BRAZIL · BUSINESS
Key Facts
- The company MercadoLibre (Nasdaq: MELI) runs online marketplaces and the Mercado Pago payments app across Latin America.
- The result Net income was US$448 million, up from US$421 million, on sales of US$10.75 billion.
- The squeeze Operating profit fell to US$676 million from US$724 million; the margin was 6.3%.
- The reason The company points to free shipping, new warehouses and more paid promotion in Brazil.
- Power Index Brazil ranks 1st of 14 in The Rio Times Latin America Power Index, with 75.0 points (October 2026 edition).
MercadoLibre, the online marketplace and payments company that dominates shopping in much of Latin America, earned US$448 million in the third quarter of 2026. Sales jumped 45% to US$10.75 billion, but the company spent more of that growth on free shipping and warehouses, and its profit margin slipped.
For US readers, the report matters because MercadoLibre trades on the Nasdaq, the US technology-heavy stock exchange, under the ticker MELI, so US investors can own a direct stake in Latin American online shopping and digital banking. The company published the figures on Wednesday 4 November 2026.
What Happened
Net revenues and financial income reached US$10.75 billion, up 45% from a year earlier. Adjusted for currency swings, which the company calls FX-neutral growth, the rise was 41%.
Brazil grew 50% (41% FX-neutral), and Mexico grew 47% (36% FX-neutral). Argentina grew 26% in dollar terms, but 42% once currency effects are removed.
Gross merchandise volume, the total value of goods sold on the marketplace, was US$23 billion, up 38%. Total payment volume, everything processed through Mercado Pago, reached US$109 billion, up 53%.
The company counted 94 million unique active buyers in the quarter. Its fintech arm, the banking and payments side, had 93 million monthly active users.
Profit Rises, Operating Margin Falls
Net income of US$448 million compared with US$421 million in the third quarter of 2025, a rise of about 6%. Diluted earnings per share, which is profit per share after counting every share that could be issued, were US$8.83.
Income from operations, which is profit before interest and tax, fell 6.6% to US$676 million from US$724 million a year earlier. The operating margin was 6.3%, which is 40 basis points (0.4 percentage points) below the second quarter.
The company says the margin reflects the cost of more free shipping, new warehouse and delivery capacity added ahead of the peak shopping season and a tactical decision to spend more on affiliate marketing in Brazil. Affiliate marketing means paying outside promoters for each sale they bring in.
Live Company IntelligenceMercadoLibre Inc. — the full investor dossier
The Strategy: Margin for Habits
Management says it is investing part of today’s margin to accelerate the shift of Latin America’s commerce and financial services online. It adds that the aim is to build, at scale, the habits that form within its ecosystem.
The company reported adjusted free cash flow of US$285 million. That came after US$503 million of capital spending and US$2.1 billion put into expanding its credit portfolio.
The Lending Book Keeps Growing
The credit portfolio, the loans that Mercado Pago extends to shoppers and sellers, reached almost US$18 billion, up 62% from a year earlier. The share of loans 15 to 90 days overdue stood at 7.0%.
Fast lending growth can lift revenue quickly, but it also exposes the company to more unpaid loans if borrowers struggle. Our report on Mercado Pago’s path to an Argentine bank licence shows how regulation shapes that business.
What It Means for You
If you own MELI shares directly or through a US fund, the quarter shows strong sales growth paired with a thinner operating margin. The gap between 45% revenue growth and a 6% fall in operating profit is the number to watch in coming quarters.
If you shop or sell on the platform from the United States or Latin America, more free shipping and more local warehouses point to faster delivery. For background on the company, read our explainer on what Mercado Libre is and how it works.
What Is Not Known
The figures do not show whether margins recover once the new warehouses fill up during the peak shopping season. It is also unclear how much of the extra marketing spend in Brazil is temporary.
The release does not say how many overdue loans will turn into losses. Currency swings in Argentina, Brazil and Mexico can also change the dollar value of future results.
More: Brazil news in English, every day from The Rio Times.
Frequently Asked Questions
What Did MercadoLibre Earn in the Third Quarter of 2026?
Net income was US$448 million on net revenues of US$10.75 billion, which is 45% more than a year earlier. Diluted earnings per share were US$8.83.
Why Did MercadoLibre’s Margin Fall?
Operating margin was 6.3%, which is 40 basis points below the second quarter. The company cites more free shipping, new warehouse and delivery capacity ahead of peak season and extra paid promotion in Brazil.
Can US Investors Buy MercadoLibre?
Yes, MercadoLibre shares trade on the Nasdaq under the ticker MELI. This article is not investment advice.
How Big Is Mercado Pago’s Lending Business?
The credit portfolio reached almost US$18 billion, up 62% from a year earlier. The share of loans 15 to 90 days overdue was 7.0%.
Sources: MercadoLibre, Inc., third-quarter 2026 results (Form 8-K exhibit filed with the US Securities and Exchange Commission), 4 November 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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