	501		501		—		—		399		399		—		—
Equity securities at fair value	49		49		—		—		59		59		—		—
Other Assets:
Derivative Instruments	47		—		47		—		41		—		41		—
USDC	—		—		—		—		3		3		—		—

Total Assets	$	4,832	$	4,785	$	47	$	—	$	5,336	$	5,295	$	41	$	—
Salaries and social security payable:
Long-term retention program	$	75	$	—	$	75	$	—	$	176	$	—	$	176	$	—
Other Liabilities:
Meli Dólar liability (1)	63		—		63		—		61		—		61		—
Derivative Instruments	174		—		174		—		83		—		83		—
Contingent consideration	4		—		—		4		4		—		—		4

Total Liabilities	$	316	$	—	$	312	$	4	$	324	$	—	$	320	$	4


	Balances as of June 30, 2026		Estimated fair value as of June 30, 2026		Balances as of December 31, 2025		Estimated fair value as of December 31, 2025
	(In millions)
Cash and cash equivalents	$	2,490	$	2,490	$	2,752	$	2,752
Restricted cash and cash equivalents	12,886		12,886		9,594		9,594
Investments	341		341		239		239
Accounts receivables, net	418		418		369		369
Credit card receivables and other means of payment, net	8,519		8,519		7,046		7,046
Loans receivable, net	11,996		11,709		9,365		9,166
Other assets	167		167		300		300
Total Assets	$	36,817	$	36,530	$	29,665	$	29,466
Accounts payable and accrued expenses	$	5,739	$	5,739	$	4,502	$	4,502
Funds payable to customers	16,035		16,035		13,029		13,029
Amounts payable due to credit and debit card transactions	5,184		5,184		3,771		3,771
Salaries and social security payable	755		755		740		740
Loans payable and other financial liabilities	10,511		10,465		9,063		9,014
Other liabilities	480		480		340		340
Total Liabilities	$	38,704	$	38,658	$	31,445	$	31,396


	June 30, 2026		December 31, 2025
Weighted average remaining lease term
Operating leases	8 Years		8 Years
Finance leases	2 Years		3 Years

Weighted average discount rate (1)
Operating leases	10	%	10	%
Finance leases	14	%	14	%


Period Ending	Operating Leases		Finance Leases
	(In millions)
One year or less	$	538	$	60
One year to two years	521		46
Two years to three years	486		26
Three years to four years	435		4
Four years to five years	369		—
Thereafter	1,344		—
Total lease payments	3,693		136
Less imputed interest	(1,143)		(21)
Total	$	2,550	$	115


	Notional Amount as of
	June 30, 2026		December 31, 2025
	(In millions)
Designated as hedging instrument
Foreign exchange contracts	$	1,290	$	789
Cross currency swap contracts	631		611
Future contracts	507		328

Not designated as hedging instrument
Interest rate swap contracts	$	123	$	116
Foreign exchange contracts	313		100
Future contracts	3		—


Derivative instruments	Balance sheet location	June 30,		December 31,
		2026		2025
		(In millions)
Foreign exchange contracts designated as cash flow hedges	Other current assets	$	5	$	4
Foreign exchange contracts not designated as hedging instruments	Other current assets	2		—
Future contracts designated as fair value hedges	Other current assets	3		—
Interest rate swap contracts not designated as hedging instruments	Other current assets	15		14
Cross currency swap contracts designated as fair value hedge	Other current assets	—		4
Interest rate swap contracts not designated as hedging instruments	Other non-current assets	22		19
Cross currency swap contracts designated as fair value hedge	Other current liabilities	57		12
Interest rate swap contracts not designated as hedging instruments	Other current liabilities	24		23
Foreign exchange contracts not designated as hedging instruments	Other current liabilities	1		7
Future contracts designated as fair value hedges	Other current liabilities	4		—
Cross currency swap contracts designated as cash flow hedges	Other current liabilities	19		—
Foreign exchange contracts designated as cash flow hedges	Other current liabilities	62		36
Interest rate swap contracts not designated as hedging instruments	Other non-current liabilities	7		5


	December 31, 2025		Amount of loss recognized in other comprehensive income		Amount of loss reclassified from accumulated other comprehensive loss		June 30, 2026
	(In millions)
Derivative contracts designated as cash flow hedges	$	(30)	$	(95)	$	82	$	(43)
	$	(30)	$	(95)	$	82	$	(43)


	December 31, 2024		Amount of loss recognized in other comprehensive income		Amount of loss reclassified from accumulated other comprehensive loss		June 30, 2025
	(In millions)
Derivative contracts designated as cash flow hedges	$	5	$	(42)	$	3	$	(34)
	$	5	$	(42)	$	3	$	(34)


	Six Months Ended June 30,				Three Months Ended June 30,
(% of total consolidated net revenues and financial income)	2026		2025		2026		2025
Brazil	54.2	%	51.5	%	54.4	%	51.1	%
Mexico	22.7		21.4		23.0		22.2
Argentina	18.6		22.9		18.1		22.5
Other Countries	4.5		4.2		4.5		4.2


	Six Months Ended June 30,				Change from 2025 to 2026				Three Months Ended June 30,				Change from 2025 to 2026
	2026		2025		in Dollars		in %		2026		2025		in Dollars		in %
	(In millions, except percentages)								(In millions, except percentages)
Net revenues and financial income	$	19,014	$	12,725	$	6,289	49.4	%	$	10,169	$	6,790	$	3,379	49.8	%


Consolidated net revenues and financial income	Six Months Ended June 30,				Change from 2025 to 2026				Three Months Ended June 30,				Change from 2025 to 2026
	2026		2025		in Dollars		in %		2026		2025		in Dollars		in %
	(In millions, except percentages)								(In millions, except percentages)
Brazil
Commerce	$	6,156	$	3,996	$	2,160	54.0	%	$	3,330	$	2,123	$	1,207	56.8	%
Fintech	4,148		2,559		1,589		62.1		2,200		1,350		850		63.0
	10,304		6,555		3,749		57.2		5,530		3,473		2,057		59.2
Mexico
Commerce	2,645		1,770		875		49.4		1,450		992		458		46.1
Fintech	1,668		958		710		74.2		887		514		373		72.9
	4,313		2,728		1,585		58.1		2,337		1,506		831		55.3
Argentina
Commerce	1,230		994		236		23.7		657		520		137		26.2
Fintech	2,307		1,915		392		20.5		1,182		1,007		175		17.4
	3,537		2,909		628		21.6		1,839		1,527		312		20.4
Other countries
Commerce	599		382		217		56.7		325		204		121		59.1
Fintech	261		151		110		71.6		138		80		58		71.2
	860		533		327		60.9		463		284		179		62.5
Consolidated
Commerce	10,630		7,142		3,488		48.8		5,762		3,839		1,923		50.0
Fintech	8,384		5,583		2,801		50.2		4,407		2,951		1,456		49.4
Total	$	19,014	$	12,725	$	6,289	49.4	%	$	10,169	$	6,790	$	3,379	49.8	%


	Quarter Ended
	March 31,			June 30,			September 30,			December 31,
	(In millions, except percentages)
2026
Net revenues and financial income	$	8,845		$	10,169		n/a			n/a
Percent change from prior quarter	1		%	15		%
2025
Net revenues and financial income	$	5,935		$	6,790		$	7,409		$	8,759
Percent change from prior quarter	(2)		%	14		%	9		%	18		%


	Change from 2025 to 2026
(% of net revenues and financial income growth in Local Currency) (1)	Six-month period		Three-month period
Brazil	40.8	%	41.9	%
Mexico	38.7		38.4
Argentina (2)	55.7		47.5
Other countries	49.8		52.9
Total consolidated	44.1	%	42.9	%


	Change from the Six Months Ended June 30, 2025 to June 30, 2026
	Brazil			Mexico		Argentina			Other Countries		Total
	(In millions, except percentages)






Net revenues and financial income
in U.S. Dollars	$	3,749		$	1,585	$	628		$	327	$	6,289
in %	57.2		%	58.1%		21.6		%	60.9%		49.4%






Total segment costs
in U.S. Dollars	$	(3,893)		$	(1,420)	$	(707)		$	(271)	$	(6,291)
in %	71.1		%	63.3%		44.2		%	59.0%		64.4%
Direct contribution
in U.S. Dollars	$	(144)		$	165	$	(79)		$	56	$	(2)
in %	(13.3)		%	34.1%		(6.0)		%	72.9%		(0.1)%


	Change from the Three Months Ended June 30, 2025 to June 30, 2026
	Brazil			Mexico		Argentina			Other Countries		Total
	(In millions, except percentages)






Net revenues and financial income
in U.S. Dollars	$	2,057		$	831	$	312		$	179	$	3,379
in %	59.2		%	55.3%		20.4		%	62.5%		49.8%






Total segment costs
in U.S. Dollars	$	(2,048)		$	(793)	$	(350)		$	(142)	$	(3,333)
in %	69.9		%	64.1%		40.4		%	55.1%		63.0%
Direct contribution
in U.S. Dollars	$	9		$	38	$	(38)		$	37	$	46
in %	1.5		%	14.3%		(5.7)		%	130.4%		3.0%


	June 30, 2026
	(In millions)
Net revenues and financial income (1)	$	14,264
Gross profit (2)	4,213
Income from operations (3)	343
Net income (4)	633


	Six Months Ended June 30,
	As reported				Percentage Change		FX Neutral Measures		As reported		Percentage Change
	2026		2025				2026		2025
	(In millions, except percentages)						(In millions, except percentages)
Net revenues and financial income	$	19,014	$	12,725	49.4	%	$	18,338	$	12,725	44.1	%
Cost of net revenues and financial expenses	(10,993)		(6,860)		60.3	%	(10,483)		(6,860)		52.8	%
Gross profit	8,021		5,865		36.7	%	7,855		5,865		33.9	%

Operating expenses	(6,727)		(4,277)		57.3	%	(6,484)		(4,277)		51.6	%
Income from operations	$	1,294	$	1,588	(18.6)	%	$	1,371	$	1,588	(13.7)	%

	Three Months Ended June 30,
	As reported				Percentage Change		FX Neutral Measures		As reported		Percentage Change
	2026		2025				2026		2025
	(In millions, except percentages)						(In millions, except percentages)
Net revenues and financial income	$	10,169	$	6,790	49.8	%	$	9,701	$	6,790	42.9	%
Cost of net revenues and financial expenses	(6,010)		(3,696)		62.6	%	(5,684)		(3,696)		53.8	%
Gross profit	4,159		3,094		34.4	%	4,017		3,094		29.8	%

Operating expenses	(3,476)		(2,269)		53.2	%	(3,316)		(2,269)		46.1	%
Income from operations	$	683	$	825	(17.3)	%	$	701	$	825	(15.0)	%