MERCADOLIBRE INC
For the period ended Sep 30, 2026. Filed Nov 5, 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.
Sep 30, 2026 · Filed Nov 5, 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 2026-06-30; filed 2026-08-06.
0001099590-26-000023
ITEM 2. — MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-05.
0001099590-26-000029
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 254 previous paragraphs and 260 current paragraphs.
161 unchanged; 83 reworded; 15 added; 10 removed; 0 previous and 1 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 (15)
Current report
In September 2026, the CNV issued Resolution No. 1167, establishing a regulatory framework for Labor Assistance Funds (“FAL”) through Mutual Funds and Financial Trusts. The regulation sets out requirements for the establishment, administration and operation of these funds, including investment restrictions, reporting obligations, portability mechanisms and limits on fees and expenses. Mercado Pago Asset Management S.A., as a registered Mutual Fund Management Company, is currently working on the launch of a FAL Mutual Fund. Subsequently, Decree No. 1228/2026, published on October 20, 2026, postponed the effective date of the FAL regime from November 1, 2026, to December 1, 2026, and extended the minimum waiting period for the use of accumulated funds from six to twelve monthly contribution periods. On November 3, 2026, the CNV assigned the registration number to the FAL Mutual Fund.
Current report
On August 21, 2026, the CBU authorized MercadoPago Uruguay S.R.L. to offer the Prepaid Card to its customers. On October 1, 2026, the CBU also authorized MercadoPago Uruguay S.R.L. to incorporate the activity of Electronic Payment Processing Terminal Administrator, and to offer Mercado Pago Point, its payment processing terminal.
Current report
Bermuda
Current report
In August 2026, the Bermuda Monetary Authority (BMA) extended the Class M Digital Asset Business licenses held by Meli ISAC Ltd. and Meli ISA Ltd., both operating under Bermuda’s Digital Asset Business Act 2018, for an additional six-month period through February 18, 2027.
Current report
Results of operations for the nine and three-month periods ended September 30, 2026 compared to the nine and three-month periods ended September 30, 2025
Current report
The following table summarizes our consolidated net revenues and financial income for the nine and three-month periods ended September 30, 2026 and 2025:
Current report
Commerce revenues in Mexico increased 45.4% in the nine-month period ended September 30, 2026 as compared to the same period in 2025. This increase was driven by an increase of $930 million in our Commerce services revenues and an increase of $349 million in our revenues from Commerce product sales. Fintech revenues grew 69.5%, a $1,084 million increase, during the nine-month period ended September 30, 2026 as compared to the same period in 2025, mainly driven by an increase of $640 million in our Credit revenues and an increase of $442 million in our revenues from Financial services and income.
Current report
Commerce revenues in Mexico increased 38.6% in the three-month period ended September 30, 2026 as compared to the same period in 2025. This increase was driven by an increase of $286 million in our Commerce services revenues and an increase of $118 million in our revenues from Commerce product sales. Fintech revenues grew 62.0%, a $374 million increase, during the three-month period ended September 30, 2026 as compared to the same period in 2025, mainly driven by an increase of $223 million in our Credit revenues and an increase of $151 million in our revenues from Financial services and income.
Current report
Commerce revenues in Argentina increased 36.9% in the three-month period ended September 30, 2026 as compared to the same period in 2025. This increase was driven by an increase of $145 million in our Commerce services revenues and an increase of $38 million in our revenues from Commerce product sales. Fintech revenues increased 20.4%, a $194 million increase, during the three-month period ended September 30, 2026 as compared to the same period in 2025, mainly driven by an increase of $109 million in our Credit revenues and an increase of $85 million in our revenues from Financial services and income.
Current report
For the three-month period ended September 30, 2026, the increase in general and administrative expenses as compared to the same period in 2025 was primarily attributable to a $70 million increase in salaries and wages, which also includes higher recruitment expenses.
Current report
60 | MercadoLibre, Inc.
Current report
61 | MercadoLibre, Inc.
Current report
62 | MercadoLibre, Inc.
Current report
63 | MercadoLibre, Inc.
Current report
64 | MercadoLibre, Inc.
Removed paragraphs (10)
Previous report
38 | MercadoLibre, Inc.
Previous report
39 | MercadoLibre, Inc.
Previous report
40 | MercadoLibre, Inc.
Previous 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
Previous report
41 | MercadoLibre, Inc.
Previous report
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 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.
Previous 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.
Previous 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.
Previous report
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.
Reworded paragraphs (83)
Previous wording
■a discussion of our principal trends and results of operations for the six and three-month periods ended June 30, 2026 and 2025;
Current wording
■a discussion of our principal trends and results of operations for the nine and three-month periods ended September 30, 2026 and 2025;
Previous wording
Beyond facilitating Marketplace transactions, over the years we have expanded our array of Mercado Pago services to third parties outside Mercado Libre’s Marketplace. We began first by satisfying the growing demand for online-based payment solutions by providing merchants the necessary digital payment infrastructure for e-commerce to flourish in Latin America.
Current wording
Beyond facilitating Marketplace transactions, over the years we have expanded our array of Mercado Pago services to third parties outside Mercado Libre’s Marketplace. We began first by satisfying the growing demand for online-based payment solutions by providing merchants the necessary digital payment infrastructure for e-commerce to flourish in Latin America. We subsequently offered our payments processing services to merchants in the physical world through Point of Sales (“POS”) devices in Argentina, Brazil, Mexico and Chile, and QR codes in Argentina and Brazil.
Previous wording
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 wording
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. As of the resolution’s effective date of October 1, 2026, Brazilian Mercado Pago entities had implemented the required obligations and are continuing to monitor sellers that are required to obtain BACEN authorization prior to May 2027.
Previous wording
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 wording
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. As of the date of this filing, the entire regulatory framework is fully enforceable and applicable to MercadoLibre S.R.L. and Mercado Pago Servicios de Procesamiento S.R.L. and the necessary adjustments to align their existing technology and information security controls with the new requirements have been substantially implemented.
Previous wording
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 wording
In June 2026, the CNV issued several resolutions 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.
Previous wording
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 wording
On May 7, 2026, the Board of the Central Bank of Uruguay ("CBU") authorized MercadoPago Uruguay S.R.L. to offer interest-bearing accounts through a partner. The product is available to individual customers.
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, 2026 and 2025:
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, 2026 and 2025:
Previous 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.
Current wording
Net revenues and financial income for the nine and three-month periods ended September 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 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.
Current wording
The selected financial data for the nine and three-month periods ended September 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 nine and three-month periods ended September 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 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.
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, 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 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.
Current wording
Our net revenues and financial income grew during the nine and three-month periods ended September 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 by revenue stream and geographic segment for the six and three-month periods ended June 30, 2026 and 2025:
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, 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 six and three-month periods ended June 30, 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 nine and three-month periods ended September 30, 2026 and 2025.
Previous 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:
Current wording
Our Commerce revenues grew $5,455 million and $1,967 million, or 48.2% and 47.2%, for the nine and three-month periods ended September 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 $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
Current wording
■an increase of $3,683 million and $1,355 million in our Commerce services revenues for the nine and three-month periods ended September 30, 2026, respectively, mainly related to a 41% and 38% increase in gross merchandise volume. Shipping carrier costs netted against revenues increased $100 million, from $706 million for the nine-month period ended September 30, 2025, to $806 million for the nine-month period ended September 30, 2026. For the three-month period ended September 30, 2026 as compared to the same period in 2025, shipping carrier costs netted against revenues decreased $4 million, from $262 million for the three-month period ended September 30, 2025, to $258 million for the three-month period ended September 30, 2026; and
Previous 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.
Current wording
■an increase of $1,772 million and $612 million in our revenues from Commerce product sales for the nine and three-month periods ended September 30, 2026, as compared to the same periods in 2025, respectively, mainly in Brazil and Mexico.
Previous 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:
Current wording
Our Fintech revenues grew 47.4% and 42.5%, from $8,818 million and $3,235 million for the nine and three-month periods ended September 30, 2025, to $12,993 million and $4,609 million for the nine and three-month periods ended September 30, 2026, respectively. This increase was mainly generated by:
Previous 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
Current wording
■an increase of $2,703 million and $885 million in our Credit revenues for the nine and three-month periods ended September 30, 2026, respectively, mainly as a consequence of higher originations; and
Previous 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.
Current wording
■an increase of $1,466 million and $489 million in our revenues from Financial services and income for the nine and three-month periods ended September 30, 2026, respectively, mainly related to our off-platform transactional fees and financing transactions, as a result of a 53% and 53% increase in our total payment volume.
Previous wording
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 wording
Commerce revenues in Brazil increased 53.1% in the nine-month period ended September 30, 2026 as compared to the same period in 2025. This increase was generated by an increase of $2,189 million in our Commerce services revenues and an increase of $1,214 million in our revenues from Commerce product sales. Fintech revenues grew by 56.3%, a $2,338 million increase during the nine-month period ended September 30, 2026 as compared to the same period in 2025, mainly driven by an increase of $1,669 million in our Credit revenues and an increase of $667 million in our revenues from Financial services and income.
Previous 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.
Current wording
Commerce revenues in Brazil increased 51.5% in the three-month period ended September 30, 2026 as compared to the same period in 2025. This increase was generated by an increase of $829 million in our Commerce services revenues and an increase of $414 million in our revenues from Commerce product sales. Fintech revenues grew by 47.1%, a $749 million increase during the three-month period ended September 30, 2026 as compared to the same period in 2025, mainly driven by an increase of $542 million in our Credit revenues and an increase of $207 million in our revenues from Financial services and income.
Previous 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.
Current wording
Net revenues growth during the nine and three-month periods ended September 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 8.9% and 5.7%, respectively.
Previous 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.
Current wording
Net revenues growth during the nine and three-month periods ended September 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 10.9% and 7.3%, respectively.
Previous wording
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 wording
Commerce revenues in Argentina increased 28.1% in the nine-month period ended September 30, 2026 as compared to the same period in 2025. This increase was driven by an increase of $318 million in our Commerce services revenues and an increase of $101 million in our revenues from Commerce product sales. Fintech revenues increased 20.5%, a $586 million increase, during the nine-month period ended September 30, 2026 as compared to the same period in 2025, mainly driven by an increase of $368 million in our Credit revenues and an increase of $218 million in our revenues from Financial services and income.
Previous 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.
Current wording
Net revenues growth during the nine and three-month periods ended September 30, 2026, as compared to the same periods in 2025, was partially offset by the average increase of Argentina’s exchange rate against U.S. dollar of 22.2% and 12.5%, respectively.
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, 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 nine and three-month periods ended September 30, 2026 as compared to the same periods in 2025:
Previous 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.
Current wording
(2) For the nine and three-month periods ended September 30, 2026, the average inter-annual inflation rates in our Argentine segment of 33.1% and 33.6%, respectively, were higher than the average inter-annual increase of Argentina’s official exchange rates against U.S. dollar of 22.2% and 12.5%, respectively.
Previous wording
Cost of net revenues and financial expenses primarily includes shipping operation costs (including warehousing costs), carrier and other operating costs, cost of goods sold, collection fees, sales taxes, funding costs related to our fintech business, fraud prevention expenses, hosting and site operation fees, artificial intelligence (“AI”) capabilities expenses, certain tax withholding related to export duties, compensation for customer support personnel and depreciation and amortization. The following table presents cost of net revenues and financial expenses for the periods indicated:
Current wording
Cost of net revenues and financial expenses primarily includes shipping operation costs (including warehousing costs), carrier and other operating costs, cost of goods sold, collection fees, sales taxes, funding costs related to our fintech business, fraud prevention expenses, hosting, artificial intelligence (“AI”) capabilities expenses, certain tax withholding related to export duties, compensation for customer support personnel and depreciation and amortization. The following table presents cost of net revenues and financial expenses for the periods indicated:
Previous wording
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 wording
For the nine-month period ended September 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) $2,883 million increase in shipping operating and carrier costs; ii) $1,456 million increase in cost of sales of goods mainly in Brazil and Mexico; iii) $610 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) $399 million increase in sales taxes; and v) $380 million increase in hosting.
Previous 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.
Current wording
For the three-month period ended September 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) $1,057 million increase in shipping operating and carrier costs; ii) $489 million increase in cost of sales of goods mainly in Brazil and Mexico; iii) $198 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) $149 million increase in hosting; and v) $118 million increase in sales taxes.
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 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.
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 5.8% and 5.5% of net revenues and financial income for the nine and three-month periods ended September 30, 2026, respectively, and 6.6% and 6.4% for the same periods in 2025, respectively.
Previous 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.
Current wording
For the nine and three-month periods ended September 30, 2026 and 2025, our gross profit margins were 41.7% and 40.8%, and 45.1% and 43.3%, respectively. The decrease in our gross profit margin was primarily attributable to 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. Additionally, for the nine-month period ended September 30, 2026, the decrease is also explained by the reduction of our free shipping threshold in Brazil.
Previous 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.
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 building up of 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 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 wording
For the nine-month period ended September 30, 2026, the increase in product and technology development expenses as compared to the same period in 2025 was primarily attributable to a: i) $193 million increase in technology maintenance and AI expenses; and ii) $172 million increase in salaries and wages.
Previous 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.
Current wording
For the three-month period ended September 30, 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 technology maintenance and AI expenses; and ii) $56 million increase in salaries and wages.
Previous wording
Our sales and marketing expenses consist primarily of costs related to marketing our platforms through online and offline advertising and agreements with portals, search engines and other sales expenses related to strategic marketing initiatives, charges related to our buyer protection program, the salaries of employees involved in these activities (including long term retention program compensation), chargebacks related to our Mercado Pago operations, branding initiatives, marketing activities for our users and depreciation and amortization expenses.
Current wording
Our sales and marketing expenses consist primarily of costs related to marketing our platforms through online and offline advertising and agreements with portals, search engines and other sales expenses related to strategic marketing initiatives, expenses related to our affiliates program, charges related to our buyer protection program, the salaries of employees involved in these activities (including long term retention program compensation), chargebacks related to our Mercado Pago operations, branding initiatives, marketing activities for our users and depreciation and amortization expenses.
Previous wording
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 wording
For the nine-month period ended September 30, 2026, the increase in sales and marketing expenses as compared to the same period in 2025 was primarily attributable to a: i) $759 million increase in online and offline marketing expenses mainly in Brazil and Mexico; ii) $228 million increase in our buyer protection program expenses; and iii) $131 million increase in salaries and wages mainly related to the increase of 27% in our sales and marketing headcount.
Previous 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.
Current wording
For the three-month period ended September 30, 2026, the increase in sales and marketing expenses as compared to the same period in 2025 was primarily attributable to a: i) $276 million increase in online and offline marketing expenses mainly in Brazil and Mexico; ii) $74 million increase in our buyer protection program expenses; and iii) $40 million increase in salaries and wages mainly related to the increase of 35% in our sales and marketing headcount.
Previous 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).
Current wording
For the nine and three-month periods ended September 30, 2026, as compared to the same periods in 2025, the charge related to the provision for doubtful accounts increased $1,754 million and $527 million, respectively, mainly due to the increase in originations growing at 77% and 70%, respectively (related to the credit cards, consumer and merchant).
Previous wording
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 wording
For the nine-month period ended September 30, 2026, the increase in general and administrative expenses as compared to the same period in 2025 was primarily attributable to a: i) $166 million increase in salaries and wages, which also includes higher recruitment expenses; and ii) $51 million increase in legal, tax and other fees due to higher consulting fees.
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Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
See Note 10 – Loans payable and other financial liabilities of our unaudited interim condensed consolidated financial statements for further detail.