Q4 2025 MercadoLibre Inc Earnings Call Transcript
Key Points
- MercadoLibre Inc (MELI) reported a 45% year-over-year growth in net revenues for the fourth quarter of 2025, driven by strong performance in both commerce and fintech services.
- The company achieved a 35% year-over-year growth in Gross Merchandise Volume (GMV) in Brazil and Mexico, supported by strategic investments such as lowering the free shipping threshold.
- MercadoLibre Inc (MELI) saw a 67% growth in its advertising business, powered by AI-driven bidding algorithms and automated campaign tools.
- The fintech arm, Mercado Pago, reached a leading net promoter score in Brazil, Mexico, Argentina, and Chile, with monthly active users growing close to 30% for 10 consecutive quarters.
- The credit portfolio nearly doubled year-over-year to $12.5 billion, with almost 3 million new credit cards issued in Q4 alone, indicating strong growth in financial services.
- Margin compression was noted due to investments in shipping and credit card expansion, impacting short-term profitability.
- The direct contribution margin in Argentina saw some compression due to increased fulfillment costs and provisions for bad debt.
- The company is facing pressure from investments in cross-border trade and credit card initiatives, which are not yet profitable.
- Early delinquencies in the credit portfolio increased slightly, raising concerns about potential future impacts on 90-day NPLs.
- Despite strong growth, the company continues to face challenges in scaling international fulfillment, which affects margins.
Hello everyone and welcome to the MercadoLibre earnings conference call for the quarter ended December 31, 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 will begin our live Q&A session with our management team. Before we go on to discuss our results for the fourth-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 also.
With that, let's begin with a short message from our CFO.
Good evening everyone and thank you for joining us. I'm
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