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MercadoLibre misses quarterly profit estimates but revenue exceeds expectations
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MercadoLibre misses quarterly profit estimates but revenue exceeds expectations

#MercadoLibre #E-commerce #Fintech #Quarterly Results #Profit Miss #Revenue Beat #Latin America #Credit Investments

📌 Key Takeaways

  • MercadoLibre missed quarterly profit estimates but exceeded revenue expectations
  • Profit decline attributed to increased investments in credit and logistics
  • Strong growth in Brazil and Mexico drove revenue performance
  • Credit portfolio expanded significantly while maintaining stable delinquency rates

📖 Full Retelling

MercadoLibre, the Latin American e-commerce and fintech giant headquartered in Uruguay, reported a 12.5% decline in quarterly profit to $559 million on February 24, 2026, falling short of analysts' expectations, as the company increased investments in credit and logistics operations despite revenue exceeding forecasts at $8.8 billion. The company's results showed that while net income missed the $587 million profit predicted by analysts polled by LSEG, revenue growth of approximately 45% year-on-year surpassed the $8.5 billion consensus estimate. This performance was driven by strong growth in Brazil and Mexico, where gross merchandise value increased by 35% on a currency-neutral basis. MercadoLibre's stock initially gained as much as 7% following the results but later fell more than 6% in post-market trading after investors digested the profit miss. Leandro Cuccioli, senior vice president of investor relations, explained that the profit decline resulted from margin compression due to strategic investments aimed at long-term performance, including issuing more credit cards, expanding free shipping services, and plans to increase direct sales to customers.

🏷️ Themes

E-commerce, Financial Technology, Latin American Markets, Corporate Investment Strategy

📚 Related People & Topics

Mercado Libre

Mercado Libre

Argentine e-commerce company

MercadoLibre, Inc. (Spanish pronunciation: [meɾˈkaðo ˈliβɾe]), known as Mercado Livre in Brazil (Brazilian Portuguese pronunciation: [meʁˈkadu ˈlivɾi]), literally meaning "free market" in both languages, is a company of Argentine origin and incorporated in Delaware in the United States that operates...

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Financial technology

Financial technology

Subset of technologies used in finance

Financial technology (abbreviated as fintech) refers to the application of innovative technologies to products and services in the financial industry. This broad term encompasses a wide array of technological advancements in financial services, including mobile banking, online lending platforms, dig...

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try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Bitcoin slips, wipes out 50% from October record high at session low AMD stock surges 14% on Meta AI partnership deal Wall Street ends higher on tech rebound ahead of State of the Union address Software stocks rebound as Anthropic partnerships ease AI disruption fears (South Africa Philippines Nigeria) MercadoLibre misses quarterly profit estimates but revenue exceeds expectations By Reuters Stock Markets Published 02/24/2026, 04:54 PM Updated 02/24/2026, 07:48 PM MercadoLibre misses quarterly profit estimates but revenue exceeds expectations 0 MELI 3.04% SAO PAULO, Feb 24 - MercadoLibre on Tuesday posted a 12.5% decline in quarterly profit, missing analysts’ projections, as the e-commerce firm was hit by credit and logistics investments. Revenue, however, came in above estimates, helped by business in Brazil and Mexico. Shares of the Uruguay-headquartered firm fell more than 6% in post-market trading, after initially gaining as much as 7% following the results. The stock had risen 3% during the regular session ahead of the earnings release. MercadoLibre , which runs an e-commerce platform and financial tech firm Mercado Pago across Latin America, reported net income of $559 million for the October-to-December quarter. Analysts polled by LSEG had expected a $587 million profit. MercadoLibre’s senior vice president of investor relations, Leandro Cuccioli, told Reuters the profit decline came from a margin compression led by the firm’s decision to increase investments focused on long-term performance. He cited the issuance of more credit cards - which increase provisions - the expansion of free shipping and plans to increase sales directly to customers, a format known as 1P, among those investments. The company’s revenue rose about 45% year-on-year to $8.8 billion, above the $8.5 billion expected by analysts. Cuccioli said this was helped by a 35% increase, on a currency-neutral basis, of sales in Brazil and Me...
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