MercadoLibre Revenue Tops Estimates at $10.75 Billion; EPS of $8.83 Misses

MercadoLibre (Nasdaq: MELI) reported third-quarter revenue of $10.75 billion, above the $10.71 billion analysts expected, and GAAP earnings of $8.83 per diluted share, below the $9.27 consensus estimate, in an 8-K filed Wednesday, Nov. 4, 2026.

Net revenues and financial income rose 45% from a year earlier, or 41% on an FX-neutral basis. Net income was $448 million, up from $421 million a year earlier, for a net margin of 4.2%. Income from operations fell 6% to $676 million, a 6.3% margin, which the company attributed to more free shipping, new fulfillment capacity added ahead of peak season, and a decision to increase affiliate marketing spend in Brazil.

Payments and credit growth

Total payment volume reached $109 billion, up 53% from a year earlier, and gross merchandise volume reached $23 billion, up 38%. Fintech monthly active users rose 29% to 93 million. The credit portfolio reached almost $18 billion, up 62% year over year, with a net interest margin after losses of 20.1%, 1 point lower than a year earlier. The 15-90 day non-performing loan ratio was 7.0%.

Margin pressures

The company said shipping compressed gross margin by 40 basis points sequentially, and that sales and marketing spend rose 40 basis points to 11.6% of net revenue. It said cost per shipment in Brazil was 5% lower year over year in local currency. Adjusted free cash flow was $285 million after $503 million of capital expenditures, and the company raised $1 billion in a September bond issue.

Outlook

The release did not include numeric guidance. For the fourth quarter, analysts expect EPS of $11.16 on revenue of $11.96 billion. For the full year, the consensus estimate is EPS of $38.17 on revenue of $41.86 billion. Management wrote that it remains confident in its long-term margin trajectory, and that for MercadoLibre and Latin America, the best is coming.