Mercadolibre Inc 10-Q for FY2026 Q1

Mercadolibre Inc (MELI)

10-Q 2026-05-08 For: 2026-03-31

Added on May 08, 2026

About this 10-Q

Mercadolibre Inc filed this 10-Q on May 8, 2026, covering the quarter ended March 31, 2026 (FY2026 Q1).

Headline figures

Quarter ended March 31, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $8.85B; up 49.0% from $5.94B a year earlier
Net income: $417M; down 15.6% from net income of $494M a year earlier
Diluted EPS: $8.23; down 15.5% from $9.74 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 March 3 1 , 202 6 and December 31, 2025			1

Interim Condensed Consolidated Statements of Income f or the three-month periods ended March 3 1 , 202 6 and 2025			2

Interim Condensed Consolidated Statements of Comprehensive Income for the three-month periods ended March 3 1 , 202 6 and 2025			3

Interim Condensed Consolidated Statements of Equity for the three-month periods ended March 3 1 , 202 6 and 2025			4

Interim Condensed Consolidated Statements of Cash Flows for the three -month periods ended March 3 1 , 202 6 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			36

ITEM 3 — QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK			54

ITEM 4 — CONTROLS AND PROCEDURES			57

PART II. OTHER INFORMATION			57

ITEM 1 — LEGAL PROCEEDINGS			57

ITEM 1A — RISK FACTORS			57

ITEM 2 — UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS			58

ITEM 5 — OTHER INFORMATION			58

ITEM 6 — EXHIBITS			58

INDEX TO EXHIBITS			59

SIGNATURES			60


	March 31, 2026		December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$	3,677	$	3,670
Restricted cash and cash equivalents	11,464		9,867
Short-term investments	1,973		2,629
Accounts receivable, net	370		369
Credit card receivables and other means of payments, net	7,971		6,893
Loans receivable, net of allowances of $3,708 and $3,057	10,169		8,855
Inventories	677		570
Other assets	822		720
Total current assets	37,123		33,573
Non-current assets:
Long-term investments	1,696		1,764
Credit card receivables and other means of payments, net	163		153
Loans receivable, net of allowances of $112 and $86	566		510
Property and equipment, net	2,413		2,303
Operating lease right-of-use assets	2,402		2,201
Goodwill	165		163
Intangible assets, net	33		33

Deferred tax assets	1,890		1,541
Other assets	483		426
Total non-current assets	9,811		9,094
Total assets	$	46,934	$	42,667
Liabilities
Current liabilities:
Accounts payable and accrued expenses	$	5,037	$	4,502
Funds payable to customers	14,145		13,029
Amounts payable due to credit and debit card transactions	4,305		3,584
Salaries and social security payable	878		916
Taxes payable	1,298		1,140
Loans payable and other financial liabilities	5,316		4,623
Operating lease liabilities	472		430
Other liabilities	518		409
Total current liabilities	31,969		28,633
Non-current liabilities:
Amounts payable due to credit and debit card transactions	190		187
Loans payable and other financial liabilities	4,611		4,570
Operating lease liabilities	1,946		1,769
Deferred tax liabilities	386		372
Other liabilities	551		388
Total non-current liabilities	7,684		7,286
Total liabilities	$	39,653	$	35,919
Commitments and contingencies (Note 8)
Equity
Common stock, $0.001 par value, 110,000,000 shares authorized, 50,697,182 shares issued and outstanding	$	—	$	—
Additional paid-in capital	1,771		1,771
Treasury stock, 225,931 shares	(312)		(312)
Retained earnings	6,226		5,809
Accumulated other comprehensive loss	(404)		(520)
Total equity	7,281		6,748
Total liabilities and equity	$	46,934	$	42,667


	Three Months Ended March 31,
	2026		2025
Net service revenues and financial income	$	7,715	$	5,320
Net product revenues	1,130		615
Net revenues and financial income	8,845		5,935
Cost of net revenues and financial expenses	(4,983)		(3,164)
Gross profit	3,862		2,771
Operating expenses:
Product and technology development	(699)		(551)
Sales and marketing	(982)		(599)
Provision for doubtful accounts	(1,244)		(603)
General and administrative	(326)		(255)
Total operating expenses	(3,251)		(2,008)
Income from operations	611		763

Other income (expenses):
Interest income and other financial gains, net	27		37
Interest expense and other financial losses	(65)		(39)
Foreign currency gains (losses), net	6		(55)
Net income before income tax expense	579		706

Income tax expense	(162)		(212)

Net income	$	417	$	494


☒			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


	Three Months Ended March 31,
	2026		2025
Net income	$	417	$	494
Other comprehensive income, net of tax:
Currency translation adjustment	127		161
Unrealized gains on investments	1		4
Tax expense on unrealized gains on investments	—		(1)
Unrealized losses on hedging activities	(58)		(8)
Tax benefit on unrealized losses on hedging activities	20		4
Less: Reclassification adjustment for (losses) gains 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	(39)		1
Less: Reclassification adjustment for estimated tax benefit on unrealized losses	13		—
Total other comprehensive income, net of tax	116		159
Total comprehensive income	$	533	$	653


	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


	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


	March 31, 2026		December 31, 2025
	(In millions)
Cash in bank accounts and digital wallets	$	1,664	$	2,182
Money market	920		856
Time deposits (1)	1,022		570
U.S. government debt securities	71		46
Foreign government debt securities	—		16
Total cash and cash equivalents	3,677		3,670

Securitization transactions (2)	461		387

Cash in bank accounts (Central Bank of Brazil mandatory guarantee)	9,465		7,865
Cash in bank accounts (Argentine Central Bank mandatory guarantee)	342		394
Cash in bank accounts (Mexican National Banking and Securities Commission mandatory guarantee)	64		127
Time deposits (Mexican National Banking and Securities Commission mandatory guarantee)	676		682
Cash in bank accounts (Chilean Commission for the Financial Market mandatory guarantee)	219		288
Time deposits (Chilean Commission for the Financial Market mandatory guarantee)	147		44


Time deposits (Central Bank of Uruguay mandatory guarantee)	—		1
Money market (Central Bank of Uruguay mandatory guarantee)	1		3
Foreign government debt securities (Central Bank of Uruguay mandatory guarantee)	17		14
Money market (held for Meli Dólar holders)	61		50
Cash in bank accounts and digital wallets (held for Meli Dólar holders)	11		12
Total restricted cash and cash equivalents	11,464		9,867
Total cash, cash equivalents, restricted cash and cash equivalents (3)	$	15,141	$	13,537


	March 31, 2026
	Loans receivable		Allowance for doubtful accounts		Loans receivable, net
	(In millions)
Merchant	$	2,285	$	(901)	$	1,384
Consumer	5,319		(1,632)		3,687
Credit cards	6,622		(1,266)		5,356
Asset-backed	329		(21)		308
Total	$	14,555	$	(3,820)	$	10,735


	March 31, 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	151		223		234		3		611
Currency translation adjustments	28		31		35		1		95
Write-offs (1)	(87)		(148)		(94)		(1)		(330)
Balance at end of period	$	509	$	802	$	732	$	11	$	2,054


	Three Months Ended March 31, 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		—		—		(1)		—		—		2
Balance, end of the period	$	65	$	44	$	14	$	34	$	6	$	2	$	165

	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	$	7
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	7
Thereafter	1
	$	29


	Three Months Ended March 31,
		2026		2025
Basic earnings per share
Basic net income available to shareholders per common share		$	8.23	$	9.74
Weighted average of outstanding common shares		50,697,182		50,697,375

Diluted earnings per share
Diluted net income available to shareholders per common share		$	8.23	$	9.74
Weighted average of outstanding common shares		50,697,298		50,697,375


	Three Months Ended March 31,
	2026		2025
Non-cash transactions:
Right-of-use assets obtained under operating leases	$	242	$	210
Property and equipment obtained under finance leases	1		1
Investments in intangible assets not paid	—		27


	March 31, 2026		December 31, 2025
	(In millions)
1-14 days past due	$	327	$	247
15-30 days past due	359		278
31-60 days past due	391		343
61-90 days past due	407		329
91-120 days past due	386		333
121-150 days past due	374		286
151-180 days past due	337		256
181-210 days past due	322		228
211-240 days past due	277		206
241-270 days past due	250		206
271-300 days past due	219		187
301-330 days past due	196		210
331-360 days past due	196		186
Total past due	4,041		3,295
To become due	10,514		9,213
Total	$	14,555	$	12,508


	March 31, 2026		December 31, 2025
	(In millions)
Goodwill	$	165	$	163
Intangible assets with indefinite lives
Trademarks	4		4
Amortizable intangible assets
Naming rights	30		29
Licenses and others	19		18
Non-compete agreements	3		3
Customer lists	15		15
Trademarks	7		7
Hubs network	4		4
Others	4		4
Total intangible assets	86		84
Accumulated amortization	(53)		(51)
Total intangible assets, net	$	33	$	33


	Three Months Ended March 31, 2025
	Brazil		Mexico		Argentina		Other Countries		Total
	(In millions)
Net service revenues and financial income	$	2,673	$	1,107	$	1,313	$	227	$	5,320
Net product revenues	409		115		69		22		615
Net revenues and financial income	3,082		1,222		1,382		249		5,935

Local operating expenses	(2,457)		(960)		(714)		(193)		(4,324)
Depreciation and amortization	(83)		(45)		(20)		(11)		(159)
Total segment costs	(2,540)		(1,005)		(734)		(204)		(4,483)
Direct contribution	542		217		648		45		1,452
Operating expenses and indirect costs of net revenues and financial expenses									(689)
Income from operations									763
Other income (expenses):
Interest income and other financial gains, net									37
Interest expense and other financial losses									(39)
Foreign currency losses, net									(55)
Net income before income tax expense									$	706


	Balances as of March 31, 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	$	920	$	920	$	—	$	—	$	856	$	856	$	—	$	—
U.S. government debt securities (1)	71		71		—		—		46		46		—		—
Foreign government debt securities (1)	—		—		—		—		16		16		—		—
Restricted Cash and Cash Equivalents:
Money Market (2)	328		328		—		—		259		259		—		—
Foreign government debt securities (1)	17		17		—		—		14		14		—		—
Investments:
U.S. government debt securities (1)	1,858		1,858		—		—		1,982		1,982		—		—
Foreign government debt securities (1) (3)	959		959		—		—		1,661		1,661		—		—
Corporate debt securities	498		498		—		—		399		399		—		—
Equity securities at fair value	50		50		—		—		59		59		—		—
Other Assets:
Derivative Instruments	43		—		43		—		41		—		41		—
USDC	—		—		—		—		3		3		—		—

Total Assets	$	4,744	$	4,701	$	43	$	—	$	5,336	$	5,295	$	41	$	—
Salaries and social security payable:
Long-term retention program	$	39	$	—	$	39	$	—	$	176	$	—	$	176	$	—
Other Liabilities:
Meli Dólar liability (1)	67		—		67		—		61		—		61		—
Derivative Instruments	164		—		164		—		83		—		83		—
Contingent consideration	4		—		—		4		4		—		—		4

Total Liabilities	$	274	$	—	$	270	$	4	$	324	$	—	$	320	$	4


	Balances as of March 31, 2026		Estimated fair value as of March 31, 2026		Balances as of December 31, 2025		Estimated fair value as of December 31, 2025
	(In millions)
Cash and cash equivalents	$	2,686	$	2,686	$	2,752	$	2,752
Restricted cash and cash equivalents	11,119		11,119		9,594		9,594
Investments	251		251		239		239
Accounts receivables, net	370		370		369		369
Credit card receivables and other means of payment, net	8,134		8,134		7,046		7,046
Loans receivable, net	10,735		10,505		9,365		9,166
Other assets	157		157		300		300
Total Assets	$	33,452	$	33,222	$	29,665	$	29,466
Accounts payable and accrued expenses	$	5,037	$	5,037	$	4,502	$	4,502
Funds payable to customers	14,145		14,145		13,029		13,029
Amounts payable due to credit and debit card transactions	4,495		4,495		3,771		3,771
Salaries and social security payable	839		839		740		740
Loans payable and other financial liabilities	9,807		9,755		9,063		9,014
Other liabilities	491		491		340		340
Total Liabilities	$	34,814	$	34,762	$	31,445	$	31,396


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

Weighted average discount rate (1)
Operating leases	10	%	10	%
Finance leases	12	%	14	%


Period Ending	Operating Leases		Finance Leases
	(In millions)
One year or less	$	496	$	54
One year to two years	477		48
Two years to three years	451		29
Three years to four years	406		7
Four years to five years	346		—
Thereafter	1,318		—
Total lease payments	3,494		138
Less imputed interest	(1,076)		(18)
Total	$	2,418	$	120


	Notional Amount as of
	March 31, 2026		December 31, 2025
	(In millions)
Designated as hedging instrument
Foreign exchange contracts	$	1,103	$	789
Cross currency swap contracts	600		611
Future contracts	406		328

Not designated as hedging instrument
Interest rate swap contracts	$	122	$	116
Foreign exchange contracts	414		100


Derivative instruments	Balance sheet location	March 31,		December 31,
		2026		2025
		(In millions)
Foreign exchange contracts designated as cash flow hedges	Other current assets	$	4	$	4
Foreign exchange contracts not designated as hedging instruments	Other current assets	3		—
Interest rate swap contracts not designated as hedging instruments	Other current assets	14		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	40		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	22		7
Future contracts designated as fair value hedges	Other current liabilities	1		—
Cross currency swap contracts designated as cash flow hedges	Other current liabilities	13		—
Foreign exchange contracts designated as cash flow hedges	Other current liabilities	57		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		March 31, 2026
	(In millions)
Derivative contracts designated as cash flow hedges	$	(30)	$	(58)	$	39	$	(49)
	$	(30)	$	(58)	$	39	$	(49)


	December 31, 2024		Amount of loss recognized in other comprehensive income		Amount of gain reclassified from accumulated other comprehensive loss		March 31, 2025
	(In millions)
Derivative contracts designated as cash flow hedges	$	5	$	(8)	$	(1)	$	(4)
	$	5	$	(8)	$	(1)	$	(4)


	Three Months Ended March 31,
(% of total consolidated net revenues and financial income)	2026		2025
Brazil	54.0	%	51.9	%
Mexico	22.3		20.6
Argentina	19.2		23.3
Other Countries	4.5		4.2


	Three Months Ended March 31,				Change from 2025 to 2026
	2026		2025		in Dollars		in %
	(In millions, except percentages)
Net revenues and financial income	$	8,845	$	5,935	$	2,910	49.0	%


Consolidated net revenues and financial income	Three Months Ended March 31,				Change from 2025 to 2026
	2026		2025		in Dollars		in %
	(In millions, except percentages)
Brazil
Commerce	$	2,826	$	1,873	$	953	50.9	%
Fintech	1,948		1,209		739		61.1
	4,774		3,082		1,692		54.9
Mexico
Commerce	1,195		778		417		53.7
Fintech	781		444		337		75.7
	1,976		1,222		754		61.7
Argentina
Commerce	573		474		99		21.0
Fintech	1,125		908		217		24.0
	1,698		1,382		316		22.9
Other countries
Commerce	274		178		96		53.9
Fintech	123		71		52		72.1
	397		249		148		59.1
Consolidated
Commerce	4,868		3,303		1,565		47.4
Fintech	3,977		2,632		1,345		51.1
Total	$	8,845	$	5,935	$	2,910	49.0	%


	Quarter Ended
	March 31,			June 30,			September 30,			December 31,
	(In millions, except percentages)
2026
Net revenues and financial income	$	8,845		n/a			n/a			n/a
Percent change from prior quarter	1		%
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)	Three-month period
Brazil	39.4	%
Mexico	39.0
Argentina (2)	64.8
Other countries	46.2
Total consolidated	45.5	%


	Change from the Three Months Ended March 31, 2025 to March 31, 2026
	Brazil			Mexico		Argentina			Other Countries		Total
	(In millions, except percentages)






Net revenues and financial income
in U.S. Dollars	$	1,692		$	754	$	316		$	148	$	2,910
in %	54.9		%	61.7%		22.9		%	59.1%		49.0%






Total segment costs
in U.S. Dollars	$	(1,845)		$	(627)	$	(357)		$	(129)	$	(2,958)
in %	72.6		%	62.4%		48.8		%	63.9%		66.0%
Direct contribution
in U.S. Dollars	$	(153)		$	127	$	(41)		$	19	$	(48)
in %	(28.1)		%	58.6%		(6.3)		%	38.0%		(3.3)%


	March 31, 2026
	(In millions)
Net revenues and financial income (1)	$	6,946
Gross profit (2)	2,189
Income from operations (3)	188
Net income (4)	574


	Three Months Ended March 31,
	As reported				Percentage Change		FX Neutral Measures		As reported		Percentage Change
(Unaudited)	2026		2025				2026		2025
	(In millions, except percentages)						(In millions, except percentages)
Net revenues and financial income	$	8,845	$	5,935	49.0	%	$	8,637	$	5,935	45.5	%
Cost of net revenues and financial expenses	(4,983)		(3,164)		57.5	%	(4,799)		(3,164)		51.7	%
Gross profit	3,862		2,771		39.4	%	3,838		2,771		38.5	%

Operating expenses	(3,251)		(2,008)		61.9	%	(3,168)		(2,008)		57.8	%
Income from operations	$	611	$	763	(19.9)	%	$	670	$	763	(12.2)	%


	Three Months Ended March 31,
	2026		2025 (3)
	(In millions)
Net cash provided by operating activities ("CFO")	$	2,075	$	1,031
Adjustments to reconcile CFO to Adjusted free cash flow (1)	(25)		18
Increase (decrease) in cash and cash equivalents and investments related to customer funds due to regulatory requirements and other restrictions (including management restriction policies) and equity securities held at cost	(544)		35
Investments in property and equipment and intangible assets	(271)		(256)
Changes in loans receivable, net	(1,949)		(1,235)
Proceeds from loans payable and other financial liabilities related to our Fintech solutions, net	658		465
Adjusted free cash flow	(56)		58
Payments on loans payable and other financial liabilities, related to our Commerce and Corporate activities, net	(185)		—
Other investing and/or financing activities	(40)		2
Effect of exchange rate changes on available cash and investments	168		172
Net (decrease) increase in available cash, investments and digital assets	$	(113)	$	232

Available cash, investments and digital assets (2), at the beginning of the period	6,710		4,603
Available cash, investments and digital assets (2), at the end of the period	6,597		4,835

Net cash used in investing activities	(1,471)		(1,842)
Net cash provided by financing activities	473		465


	(10)% (1)		Actual		10% (2)
	(In millions)
Net revenues and financial income	$	9,826	$	8,845	$	8,043
Expenses (3)	(9,107)		(8,234)		(7,520)
Income from operations	719		611		523
Other income (expenses), net and income tax expense	(204)		(194)		(185)

Net Income	$	515	$	417	$	338

Total Shareholders’ Equity	$	8,110	$	7,281	$	6,603


Change in equity price in percentage	As of March 31, 2026
	MercadoLibre, Inc Equity Price	2021, 2022, 2023, 2024, 2025 and 2026 LTRP Variable contractual obligation
	(In millions, except equity price)
40%	2,432.51	930
30%	2,258.76	863
20%	2,085.01	797
10%	1,911.26	730
Static (1)	1,737.51	664
(10)%	1,563.76	597
(20)%	1,390.01	531
(30)%	1,216.26	465
(40)%	1,042.51	398