MercadoLibre Q2 Sales Pass US$10 Billion, Profit Falls 11%

Earnings · Latin America

Latin America’s largest online marketplace has crossed a line no company in the region had reached before — and the market’s first instinct was to sell.

A record with a catch

MercadoLibre Inc (Nasdaq: MELI) reported net revenue and financial income of US$10,169 million for the three months to June — US$10.2 billion. That is a rise of 50% in US dollars on the same quarter last year, and 43% once currency movements are stripped out.

It is the first time the company has passed US$10 billion in a single quarter.

The catch sat a few lines further down. Net income came in at US$466 million, roughly 11% below a year earlier, for a net margin of 4.6%. Income from operations fell about 17% to US$683 million, and the operating margin narrowed by around 5.5 percentage points to 6.7%.

What powered the quarter

Commerce net revenue reached US$5.8 billion, up about 50%. The value of goods sold across the platform came to US$21.9 billion, a 44% rise in dollars and 36% at constant currency, against US$15.3 billion a year earlier.

The payments arm grew almost as fast. Mercado Pago brought in US$4.4 billion, up about 49%, and handled US$101 billion in payments — a 56% jump from US$64.6 billion.

Behind both figures sits a simpler one. Some 89 million people bought something on the platform during the quarter, up from 71 million a year before. The company has also been widening what it sells them, having recently launched its own clothing brand, Balse, to fight Shein and Temu.

The country picture

Brazil remains the anchor, and the country where the habit is most deeply set. A generation that once queued at a bank counter now pays with a phone, and Brazil’s instant-payment system Pix has made instant transfers ordinary.

Mexico has become the second engine, and the company has been funding it locally rather than shipping dollars south. Mercado Pago raised up to US$262 million in Mexican pesos, and the group separately planned a US$287 million bond sale in Mexico.

Argentina, where the company was founded in 1999, is the harder read. Prices, credit terms and logistics all have to be recalculated against a currency that rarely sits still, which is why the constant-currency figures matter as much as the dollar ones.

Why the profit fell

The temptation is to blame the loan book, and the company pushes back on that. Provisions for doubtful accounts did rise, but MercadoLibre says its credit portfolio is scaling profitably and still contributing to margins.

The real squeeze came from choices made to win customers. In Brazil the company cut prices to stay competitive — offering discounts to buyers who pay with Pix, and lower commissions to sellers. Both land directly on revenue.

Shipping costs rose faster than the revenue they generated. In Mexico, spending on new users and on point-of-sale card readers added more weight.

One item pushed the other way. Currency losses fell to US$45 million from US$117 million a year earlier, softening what would otherwise have been a steeper drop in net income.

What it means for the region

The shares still fell. Investors have seen fast-growing platforms in volatile economies before, and they tend to ask what the growth costs before they applaud it.

Step back, though, and the number is remarkable. A company born in Buenos Aires now moves US$101 billion of payments in a quarter — a scale that would have been unimaginable in Latin America a decade ago.

That is the quieter story in these results. Across the region, private platforms have moved into space that banks and postal services never filled, and millions of people met the formal economy for the first time through an app rather than a branch. It is also why the region keeps producing talent leaving the region’s digital banks to found their own firms.

The reckoning comes later, and MercadoLibre knows it. Buying market share with discounts works while volumes climb, and stops working the moment they stall.

Frequently Asked Questions

How much revenue did MercadoLibre report in the second quarter of 2026?

MercadoLibre reported net revenue and financial income of US$10,169 million, or US$10.2 billion, for the quarter to June 2026. That was 50% higher than a year earlier in US dollars, and 43% higher on a constant-currency basis. It is the first quarter in which the company has passed US$10 billion.

Why did MercadoLibre’s profit fall when revenue hit a record?

Net income fell about 11% to US$466 million mainly because operating income dropped. The company cut prices in Brazil, offering Pix discounts to buyers and lower commissions to sellers, absorbed higher shipping costs, and spent more on winning users and card readers in Mexico. Lower currency losses partly offset the hit.

How big is Mercado Pago now?

Mercado Pago produced US$4.4 billion of net revenue in the quarter, about 49% more than a year earlier, and processed US$101 billion in total payment volume, up 56% from US$64.6 billion. It now accounts for a little over four in every ten dollars of group revenue.

Why did the share price fall if the results beat forecasts?

Investors focused on margins rather than the headline. Operating income fell about 17% and the operating margin narrowed to 6.7%, which shows a company buying growth through discounts and spending. The market discounts that even when revenue sets a record.

Sources: MercadoLibre, Inc. — Q2 2026 results, Form 8-K Exhibit 99.1 (SEC), MercadoLibre Investor Relations, MercadoLibre Q2 2026 slides: US$10bn revenue milestone amid margin pressure

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