MERCADOLIBRE INC
For the period ended Jun 30, 2026. Filed Aug 6, 2026.
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, 2026 · Filed Aug 6, 2026
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 2026-03-31; filed 2026-05-08.
0001099590-26-000017
ITEM 2. — MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001099590-26-000023
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 231 previous paragraphs and 254 current paragraphs.
154 unchanged; 66 reworded; 29 added; 10 removed; 1 previous and 5 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 (29)
Current report
Fintech Regulation Updates
Current report
The information below provides updates as of the date of the issuance of this report, to the regulatory framework governing the Company’s Mercado Pago services described in our 2025 10-K:
Current report
In November 2025, the Central Bank of Brazil ("BACEN") published Resolutions No. 519, 520, and 521, establishing the regulatory framework for Virtual Asset Service Providers ("VASPs" or "PSAVs") in Brazil, effective February 2026. Among other requirements, these resolutions mandate BACEN authorization for entities providing virtual asset services, impose asset segregation obligations, and require compliance with KYC and anti-money laundering protocols. In connection with these new requirements, Mercado Pago Distribuidora de Títulos e Valores Mobiliários Ltda., a Brazilian subsidiary authorized by BACEN as a securities distributor, submitted a request on July 30, 2026, within the prescribed regulatory transition period, for authorization to perform crypto asset intermediation and custody services in Brazil, aligning its virtual asset operations with the new regulatory framework.
Current report
In April 2026, the BACEN published a resolution that refines the scope of permitted international payment and transfer services (“eFX”) transactions, including transfers related to investments in financial and capital markets up to USD 10,000, and requires eFX service providers to obtain prior BACEN authorization. Notably, the resolution expressly prohibits the use of virtual assets, including stablecoins, as a form of payment, receipt, or settlement between the eFX provider and the foreign counterpart. Brazilian Mercado Pago entities are assessing the impact of these changes on their international payment operations and are preparing for compliance ahead of the October 2026 effective date.
Current report
On February 5, 2026, the Central Bank of Argentina (“CBA”) issued Communication "A" 8398, extending the scope of the "Minimum Requirements for the Management and Control of Technology and Information Security Risks" -a framework originally applicable only to financial institutions- to Payment Service Providers (“PSPs”). The regulation establishes a mandatory compliance deadline of 180 calendar days from the issuance date, setting a target implementation date for August 2026. MercadoLibre S.R.L. has been conducting a comprehensive gap analysis and implementing the necessary adjustments to align its existing technology and information security controls with the new requirements. As of the date of this filing, the gap analysis and the execution of these adjustments remain ongoing and are expected to be completed within the regulatory deadline.
Current report
On April 30, 2026, the CBA issued Communication "A" 8432, amending the regulations applicable to PSPs. The communication introduced several significant changes, including: (i) tightened requirements governing who may operate as a PSP and who may hold ownership or management positions; (ii) the formal definition of a new category of PSP — the "PSPCP as a Service", which refers to entities that offer payment accounts to the clients of a third-party using an interface provided and controlled by that third party; and (iii) the extension of the CBA's Anti-Money Laundering ("AML"), Counter-Terrorism Financing, and Other Illicit Activities regulations to PSPs that qualify as reporting entities under UIF Resolution N° 200/24. The regulation established a compliance deadline of 90 calendar days from the date of issuance. MercadoLibre S.R.L., which does not operate under the "PSPCP as a Service" model, conducted the necessary review as a reporting entity subject to the AML framework and implemented all required adjustments within the established timeframe. As of the date of this filing, MercadoLibre S.R.L. is in full compliance with all provisions of Communication "A" 8432.
Current report
On April 27, 2026, the Argentine Securities and Exchange Commission (“CNV”) issued Resolution No. 1130, introducing a new prudential framework applicable to Clearing and Settlement Agents (ALyC). The regulation establishes a new regulatory reporting regime on financial indicators, liquidity and leverage ratios, reporting obligations regarding proprietary foreign currency positions, and accounting guidelines for the calculation of such indicators. Subsequently, Resolution No. 1144 introduced technical amendments and clarifications to the framework, including the methodology for calculating certain indicators, reporting requirements and implementation deadlines. Mercado Pago Inversiones S.R.L., in its capacity as a registered ALyC, is subject to this framework and is currently complying with the new regulatory reporting obligations while monitoring compliance with the applicable prudential liquidity and leverage limits.
Current report
In June 2026, the CNV issued Resolutions Nos. 1145, 1146, 1147 and 1148 as part of a broader regulatory reform introducing new automatic authorization regimes within the Argentine capital markets framework. The new regulations extend automatic authorization procedures to certain public offerings by issuers, Financial Trusts and Mutual Funds, replacing prior authorization requirements with a streamlined regulatory framework for eligible transactions and products. Following the enactment of these resolutions, Mercado Libre Group companies in Argentina have adapted their internal processes for the creation, launch and issuance of capital markets products to comply with the new regulatory regimes established by the CNV.
Current report
Chile
Current report
On June 8, 2026, the CMF approved the application of Mercado Pago Operadora S.A to incorporate cross-border acquiring activities into its corporate purpose. As of the date of this filing, the company is completing the remaining formalization steps required under Article 127 of Law N° 18.046, including registration and publication of the certificate evidencing the approved amendment.
Current report
Uruguay
Current report
On May 7, 2026, the Board of the Central Bank of Uruguay authorized MercadoPago Uruguay S.R.L. to offer interest-bearing accounts through a partner. The product is available to individual customers.
Current report
Results of operations for the six and three-month periods ended June 30, 2026 compared to the six and three-month periods ended June 30, 2025
Current report
Commerce revenues in Brazil increased 54.0% in the six-month period ended June 30, 2026 as compared to the same period in 2025. This increase was generated by an increase of $1,360 million in our Commerce services revenues and an increase of $800 million in our revenues from Commerce product sales. Fintech revenues grew by 62.1%, a $1,589 million increase during the six-month period ended June 30, 2026 as compared to the same period in 2025, mainly driven by an increase of $1,127 million in our Credit revenues and an increase of $460 million in our revenues from Financial services and income.
Current report
Commerce revenues in Mexico increased 49.4% in the six-month period ended June 30, 2026 as compared to the same period in 2025. This increase was driven by an increase of $644 million in our Commerce services revenues and an increase of $231 million in our revenues from Commerce product sales. Fintech revenues grew 74.2%, a $710 million increase, during the six-month period ended June 30, 2026 as compared to the same period in 2025, mainly driven by an increase of $417 million in our Credit revenues and an increase of $291 million in our revenues from Financial services and income.
Current report
Commerce revenues in Mexico increased 46.1% in the three-month period ended June 30, 2026 as compared to the same period in 2025. This increase was driven by an increase of $311 million in our Commerce services revenues and an increase of $147 million in our revenues from Commerce product sales. Fintech revenues grew 72.9%, a $373 million increase, during the three-month period ended June 30, 2026 as compared to the same period in 2025, mainly driven by an increase of $220 million in our Credit revenues and an increase of $154 million in our revenues from Financial services and income.
Current report
Commerce revenues in Argentina increased 23.7% in the six-month period ended June 30, 2026 as compared to the same period in 2025. This increase was driven by an increase of $173 million in our Commerce services revenues and an increase of $63 million in our revenues from Commerce product sales. Fintech revenues increased 20.5%, a $392 million increase, during the six-month period ended June 30, 2026 as compared to the same period in 2025, mainly driven by an increase of $259 million in our Credit revenues and an increase of $133 million in our revenues from Financial services and income.
Current report
Commerce revenues in Argentina increased 26.2% in the three-month period ended June 30, 2026 as compared to the same period in 2025. This increase was driven by an increase of $96 million in our Commerce services revenues and an increase of $41 million in our revenues from Commerce product sales. Fintech revenues increased 17.4%, a $175 million increase, during the three-month period ended June 30, 2026 as compared to the same period in 2025, mainly driven by an increase of $123 million in our Credit revenues and an increase of $52 million in our revenues from Financial services and income.
Current report
For the six-month period ended June 30, 2026, the increase in sales and marketing expenses as compared to the same period in 2025 was primarily attributable to a: i) $482 million increase in online and offline marketing expenses mainly in Brazil and Mexico; ii) $155 million increase in our buyer protection program expenses; and iii) $90 million increase in salaries and wages mainly related to the increase of 37% in our sales and marketing headcount.
Current report
Our estimated effective tax rate for the six and three-month periods ended June 30, 2026 decreased as compared to the same periods in 2025, mainly as a result of higher non-taxable gains attributable to tax benefits, along with greater tax deductions arising from permanent differences in the Brazilian segment.
Current report
Brazil
Current report
For the six-month period ended June 30, 2026, as compared to the same period in 2025, segment costs increased mainly driven by a: i) $963 million increase in cost of net revenues and financial expenses, mostly attributable to increases in shipping operating and carrier costs, cost of goods sold as a consequence of an increase in first-party sales and collection fees due to higher Mercado Pago penetration; ii) $220 million increase in provision for doubtful accounts mainly related to our credit card, consumer and merchant product business growth; and iii) $166 million increase in sales and marketing expenses mainly due to an increase in online and offline marketing expenses, sales expenses related to strategic marketing initiatives and buyer protection program expenses.
Current report
For the six-month period ended June 30, 2026, as compared to the same period in 2025, segment costs increased mainly driven by a: i) $464 million increase in cost of net revenues and financial expenses, mostly attributable to an increase in shipping operating and carrier costs, collection fees due to higher Mercado Pago penetration, sales taxes and cost of goods sold as a consequence of an increase in first-party sales; ii) $129 million increase in provision for doubtful accounts mainly related to our consumer product growth; and iii) $52 million increase in sales and marketing expenses mainly due to an increase in online and offline marketing expenses and sales expenses related to strategic marketing initiatives.
Current report
54 | MercadoLibre, Inc.
Current report
55 | MercadoLibre, Inc.
Current report
56 | MercadoLibre, Inc.
Current report
57 | MercadoLibre, Inc.
Current report
58 | MercadoLibre, Inc.
Current report
59 | MercadoLibre, Inc.
Removed paragraphs (10)
Previous report
36 | MercadoLibre, Inc.
Previous report
37 | MercadoLibre, Inc.
Previous report
Results of operations for the three-month period ended March 31, 2026 compared to the three-month period ended March 31, 2025
Previous report
Commerce revenues in Mexico increased 53.7% in the three-month period ended March 31, 2026 as compared to the same period in 2025. This increase was driven by an increase of $333 million in our Commerce services revenues and an increase of $84 million in our revenues from Commerce product sales. Fintech revenues grew 75.7%, a $337 million increase, during the three-month period ended March 31, 2026 as compared to the same period in 2025, mainly driven by an increase of $197 million in our Credit revenues and an increase of $137 million in our revenues from Financial services and income.
Previous report
Argentina
Previous report
Commerce revenues in Argentina increased 21.0% in the three-month period ended March 31, 2026 as compared to the same period in 2025. This increase was driven by an increase of $77 million in our Commerce services revenues and an increase of $22 million in our revenues from Commerce product sales. Fintech revenues increased 24.0%, a $217 million increase, during the three-month period ended March 31, 2026 as compared to the same period in 2025, mainly driven by an increase of $136 million in our Credit revenues and an increase of $81 million in our revenues from Financial services and income.
Previous report
(1) Percentages have been calculated using whole-dollar amounts rather than the rounded amounts that appear in the table.
Previous report
Our estimated effective tax rate for the three-month period ended March 31, 2026 decreased as compared to the same period in 2025, mainly as a result of higher income tax gains in Brazil related to the increase in deferred tax assets due to the income tax reform passed in December 2025 which will incrementally raise the tax rate beginning in April 2026.
Previous report
Argentina
Previous report
(3)Recast for consistency with the current presentation due to the changes explained above.
Reworded paragraphs (66)
Previous wording
■a discussion of our principal trends and results of operations for the three-month periods ended March 31, 2026 and 2025;
Current wording
■a discussion of our principal trends and results of operations for the six and three-month periods ended June 30, 2026 and 2025;
Previous wording
Our asset management product, which is available in Argentina, Brazil, Mexico and Chile, is a critical pillar of our financial services offering that enables us to compete with large banks. This product offers remuneration on balances held in the Mercado Pago digital account that is greater than traditional checking and savings accounts. This enables our users to earn a return with funds remaining available for withdrawal or to make payments without their funds being tied up in a time deposit.
Current wording
Our asset management product, which is available in Argentina, Brazil, Mexico, Chile and Uruguay, is a critical pillar of our financial services offering that enables us to compete with large banks. This product offers remuneration on balances held in the Mercado Pago digital account that is greater than traditional checking and savings accounts. This enables our users to earn a return with funds remaining available for withdrawal or to make payments without their funds being tied up in a time deposit.
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, 2026 and 2025:
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, 2026 and 2025:
Previous wording
Net revenues and financial income for the three-month period ended March 31, 2026 as compared to the same period in 2025 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, 2026 as compared to the same periods in 2025 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, 2026 and 2025 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, 2026, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2026 or for any other period.
Current wording
The selected financial data for the six and three-month periods ended June 30, 2026 and 2025 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, 2026, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2026 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 three-month periods ended March 31, 2026 and 2025, 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, 2026 and 2025, 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, 2026, compared to the same period in 2025, boosted by growth in credit originations from our lending business and our first-party business, and higher total payment volume and gross merchandise volume.
Current wording
Our net revenues and financial income grew during the six and three-month periods ended June 30, 2026, compared to the same periods in 2025, boosted by growth in credit originations from our lending business and our first-party business, and higher total payment volume and gross merchandise volume.
Previous wording
The following table summarizes our consolidated net revenues and financial income for the three-month periods ended March 31, 2026 and 2025:
Current wording
The following table summarizes our consolidated net revenues and financial income for the six and three-month periods ended June 30, 2026 and 2025:
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, 2026 and 2025:
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, 2026 and 2025:
Previous wording
See Note 6 – 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, 2026 and 2025.
Current wording
See Note 6 – 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, 2026 and 2025.
Previous wording
Our Commerce revenues grew $1,565 million, or 47.4%, for the three-month period ended March 31, 2026, as compared to the same period in 2025. This increase in Commerce revenues was primarily attributable to:
Current wording
Our Commerce revenues grew $3,488 million and $1,923 million, or 48.8% and 50.0%, for the six and three-month periods ended June 30, 2026, as compared to the same periods in 2025, respectively. This increase in Commerce revenues was primarily attributable to:
Previous wording
■an increase of $1,055 million in our Commerce services revenues for the three-month period ended March 31, 2026, mainly related to a 42% increase in gross merchandise volume, and higher flat fee contributions for low gross merchandise volume transactions. Shipping carrier costs netted against revenues increased $48 million, from $211 million for the three-month period ended March 31, 2025, to $259 million for the three-month period ended March 31, 2026; and
Current wording
■an increase of $2,328 million and $1,273 million in our Commerce services revenues for the six and three-month periods ended June 30, 2026, respectively, mainly related to a 43% and 44% increase in gross merchandise volume. Shipping carrier costs netted against revenues increased $104 million and $56 million, from $444 million and $233 million for the six and three-month periods ended June 30, 2025, to $548 million and $289 million for the six and three-month periods ended June 30, 2026, respectively; and
Previous wording
■an increase of $510 million in our revenues from Commerce product sales for the three-month period ended March 31, 2026, as compared to the same period in 2025, mainly in Brazil and Mexico.
Current wording
■an increase of $1,160 million and $650 million in our revenues from Commerce product sales for the six and three-month periods ended June 30, 2026, as compared to the same periods in 2025, respectively, mainly in Brazil and Mexico.
Previous wording
Our Fintech revenues grew 51.1%, from $2,632 million for the three-month period ended March 31, 2025, to $3,977 million for the three-month period ended March 31, 2026. This increase was mainly generated by:
Current wording
Our Fintech revenues grew 50.2% and 49.4%, from $5,583 million and $2,951 million for the six and three-month periods ended June 30, 2025, to $8,384 million and $4,407 million for the six and three-month periods ended June 30, 2026, respectively. This increase was mainly generated by:
Previous wording
■an increase of $866 million in our Credit revenues for the three-month period ended March 31, 2026, mainly as a consequence of higher originations; and
Current wording
■an increase of $1,818 million and $952 million in our Credit revenues for the six and three-month periods ended June 30, 2026, mainly as a consequence of higher originations; and
Previous wording
■an increase of $474 million in our revenues from Financial services and income for the three-month period ended March 31, 2026, mainly related to our off-platform transactional fees and financing transactions, as a result of a 50% increase in our total payment volume.
Current wording
■an increase of $977 million and $503 million in our revenues from Financial services and income for the six and three-month periods ended June 30, 2026, respectively, mainly related to our off-platform transactional fees and financing transactions, as a result of a 53% and 56% increase in our total payment volume.
Previous wording
Commerce revenues in Brazil increased 50.9% in the three-month period ended March 31, 2026 as compared to the same period in 2025. This increase was generated by an increase of $576 million in our Commerce services revenues and an increase of $377 million in our revenues from Commerce product sales. Fintech revenues grew by 61.1%, a $739 million increase during the three-month period ended March 31, 2026 as compared to the same period in 2025, mainly driven by an increase of $528 million in our Credit revenues and an increase of $210 million in our revenues from Financial services and income.
Current wording
Commerce revenues in Brazil increased 56.8% in the three-month period ended June 30, 2026 as compared to the same period in 2025. This increase was generated by an increase of $784 million in our Commerce services revenues and an increase of $423 million in our revenues from Commerce product sales. Fintech revenues grew by 63.0%, a $850 million increase during the three-month period ended June 30, 2026 as compared to the same period in 2025, mainly driven by an increase of $599 million in our Credit revenues and an increase of $250 million in our revenues from Financial services and income.
Previous wording
Net revenues growth during the three-month period ended March 31, 2026, as compared to the same period in 2025, was boosted by the average decrease of Brazil’s exchange rate against U.S. dollar of 10.1%.
Current wording
Net revenues growth during the six and three-month periods ended June 30, 2026, as compared to the same periods in 2025, was boosted by the average decrease of Brazil’s exchange rate against U.S. dollar of 10.5% and 10.9%, respectively.
Previous wording
Net revenues growth during the three-month period ended March 31, 2026, as compared to the same period in 2025, was boosted by the average decrease of Mexico's exchange rate against U.S. dollar of 14.1%.
Current wording
Net revenues growth during the six and three-month periods ended June 30, 2026, as compared to the same periods in 2025, was boosted by the average decrease of Mexico's exchange rate against U.S. dollar of 12.6% and 11.0%, respectively.
Previous wording
Net revenues growth during the three-month period ended March 31, 2026, as compared to the same period in 2025, was offset by the average increase of Argentina’s exchange rate against U.S. dollar of 34.1%.
Current wording
Net revenues growth during the six and three-month periods ended June 30, 2026, as compared to the same periods in 2025, was offset by the average increase of Argentina’s exchange rate against U.S. dollar of 28.1% and 22.5%, respectively.
Previous wording
The following table sets forth the growth in net revenues and financial income in local currencies, for the three-month periods ended March 31, 2026 as compared to the same periods in 2025:
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, 2026 as compared to the same periods in 2025:
Previous wording
(2) For the three-month period ended March 31, 2026, the average inter-annual inflation rate in our Argentine segment of 32.7% was lower than the average inter-annual increase of Argentina’s official exchange rate against U.S. dollar of 34.1%.
Current wording
(2) For the six and three-month periods ended June 30, 2026, the average inter-annual inflation rates in our Argentine segment of 32.9% and 33.0%, respectively, were higher than the average inter-annual increase of Argentina’s official exchange rates against U.S. dollar of 28.1% and 22.5%, respectively.
Previous wording
For the three-month period ended March 31, 2026 as compared to the same period in 2025, the increase in cost of net revenues and financial expenses was primarily attributable to a: i) $787 million increase in shipping operating and carrier costs; ii) $400 million increase in cost of sales of goods mainly in Brazil and Mexico; iii) $185 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) $142 million increase in other fintech costs mainly related to higher funding costs in connection with the increase in the lending business portfolio; v) $134 million increase in sales taxes; and vi) $105 million increase in hosting and site operation fees.
Current wording
For the three-month period ended June 30, 2026 as compared to the same period in 2025, the increase in cost of net revenues and financial expenses was primarily attributable to a: i) $1,038 million increase in shipping operating and carrier costs; ii) $567 million increase in cost of sales of goods mainly in Brazil and Mexico; iii) $226 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) $147 million increase in sales taxes; v) $131 million increase in other fintech costs mainly related to higher funding costs in connection with the increase in the lending business portfolio; and vi) $127 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 6.0% of net revenues and financial income for the three-month period ended March 31, 2026, and 6.7% for the same period in 2025.
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 5.9% and 5.8% of net revenues and financial income for the six and three-month periods ended June 30, 2026, respectively, and 6.6% for the same periods in 2025.
Previous wording
For the three-month periods ended March 31, 2026 and 2025, our gross profit margins were 43.7% and 46.7%, respectively. The decrease in our gross profit margin was primarily attributable to the reduction of our free shipping threshold in Brazil together with an increase in our shipping operating costs and our cost of sales of goods as a percentage of net revenues and financial income, partially offset by a decrease in sales taxes and collection fees, as a percentage of net revenues and financial income.
Current wording
For the six and three-month periods ended June 30, 2026 and 2025, our gross profit margins were 42.2% and 40.9%, and 46.1% and 45.6%, respectively. The decrease in our gross profit margin was primarily attributable to the reduction of our free shipping threshold in Brazil together with an increase in our shipping operating costs and our cost of sales of goods as a percentage of net revenues and financial income, partially offset by a decrease in sales taxes, as a percentage of net revenues and financial income.
Previous 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 due to marketing initiatives, or the building up our logistics network. Our gross profit margin could also decline 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 first-party business, which has a lower pure product margin due to marketing initiatives, or the building up our logistics network. Our gross profit margin could also decline 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, 2026, the increase in product and technology development expenses as compared to the same period in 2025 was primarily attributable to a: i) $72 million increase in salaries and wages mainly related to the increase of 8% in our product and technology development headcount; ii) $41 million increase in technology maintenance and AI expenses; and iii) $23 million increase in other product and technology development expenses mainly related to higher tax withholding in connection with intercompany export services billing duties.
Current wording
For the three-month period ended June 30, 2026, the increase in product and technology development expenses as compared to the same period in 2025 was primarily attributable to a: i) $80 million increase in technology maintenance and AI expenses; and ii) $44 million increase in salaries and wages.
Previous wording
We believe that product and technology development and AI capabilities are two 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.
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 and AI capabilities to meet the increasingly sophisticated product expectations of our customer base.
Previous wording
For the three-month period ended March 31, 2026, the increase in sales and marketing expenses as compared to the same period in 2025 was primarily attributable to a: i) $250 million increase in online and offline marketing expenses across all of our main segments; ii) $75 million increase in our buyer protection program expenses; and iii) $43 million increase in salaries and wages mainly related to the increase of 43% in our sales and marketing headcount.
Current wording
For the three-month period ended June 30, 2026, the increase in sales and marketing expenses as compared to the same period in 2025 was primarily attributable to a: i) $232 million increase in online and offline marketing expenses mainly in Brazil and Mexico; ii) $80 million increase in our buyer protection program expenses; and iii) $47 million increase in salaries and wages mainly related to the increase of 40% in our sales and marketing headcount.
Previous wording
For the three-month period ended March 31, 2026, as compared to the same period in 2025, the provision for doubtful accounts increased $641 million, mainly due to the increase in originations growing at 81% (mostly related to the credit cards and consumer products). In addition, the increase in average duration of our consumers portfolio generated an increase in provisions.
Current wording
For the six and three-month periods ended June 30, 2026, as compared to the same periods in 2025, the charge related to the provision for doubtful accounts increased $1,227 million and $586 million, respectively, mainly due to the increase in originations growing at 82% and 83%, respectively (mostly related to the credit cards and consumer).
Previous wording
For the three-month period ended March 31, 2026, the increase in general and administrative expenses as compared to the same period in 2025 was primarily attributable to a: i) $48 million increase in salaries and wages, mainly related to the increase of 13% in general and administrative headcount; and ii) $28 million increase in legal, tax and other fees due to higher consulting fees and contingencies. This was partially offset by $12 million lower losses related to the fair value of digital assets held during the three-month period ended March 31, 2025.
Current wording
For the three-month period ended June 30, 2026, the increase in general and administrative expenses as compared to the same period in 2025 was primarily attributable to a: i) $48 million increase in salaries and wages, mainly related to the increase of 9% in general and administrative headcount; ii) $16 million lower gains related to the fair value of digital assets held during the three-month period ended June 30, 2025; and iii) $14 million increase in legal, tax and other fees due to higher consulting fees.
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, 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.
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 sales and marketing in order to promote our services and capture long-term business opportunities as well as the expansion of our credit portfolio, which contributes to the increase in our provision for doubtful accounts. As a result, we may experience decreases in our operating income margins.
Previous wording
For the three-month period ended March 31, 2026, as compared to the same period in 2025, our operating income margin decreased from 12.9% to 6.9%.
Current wording
For the six and three-month periods ended June 30, 2026, as compared to the same periods in 2025, our operating income margin decreased from 12.5% and 12.2% to 6.8% and 6.7%, respectively.
Previous wording
This decrease is mainly explained by the reduction of our free shipping threshold in Brazil, together with an increase in our shipping operating costs, our provision of doubtful accounts, driven by the expansion of our credit card portfolio, 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 marketing and sales expenses, as a percentage of net revenues and financial income.
Current wording
This decrease is mainly explained by the reduction of our free shipping threshold in Brazil, together with an increase in our shipping operating costs, our cost of net revenues and financial expenses and our provision of doubtful accounts, driven by the expansion of our credit card portfolio, as a percentage of net revenues and financial income, partially offset by a decrease in product and technology development, as a percentage of net revenues and financial income.
Previous wording
For the three-month period ended March 31, 2026, the decrease in other expense, net as compared to the same period in 2025 was primarily attributable to $61 million lower foreign exchange losses mainly from our Argentine subsidiaries. This was partially offset by an increase of $26 million in interest expense and other financial losses, mainly attributable to higher levels of indebtedness (mainly in Argentina and Brazil) and higher rates (mainly in Brazil).
Current wording
For the three-month period ended June 30, 2026, the decrease in other expense, net as compared to the same period in 2025 was primarily attributable to $72 million lower foreign exchange losses mainly from our Argentine subsidiaries. This was partially offset by an increase of $26 million in interest expense and other financial losses, mainly attributable to higher levels of indebtedness (mainly in Argentina and Brazil).
Previous wording
The following table presents our income tax expense for the three-month periods ended March 31, 2026 and 2025:
Current wording
The following table presents our income tax expense for the six and three-month periods ended June 30, 2026 and 2025:
Previous wording
During the three-month period ended March 31, 2026 as compared to the same period in 2025, income tax expense decreased mainly as a result of higher income tax gains in Brazil in 2026 driven by the increase in deferred tax assets in that segment.
Current wording
During the six and three-month periods ended June 30, 2026 as compared to the same periods in 2025, income tax expense decreased mainly as a result of higher income tax gains in Brazil in 2026 driven by the increase in deferred tax assets in that segment.
Previous wording
The following table summarizes our estimated effective tax rates for the three-month periods ended March 31, 2026 and 2025:
Current wording
The following table summarizes our estimated effective tax rates for the six and three-month periods ended June 30, 2026 and 2025:
Previous wording
Refer to Note 6 – Segments of our unaudited interim condensed consolidated financial statements for further information regarding the financial performance of the Company’s reporting segments for the three-month periods ended March 31, 2026 and 2025.
Current wording
Refer to Note 6 – Segments of our unaudited interim condensed consolidated financial statements for further information regarding the financial performance of the Company’s reporting segments for the six and three-month periods ended June 30, 2026 and 2025.
Previous wording
Net revenues and financial income for the three-month period ended March 31, 2026 as compared to the same period in 2025 are described above 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, 2026 as compared to the same periods in 2025 are described above 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."
Showing the first 40 of 66 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
For the six-month period ended June 30, 2026 as compared to the same period in 2025, the increase in cost of net revenues and financial expenses was primarily attributable to a: i) $1,826 million increase in shipping operating and carrier costs; ii) $967 million increase in cost of sales of goods mainly in Brazil and Mexico; iii) $412 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) $281 million increase in sales taxes; v) $274 million increase in other fintech costs mainly related to higher funding costs in connection with the increase in the lending business portfolio; and vi) $231 million increase in hosting and site operation fees.
Current report — wording carried from elsewhere
For the six-month period ended June 30, 2026, the increase in product and technology development expenses as compared to the same period in 2025 was primarily attributable to a: i) $121 million increase in technology maintenance and AI expenses; and ii) $116 million increase in salaries and wages.
Current report — wording carried from elsewhere
For the six-month period ended June 30, 2026, the increase in general and administrative expenses as compared to the same period in 2025 was primarily attributable to a: i) $96 million increase in salaries and wages; and ii) $42 million increase in legal, tax and other fees due to higher consulting fees.
Current report — wording carried from elsewhere
For the six-month period ended June 30, 2026, the decrease in other expense, net as compared to the same period in 2025 was primarily attributable to $133 million lower foreign exchange losses mainly from our Argentine subsidiaries. This was partially offset by an increase of $52 million in interest expense and other financial losses, mainly attributable to higher levels of indebtedness (mainly in Argentina and Brazil).
Current report — wording carried from elsewhere
For the six-month period ended June 30, 2026, as compared to the same period in 2025, segment costs increased mainly driven by a: i) $2,400 million increase in cost of net revenues and financial expenses, mostly 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 collection fees as a consequence of the higher transactions volume of our Mercado Pago business; ii) $873 million increase in provision for doubtful accounts mainly related to our credit cards, consumer and merchant credits product growth; and iii) $474 million increase in sales and marketing expenses mainly due to an increase in online and offline marketing expenses, buyer protection program expenses and salaries and wages.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
See Note 10. Loans payable and other financial liabilities our unaudited interim condensed consolidated financial statements for further detail.