The Investor
29 Oct 2025, 20:18
MercadoLibre Q3 2025: Revenue Surges 39% as Commerce and Fintech Ecosystems Accelerate
MercadoLibre (Nasdaq: MELI) reported strong third-quarter 2025 results with revenue and financial income rising 39% year-over-year to $7.41 billion, or 49% in FX-neutral terms — marking the company’s 27th consecutive quarter of 30%+ annual growth. Operating income reached $724 million, up 30%, with a 9.8% margin, while net income increased 6% to $421 million (5.7% margin). Total Payment Volume jumped 41% to $71.2 billion, and Gross Merchandise Volume climbed 28% to $16.5 billion.
In its commerce segment, MercadoLibre continued to expand e-commerce penetration across Latin America. Brazil led growth as the company reduced its free shipping threshold from R$79 to R$19, boosting unique buyers by 29% and sold items by 42%. Mexico saw similar momentum with sold items up 42% and record-high fulfillment efficiency, while Argentina maintained resilient growth despite macro challenges, with sold items up 34%.
In fintech, Mercado Pago strengthened its leadership with 72 million active users (+29% YoY), expanding credit portfolios by 83% to $11 billion and achieving record-low first-payment defaults. Its credit card business in Brazil reached profitability on half the portfolio, while new launches in Argentina aim to deepen financial inclusion. Acquiring TPV grew strongly in Brazil (+28%), Mexico (+53%), and Argentina (+70% FX-neutral).
Despite increased investments in logistics, social commerce, and financial services, MercadoLibre maintained strong profitability and cash generation, posting $206 million in adjusted free cash flow after heavy reinvestment in credit expansion. The company highlighted its long-term strategy to balance rapid growth with disciplined investment, leveraging its scale to drive financial inclusion and digital commerce across Latin America.
MercadoLibre (Nasdaq: MELI) reported strong third-quarter 2025 results with revenue and financial income rising 39% year-over-year to $7.41 billion, or 49% in FX-neutral terms — marking the company’s 27th consecutive quarter of 30%+ annual growth. Operating income reached $724 million, up 30%, with a 9.8% margin, while net income increased 6% to $421 million (5.7% margin). Total Payment Volume jumped 41% to $71.2 billion, and Gross Merchandise Volume climbed 28% to $16.5 billion.
In its commerce segment, MercadoLibre continued to expand e-commerce penetration across Latin America. Brazil led growth as the company reduced its free shipping threshold from R$79 to R$19, boosting unique buyers by 29% and sold items by 42%. Mexico saw similar momentum with sold items up 42% and record-high fulfillment efficiency, while Argentina maintained resilient growth despite macro challenges, with sold items up 34%.
In fintech, Mercado Pago strengthened its leadership with 72 million active users (+29% YoY), expanding credit portfolios by 83% to $11 billion and achieving record-low first-payment defaults. Its credit card business in Brazil reached profitability on half the portfolio, while new launches in Argentina aim to deepen financial inclusion. Acquiring TPV grew strongly in Brazil (+28%), Mexico (+53%), and Argentina (+70% FX-neutral).
Despite increased investments in logistics, social commerce, and financial services, MercadoLibre maintained strong profitability and cash generation, posting $206 million in adjusted free cash flow after heavy reinvestment in credit expansion. The company highlighted its long-term strategy to balance rapid growth with disciplined investment, leveraging its scale to drive financial inclusion and digital commerce across Latin America.
