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MercadoLibre surges 9% as Q1 earnings and revenue top estimates

AuthorFrank DeMatteo
Published 07/05/2025, 21:24
© Reuters
TTEF
-0.11%
MELI
-0.15%

Investing.com - MercadoLibre Inc (NASDAQ:MELI), Latin America’s leading e-commerce and fintech company, saw its shares jump 9% in after-hours trading Wednesday after reporting first-quarter earnings and revenue that significantly exceeded analyst expectations.

The company reported adjusted earnings per share of $9.74, beating the consensus estimate of $8.33 by $1.41. Revenue for the quarter came in at $5.9 billion, surpassing analysts’ projections of $5.47 billion and marking a 37% increase YoY. On an FX-neutral basis, revenue growth was even stronger at 64% YoY.

MercadoLibre’s performance was driven by robust growth across its business segments. Total (EPA:TTEF) Payment Volume rose 43% YoY to $58.3 billion, while Gross Merchandise Volume increased 17% YoY to $13.3 billion. The company also reported strong user growth, with unique active buyers up 25% YoY.

"We have had a strong start to the year at Mercado Libre, sustaining the momentum built up through 2024," said Marcos Galperin, CEO of MercadoLibre. "Growth continues to be outstanding across the business, with KPIs supported by strong execution and an intense focus on offering a value proposition to our users that is constantly improving and innovative."

The company’s fintech services segment showed particularly impressive growth, with the digital account reaching 64 million monthly active users, a 31% YoY increase. MercadoLibre’s credit portfolio expanded 75% YoY to $7.8 billion, while maintaining comfortable delinquency levels.

Despite ongoing investments in strategic initiatives such as shipping and scaling its credit card business, MercadoLibre reported income from operations of $763 million, up 45% YoY, with a 12.9% margin. Net income grew 44% YoY to $494 million.

The market’s positive reaction to MercadoLibre’s results reflects investor confidence in the company’s ability to maintain strong growth while improving profitability in the competitive Latin American e-commerce and fintech markets.

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