MercadoLibre kicked off 2025 with strong momentum, delivering a robust set of financial results that exceeded analyst expectations. Net revenue rose by 37% year-over-year to $5.9 billion, while net income climbed 44% to $494 million. Adjusted earnings per share reached $9.74, significantly above the $6.78 posted in the same quarter last year.

Broad-Based Growth with Latin America as the Engine

“Our business continues to grow at an outstanding pace across all fronts,” the company wrote in its shareholder letter. The total number of unique active buyers surged to 67.3 million, a 25% increase year-over-year, while total items sold reached 492 million, marking a 28% gain.

Revenue from Brazil reached $3.08 billion, from Mexico $1.22 billion, and from Argentina $1.38 billion. Argentina stood out as the key growth driver, with FX-neutral revenue jumping 184%. According to the company, “Argentina performed exceptionally well, with last year’s recovery in demand strengthening even further.”

Commerce Operations: Defending Market Share and Accelerating in Argentina

Gross merchandise volume (GMV) totaled $13.3 billion, up 17% in USD and 40% FX-neutral. Growth in Argentina was particularly pronounced, with GMV soaring by 126% FX-neutral. Brazil and Mexico also delivered double-digit growth despite increasing competitive pressure and a slowdown in high-ticket categories.

Supermarket items became the fastest-growing category, with 65% year-over-year growth, supported by enhanced user experience and advertising placement. These improvements contributed to record-high brand preference scores across all major markets.

Fintech Momentum: Strong User Growth and a Booming Credit Portfolio

Mercado Pago, the company’s digital wallet and financial services arm, continued its aggressive expansion. Monthly active users rose to 64.3 million, up 31% year-over-year. Total payment volume (TPV) hit $58.3 billion, representing a 43% increase in dollar terms and 72% FX-neutral.

The credit portfolio reached $7.8 billion, up 75% from Q1 2024. Delinquency remained under control, with the 15–90 day NPL ratio steady at 8.2%. Net interest margin after losses (NIMAL) declined to 22.7%, driven by a rising share of credit card exposure, which now makes up 42% of the portfolio—up from 35% a year ago.

Acquiring and Ads Gain Traction Across the Ecosystem

Acquiring TPV rose 32% year-over-year to $40.3 billion, with Brazil and Mexico leading the growth. FX-neutral acquiring volume rose 30% in Brazil and 50% in Mexico. The company emphasized that more merchants are using its credit services, increasing cross-sell efficiency.

Advertising revenue also posted impressive results, rising 50% FX-neutral. Display ad share grew by 10 percentage points year-over-year. The launch of Mercado Play, a smart TV streaming platform, signals the company’s ambition to become a more dominant player in Latin American digital media.

High Profitability Maintained Despite Elevated Investment Levels

Operating income reached $763 million—up 45%—with an operating margin of 12.9%. Net income stood at $494 million, translating into a net margin of 8.3%. Adjusted free cash flow was negative $10 million, largely due to $770 million in credit book funding and $256 million in capital expenditures for logistics.

Despite the negative free cash flow, the company maintains a healthy financial position with $4.96 billion in cash and equivalents and a modest leverage ratio of 0.79.

Outlook: Continued Expansion with Strategic Discipline

MercadoLibre’s first-quarter performance underscores its status as a market leader in Latin America’s digital commerce and fintech sectors. The company is executing an ecosystem-driven strategy that combines marketplace dominance, financial inclusion, fast logistics, and monetization through advertising.

“As we look ahead, we remain focused on reinvesting in our business with discipline and a long-term view. We believe the best is yet to come,” the company concluded.