MercadoLibre (MELI) Q1 2025 earnings summary

Executive summary

• Achieved strong net revenue growth in Q1 2025, with net revenues and financial income reaching $5.9B, up 43% year-over-year and 64% FX-neutral, driven by e-commerce and fintech momentum.

• Net income reached $494M, a 44% increase year-over-year, with an 8.3% margin and EPS rising to $9.74 from $6.78.

• Unique active buyers grew 25% year-over-year, the fastest pace since Q1'21, and monthly active fintech users rose 31% to 64.3M.

• Brand preference in marketplace reached all-time highs in Brazil, Mexico, Argentina, and Chile.

• Strategic investments in user experience and ecosystem integration continue to drive growth.

Financial highlights

• Gross Merchandise Volume (GMV) was $13.3B, up 17% year-over-year and 40% FX-neutral; 1P GMV grew 102% year-over-year.

• Total Payment Volume (TPV) reached $58.3B, up 75% year-over-year and 72% FX-neutral.

• Net income: $494M, up from $344M in Q1 2024; EBIT margin improved by 70bps year-over-year to 12.9%.

• Adjusted EBITDA: $935M, up from $682M year-over-year; adjusted free cash flow was negative $10M due to investment.

• Argentina's $ revenues more than doubled year-over-year; consolidated profitability improved by 11 percentage points.

Outlook and guidance

• Optimistic about continued growth in Argentina due to macro stabilization and strong brand presence.

• Continued investment in logistics and fintech funding, with $770M net investment in loan book and $256M capex in Q1'25.

• Focus remains on long-term growth over short-term margin targets; management does not provide traditional earnings guidance.

• Execution of strategic initiatives and market expansion remain priorities.