MercadoLibre Revenue Hits $10.2 Billion as Stock Drops

MercadoLibre (NASDAQ: MELI) reported Q2 net revenue of $10.2 billion, its first time hitting double‑digit top‑line numbers and a 50 % jump from the previous year. The e‑commerce and fintech leader, which dominates Latin America, delivered its largest quarterly revenue rise in four years, marking a milestone for the company and its investors.

The growth streak continues. Since the first quarter of 2021, MercadoLibre has posted at least 30 % year‑over‑year revenue gains for 30 consecutive quarters. This quarter’s 50 % rise accelerates the company’s pace, putting it on track for an eighth straight year of 37 % or more annual top‑line growth. The firm’s e‑commerce arm remains healthy, while its Mercado Pago payment platform shows steady expansion, even as it pushes into credit and loan services.

Profitability, however, is under pressure. The company’s operating margin fell to 6.7 % – its lowest in four years – and net income margin slid to 4.7 %, the worst since late 2023. The rapid growth of its credit portfolio, up 75 % last year, has triggered higher loss provisions, adding to short‑term earnings drag. Competition in Brazil, where foreign players offer aggressive promotions and free‑shipping thresholds, has forced MercadoLibre to match prices to protect its market share, further squeezing margins.

The market reacted quickly. Shares dipped as much as 8 % on the day of the earnings release and ended the session down 5 %. Over the past year, the stock has fallen more than 20 % from its peak, lagging broader market gains. While the decline may appear sharp, some analysts view it as a buying opportunity, arguing that the company’s robust growth and strategic investments position it for long‑term upside despite current profitability challenges.