MercadoLibre (MELI) Q1 2025 earnings summary

Executive summary

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

• Net income rose to $494M, a 44% increase year-over-year, with an 8.3% margin and EPS of $9.74.

• Unique active buyers grew 25% year-over-year, the fastest pace since Q1 2021.

• Fintech monthly active users reached 64.3M, up 31% year-over-year, with high-frequency users growing faster.

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

Financial highlights

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

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

• Commerce net revenues grew to $3.3B, up 32% year-over-year; fintech net revenues reached $2.6B, up 43% year-over-year.

• Adjusted EBITDA was $935M, up from $682M year-over-year.

• EBIT margin improved by 70bps year-over-year to 12.9%.

Outlook and guidance

• Management maintains a long-term growth focus, prioritizing strategic initiatives and market expansion.

• Continued investment in logistics, credit card businesses, and fintech funding, with $770M net investment in loan book and $256M capex in Q1 2025.

• Optimism for continued growth in Argentina due to macro stabilization and strong brand positioning.