MercadoLibre revenue exceeds expectations despite profit dip from heavy investments

MercadoLibre, Inc. MELI reported its quarterly results for the October to December period today, February 24, 2026, revealing that net income declined 12.5% to $559 million, missing analysts' projections. During the same period, revenue rose about 45% year-on-year to $8.8 billion, which exceeded market expectations. The company, which operates in Uruguay UY, Brazil BR, and Mexico MX, attributed the profit decline to margin compression resulting from increased investments in credit issuance, free shipping and logistics, and the expansion of direct sales.

These strategic investments materially affected operating margins and drove a volatile post-market share movement. Within its financial services division, the company noted that its credit portfolio grew by about 90% year-on-year, a development supported by the Mercado Pago platform and the MercadoLibre acquiring business. Company leadership, including Leandro Cuccioli, has emphasized these investments as part of a focus on long-term growth despite the impact on near-term profitability.