MercadoLibre Q4 Earnings Miss, Stock Down 12%
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- MercadoLibre posted Q4 2025 revenue up 47% year‑over‑year (currency neutral), with gross merchandise volume up 37% and total payment volume up 53% YoY.
- MercadoLibre added 6.4 million new customers in Q4, a 24% YoY increase, and items ordered rose 43% YoY.
- MercadoLibre saw operating margin fall from 13.5% to 10.1% and net‑income margin drop from 10.5% to 6.4% in the quarter.
- MercadoLibre reported earnings per share of $11.04, $0.41 below analyst estimates.
- MercadoLibre stock has lost about 12% of its value year‑to‑date after the earnings miss.
- Martín de Los Santos said investments in a new credit card, digital banks in Mexico and Argentina, and lower free‑shipping thresholds in Brazil are intended to strengthen the ecosystem and expand long‑term growth.
Why it matters: Investors see the earnings miss as a signal to MercadoLibre's profitability, while the company’s aggressive expansion plan could benefit long‑term shareholders and merchants seeking digital‑payment solutions in under‑banked Latin American markets, as the stock slide may prompt short‑term traders to adjust positions.
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