Mercado Libre reports strong Q1 2025 growth, with increased unique buyers, revenue, and fintech engagement across Latin America.
Quiver AI Summary
Mercado Libre reported strong first-quarter results for 2025, highlighting nearly 67 million unique buyers in commerce and 64 million monthly active fintech users, representing significant year-over-year growth. The company's net revenue and financial income increased by 37% to $5.9 billion, with net income rising 44% to $494 million. Commerce performance was bolstered by record brand preference in key markets like Brazil, Mexico, Argentina, and Chile, leading to a 17% increase in Gross Merchandise Value (GMV) to $13.3 billion. Argentina's impressive growth saw FX-neutral GMV surge 126%, while overall fintech activity grew, with a credit portfolio expansion of 75% to $7.8 billion. Mercado Libre is focused on enhancing its user experience, driving efficiencies in logistics, and expanding its advertising reach. With these developments, the company aims to capture more market share and solidify its leadership as a pivotal player in the ongoing shift from traditional retail to e-commerce in Latin America.
Potential Positives
- Net revenue increased 37% YoY to reach $5.9 billion, highlighting robust financial performance.
- Unique buyers rose by 25% YoY to almost 67 million, representing the highest level of new buyer growth since early 2021.
- Mercado Pago's monthly active users reached 64 million, a 31% YoY increase, indicating strong user engagement and growth in fintech services.
- Argentina experienced exceptional growth with FX-neutral GMV surging 126% YoY, showcasing the company's strength in a key market.
Potential Negatives
- Despite strong growth numbers, the press release does not address any potential risks or challenges the company may face, such as market competition or economic conditions in Latin America that could impact future performance.
- The high non-performing loans (8.2% NPL ratio) in the credit portfolio may signal potential risks in credit quality and could affect investor confidence.
- While there is significant growth in unique buyers and fintech users, there is no information provided regarding user churn or retention rates, which are critical for long-term sustainability.
FAQ
What were Mercado Libre's net revenues in Q1 2025?
Mercado Libre reported net revenues of $5.9 billion in the first quarter of 2025, a 37% year-over-year increase.
How many monthly active users does Mercado Pago have?
Mercado Pago reached 64 million monthly active users in Q1 2025, growing 31% year-over-year.
Which country showed outstanding growth for Mercado Libre in Q1 2025?
Argentina exhibited remarkable growth, with FX-neutral GMV soaring 126% year-over-year in Q1 2025.
What growth did Gross Merchandise Value (GMV) experience?
Mercado Libre's Gross Merchandise Value (GMV) rose 17% year-over-year, reaching $13.3 billion in Q1 2025.
What percentage of items sold grew in Q1 2025?
Items sold on Mercado Libre increased by 28%, reaching 492 million units in the first quarter of 2025.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$MELI Congressional Stock Trading
Members of Congress have traded $MELI stock 4 times in the past 6 months. Of those trades, 3 have been purchases and 1 have been sales.
Here’s a breakdown of recent trading of $MELI stock by members of Congress over the last 6 months:
- REPRESENTATIVE MARJORIE TAYLOR GREENE purchased up to $15,000 on 05/05.
- REPRESENTATIVE ROBERT BRESNAHAN purchased up to $15,000 on 03/10.
- REPRESENTATIVE JOSH GOTTHEIMER has traded it 2 times. They made 1 purchase worth up to $15,000 on 11/15 and 1 sale worth up to $15,000 on 01/27.
To track congressional stock trading, check out Quiver Quantitative's congressional trading dashboard.
$MELI Insider Trading Activity
$MELI insiders have traded $MELI stock on the open market 1 times in the past 6 months. Of those trades, 0 have been purchases and 1 have been sales.
Here’s a breakdown of recent trading of $MELI stock by insiders over the last 6 months:
- EMILIANO CALEMZUK sold 50 shares for an estimated $99,249
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$MELI Hedge Fund Activity
We have seen 673 institutional investors add shares of $MELI stock to their portfolio, and 587 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- BAILLIE GIFFORD & CO removed 511,949 shares (-11.9%) from their portfolio in Q1 2025, for an estimated $998,745,945
- CAPITAL INTERNATIONAL INVESTORS added 470,829 shares (+38.7%) to their portfolio in Q4 2024, for an estimated $800,616,464
- PRICE T ROWE ASSOCIATES INC /MD/ added 405,425 shares (+41.0%) to their portfolio in Q4 2024, for an estimated $689,400,887
- WEALTHFRONT ADVISERS LLC removed 332,447 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $648,560,878
- CAPITAL WORLD INVESTORS added 308,973 shares (+24.5%) to their portfolio in Q4 2024, for an estimated $525,390,048
- MORGAN STANLEY added 271,510 shares (+14.6%) to their portfolio in Q4 2024, for an estimated $461,686,464
- WINSLOW CAPITAL MANAGEMENT, LLC removed 206,481 shares (-99.9%) from their portfolio in Q4 2024, for an estimated $351,108,551
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
$MELI Analyst Ratings
Wall Street analysts have issued reports on $MELI in the last several months. We have seen 4 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- Morgan Stanley issued a "Overweight" rating on 05/01/2025
- Cantor Fitzgerald issued a "Overweight" rating on 04/16/2025
- Citigroup issued a "Buy" rating on 04/15/2025
- New Street issued a "Buy" rating on 01/30/2025
To track analyst ratings and price targets for $MELI, check out Quiver Quantitative's $MELI forecast page.
Full Release
Montevideo, Uruguay. May 7, 2025, May 07, 2025 (GLOBE NEWSWIRE) --
- Unique buyers in commerce reached almost 67 million in the first quarter, with new buyers sustaining the highest level of growth since early 2021, and fintech monthly active users crossed 64 million in the first quarter, growing 31% YoY.
- Commerce value prop strengthens as brand preference reaches all-time highs in key markets and Fintech is seeing rising engagement.
- Argentina was the highlight of the quarter, capturing strong growth in GMV, TPV, credit and AUM given the strength of our competitive position and brand amid macro stabilizatio n.
Montevideo, Uruguay. May 7, 2025 — Mercado Libre (NASDAQ: MELI), the leading e-commerce and fintech platform in Latin America, kicked off the year with strong momentum, reporting solid results for the first quarter of 2025, boosted by continued strategic investments and ever improving value proposition. Net revenue and financial income increased 37% YoY to reach $5.9 billion, while income from operations rose 45% YoY to $763 million. Net income for the quarter reached $494 million, a 44% YoY increase.
Mercado Libre’s commerce business continues to strengthen as brand preference reached all-time highs in key markets, including Brazil, Mexico, Argentina, and Chile. This is helping to take share from physical commerce, which still accounts for approximately 85% of retail spend in Latin America. This quarter, Gross Merchandise Value (GMV), the total value of merchandise sold on the platform, rose 17% YoY in dollars to reach $13.3 billion, with 40% FX Neutral growth. Unique buyers increased 25% YoY to almost 67 million, sustaining the highest level of new buyer growth since early 2021. Items sold rose 28% in Q1'25, reaching 492 million units.
Argentina’s performance was spectacular, with FX-neutral GMV surging 126% YoY, and items sold growing 52% YoY. Mercado Libre also recorded strong FX-neutral GMV growth of 30% in Brazil and 23% in Mexico, in both cases growing ahead of the market. Regionally, the supermarket items sold grew 65% YoY in Q1, outpacing all other categories as user experience initiatives, such as improved navigation and a repeat purchase feature, helped support higher purchase frequency.
In logistics, our growing scale and sharp focus on efficiency and productivity initiatives are reducing costs. This led to a YoY decline in cost per fulfillment order in local currency in Brazil, Mexico and Chile.These improvements are fueling continued investment in key initiatives like free shipping. The company also expanded its advertising inventory by launching the Mercado Play app on TVs at the end of Q1 2025. The app is now available to download on more than 70 million Smart TVs across the region delivering over 15,000 hours of free content across mobile and TV platforms. Advertising revenue increased 26%YoY (50% FXN), leveraging the company’s first-party data to gain share in Latin America’s digital advertising market.
In fintech, Mercado Pago monthly active users reached 64 million in the first quarter, a 31% YoY increase, with Brazil, Mexico, and Chile outpacing the overall average. Users benefited from competitive yields on deposits with immediate liquidity, driving stronger engagement and greater loyalty across the platform’s services. The credit portfolio expanded considerably, growing 75% YoY to $7.8 billion, with particularly strong growth in Brazil. Non-performing loans remained stable, with a 15–90 day NPL ratio of 8.2% for the overall portfolio and first payment defaults in Brazil’s credit card portfolio reaching new lows.
Merchant acquiring continued to see rapid payment volume growth, with acquiring total payment volume (TPV) rising close to 30% YoY in Brazil, 50% in Mexico and 144% in Argentina, on an FX-neutral basis, reflecting not only sustained momentum across markets, but also continued market share gains across all three markets.
“Mercado Libre started 2025 with exceptional momentum, driven by strong operational performance across both commerce and fintech. This quarter highlights our continued commitment to sustainable, profitable growth as we capture the many opportunities ahead. We remain a key force in accelerating the shift from traditional retail to e-commerce, supported by ongoing investments aimed at delivering a seamless user experience. Engagement in Mercado Pago remains robust, with strong growth in assets under management and our credit portfolio. Our outstanding financial performance in Q1 is clear evidence that our strategic investments are delivering results and further strengthening our leadership in commerce and fintech across the region.”
said Mercado Libre CFO Martin de los Santos.
Highlights for Q1 2025
Financial
:
- Net revenue of $5.9 billion, rising 37% YoY in dollars.
- Income from operations reached $763 million, a 12.9% margin.
- Net income reached $494 million, a 8.3% margin.
Commerce:
- Net revenue from the commerce business in the first quarter grew 32% in dollars YoY, reaching $3.3 billion, 59% FXN growth.
- Gross Merchandise Value (GMV), the total value of merchandise sold on our platform, rose 17% in dollars YoY to reach $13.3 billion, with a 40% FXN growth.
- Unique buyers across the region rose 25% YoY to almost 67 million.
- Items sold rose 28% this quarter, reaching 492 million units.
- Same and next day shipping reaching 50% and shipping in less than 48h reaching 74%.
- Advertising revenue from Mercado Ads , the digital advertising business grew 26% YoY (50% FXN) in Q1'25.
Fintech :
- Net revenue from Mercado Pago in the first quarter grew 43% in dollars YoY, reaching $2.6 billion, 72% FXN growth.
- Total payment volume (TPV) rose 43% YoY in dollars to reach $58.3 billion.
- Monthly active users rose over 31% to reach 64 million.
- Assets under management grew 103 % YoY reaching $11.2 billion.
- Credit portfolio grew 75% YoY to $7.8 billion in the first quarter.
- Mercado Pago's credit card portfolio has increased an impressive 111% YoY, reaching $3.2 billion.
- Acquiring TPV, which represents all payments processed and settled via Mercado Pago, both on the marketplace and outside of it (MPOS devices, online payments and QR codes), grew 32% in dollars YoY to reach $40.3 billion.
- Total payment transactions (TPN) in the first quarter increased by 38% YoY, reaching over 3.3 billion.
About Mercado Libre
Founded in 1999, MercadoLibre, Inc (NASDAQ: MELI) is the leading company in e-commerce and financial technology in Latin America, with operations in 18 countries. It offers a complete ecosystem of solutions for individuals and businesses to buy, sell, advertise, obtain credit and insurance, collect, send money, save, and pay for goods and services both online and offline. Mercado Libre looks to facilitate access to commerce and financial services in Latin America, a market that offers great opportunities and high growth potential. It uses world-class technology to create intuitive solutions tailored to the local culture to transform the lives of millions of people in the region. More information at http://investor.mercadolibre.com/ |