MercadoLibre, Inc. Q2 2026 Earnings Recap

Shares fell 3.1% as investors reacted negatively to margin compression driven by incremental cost pressures in Commerce and acquiring, coupled with a cautious outlook on pricing power despite revenue growth.

Key Takeaways

• Net revenue surpassed $10 billion, growing 50% year-over-year.
• EBIT margin declined 550 basis points year-over-year to 6.7%, stable sequentially but pressured by continued strategic investments.
• Margin improvement in credit offset by compression primarily in acquiring (Mexico) and Commerce investments, including lowered take rates and promotions in Brazil.
• Credit portfolio grew 75% year-over-year to $16.4 billion, maintaining solid asset quality with stable NPLs near historical lows.
• Adjusted free cash flow of $214 million after significant capital expenditures and credit book investments totaling $2.1 billion.