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Mar 31
MercadoLibre Q1 2025 Earnings Report
MercadoLibre reported strong revenue and income growth in Q1 2025, driven by gains in Argentina and expanding fintech and commerce operations.
Key Takeaways
MercadoLibre delivered robust Q1 2025 results with 37% YoY growth in total revenue and 44% YoY growth in net income. Argentina showed exceptional performance across multiple KPIs. Despite strategic investments putting pressure on some margins, the company maintained solid profitability while expanding its user base and product offerings.
MercadoLibre
MercadoLibre
MercadoLibre Revenue by Segment
MercadoLibre Revenue by Geographic Location
Revenue by Segment
Commerce Revenue
CapyFin.comFintech Revenue
CapyFin.comRevenue by Geographic Location
Brazil Revenue
CapyFin.comMexico Revenue
CapyFin.comArgentina Revenue
CapyFin.comOther Countries Revenue
CapyFin.com Forward Guidance
MercadoLibre plans to maintain its reinvestment strategy, focusing on long-term sustainable growth through fintech expansion, logistics improvements, and advertising innovation.
Positive Outlook
- Significant GMV and revenue growth in Argentina.
- Strong increase in fintech MAUs to 64 million.
- Logistics network improvements reduced fulfillment costs.
- Launch of Mercado Play expands advertising inventory.
- Credit portfolio reached $7.8B with healthy asset quality.
Challenges Ahead
- Free cash flow was negative due to heavy capex and fintech funding.
- Direct contribution margins declined slightly in Brazil and Mexico.
- Currency depreciation and higher rates pressured margins in Brazil.
- Mexico GMV growth slowed in high ASP categories.
- Seasonal effects led to NIMAL spread contraction.
Revenue & Expenses
Visualization of income flow from segment revenue to net income