MERCADOLIBRE INC
For the period ended Jun 30, 2025. Filed Aug 5, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 5, 2025
MELI$1,510.00-1.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0001099590-25-000028
ITEM 2. — MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-05.
0001099590-25-000044
ITEM 2. — MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 230 previous paragraphs and 248 current paragraphs.
140 unchanged; 80 reworded; 26 added; 7 removed; 3 previous and 2 current paragraphs rearranged.
Tables are not compared: 27 previous and 30 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (26)
Current report
Results of operations for the six and three-month periods ended June 30, 2025 compared to the six and three-month periods ended June 30, 2024
Current report
Commerce revenues in Brazil increased 22.4% in the six-month period ended June 30, 2025 as compared to the same period in 2024. This increase was generated by an increase of $369 million in our revenues from Commerce product sales and an increase of $363 million in our Commerce services revenues. Fintech revenues grew by 22.3%, a $466 million increase during the six-month period ended June 30, 2025 as compared to the same period in 2024, mainly driven by an increase of $409 million in our Credit revenues and an increase of $55 million in our revenues from Financial services and income.
Current report
Commerce revenues in Brazil increased 24.8% in the three-month period ended June 30, 2025 as compared to the same period in 2024. This increase was driven by an increase of $217 million in our revenues from Commerce product sales and an increase of $205 million in our Commerce services revenues. Fintech revenues grew by 24.4%, a $265 million increase, during the three-month period ended June 30, 2025 as compared to the same period in 2024, mainly driven by an increase of $229 million in our Credit revenues and an increase of $36 million in our revenues from Financial services and income.
Current report
Commerce revenues in Mexico increased 25.4% in the six-month period ended June 30, 2025 as compared to the same period in 2024. This increase was driven by an increase of $253 million in our Commerce services revenues and an increase of $105 million in our revenues from Commerce product sales. Fintech revenues grew 26.1%, a $198 million increase, during the six-month period ended June 30, 2025 as compared to the same period in 2024, mainly driven by an increase of $105 million in our revenues from Financial services and income and an increase of $90 million in our Credit revenues.
Current report
Commerce revenues in Mexico increased 24.2% in the three-month period ended June 30, 2025 as compared to the same period in 2024. This increase was generated by an increase of $117 million in our Commerce services revenues and an increase of $76 million in our revenues from Commerce product sales. Fintech revenues grew 27.9%, a $112 million increase, during the three-month period ended June 30, 2025 as compared to the same period in 2024, mainly driven by an increase of $62 million in our revenues from Financial services and income and an increase of $48 million in our Credit revenues.
Current report
Commerce revenues in Argentina increased 96.1% in the six-month period ended June 30, 2025 as compared to the same period in 2024. This increase was driven by an increase of $409 million in our Commerce services revenues, mainly due to a increase of 48.6% in successful items sold, and an increase of $78 million in our revenues from Commerce product sales. Fintech revenues increased 97.2%, a $944 million increase, mainly due to an increase of 34.7% in our total payment transactions, during the six-month period ended June 30, 2025 as compared to the same period in 2024, mainly driven by an increase of $615 million in our revenues from Financial services and income and an increase of $329 million in our Credit revenues.
Current report
For the three-month period ended June 30, 2025 as compared to the same period in 2024, the increase in cost of net revenues and financial expenses was primarily attributable to a: i) $322 million increase in shipping operating and carrier costs; ii) $261 million increase in cost of sales of goods across all of our main segments; iii) $133 million increase in sales taxes; iv) $116 million increase in other fintech costs, mainly related to higher funding costs in connection with our lending business; and v) $98 million increase in collection fees across all of our main segments, as a result of the higher growth of total payment volume of Mercado Pago in those countries.
Current report
For the three-month period ended June 30, 2025, as compared to the same period in 2024, our gross profit margin decreased mainly due to an increase in our cost of sales of goods and other fintech costs, as a percentage of net revenues and financial income, partially offset by a decrease of our shipping carrier and operating costs and collection fees, as a percentage of net revenues and financial income.
Current report
For the six-month period ended June 30, 2025, the increase in sales and marketing expenses as compared to the same period in 2024 was primarily attributable to a: i) $201 million increase in online and offline marketing expenses across all of our main segments; ii) $57 million increase in salaries and wages mainly related to the increase of 50% in our sales and marketing headcount and increases in amounts accrued under the LTRPs as a consequence of the increase in our common stock price; iii) $38 million increase in our buyer protection program expenses; and iv) $28 million increase in chargebacks.
Current report
For the six-month period ended June 30, 2025, the increase in general and administrative expenses as compared to the same period in 2024 was primarily attributable to a: i) $51 million increase in salaries and wages, mainly related to the increase of 18% in general and administrative headcount and increases in amounts accrued under the LTRPs as a consequence of the increase in our common stock price; ii) $24 million increase in other general and administrative expenses mainly related to higher tax withholding in connection with intercompany export services billing duties; and iii) $23 million increase in legal, tax and other fees.
Current report
For the six and three-month periods ended June 30, 2025, as compared to the same periods in 2024, our operating income margin decreased from 13.3% and 14.3% to 12.5% and 12.2%, respectively. This compression was primarily driven by the expansion of our credit card portfolio and marketing investments to support our free shipping and Mercado Pago campaigns.
Current report
For the six-month period ended June 30, 2025, the decrease is mainly explained by an increase in provision of doubtful accounts and cost of net revenues and financial expenses, as a percentage of net revenues and financial income, partially offset by a decrease in product and technology development and general and administrative expenses, as a percentage of net revenues and financial income.
Current report
For the three-month period ended June 30, 2025, as compared to the same period in 2024, segment costs increased mainly driven by a: i) $493 million increase in cost of net revenues and financial expenses, mainly attributable to an increase in shipping operating and carrier costs, cost of goods sold as a consequence of an increase in first-party sales, sales taxes, other fintech costs mainly related to higher funding costs in connection with the growth of our lending business, and hosting and site operation fees; ii) $173 million increase in provision for doubtful accounts mainly related to our credit card, consumer and merchant credits product growth; and iii) $137 million increase in sales and marketing expenses mainly due to an increase in online and offline marketing expenses, buyer protection program expenses and chargebacks.
Current report
For the three-month period ended June 30, 2025, as compared to the same period in 2024, segment costs increased mainly driven by a: i) $175 million increase in cost of net revenues and financial expenses, mainly attributable to increases in cost of goods sold as a consequence of an increase in first-party sales, shipping operating and carrier costs, and collection fees due to higher Mercado Pago penetration; ii) $25 million increase in provision for doubtful accounts mainly related to our credit card business growth; and iii) $25 million increase in sales and marketing expenses mainly due to an increase in online and offline marketing expenses.
Current report
For the six-month period ended June 30, 2025, as compared to the same period in 2024, segment costs increased mainly driven by a: i) $537 million increase in cost of net revenues and financial expenses driven by an increase in shipping operating and carrier costs, collection fees due to higher Mercado Pago penetration, sales taxes, other fintech costs mainly related to higher funding cost due to the growth of our credits business and cost of goods sold as a consequence of an increase in first-party sales; ii) $85 million increase in sales and marketing expenses mainly due to an increase in online and offline marketing expenses, chargebacks and buyer protection program expenses; iii) $66 million increase in provision for doubtful accounts mainly related to our consumer product growth; and iv) $32 million increase in general and administrative expenses mainly related to higher withholding tax in connection with intercompany export services billing duties.
Current report
53 | MercadoLibre, Inc.
Current report
54 | MercadoLibre, Inc.
Current report
55 | MercadoLibre, Inc.
Current report
56 | MercadoLibre, Inc.
Current report
(1)Includes cash and cash equivalents (excluding cash and cash equivalents restricted due to management restriction policies) and digital assets. Figures as of December 31, 2024 were recast for consistency with the current presentation due to the changes explained in "Adjusted free cash flow".
Current report
57 | MercadoLibre, Inc.
Current report
58 | MercadoLibre, Inc.
Current report
Adjusted free cash flow and Net increase (decrease) in available cash, investments and digital assets
Current report
Net increase (decrease) in available cash, investments and digital assets
Current report
(3)Recast for consistency with the current presentation due to the changes explained above.
Current report
59 | MercadoLibre, Inc.
Removed paragraphs (7)
Previous report
33 | MercadoLibre, Inc.
Previous report
34 | MercadoLibre, Inc.
Previous report
Results of operations for the three-month period ended March 31, 2025 compared to the three-month period ended March 31, 2024
Previous report
35 | MercadoLibre, Inc.
Previous report
36 | MercadoLibre, Inc.
Previous report
Commerce revenues in Brazil increased 19.8% in the three-month period ended March 31, 2025 as compared to the same period in 2024. This increase was generated by an increase of $158 million in our Commerce services revenues and an increase of $152 million in our revenues from Commerce product sales. Fintech revenues grew by 19.9%, a $201 million increase, during the three-month period ended March 31, 2025 as compared to the same period in 2024, mainly driven by an increase of $180 million in our Credit revenues and an increase of $19 million in our revenues from Financial services and income.
Previous report
Commerce revenues in Mexico increased 26.9% in the three-month period ended March 31, 2025 as compared to the same period in 2024. This increase was generated by an increase of $136 million in our Commerce services revenues mainly due to an increase in the share of shipping services where we act as principal, as opposed to agent, and an increase of $29 million in our revenues from Commerce product sales. Fintech revenues grew 24.0%, a $86 million increase, during the three-month period ended March 31, 2025 as compared to the same period in 2024, mainly driven by an increase of $43 million in our revenues from Financial services and income and an increase of $42 million in our Credit revenues.
Reworded paragraphs (80)
Previous wording
Any statements made or implied in this report that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements within the meaning of Section 27 A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and should be evaluated as such. The words “anticipate,” “believe,” “expect,” “intend,” “plan,” “estimate,” “target,” “project,” “should,” “may,” “could,” “will” and similar words and expressions are intended to identify forward-looking statements. These forward-looking statements are contained throughout this report. Our forward looking statements, and the risks and uncertainties related to them, include, but are not limited to, statements regarding MercadoLibre, Inc.'s expectations, objectives and progress against strategic priorities; initiatives and strategies related to our products and services; business and market outlook, opportunities, strategies and trends; impacts of foreign exchange; the potential impact of the uncertain macroeconomic and geopolitical environment on our financial results; customer demand and market expansion; our planned product and services releases and capabilities; industry growth rates; future stock repurchases; our expected tax rate and tax strategies; and the likelihood, impact and result of pending legal, administrative and tax proceedings or government investigations. Such forward-looking statements are subject to known and unknown risks, uncertainties and other important factors (in addition to those discussed elsewhere in this report) that may cause our actual results to differ materially from those expressed or implied by these forward-looking statements. Some of the material risks and uncertainties that could cause actual results to differ materially from our expectations and projections are described in “Item 1A—Risk Factors” in Part I of the Company’s 2024 10-K filed with the Securities and Exchange Commission (“SEC”) on February 21, 2025. You should read that information in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Item 2 of Part I of this report, our unaudited interim condensed consolidated financial statements and related notes in Item 1 of Part I of this report and our audited consolidated financial statements and related notes in Item 8 of Part II of the Company’s 2024 10-K, as well as the factors discussed in the other reports and documents we file from time to time with the SEC.
Current wording
Any statements made or implied in this report that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements within the meaning of Section 27 A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and should be evaluated as such. The words “anticipate,” “believe,” “expect,” “intend,” “plan,” “estimate,” “target,” “project,” “should,” “may,” “could,” “will” and similar words and expressions are intended to identify forward-looking statements. These forward-looking statements are contained throughout this report. Our forward looking statements, and the risks and uncertainties related to them, include, but are not limited to, statements regarding MercadoLibre, Inc.'s expectations, objectives and progress against strategic priorities; initiatives and strategies related to our products and services; our inability to successfully deliver new products and services; business and market outlook, opportunities, strategies and trends; impacts of foreign exchange; the potential impact of the uncertain macroeconomic and geopolitical environment on our financial results; customer preferences and demand and market expansion; our planned product and services releases and capabilities; industry growth rates; inflation; future stock repurchases; our expected tax rate and tax strategies; and the likelihood, impact and result of pending legal, administrative and tax proceedings or government investigations. Such forward-looking statements are subject to known and unknown risks, uncertainties and other important factors (in addition to those discussed elsewhere in this report) that may cause our actual results to differ materially from those expressed or implied by these forward-looking statements. Some of the material risks and uncertainties that could cause actual results to differ materially from our expectations and projections are described in “Item 1A—Risk Factors” in Part I of the Company’s 2024 10-K filed with the Securities and Exchange Commission (“SEC”) on February 21, 2025. You should read that information in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Item 2 of Part I of this report, our unaudited interim condensed consolidated financial statements and related notes in Item 1 of Part I of this report and our audited consolidated financial statements and related notes in Item 8 of Part II of the Company’s 2024 10-K, as well as the factors discussed in the other reports and documents we file from time to time with the SEC.
Previous wording
■a discussion of our principal trends and results of operations for the three-month periods ended March 31, 2025 and 2024;
Current wording
■a discussion of our principal trends and results of operations for the six and three-month periods ended June 30, 2025 and 2024;
Previous wording
We are the leading online commerce and fintech ecosystem in Latin America. Our e-commerce platform is the leader in the region based on gross merchandise volume (“GMV”), and our fintech platform is the leader in monthly active users (“MAUs”) among fintech companies in Mexico, Argentina and Chile, and the second largest in Brazil. Mercado Libre's e-commerce platform is present in 18 countries (Argentina, Brazil, Mexico, Chile, Colombia, Peru, Uruguay, Venezuela, Bolivia, Costa Rica, Dominican Republic, Ecuador, Guatemala, Honduras, Nicaragua, Panama, Paraguay and El Salvador) and our fintech platform, Mercado Pago, is present in eight countries (Argentina, Brazil, Mexico, Chile, Colombia, Peru, Uruguay and Ecuador). Our ecosystem provides consumers and merchants with a complete portfolio of services to enable buying and selling online and the processing of payments online and offline, as well as offering a wide array of simple day-to-day financial services.
Current wording
We are the leading online commerce and fintech ecosystem in Latin America. Our e-commerce platform is the leader in the region based on gross merchandise volume (“GMV”), and our fintech platform is the leader in monthly active users (“MAUs”) among fintech companies in Mexico, Argentina and Chile, and the second largest in Brazil. Mercado Libre's e-commerce platform is present in 18 countries (Argentina, Brazil, Mexico, Chile, Colombia, Peru, Uruguay, Venezuela (deconsolidated since December 1, 2017), Bolivia, Costa Rica, Dominican Republic, Ecuador, Guatemala, Honduras, Nicaragua, Panama, Paraguay and El Salvador) and our fintech platform, Mercado Pago, is present in eight countries (Argentina, Brazil, Mexico, Chile, Colombia, Peru, Uruguay and Ecuador). Our ecosystem provides consumers and merchants with a complete portfolio of services to enable buying and selling online and the processing of payments online and offline, as well as offering a wide array of simple day-to-day financial services.
Previous wording
Our lending solution is available in Argentina, Brazil, Mexico and Chile. We offer credits mostly to merchants and consumers that already form part of our user base, many of whom have historically been underserved or overlooked by financial institutions and therefore suffer from a lack of access to credit. Facilitating credit is a key service overlay that enables us to further strengthen the engagement and lock-in rate of our users, while also generating additional touchpoints and incentives to use Mercado Pago as an end-to-end financial solution.
Current wording
Our lending solution is available in Argentina, Brazil, Mexico and Chile. We offer loans mostly to merchants and consumers that already form part of our user base, many of whom have historically been underserved or overlooked by financial institutions and therefore suffer from a lack of access to credit. Facilitating credit is a key service overlay that enables us to further strengthen the engagement and lock-in rate of our users, while also generating additional touchpoints and incentives to use Mercado Pago as an end-to-end financial solution.
Previous wording
The following table sets forth the percentage of our consolidated net revenues and financial income by segment for the three-month periods ended March 31, 2025 and 2024:
Current wording
The following table sets forth the percentage of our consolidated net revenues and financial income by segment for the six and three-month periods ended June 30, 2025 and 2024:
Previous wording
Net revenues and financial income for the three-month period ended March 31, 2025 as compared to the same period in 2024 are described in “Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations—Principal trends in results of operations— Net revenues and financial income.
Current wording
Net revenues and financial income for the six and three-month periods ended June 30, 2025 as compared to the same periods in 2024 are described in “Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations—Principal trends in results of operations— Net revenues and financial income.
Previous wording
The selected financial data for the three-month periods ended March 31, 2025 and 2024 discussed herein is derived from our unaudited interim condensed consolidated financial statements included in Item 1 of Part I of this report. The results of operations for the three-month period ended March 31, 2025, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2025 or for any other period.
Current wording
The selected financial data for the six and three-month periods ended June 30, 2025 and 2024 discussed herein is derived from our unaudited interim condensed consolidated financial statements included in Item 1 of Part I of this report. The results of operations for the six and three-month periods ended June 30, 2025, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2025 or for any other period.
Previous wording
■shipping fees, which are generated when an item is delivered through our shipping service, net of the third-party carrier costs (when we act as an agent). When the Company acts as principal, revenues derived from shipping services are recognized upon delivery of the good to the customer, and presented on a gross basis. In addition, the Company generates storage fees, which are charged to the seller for the utilization of the Company’s fulfillment facilities;
Current wording
■shipping fees, which are generated when an item is delivered through our shipping service. When we act as an agent, revenues derived from the shipping services are recognized at the time the transaction is successfully concluded for third-party sales, and presented net of the transportation costs charged by third-party carriers. When we act as principal, revenues derived from shipping services are recognized upon delivery of the good to the customer, and presented on a gross basis. In addition, the Company generates storage fees, which are charged to the seller for the utilization of the Company’s fulfillment facilities;
Previous wording
We have a highly fragmented customer revenue base given the large numbers of sellers and buyers who use our platforms. For the three-month periods ended March 31, 2025 and 2024, no single customer accounted for more than 5.0% of our net revenues and financial income.
Current wording
We have a highly fragmented customer revenue base given the large numbers of sellers and buyers who use our platforms. For the six and three-month periods ended June 30, 2025 and 2024, no single customer accounted for more than 5.0% of our net revenues and financial income.
Previous wording
Our net revenues and financial income grew during the three-month period ended March 31, 2025 as compared to the same period in 2024, boosted by the growth of credit originations from our lending solution, an increase in total payment volume and fees due to payment in installments in our Mercado Pago platform, and the growth in gross merchandise volume.
Current wording
Our net revenues and financial income grew during the six and three-month periods ended June 30, 2025 as compared to the same periods in 2024, boosted by the growth of credit originations from our lending solution, an increase in total payment volume and fees due to payment in installments in our Mercado Pago platform, and the growth in gross merchandise volume.
Previous wording
The following table summarizes our consolidated net revenues and financial income for the three-month periods ended March 31, 2025 and 2024:
Current wording
The following table summarizes our consolidated net revenues and financial income for the six and three-month periods ended June 30, 2025 and 2024:
Previous wording
The following table summarizes our consolidated net revenues and financial income by revenue stream and geographic segment for the three-month periods ended March 31, 2025 and 2024:
Current wording
The following table summarizes our consolidated net revenues and financial income by revenue stream and geographic segment for the six and three-month periods ended June 30, 2025 and 2024:
Previous wording
See Note 8 – Segments of our unaudited interim condensed consolidated financial statements for further information regarding our net revenues and financial income disaggregated by similar products and services for the three-month periods ended March 31, 2025 and 2024.
Current wording
See Note 8 – Segments of our unaudited interim condensed consolidated financial statements for further information regarding our net revenues and financial income disaggregated by similar products and services for the six and three-month periods ended June 30, 2025 and 2024.
Previous wording
Our Commerce revenues grew $807 million, or 32.3%, for the three-month period ended March 31, 2025, as compared to the same period in 2024. This increase in Commerce revenues was primarily attributable to:
Current wording
Our Commerce revenues grew $1,676 million and $869 million, or 30.7% and 29.3%, for the six and three-month periods ended June 30, 2025, respectively, as compared to the same periods in 2024. This increase in Commerce revenues was primarily attributable to:
Previous wording
■an increase of $573 million in our Commerce services revenues for the three-month period ended March 31, 2025, mainly related to (i) a 17% increase in gross merchandise volume, and (ii) higher flat fee contributions for low gross merchandise volume transactions. Shipping carrier costs netted against revenues decreased $150 million, from $361 million for the three-month period ended March 31, 2024, to $211 million for the three-month period ended March 31, 2025, mainly due to an increase in the share of shipping services where we act as principal, as opposed to agent; and
Current wording
■an increase of $1,099 million and $526 million in our Commerce services revenues for the six and three-month periods ended June 30, 2025, respectively, mainly related to (i) a 19% and 21% increase in gross merchandise volume, and (ii) higher flat fee contributions for low gross merchandise volume transactions. Shipping carrier costs netted against revenues decreased $137 million, from $581 million for the six-month period ended June 30, 2024, to $444 million for the six-month period ended June 30, 2025, mainly due to an increase in the share of shipping services where we act as principal, as opposed to agent during the first quarter of 2025. For the three-month period ended June 30, 2025 as compared to the same period in 2024, shipping carrier costs netted against revenues increased $13 million, from $220 million for the three-month period ended June 30, 2024, to $233 million for the three-month period ended June 30, 2025; and
Previous wording
■an increase of $234 million in our revenues from Commerce product sales for the three-month period ended March 31, 2025, as compared to the same period in 2024, mainly in Brazil, Argentina and Mexico.
Current wording
■an increase of $577 million and $343 million in our revenues from Commerce product sales for the six and three-month periods ended June 30, 2025, respectively, as compared to the same periods in 2024, mainly in Brazil, Mexico and Argentina.
Previous wording
Our Fintech revenues grew 43.3%, from $1,837 million for the three-month period ended March 31, 2024 to $2,632 million for the three-month period ended March 31, 2025. This increase was mainly generated by:
Current wording
Our Fintech revenues grew 41.7% and 40.3%, from $3,940 million and $2,103 million for the six and three-month periods ended June 30, 2024, respectively, to $5,583 million and $2,951 million for the six and three-month periods ended June 30, 2025, respectively. This increase was mainly generated by:
Previous wording
■an increase of $376 million in our Credit revenues for the three-month period ended March 31, 2025, mainly as a consequence of higher originations; and
Current wording
■an increase of $827 million and $451 million in our Credit revenues for the six and three-month periods ended June 30, 2025, respectively, mainly as a consequence of higher originations; and
Previous wording
■an increase of $416 million in our revenues from Financial services and income for the three-month period ended March 31, 2025, mainly related to our financing and off-platform transactional fees, reflecting a 43% increase in our total payment volume.
Current wording
■an increase of $811 million and $395 million in our revenues from Financial services and income for the six and three-month periods ended June 30, 2025, respectively, mainly related to our off-platform transactional fees and financing transactions, reflecting a 41% and 39% increase in our total payment volume.
Previous wording
Net revenues growth during the three-month period ended March 31, 2025, as compared to the same period in 2024, were offset by the average increase of Brazil’s exchange rate against U.S. dollar of 18.0%.
Current wording
Net revenues growth during the six and three-month periods ended June 30, 2025, as compared to the same periods in 2024, were offset by the average increase of Brazil’s exchange rate against U.S. dollar of 13.2% and 8.6%, respectively.
Previous wording
Net revenues growth during the three-month period ended March 31, 2025, as compared to the same period in 2024, were offset by the average increase of Mexico’s exchange rate against U.S. dollar of 20.2%.
Current wording
Net revenues growth during the six and three-month periods ended June 30, 2025, as compared to the same periods in 2024, were offset by the average increase of Mexico’s exchange rate against U.S. dollar of 16.5% and 12.9%, respectively.
Previous wording
Commerce revenues in Argentina increased 137.0% in the three-month period ended March 31, 2025 as compared to the same period in 2024. This increase was generated by an increase of $230 million in our Commerce services revenues mainly due to an increase in the share of shipping services where we act as principal, as opposed to agent, and an increase of $44 million in our revenues from Commerce product sales. Fintech revenues increased 118.8%, a $493 million increase, during the three-month period ended March 31, 2025 as compared to the same period in 2024, mainly driven by an increase of $339 million in our revenues from Financial services and income and an increase of $154 million in our Credit revenues.
Current wording
Commerce revenues in Argentina increased 69.4% in the three-month period ended June 30, 2025 as compared to the same period in 2024. This increase was generated by an increase of $179 million in our Commerce services revenues, mainly due to a increase of 45.9% in successful items sold, and an increase of $34 million in our revenues from Commerce product sales. Fintech revenues increased 81.1%, a $451 million increase, mainly due to an increase of 31.3% in our total payment transactions, during the three-month period ended June 30, 2025 as compared to the same period in 2024, mainly driven by an increase of $276 million in our revenues from Financial services and income and an increase of $175 million in our Credit revenues.
Previous wording
For the three-month period ended March 31, 2025, the increase in Argentina's net revenues and financial income was also boosted by the average inter-annual inflation rate in our Argentine segment of 69.1%, which was higher than the average of inter-annual increase of Argentina’s official exchange rate against the U.S. dollar of 26.7%.
Current wording
For the six and three-month periods ended June 30, 2025, the increase in Argentina’s net revenues and financial income was also boosted by the average inter-annual inflation rate in our Argentine segment of 56.3% and 43.4%, respectively, which was higher than the average of inter-annual increase of Argentina’s official exchange rate against the U.S. dollar of 28.3% and 29.9%, respectively.
Previous wording
The following table sets forth the growth in net revenues and financial income in local currencies, for the three-month period ended March 31, 2025 as compared to the same period in 2024:
Current wording
The following table sets forth the growth in net revenues and financial income in local currencies, for the six and three-month periods ended June 30, 2025 as compared to the same periods in 2024:
Previous wording
(2)For the three-month period ended March 31, 2025, the average inter-annual inflation rate in our Argentine segment of 69.1% was higher than the average inter-annual increase of Argentina’s official exchange rate against U.S. dollar of 26.7%.
Current wording
(2)For the six and three-month periods ended June 30, 2025, the average inter-annual inflation rate in our Argentine segment of 56.3% and 43.4%, respectively, were higher than the average inter-annual increase of Argentina’s official exchange rate against U.S. dollar of 28.3% and 29.9%, respectively.
Previous wording
For the three-month period ended March 31, 2025 as compared to the same period in 2024, the increase in cost of net revenues and financial expenses was primarily attributable to a: i) $377 million increase in shipping operating and carrier costs mainly due to an increase in the share of shipping services where we act as principal, as opposed to agent; ii) $176 million increase in cost of sales of goods mainly in Brazil, Mexico and Argentina; iii) $113 million increase in collection fees, which was mainly attributable to our Argentinian, Brazilian and Mexican operations as a result of the higher growth of total payment volume of Mercado Pago in those countries; iv) $89 million increase in sales taxes; v) $68 million increase in other fintech costs mainly related to higher funding costs in connection with our lending business; and vi) $32 million increase in hosting and site operation fees.
Current wording
For the six-month period ended June 30, 2025 as compared to the same period in 2024, the increase in cost of net revenues and financial expenses was primarily attributable to a: i) $698 million increase in shipping operating and carrier costs; ii) $439 million increase in cost of sales of goods mainly in Brazil, Mexico and Argentina; iii) $221 million increase in sales taxes; iv) $210 million increase in collection fees across all of our main segments, as a result of the higher growth of total payment volume of Mercado Pago in those countries; and v) $185 million increase in other fintech costs mainly related to higher funding costs in connection with our lending business.
Previous wording
Our subsidiaries in Brazil, Argentina and Colombia are subject to certain taxes on revenues and financial income, which are classified as a cost of net revenues and financial expenses. These taxes represented 6.7% of net revenues and financial income for the three-month period ended March 31, 2025, and 7.1% for the same period in 2024.
Current wording
Our subsidiaries in Brazil, Argentina and Colombia are subject to certain taxes on revenues and financial income, which are classified as a cost of net revenues and financial expenses. These taxes represented 6.6% of net revenues and financial income for the six and three-month periods ended June 30, 2025, and 6.6% and 6.2% for the same periods in 2024, respectively.
Previous wording
For the three-month periods ended March 31, 2025 and 2024, our gross profit margins were 46.7%.
Current wording
For the six and three-month periods ended June 30, 2025 and 2024, our gross profit margins were 46.1% and 45.6%, and 46.7% and 46.6%, respectively.
Previous wording
For the three-month period ended March 31, 2025, as compared to the same period in 2024, our gross profit margin remained stable, resulted primarily from an increase in our shipping carrier costs and cost of sales of goods, as a percentage of net revenues and financial income, offset by a decrease of our shipping operating costs, customer experience expenses, sales taxes and collection fees, as a percentage of net revenues and financial income.
Current wording
For the six-month period ended June 30, 2025, as compared to the same period in 2024, our gross profit margin decreased mainly due to an increase in our cost of sales of goods and shipping carrier costs, as a percentage of net revenues and financial income, partially offset by a decrease of our shipping operating costs and collection fees, as a percentage of net revenues and financial income.
Previous wording
In the future, our gross profit margin could decline if we maintain the growth of our sales of goods business, which has a lower pure product margin, building up our logistics network and if we fail to maintain an appropriate relationship between our cost of revenue structure and our net revenues and financial income trend.
Current wording
In the future, our gross profit margin could continue declining if we maintain the growth of our sales of goods business, which has a lower pure product margin, building up our logistics network and if we fail to maintain an appropriate relationship between our cost of revenue structure and our net revenues and financial income trend.
Previous wording
For the three-month period ended March 31, 2025, the increase in product and technology development expenses as compared to the same period in 2024 was primarily attributable to a: i) $56 million increase in salaries and wages mainly related to the increase of 16% in our product and technology development headcount and increases in amounts accrued under the LTRPs as a consequence of the increase in our common stock price; ii) $20 million increase in other product and technology development expenses mainly related to higher tax withholding in connection with intercompany export services billing duties; and iii) $20 million increase in technology maintenance expenses.
Current wording
For the three-month period ended June 30, 2025, the increase in product and technology development expenses as compared to the same period in 2024 was primarily attributable to a: i) $68 million increase in salaries and wages mainly related to the increase of 16% in our product and technology development headcount and increases in amounts accrued under the LTRPs as a consequence of the increase in our common stock price; ii) $27 million increase in other product and technology development expenses mainly related to higher tax withholding in connection with intercompany export services billing duties; and iii) $19 million increase in technology maintenance expenses.
Previous wording
We believe that product and technology development is one of our key competitive advantages and we intend to continue to invest in hiring engineers to meet the increasingly sophisticated product expectations of our customer base.
Current wording
We believe that product and technology development is one of our key competitive advantages and we intend to continue to invest in technology to meet the increasingly sophisticated product expectations of our customer base.
Previous wording
For the three-month period ended March 31, 2025, the increase in sales and marketing expenses as compared to the same period in 2024 was primarily attributable to a: i) $54 million increase in online and offline marketing expenses mainly in Brazil and Argentina; ii) $21 million increase in salaries and wages mainly related to the increase of 26% in our sales and marketing headcount and increases in amounts accrued under the LTRPs as a consequence of the increase in our common stock price; iii) $13 million increase in our buyer protection program expenses; iv) $12 million increase in other sales expenses related to strategic marketing initiatives; and v) $10 million increase in chargebacks.
Current wording
For the three-month period ended June 30, 2025, the increase in sales and marketing expenses as compared to the same period in 2024 was primarily attributable to a: i) $147 million increase in online and offline marketing expenses mainly in Brazil, Mexico and Argentina; ii) $36 million increase in salaries and wages mainly related to the increase of 37% in our sales and marketing headcount and increases in amounts accrued under the LTRPs as a consequence of the increase in our common stock price; iii) $25 million increase in our buyer protection program expenses; and iv) $17 million increase in chargebacks.
Previous wording
For the three-month period ended March 31, 2025, as compared to the same period in 2024, the provision for doubtful accounts increased $229 million, mainly due to the increase in originations growing at 59% (mostly related to the credit card and consumer products).
Current wording
For the six and three-month periods ended June 30, 2025, as compared to the same periods in 2024, the provision for doubtful accounts increased $469 million and $240 million, respectively, mainly due to the increase in originations growing at 58% and 57% (mostly related to the credit card and consumer products), respectively.
Previous wording
Our general and administrative expenses consist primarily of salaries for management and administrative staff, compensation of non-employee directors, long term retention program compensation, expenses for legal, audit and other professional services, contingencies, insurance expenses, office space rental expenses, changes in the fair value of digital assets, travel and business expenses, as well as depreciation and amortization expenses. Our general and administrative expenses include the costs of the following areas: general management, finance, treasury, internal audit, administration, accounting, tax, legal and human resources. The following table presents general and administrative expenses for the periods indicated:
Current wording
Our general and administrative expenses consist primarily of salaries for management and administrative staff, compensation of non-employee directors, long term retention program compensation, expenses for legal, audit and other professional services, insurance expenses, office space rental expenses, changes in the fair value of digital assets, travel and business expenses, as well as depreciation and amortization expenses. Our general and administrative expenses include the costs of the following areas: general management, finance, treasury, internal audit, administration, accounting, tax, legal and human resources. The following table presents general and administrative expenses for the periods indicated:
Previous wording
For the three-month period ended March 31, 2025, the increase in general and administrative expenses as compared to the same period in 2024 was primarily attributable to a: i) $28 million losses related to the fair value of digital assets ($12 million loss in the three-month period ended March 31, 2025 compared to a $16 million gain in the three-month period ended March 31, 2024); ii) $14 million increase in legal, tax and other fees; iii) $12 million increase in other general and administrative expenses mainly related to higher tax withholding in connection with intercompany export services billing duties; and iv) $10 million increase in salaries and wages, mainly related to the increase of 11% in general and administrative headcount and increases in amounts accrued under the LTRPs as a consequence of the increase in our common stock price.
Current wording
For the three-month period ended June 30, 2025, the increase in general and administrative expenses as compared to the same period in 2024 was primarily attributable to a: i) $42 million increase in salaries and wages, mainly related to the increase of 15% in general and administrative headcount and increases in amounts accrued under the LTRPs as a consequence of the increase in our common stock price; and ii) $12 million increase in other general and administrative expenses, mainly related to higher tax withholding in connection with intercompany export services billing duties. This was partially offset by a $20 million gain related to the fair value of digital assets ($16 million gain in the three-month period ended June 30, 2025 compared to a $4 million loss in the three-month period ended June 30, 2024).
Previous wording
Our operating income margin is affected by our operating expenses structure, which mainly consists of our employees’ salaries, our sales and marketing expenses related to those activities we incurred to promote our services, provision for doubtful accounts mainly related to our loans receivable portfolio and product and technology development expenses, among other operating expenses. As we continue to grow and focus on expanding our leadership in the region, we will continue to invest in product and technology development, sales and marketing and human resources in order to promote our services and capture long-term business opportunities. As a result, we may experience decreases in our operating income margins.
Current wording
Our operating income margin is affected by our operating expenses structure, which mainly consists of our employees’ salaries, our sales and marketing expenses related to those activities we incurred to promote our services, provision for doubtful accounts mainly related to our loans receivable portfolio and product and technology development expenses, among other operating expenses. As we continue to grow and focus on expanding our leadership in the region, we will continue to invest in product and technology development, and sales and marketing in order to promote our services and capture long-term business opportunities. As a result, we may experience decreases in our operating income margins.
Previous wording
For the three-month period ended March 31, 2025, as compared to the same period in 2024, our operating income margin increased from 12.2% to 12.9%, mainly explained by a decrease in product and technology development and sales and marketing related expenses, as a percentage of net revenues and financial income. This increase was partially offset by an increase in provision of doubtful accounts, as a percentage of net revenues and financial income.
Current wording
For the three-month period ended June 30, 2025, the decrease is mainly explained by an increase in provision of doubtful accounts, cost of net revenues and financial expenses and sales and marketing related expenses, as a percentage of net revenues and financial income, partially offset by a decrease in product and technology development and general and administrative expenses, as a percentage of net revenues and financial income.
Previous wording
For the three-month period ended March 31, 2025, the increase in other expense, net as compared to the same period in 2024 was primarily attributable to $21 million higher foreign exchange losses mainly due to higher foreign exchange losses from our Argentine and Uruguayan subsidiaries, partially offset by higher foreign exchange gains from our Brazilian subsidiaries. This was partially offset by an increase of $12 million in interest income and other financial gains from financial investments not related to Mercado Pago's operations as a result of higher cash levels invested and higher interest rates (mainly in Brazil and Other countries).
Current wording
For the six-month period ended June 30, 2025, the increase in other expense, net as compared to the same period in 2024 was primarily attributable to $80 million higher foreign exchange losses mainly due to our Argentine, Spanish and Uruguayan subsidiaries, partially offset by higher foreign exchange gains from our Brazilian and Mexican subsidiaries. This was partially offset by an increase of $17 million in interest income and other financial gains from financial investments not related to Mercado Pago’s operations as a result of higher cash levels invested (mainly in Brazil, Argentina and Other countries) and higher interest rates (mainly in Brazil and Other countries).
Previous wording
We are subject to federal and state income tax in the U.S., as well as foreign taxes in the multiple jurisdictions where we operate. Our tax obligations consist of current and deferred income taxes incurred in these jurisdictions. We account for income taxes following the liability method of accounting. A valuation allowance is recorded when, based on the available evidence, it is more likely than not that all or a portion of our deferred tax assets will not be realized. Therefore, our income tax expense consists of taxes currently payable, if any (given that in certain jurisdictions we still have net operating loss carry-forwards), plus the change in our deferred tax assets and liabilities as a result of the estimate tax rate, adjusted for discrete items that are accounted for in the relevant period.
Current wording
We are subject to federal and state income tax in the U.S., as well as foreign taxes in the multiple jurisdictions where we operate. Our tax obligations consist of current and deferred income taxes incurred in these jurisdictions. We account for income taxes following the liability method of accounting. A valuation allowance is recorded when, based on the available evidence, it is more likely than not that all or a portion of our deferred tax assets will not be realized. Therefore, our income tax expense consists of taxes currently payable, if any, plus the change in our deferred tax assets and liabilities as a result of the estimated effective tax rate, adjusted for discrete items that are accounted for in the relevant period.
Showing the first 40 of 80 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
For the six-month period ended June 30, 2025, the increase in product and technology development expenses as compared to the same period in 2024 was primarily attributable to a: i) $124 million increase in salaries and wages mainly related to the increase of 16% in our product and technology development headcount and increases in amounts accrued under the LTRPs as a consequence of the increase in our common stock price; ii) $46 million increase in other product and technology development expenses mainly related to higher tax withholding in connection with intercompany export services billing duties; and iii) $40 million increase in technology maintenance expenses.
Current report — wording carried from elsewhere
For the three-month period ended June 30, 2025, the increase in other expense, net as compared to the same period in 2024 was primarily attributable to $59 million higher foreign exchange losses mainly due to our Argentine, Spanish and Uruguayan subsidiaries, partially offset by higher foreign exchange gains from our Brazilian and Mexican subsidiaries.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
See Note 12 – Loans payable and other financial liabilities of our unaudited condensed consolidated financial statements for additional detail.
Previous report — wording carried elsewhere
Adjusted free cash flow and Net increase (decrease) in available cash and investments
Previous report — wording carried elsewhere
Net increase (decrease) in available cash and investments