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 robust performance in both e-commerce and fintech.

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

• E-commerce outpaced major markets, with brand preference at all-time highs in Brazil, Mexico, Argentina, and Chile, and unique active buyers grew 25% year-over-year.

• Fintech monthly active users grew over 30% year-over-year to 64.3M, with high-frequency users expanding faster and credit portfolio up 75% year-over-year.

• Argentina delivered exceptional performance, with revenues more than doubling year-over-year and significant margin improvement.

Financial highlights

• Gross Merchandise Volume (GMV) was $13.3B, up 17% year-over-year and 40% FX-neutral; Argentina GMV grew 126% year-over-year.

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

• EBIT margin improved by 70 basis points year-over-year to 12.9%, with operating margin at 12.9% and net income margin at 8.3%.

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

• Available cash and investments at quarter-end were $4.96B; leverage remained low at 0.33x net debt/adj. EBITDA.

Outlook and guidance

• Continued optimism for Argentina due to macro stabilization and strong brand presence, but tougher comparables expected ahead.

• Focus remains on long-term growth opportunities in commerce and fintech, with willingness to invest even if it pressures short-term margins.

• Expect to launch credit card in Argentina in the second half of the year, adapting models to local market.

• Management maintains a long-term growth focus and does not provide traditional earnings guidance.

• Execution of strategic initiatives and market expansion remain priorities.