MercadoLibre (MELI) Q1 2026 earnings summary

Executive summary

• Net revenues and financial income rose 49% year-over-year to $8.8B in Q1 2026, the highest rate since Q2 2022, driven by strong commerce and fintech growth, especially in Brazil and Mexico.

• Net income was $417M, representing a 4.7% margin, down from $494M in Q1 2025, reflecting higher operating expenses and provisions.

• Operating income reached $611M with a 6.9% margin, reflecting deliberate margin compression due to ongoing investments in growth initiatives.

• GMV grew 42% year-over-year to $19.0B, and total payment volume surged 50% to $87.2B.

• Unique active buyers increased 26% year-over-year, with Brazil leading growth.

Financial highlights

• Commerce revenues grew 47.4% to $4.9B, while fintech revenues surged 51.1% to $4.0B.

• Adjusted EBITDA was $857M, down from $935M in Q1'25.

• Gross profit margin was 43.7%, down 300bps year-over-year.

• Provision for doubtful accounts more than doubled to $1,244M, mainly due to credit card and consumer loan growth.

• Net cash provided by operating activities more than doubled to $2,075M.

Outlook and guidance

• Investment intensity will remain high, with no material change in margin levels expected in the near term.

• Management remains committed to long-term growth over short-term margin optimization, guided by positive investment outcomes.

• Continued expansion of credit card offerings and fintech services, especially in Brazil, Mexico, and Argentina.