Mercado Libre, Latin America's leading e-commerce firm, reported net revenues of US$7,400 million for the third quarter of 2025, a 39% year-over-year increase that beat analyst expectations. Yet, net profit of US$421 million fell short due to instability in Argentina. Growth was driven by initiatives in Brazil and Mexico.
Mercado Libre released its third-quarter 2025 financial results (July-September), recording net revenues of US$7,400 million, a 39% increase from the previous year. This figure exceeded analyst projections of US$7,200 million and marked the 27th consecutive quarter of revenue growth. Gross merchandise value (GMV) rose 35% in constant currency terms.
Operating income reached US$724 million, up 30% year-over-year, though it missed expectations of US$752 million. Net profit was US$421 million, a 6% rise from 2024 but below the anticipated US$481 million, impacted by Argentina's peso devaluation, higher tax rates there, and reduced demand from economic instability. "The slowdown in sales in Argentina since the first half of the year also contributed to margin contraction," explained chief financial officer Martín de los Santos.
In Brazil, its main market, lowering the free shipping threshold in June drove 34% GMV growth and 42% in items sold, with unique buyers up 29%, the fastest pace since Q1 2021. "We made investments in Brazil and we're already seeing the fruits of those investments," de los Santos stated. These steps, along with expanded credit card offerings, reduced online purchase friction and boosted Mercado Pago preference, though operating margins (Ebit) dropped to 9.8%, the lowest since Q4 2023.
Mexico delivered strong performance, with 42% growth in items sold and 34% in GMV in constant currency, fueled by cross-border trade, 1P business, and record fulfillment penetration. In Argentina, items sold increased 34% and GMV 44%. For Mercado Pago, the loan portfolio grew 83% to US$11,000 million, with delinquency falling to 6.8%, and payment volume rose 32% to US$47,700 million. Headquartered in Uruguay, the company stressed its focus on long-term growth opportunities despite short-term margin pressures.