Q2 2026 MercadoLibre Inc Earnings Call Transcript
Key Points
- Net revenue surpassed $10 billion for the first time, growing 50% year-on-year.
- Items per buyer in Brazil grew 19% year-on-year, with conversion up 1.1 percentage points, indicating deeper user engagement.
- Credit portfolio reached $16.4 billion, growing 75% year-on-year, with NPLs near historical lows (7.0% total, 4.6% credit card).
- Ecosystemic users (using both marketplace and Mercado Pago) generate significantly higher GMV, engagement, and profitability.
- Adjusted free cash flow of $214 million was generated despite heavy investments in capex and credit growth.
- EBIT margin declined 550 basis points year-on-year to 6.7% due to strategic investments.
- Margin compression in acquiring business, particularly in Mexico, due to higher device costs and one-off inventory restocking.
- Higher energy costs in logistics created slight margin pressure, partially absorbed by the company.
- Mexico GMV growth decelerated due to tax reform headwinds, weaker macro environment, and World Cup impact.
- 90-day NPLs showed a meaningful deterioration, though management attributes it to portfolio mix and issuance pace.
Hello everyone, good evening and thank you for joining MercadoLibre's conference call for the quarter ended June 30th, 2026. I'm Richard Cathcart, Senior Director of Investor Relations and I'm joined this evening by Ariel Sharfstein, our CEO, Martin de los Santos, our CFO and Oswaldo Jimenez, President of FinTech.
Tonight's format will be slightly different. I'll start by handing over to Martin for a few high-level opening remarks, and then we'll head straight into the Q&A. Before we do that, I would like to remind you that management may make or refer to forward-looking statements and non-GAAP measures, so please refer to the disclaimer on screen, which is also 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 Investor Relations website as well.
With that, I'll pass the call over to Martin de los Santos, our CFO.
Good afternoon and
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