Q2'26
Filed Aug 5, 2026Net revenues & financial income of $10,169 million, up 50% YoY, while income from operations of $683 million declined 17% YoY.
The company reported 50% YoY growth in net revenues & financial income, 56% YoY growth in Total Payment Volume and 44% YoY growth in Gross Merchandise Volume, while management continued to invest for long-term ecosystem engagement despite a 17% YoY decline in income from operations.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenues & financial incomeother | $10,169 million | – | up 50% YoY |
| Net revenues & financial income growth, FX-neutralother | 43% | – | 43% FX-neutral |
| Income from operationsother | $683 million | – | declined 17% YoY |
| Income from operations marginother | 6.7% | broadly stable QoQ | – |
| Net incomeother | $466 million | – | – |
| Net income marginother | 4.6% | – | – |
| Total Payment Volumeother | $101 billion | – | up 56% YoY and 56% FX-neutral |
| Gross Merchandise Volumeother | $21.9 billion | – | up 44% YoY and 36% FX-neutral |
| Items per buyerother | 14% | – | rising 14% YoY |
| Items per buyer, Brazilother | 19% | – | growth was 19% YoY |
| AUM per userother | $264 | – | growing 29% YoY |
| Consumer portfolio credit exposure per userother | $231 | – | growing 34% YoY |
| Credit card portfolio credit exposure per userother | $446 | – | growing 20% YoY |
| Unique buyers in Commerceother | 26% | – | grew 26% YoY |
| Fintech MAUsother | 30% | – | grew 30% YoY |
| Ecosystemic usersother | 37% | – | grew 37% YoY |
| Ecosystemic users share of total user baseother | 8ppts | – | expanding by 8ppts over that period |
| Marketplace GMV per ecosystemic user versus marketplace-only usersother | 70% | – | generated 70% more GMV |
| Items sold per ecosystemic user versus marketplace-only usersother | 55% | – | 55% more items sold per user |
| MELI+ subscriber growthother | 72% | – | up 72% YoY |
| Brazil FX-neutral GMV growthother | 39% | – | growing 39% YoY |
| Brazil sold items growthother | 56% | – | grew 56% YoY |
| Brazil conversionother | 1.1ppts | – | up 1.1ppts YoY |
| Brazil active sellersother | 29% | – | grew 29% YoY |
| Mexico FX-neutral GMV growthother | 26% | – | grew 26% YoY |
| Mexico sold items growthother | 34% | – | grew 34% YoY |
| Argentina FX-neutral GMV growthother | 38% | – | growth decelerated to 38% YoY |
| Argentina sold items growthother | 22% | – | grew 22% YoY |
| Cross-border trade FX-neutral GMV growthother | 60% | – | growing 60% YoY |
| China fulfillment center volume growthother | 170% | grew 170% QoQ | – |
| Digital advertising market share in Latin Americaother | 10% | – | – |
| Advertising net revenue growth, FX-neutralother | 62% | – | growing 62% YoY on an FX-neutral basis |
What drove it
- Brazil continued to show the strongest trends.
- The lower free shipping threshold in Brazil supported a step-change in conversion, with conversion in Q2'26 up 1.1ppts YoY.
- PIX discounts for buyers and conditional take-rate discounts for sellers improved the price competitiveness index and coincided with 29% YoY active-seller growth in Brazil.
- Cross-border trade contributed materially to growth, with FX-neutral GMV growing 60% YoY.
- Advertising net revenue grew 62% YoY on an FX-neutral basis and surpassed 10% share of the digital advertising market in Latin America.
- MELI+ subscriber growth accelerated since late last year and was up 72% YoY.
Concerns
- Income from operations declined 17% YoY despite 50% YoY net revenues & financial income growth.
- Management stated that it is prioritizing long-term value creation over short-term profitability through investment.
- Argentina FX-neutral GMV growth decelerated to 38% YoY amid a challenging consumption environment.
- Mexico faced a continued headwind from the tax reform flagged in the prior quarter's shareholder letter.
What to watch
- Whether income from operations margin remains broadly stable QoQ as investment continues.
- The durability of Brazil conversion gains following the June 2025 free-shipping-threshold reduction.
- Progress in making free and slow shipments variable contribution-positive across ASP ranges between R$19 and R$79.
- The pace of ecosystemic-user adoption, which grew 37% YoY, and MELI+ subscriber growth, which was up 72% YoY.
- Cross-border trade momentum, including volume growth in the China fulfillment center.
Analysis
MercadoLibre reported exceptional top-line and payments growth in Q2'26. Net revenues & financial income reached $10,169 million, up 50% YoY and 43% FX-neutral. Total Payment Volume was $101 billion, up 56% YoY and 56% FX-neutral, while Gross Merchandise Volume was $21.9 billion, up 44% YoY and 36% FX-neutral. Management identified Brazil as the strongest source of growth.
Commerce activity was supported by deeper user engagement and by the Brazil free-shipping-threshold change. Items per buyer rose 14% YoY, including 19% YoY growth in Brazil. Brazil FX-neutral GMV increased 39% YoY and sold items rose 56% YoY. Conversion was up 1.1ppts YoY even as the company lapped the June 2025 threshold reduction, while active sellers grew 29% YoY after the introduction of PIX buyer discounts and conditional seller take-rate discounts.
The ecosystem strategy continued to deepen fintech and marketplace usage. Unique buyers in Commerce grew 26% YoY, Fintech MAUs grew 30% YoY, and ecosystemic users grew 37% YoY. AUM per user reached $264, up 29% YoY, while consumer and credit-card portfolio credit exposure per user reached $231 and $446, growing 34% and 20% YoY, respectively. MELI+ subscriber growth was up 72% YoY, reinforcing management's focus on recurring engagement across Commerce and Fintech.
Profitability did not track the pace of revenue growth. Income from operations was $683 million, down 17% YoY, with a 6.7% margin that was broadly stable QoQ. Net income was $466 million and the net income margin was 4.6%. Management explicitly characterized current spending as an intentional trade-off in favor of long-term value creation, supported by the economics of a more engaged ecosystem.
Geographic and supply-related growth remained broad but uneven. Mexico delivered 26% FX-neutral GMV growth and 34% sold-item growth despite a tax-reform headwind. Argentina growth decelerated to 38% in FX-neutral GMV and 22% in sold items amid a challenging consumption environment. Cross-border trade grew 60% YoY on an FX-neutral GMV basis, and advertising net revenue grew 62% YoY on an FX-neutral basis. No forward guidance, cash-flow information, balance-sheet data, or capital-return information was included in the supplied filing text.
Not in the filing
stated, not guessed- GAAP versus non-GAAP basis for reported income statement metrics
- Gross profit and gross margin
- Operating expenses
- Diluted EPS, including GAAP and non-GAAP diluted EPS
- Segment revenue disclosure
- Cash balance
- Debt balance
- Operating cash flow
- Free cash flow
- Share repurchases
- Dividends
- Forward guidance
- Prior-quarter values for net revenues & financial income, income from operations, net income, Total Payment Volume, and Gross Merchandise Volume
- Prior-year values for net revenues & financial income, income from operations, net income, Total Payment Volume, and Gross Merchandise Volume
- Named executive quotes
- The remainder of the shareholder letter and any financial statements or tables not included in the supplied filing text
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.