MERCADOLIBRE INC
For the period ended Sep 30, 2025. Filed Oct 30, 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.
Sep 30, 2025 · Filed Oct 30, 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 2025-06-30; filed 2025-08-05.
0001099590-25-000044
ITEM 2. — MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-30.
0001099590-25-000051
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 248 previous paragraphs and 245 current paragraphs.
163 unchanged; 74 reworded; 8 added; 10 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 30 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 (8)
Current report
Results of operations for the nine and three-month periods ended September 30, 2025 compared to the nine and three-month periods ended September 30, 2024
Current report
The following table summarizes our consolidated net revenues and financial income for the nine and three-month periods ended September 30, 2025 and 2024:
Current report
Commerce revenues in Brazil increased 26.4% in the nine-month period ended September 30, 2025 as compared to the same period in 2024. This increase was generated by an increase of $700 million in our Commerce services revenues and an increase of $639 million in our revenues from Commerce product sales. Fintech revenues grew by 29.9%, a $955 million increase during the nine-month period ended September 30, 2025 as compared to the same period in 2024, mainly driven by an increase of $749 million in our Credit revenues and an increase of $204 million in our revenues from Financial services and income.
Current report
Commerce revenues in Brazil increased 33.6% in the three-month period ended September 30, 2025 as compared to the same period in 2024. This increase was driven by an increase of $337 million in our Commerce services revenues and an increase of $270 million in our revenues from Commerce product sales. Fintech revenues grew by 44.3%, a $489 million increase, during the three-month period ended September 30, 2025 as compared to the same period in 2024, mainly driven by an increase of $340 million in our Credit revenues and an increase of $149 million in our revenues from Financial services and income.
Current report
Commerce revenues in Mexico increased 29.9% in the nine-month period ended September 30, 2025 as compared to the same period in 2024. This increase was driven by an increase of $470 million in our Commerce services revenues and an increase of $179 million in our revenues from Commerce product sales. Fintech revenues grew 36.0%, a $413 million increase, during the nine-month period ended September 30, 2025 as compared to the same period in 2024, mainly driven by an increase of $207 million in our Credit revenues and an increase of $201 million in our revenues from Financial services and income.
Current report
Commerce revenues in Argentina increased 62.2% in the nine-month period ended September 30, 2025 as compared to the same period in 2024. This increase was driven by an increase of $477 million in our Commerce services revenues and an increase of $94 million in our revenues from Commerce product sales. Fintech revenues increased 79.6%, a $1,268 million increase, during the nine-month period ended September 30, 2025 as compared to the same period in 2024, mainly driven by an increase of $773 million in our revenues from Financial services and income and an increase of $495 million in our Credit revenues.
Current report
Commerce revenues in Argentina increased 20.4% in the three-month period ended September 30, 2025 as compared to the same period in 2024. This increase was generated by an increase of $68 million in our Commerce services revenues and an increase of $16 million in our revenues from Commerce product sales. Fintech revenues increased 52.1%, a $324 million increase, during the three-month period ended September 30, 2025 as compared to the same period in 2024, mainly driven by an increase of $166 million in our Credit revenues and an increase of $158 million in our revenues from Financial services and income.
Current report
Refer to Note 8 – Segments of our unaudited interim condensed consolidated financial statements for further information regarding the financial performance of the Company’s reporting segments for the nine and three-month periods ended September 30, 2025 and 2024.
Removed paragraphs (10)
Previous report
37 | MercadoLibre, Inc.
Previous report
38 | MercadoLibre, Inc.
Previous 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
Previous report
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 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
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 report
On September 27, 2024, we entered into a $400 million amended and restated revolving credit agreement (the “Amended and Restated Credit Agreement”). The interest rates under the Amended and Restated Credit Agreement are based on Term SOFR (“Secured Overnight Funding Rate”) plus an interest margin of 1.00% per annum, which may be decreased to 0.90% per annum or increased to 1.15% per annum depending on our debt rating, as further provided under the Amended and Restated Credit Agreement. We are also obligated to pay a commitment fee on the unused amounts of the facility at a rate per annum equal to 25% of the then Applicable Margin, depending on our debt rating, as further provided under the Amended and Restated Credit Agreement. As of June 30, 2025, no amounts had been borrowed under the facility. See Note 12 – Loans payable and other financial liabilities of our unaudited interim condensed consolidated financial statements for further detail.
Reworded paragraphs (74)
Previous wording
■a discussion of our principal trends and results of operations for the six and three-month periods ended June 30, 2025 and 2024;
Current wording
■a discussion of our principal trends and results of operations for the nine and three-month periods ended September 30, 2025 and 2024;
Previous wording
Mercado Envios is a logistics solution that is one of the value-added services that we offer to our sellers and buyers on our platform. The logistics services we offer are an integral and crucial part of our value proposition as they reduce friction between buyers and sellers, allow us to have greater control over the full user experience and enable faster deliveries at a more competitive cost than would otherwise be available with third-party carriers. Sellers that use Mercado Envios are eligible to access shipping subsidies that enable free or discounted shipping for consumers that buy sellers’ goods on our Marketplace. Our logistics network is built around fulfillment centers (which accounts for more than half of shipments), where sellers place their inventory in our warehouses, and cross-docking, where we collect items sold from sellers directly or via a network of thousands of partner stores (“MELI Places”) where sellers drop off sold items that need to be fed into our logistics network. MELI Places are also enabled for pick up of items purchased and processing of returns. Our transportation network includes dedicated aircraft, trucks and thousands of last-mile delivery vans, the vast majority of which are owned and operated by our third-party carriers.
Current wording
Mercado Envios is a logistics solution that is one of the value-added services that we offer to our sellers and buyers on our platform. The logistics services we offer are an integral and crucial part of our value proposition as they reduce friction between buyers and sellers, allow us to have greater control over the full user experience and enable faster deliveries at a more competitive cost than would otherwise be available with third-party carriers. Sellers that use Mercado Envios are eligible to access shipping subsidies that enable free or discounted shipping for consumers that buy sellers’ goods on our Marketplace. Our logistics network is built around fulfillment centers (which account for more than half of shipments), where sellers place their inventory in our warehouses, and cross-docking, where we collect items sold from sellers directly or via a network of thousands of partner stores (“MELI Places”) where sellers drop off sold items that need to be fed into our logistics network. MELI Places are also enabled for pick up of items purchased and processing of returns. Our transportation network includes dedicated aircraft, trucks and thousands of last-mile delivery vans, the vast majority of which are owned and operated by our third-party carriers.
Previous 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.
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. As part of the expansion of our lending solution, during August 2025 we launched the Mercado Pago credit card in Argentina.
Previous wording
Our segment reporting is based on geography, which is the criterion our Management currently uses to evaluate our segment performance. Our geographic segments are Brazil, Mexico, Argentina and Other Countries (including Chile, Colombia, Costa Rica, Ecuador, Peru, Uruguay and the U.S.). Although we discuss long-term trends in our business, it is our policy not to provide earnings guidance in the traditional sense. We believe that uncertain conditions make the forecasting of near-term results difficult. Further, we seek to make decisions focused primarily on the long-term welfare of our Company and believe focusing on short-term earnings does not best serve the interests of our stockholders. We believe that execution of key strategic initiatives as well as our expectations for long-term growth in our markets will best create stockholder value. A long-term focus may make it more difficult for industry analysts and the market to evaluate the value of our Company, which could reduce the value of our common stock or permit competitors with short-term tactics to grow more rapidly than us. We, therefore, encourage potential investors to consider this strategy before making an investment in our common stock.
Current wording
Our segment reporting is based on geography, which is the criterion our Management currently uses to evaluate our segment performance. Our geographic segments are Brazil, Mexico, Argentina and Other Countries (including Bermuda, Chile, China, Colombia, Costa Rica, Ecuador, Peru, Uruguay and the U.S.). Although we discuss long-term trends in our business, it is our policy not to provide earnings guidance in the traditional sense. We believe that uncertain conditions make the forecasting of near-term results difficult. Further, we seek to make decisions focused primarily on the long-term welfare of our Company and believe focusing on short-term earnings does not best serve the interests of our stockholders. We believe that execution of key strategic initiatives as well as our expectations for long-term growth in our markets will best create stockholder value. A long-term focus may make it more difficult for industry analysts and the market to evaluate the value of our Company, which could reduce the value of our common stock or permit competitors with short-term tactics to grow more rapidly than us. We, therefore, encourage potential investors to consider this strategy before making an investment in our common stock.
Previous 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:
Current wording
The following table sets forth the percentage of our consolidated net revenues and financial income by segment for the nine and three-month periods ended September 30, 2025 and 2024:
Previous 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.
Current wording
Net revenues and financial income for the nine and three-month periods ended September 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 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.
Current wording
The selected financial data for the nine and three-month periods ended September 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 nine and three-month periods ended September 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
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.
Current wording
We have a highly fragmented customer revenue base given the large numbers of sellers and buyers who use our platforms. For the nine and three-month periods ended September 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 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.
Current wording
Our net revenues and financial income grew during the nine and three-month periods ended September 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 by revenue stream and geographic segment for the six and three-month periods ended June 30, 2025 and 2024:
Current wording
The following table summarizes our consolidated net revenues and financial income by revenue stream and geographic segment for the nine and three-month periods ended September 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 six and three-month periods ended June 30, 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 nine and three-month periods ended September 30, 2025 and 2024.
Previous 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:
Current wording
Our Commerce revenues grew $2,711 million and $1,035 million, or 31.5% and 33.0%, for the nine and three-month periods ended September 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 $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
Current wording
■an increase of $1,756 million and $657 million in our Commerce services revenues for the nine and three-month periods ended September 30, 2025, respectively, mainly related to (i) a 22% and 28% increase in gross merchandise volume, and (ii) higher flat fee contributions for low gross merchandise volume transactions. Shipping carrier costs netted against revenues decreased $88 million, from $794 million for the nine-month period ended September 30, 2024, to $706 million for the nine-month period ended September 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 September 30, 2025 as compared to the same period in 2024, shipping carrier costs netted against revenues increased $49 million, from $213 million for the three-month period ended September 30, 2024, to $262 million for the three-month period ended September 30, 2025; and
Previous 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.
Current wording
■an increase of $955 million and $378 million in our revenues from Commerce product sales for the nine and three-month periods ended September 30, 2025, respectively, as compared to the same periods in 2024, mainly in Brazil, Mexico and Argentina.
Previous 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:
Current wording
Our Fintech revenues grew 44.2% and 48.9%, from $6,113 million and $2,173 million for the nine and three-month periods ended September 30, 2024, respectively, to $8,818 million and $3,235 million for the nine and three-month periods ended September 30, 2025, respectively. This increase was mainly generated by:
Previous 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
Current wording
■an increase of $1,452 million and $625 million in our Credit revenues for the nine and three-month periods ended September 30, 2025, respectively, mainly as a consequence of higher originations; and
Previous 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.
Current wording
■an increase of $1,245 million and $434 million in our revenues from Financial services and income for the nine and three-month periods ended September 30, 2025, respectively, mainly related to our off-platform transactional fees and financing transactions, as a result of a 41% increase in our total payment volume for both periods.
Previous 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.
Current wording
Net revenues growth during the nine-month period ended September 30, 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 7.9%. During the three-month period ended September 30, 2025, as compared to the same period in 2024, there was an average decrease of Brazil’s exchange rate against U.S. dollar of 1.8%.
Previous wording
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 wording
Commerce revenues in Mexico increased 38.4% in the three-month period ended September 30, 2025 as compared to the same period in 2024. This increase was generated by an increase of $217 million in our Commerce services revenues and an increase of $74 million in our revenues from Commerce product sales. Fintech revenues grew 55.6%, a $215 million increase, during the three-month period ended September 30, 2025 as compared to the same period in 2024, mainly driven by an increase of $117 million in our Credit revenues and an increase of $96 million in our revenues from Financial services and income.
Previous 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.
Current wording
Net revenues growth during the nine-month period ended September 30, 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 10.0%. During the three-month period ended September 30, 2025, as compared to the same period in 2024, there was an average decrease of Mexico’s exchange rate against U.S. dollar of 1.8%.
Previous 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:
Current wording
The following table sets forth the growth in net revenues and financial income in local currencies, for the nine and three-month periods ended September 30, 2025 as compared to the same periods in 2024:
Previous 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.
Current wording
(2)For thenine-month period ended September 30, 2025, the average inter-annual inflation rate in our Argentine segment of 48.8% was higher than the average inter-annual increase of Argentina’s official exchange rate against U.S. dollar of 33.0%, while for the three-month period ended September 30, 2025, the average inter-annual inflation rate in our Argentine segment of 34.0%, was lower than the average inter-annual increase of Argentina’s official exchange rate against U.S. dollar of 41.4%.
Previous 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.
Current wording
For the nine-month period ended September 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) $1,204 million increase in shipping operating and carrier costs; ii) $734 million increase in cost of sales of goods mainly in Brazil, Mexico and Argentina; iii) $359 million increase in collection fees across all of our main segments, as a result of the higher total payment volume of Mercado Pago in those countries; iv) $355 million increase in other fintech costs mainly related to higher funding costs in connection with our lending business; v) $340 million increase in sales taxes; and vi) $141 million increase in hosting and site operation fees.
Previous wording
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 wording
For the three-month period ended September 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) $506 million increase in shipping operating and carrier costs; ii) $296 million increase in cost of sales of goods across all of our main segments; iii) $170 million increase in other fintech costs, mainly related to higher funding costs in connection with our lending business; iv) $149 million increase in collection fees across all of our main segments, as a result of the growth of total payment volume of Mercado Pago in those countries; v) $119 million increase in sales taxes; and vi) $61 million increase in hosting and site operation fees.
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 6.6% 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.
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% and 6.4% of net revenues and financial income for the nine and three-month periods ended September 30, 2025, and 6.7% for the same periods in 2024, respectively.
Previous 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.
Current wording
For the nine and three-month periods ended September 30, 2025 and 2024, our gross profit margins were 45.1% and 43.3%, and 46.4% and 45.9%, respectively.
Previous 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.
Current wording
For the nine-month period ended September 30, 2025, as compared to the same period in 2024, our gross profit margin decreased mainly due to the reduction of our free shipping threshold in Brazil, together with an increase in our cost of sales of goods, funding costs related to our fintech business and shipping carrier costs, as a percentage of net revenues and financial income, partially offset by a decrease of our shipping operating costs, collection fees and customer support expenses, as a percentage of net revenues and financial income.
Previous wording
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 wording
For the three-month period ended September 30, 2025, as compared to the same period in 2024, our gross profit margin decreased mainly due to the reduction of our free shipping threshold in Brazil, together with an increase in our cost of sales of goods and funding costs related to our fintech business, as a percentage of net revenues and financial income.
Previous wording
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 wording
For the nine-month period ended September 30, 2025, the increase in product and technology development expenses as compared to the same period in 2024 was primarily attributable to a: i) $152 million increase in salaries and wages mainly related to the increase of 15% 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) $70 million increase in technology maintenance expenses; and iii) $53 million increase in other product and technology development expenses mainly related to higher tax withholding in connection with intercompany export services billing duties.
Previous 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.
Current wording
For the three-month period ended September 30, 2025, the increase in product and technology development expenses as compared to the same period in 2024 was primarily attributable to a: i) $31 million increase in technology maintenance expenses; and ii) $28 million increase in salaries and wages mainly related to the increase of 16% in our product and technology development headcount.
Previous wording
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 wording
For the nine-month period ended September 30, 2025, the increase in sales and marketing expenses as compared to the same period in 2024 was primarily attributable to a: i) $359 million increase in online and offline marketing expenses across all of our main segments; ii) $93 million increase in salaries and wages mainly related to the increase of 60% 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) $82 million increase in our buyer protection program expenses; and iv) $39 million increase in chargebacks.
Previous 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.
Current wording
For the three-month period ended September 30, 2025, the increase in sales and marketing expenses as compared to the same period in 2024 was primarily attributable to a: i) $158 million increase in online and offline marketing expenses across all of our main segments; ii) $44 million increase in our buyer protection program expenses; iii) $36 million increase in salaries and wages mainly related to the increase of 44% in our sales and marketing headcount; and iv) $12 million increase in chargebacks.
Previous 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.
Current wording
For the nine and three-month periods ended September 30, 2025, as compared to the same periods in 2024, the provision for doubtful accounts increased $777 million and $308 million, respectively, mainly due to the increase in originations growing at 59% and 60% (mostly related to the credit card and consumer products), respectively.
Previous wording
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 wording
For the nine-month period ended September 30, 2025, the increase in general and administrative expenses as compared to the same period in 2024 was primarily attributable to a: i) $64 million increase in salaries and wages, mainly related to the increase of 17% 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) $22 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 $15 million decrease in legal, tax and other fees due to higher contingencies losses in the nine-month period ended September 30, 2024.
Previous 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).
Current wording
For the three-month period ended September 30, 2025, the decrease in general and administrative expenses as compared to the same period in 2024 was primarily attributable to a: i) $38 million decrease in legal, tax and other fees due to higher contingencies losses in the three-month period ended September 30, 2024; and ii) $11 million gain related to the fair value of digital assets ($9 million gain in the three-month period ended September 30, 2025 compared to a $2 million loss in the three-month period ended September 30, 2024). This was partially offset by a $12 million increase in salaries and wages, mainly related to the increase of 15% in general and administrative headcount.
Previous wording
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 wording
For the nine and three-month periods ended September 30, 2025, as compared to the same periods in 2024, our operating income margin decreased from 12.3% and 10.5% to 11.5% and 9.8%, 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.
Previous wording
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 wording
For the nine-month period ended September 30, 2025, the decrease is mainly explained by the reduction of our free shipping threshold in Brazil, together with 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.
Previous 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.
Current wording
For the three-month period ended September 30, 2025, the decrease is mainly explained by the reduction of our free shipping threshold in Brazil, together with an increase in cost of net revenues and financial expenses, provision of doubtful accounts and sales and marketing related expenses, as a percentage of net revenues and financial income, partially offset by a decrease in general and administrative expenses and product and technology development, as a percentage of net revenues and financial income.
Previous 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).
Current wording
For the nine-month period ended September 30, 2025, the increase in other expense, net as compared to the same period in 2024 was primarily attributable to $142 million of higher foreign exchange losses mainly due to our Argentine (higher foreign exchange losses of $222 million), Uruguayan and Spanish subsidiaries, partially offset by foreign exchange gains from our Brazilian and Mexican subsidiaries. This was partially offset by an increase of $23 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 and Argentina) and higher interest rates (mainly in Brazil).
Previous wording
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.
Current wording
For the three-month period ended September 30, 2025, the increase in other expense, net as compared to the same period in 2024 was primarily attributable to $62 million higher foreign exchange losses mainly due to our Argentine subsidiaries, partially offset by higher foreign exchange gains from our Mexican subsidiaries.
Showing the first 40 of 74 pairs. Open the source sections for the rest.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
(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.