Q3 2025 MercadoLibre Inc Earnings Call Transcript
Key Points
- MercadoLibre Inc (MELI) reported a 39% year-on-year revenue growth, marking the 27th consecutive quarter of growth above 30%.
- The reduction in the free shipping threshold in Brazil led to accelerated growth in GMV and items sold, benefiting both buyers and sellers.
- Mercado Pago experienced a stellar quarter with accelerated growth in monthly active users and record-high NPS in Brazil.
- The company successfully reduced unit shipping costs in Brazil by 8%, leveraging unused capacity and improving logistics efficiency.
- MercadoLibre Inc (MELI) continues to see strong growth in its credit portfolio without compromising credit quality, with older credit card cohorts reaching profitability.
- In Argentina, growth of GMV, buyers, and TPV slowed due to a challenging macroeconomic environment, impacting EBIT margins.
- The company's strategic investments in free shipping and logistics have put some pressure on margins.
- Despite strong growth, the competitive environment in Brazil remains intense, with potential margin pressures due to increased competition.
- Higher funding costs in Argentina have affected consumption and increased the company's funding expenses.
- The company faces challenges in maintaining profitability in newer markets like Mexico, where credit card issuance is still in the early stages.
Hello, everyone, and welcome to the MercadoLibre earnings conference call for the quarter ended September 30, 2025. Thank you for joining us.
I'm Richard Cathcart, MercadoLibre's Investor Relations Officer. Today, we will share our quarterly highlights on video, after which we'll begin our live Q&A session with our management team. Before we go on to discuss our results for the third quarter of 2025, I remind you that management may make or refer to, and this presentation may contain forward-looking statements and non-GAAP measures. So please refer to the disclaimer on screen, which will also be available in our earnings materials on our Investor Relations website.
Please note that this call is being recorded and a replay will be made available on our IR website as well. Our quarterly product updates video will now be released after earnings instead of alongside our conference call. So watch out for this coming into your inboxes in the weeks after our results disclosure.
With that, let's begin with a short
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