Business Description
MercadoLibre, Inc. operates as a prominent provider of digital commerce platforms throughout Latin America. Its primary service, the Mercado Libre Marketplace, is an automated online system allowing businesses, independent vendors, and private individuals to list merchandise and finalize sales. Supporting this, the Mercado Pago FinTech platform offers a financial technology solution, facilitating transactions both on and off its e-commerce sites by enabling users to securely send and receive online payments and transfer funds via web and mobile applications. The company further expands its financial offerings through Mercado Fondo, a service that permits users to invest balances held in their Mercado Pago accounts, and Mercado Credito, which extends credit options to qualified merchants and consumers. For logistics, Mercado Envios provides a comprehensive solution, empowering sellers on its platform to utilize third-party delivery services and other logistical partners, including warehousing and fulfillment capabilities. Beyond these core services, MercadoLibre also runs Mercado Libre Classifieds, an online classifieds platform for motor vehicles, real estate, and professional services. Mercado Libre Ads serves as an advertising platform, assisting major retailers and brands in promoting their products and services across the internet. Lastly, Mercado Shops offers a solution for users to establish, manage, and market their personalized online storefronts. Founded in 1999, MercadoLibre, Inc. is headquartered in Montevideo, Uruguay.
Business History
Generated: May 14, 2026 1:25pmPrice Overview
Last updated: Jun 27, 2026 7:12am (just now)Price History (1 Year)
Revenue & Net Income Trend
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics
EPS (Diluted): 39.39
Total Equity: $6.75B
Shares: 50,697,000
Total Debt: $9.06B
Cash: $3.67B
EBITDA: $3.56B
Total Debt: $9.06B
Cash: $3.67B
Revenue: $28.89B
Revenue: $28.89B
Revenue: $28.89B
Total Equity: $6.75B
Tax Rate: 29.7%
Equity: $6.75B
Total Debt: $9.06B
Cash: $3.67B
Current Liabilities: $28.63B
Long-Term Debt: $4.49B
Total Debt: $9.06B
Total Equity: $6.75B
Shares: 50,697,000
Shares: 50,697,000
CapEx: -$1.34B
Shares: 50,697,000
Stock Price: $1,675
Net Income: $2.00B
Industry Benchmarks
Deep Analysis
Pre-flight intelligence scans the company first, then routes to the right analytical methods.
Income Statement (Annual)
Last updated: Jun 26, 2026 3:15am (1d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $7.1B | $10.8B | $15.1B | $20.8B | $28.9B |
| Cost of Revenue | $4.1B | $5.6B | $7.5B | $11.2B | $16.0B |
| Gross Profit | $3.0B | $5.2B | $7.6B | $9.6B | $12.9B |
| Operating Expenses | $2.6B | $4.1B | $5.4B | $6.9B | $9.7B |
| Operating Income | $441.0M | $1.1B | $2.2B | $2.6B | $3.2B |
| Net Income | $83.0M | $482.0M | $987.0M | $1.9B | $2.0B |
| EBITDA | $674.0M | $1.3B | $2.3B | $3.2B | $3.6B |
| EPS | $1.67 | $9.57 | $19.64 | $37.69 | $39.39 |
| EPS (Diluted) | — | — | — | — | — |
Balance Sheet (Annual)
Last updated: Jun 26, 2026 3:14am (1d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Cash & Equivalents | $2.6B | $1.9B | $2.6B | $2.6B | $3.7B |
| Total Current Assets | $8.2B | $11.0B | $14.3B | $20.1B | $33.6B |
| Total Assets | $10.1B | $13.7B | $17.6B | $25.2B | $42.7B |
| Current Liabilities | $5.8B | $8.6B | $11.3B | $16.6B | $28.6B |
| Long-Term Debt | $2.2B | $2.6B | $2.1B | $2.8B | $4.5B |
| Total Liabilities | $8.6B | $11.9B | $14.5B | $20.8B | $35.9B |
| Total Equity | $1.5B | $1.8B | $3.1B | $4.4B | $6.7B |
| Retained Earnings | $397.0M | $913.0M | $1.9B | $3.8B | $5.8B |
Cash Flow (Annual)
Last updated: Jun 26, 2026 3:16am (1d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | $965.0M | $2.9B | $5.1B | $7.9B | $12.1B |
| Capital Expenditure | -$609.5M | -$455.0M | -$509.0M | -$860.0M | -$1.3B |
| Free Cash Flow | $355.5M | $2.5B | $4.6B | $7.1B | $10.8B |
| Acquisitions (net) | -$55.7M | $0 | $0 | -$6.0M | $0 |
| Debt Repayment | — | — | — | — | — |
| Dividends Paid | — | — | — | — | — |
| Stock Buybacks | -$486.0M | -$148.0M | -$356.0M | -$1.0M | -$1.0M |
| Net Change in Cash | $1.1B | -$285.0M | $485.0M | $851.0M | $8.8B |
Analyst Estimates (Annual)
Last updated: Jun 27, 2026 7:12am (just now)| Metric | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|
| Revenue |
$51.4B $47.8B – $52.8B
|
$63.7B $63.2B – $64.3B
|
$79.6B $73.0B – $84.4B
|
$94.7B $86.7B – $100.4B
|
| EBITDA |
$8.5B $7.9B – $8.8B
|
$10.6B $10.5B – $10.7B
|
$13.2B $12.1B – $14.0B
|
$15.7B $14.4B – $16.7B
|
| Net Income |
$3.0B $2.4B – $3.3B
|
$4.2B $3.2B – $4.8B
|
$6.5B $5.8B – $7.1B
|
$8.9B $7.9B – $9.6B
|
| EPS | — | — | — | — |
Growth Trends (YoY %)
Last updated: Jun 26, 2026 3:15am (1d ago)| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue Growth | +52.5% | +40.1% | +37.5% | +39.1% |
| Gross Profit Growth | +73.0% | +46.0% | +26.2% | +34.3% |
| Operating Income Growth | +142.4% | +106.5% | +19.2% | +21.7% |
| Net Income Growth | +480.7% | +104.8% | +93.6% | +4.5% |
| EBITDA Growth | +95.5% | +70.8% | +42.8% | +10.8% |
Insider Trading (Recent)
All SEC Form 4 codes
- P Purchase
- Open-market or private purchase of shares.
- S Sale
- Open-market or private sale of shares.
- A Award / grant
- Grant or award of securities (RSUs, options, etc.) under Rule 16b-3.
- D Return to issuer
- Securities disposed back to the company under Rule 16b-3.
- F In-kind (tax)
- Shares withheld or delivered to pay the option-exercise price or tax — not an open-market sale.
- I Discretionary
- Discretionary transaction under an employee plan — Rule 16b-3(f).
- M Option exercise
- Exercise or conversion of a derivative (option/RSU) into shares — exempt.
- C Conversion
- Conversion of a derivative security into the underlying shares.
- E Short expiration
- Expiration of a short derivative position.
- H Long expiration
- Expiration or cancellation of a long derivative position with value received.
- O OTM exercise
- Exercise of an out-of-the-money derivative.
- X ITM exercise
- Exercise of an in-the-money or at-the-money derivative.
- G Gift
- Bona fide gift of securities.
- L Small acquisition
- Small acquisition under Rule 16a-6.
- W Inheritance
- Acquisition or disposition by will or the laws of descent.
- Z Voting trust
- Deposit into or withdrawal from a voting trust.
- J Other
- Other acquisition or disposition (explained in a Form 4 footnote).
- K Equity swap
- Transaction in an equity swap or similar instrument.
- U Tender / buyout
- Disposition via tender of shares in a change-of-control transaction.
Compensation-plan codes (A, D, F, M) are routine and rarely directional. Open-market P (buy) and S (sale) carry the most signal.
| Date | Insider | Type | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-06-17 | Summers Sean | 0.00 | $0.00 | $0 | |
| 2026-06-11 | Melamud Marcelo | P-Purchase | 124.64 | $1,604.62 | $200,000 |
| 2026-06-10 | Tolda Stelleo | G-Gift | 250.00 | $0.00 | $0 |
| 2026-06-12 | Tolda Stelleo | A-Award | 94.00 | $0.00 | $0 |
| 2026-06-12 | Dubugras Henrique Vasoncelos | A-Award | 94.00 | $0.00 | $0 |
| 2026-06-12 | Calemzuk Emiliano | A-Award | 94.00 | $0.00 | $0 |
| 2026-06-12 | Aguzin Alejandro Nicolas | A-Award | 94.00 | $0.00 | $0 |
| 2026-06-12 | SEGAL SUSAN | A-Award | 94.00 | $0.00 | $0 |
| 2026-06-12 | Sanders Richard A | A-Award | 94.00 | $0.00 | $0 |
| 2026-06-12 | Lawson Martin R | A-Award | 94.00 | $0.00 | $0 |
| 2026-05-22 | Aguzin Alejandro Nicolas | P-Purchase | 505.00 | $1,656.10 | $836,331 |
| 2026-05-22 | Aguzin Alejandro Nicolas | P-Purchase | 95.00 | $1,655.01 | $157,226 |
| 2026-02-27 | Melamud Marcelo | P-Purchase | 57.00 | $1,755.77 | $100,079 |
| 2026-01-01 | Yunes Elias Fraiha Fernando | 0.00 | $0.00 | $0 | |
| 2026-01-01 | Costa Agustin Pablo | 0.00 | $0.00 | $0 | |
| 2025-12-12 | Dubugras Henrique Vasoncelos | S-Sale | 845.00 | $2,028.14 | $1.7M |
| 2025-12-11 | Calemzuk Emiliano | S-Sale | 45.00 | $2,027.37 | $91,232 |
| 2025-12-09 | Tolda Stelleo | S-Sale | 246.00 | $2,047.88 | $503,778 |
| 2025-08-22 | Tolda Stelleo | J-Other | 20,000.00 | $0.00 | $0 |
| 2025-08-22 | Tolda Stelleo | J-Other | 20,000.00 | $0.00 | $0 |
Dividend History (Last 20)
Last updated: Jun 20, 2026 8:42am (6d ago)| Date | Dividend | Declaration | Record | Payment |
|---|---|---|---|---|
| 2017-12-28 | $0.15 | 2017-11-02 | 2017-12-31 | 2018-01-16 |
| 2017-09-28 | $0.15 | 2017-08-07 | 2017-09-30 | 2017-10-16 |
| 2017-06-28 | $0.15 | 2017-05-12 | 2017-06-30 | 2017-07-17 |
| 2017-03-29 | $0.15 | 2017-03-20 | 2017-03-31 | 2017-04-17 |
| 2016-12-28 | $0.15 | 2016-11-04 | 2016-12-31 | 2017-01-16 |
| 2016-09-28 | $0.15 | 2016-08-10 | 2016-09-30 | 2016-10-14 |
| 2016-06-28 | $0.15 | 2016-05-18 | 2016-06-30 | 2016-07-15 |
| 2016-03-29 | $0.15 | 2016-03-04 | 2016-03-31 | 2016-04-15 |
| 2015-12-29 | $0.10 | 2015-11-24 | 2015-12-31 | 2016-01-15 |
| 2015-09-28 | $0.10 | 2015-09-03 | 2015-09-30 | 2015-10-15 |
| 2015-06-26 | $0.10 | 2015-05-21 | 2015-06-30 | 2015-07-15 |
| 2015-03-27 | $0.10 | 2015-03-06 | 2015-03-31 | 2015-04-15 |
| 2014-12-29 | $0.17 | 2014-11-11 | 2014-12-31 | 2015-01-15 |
| 2014-09-26 | $0.17 | 2014-08-15 | 2014-09-30 | 2014-10-15 |
| 2014-06-26 | $0.17 | 2014-06-03 | 2014-06-30 | 2014-07-15 |
| 2014-03-27 | $0.17 | 2014-03-14 | 2014-03-31 | 2014-04-15 |
| 2013-12-27 | $0.14 | 2013-11-26 | 2013-12-31 | 2014-01-15 |
| 2013-09-26 | $0.14 | 2013-08-12 | 2013-09-30 | 2013-10-15 |
| 2013-06-26 | $0.14 | 2013-05-08 | 2013-06-28 | 2013-07-15 |
| 2013-03-26 | $0.14 | 2013-03-05 | 2013-03-29 | 2013-04-15 |
Narrative Economics
market-narrative step).
Delvantic AI Findings
Looking at the raw quarterly cadence first: revenue went $5.07B → $5.31B → $6.06B → $5.94B → $6.79B → $7.41B → $8.76B → $8.85B. That's 75% growth over seven quarters, with the most recent print (Mar-2026) up 49% YoY against the $5.94B comp. Calling this "decelerating" is technically true on the sequential delta ($8.76B → $8.85B is only 1% QoQ) but misleading — YoY acceleration is intact. What's actually worrying is the margin compression: net margin has walked from 10.5% (Q4'24) down to 8.3% → 7.7% → 5.7% → 6.4% → 4.7%. Net income in the latest quarter ($417M) is below the year-ago comp ($494M) despite 49% more revenue. Recent earnings YoY of 4.5% versus revenue YoY of 39% is the entire story this file is telling, and the synthesis model is glossing over it.
The bullish synthesis ("dramatically undervalued, implied 3.7% growth") leans heavily on FCF — $10.77B OCF and $10.77B FCF on $28.89B revenue is a 37% FCF margin, which would be extraordinary if it represented true owner earnings. It does not. MELI's "operating cash flow" is inflated by float from Mercado Pago — customer deposits and payables in the fintech book show up as working capital sources, not earned cash. Annual net income was $2.00B; reverse-engineering a DCF off $10.77B "FCF" and ignoring the credit book's funding mechanics is the kind of error that makes a stock look cheap right up until the credit cycle turns. ROA of 4.7% and ROE of 29.6% imply heavy leverage, consistent with a balance sheet carrying a credit portfolio — and the file conspicuously omits total debt and total equity, which is precisely the data you'd want for a fintech lender.
The pre-flight model is closer to the truth: this is a multi-segment narrative where the fintech/credit book is doing increasing work and bringing increasing risk. The margin compression from 10.5% to 4.7% is plausibly the credit book taking provisions as the LatAm rate environment bites — exactly the scenario the market is pricing. At $1,612 and a $81.7B cap, on $2.0B trailing NI you're paying ~41x earnings for a business whose earnings just grew 4.5% YoY. The 42.5x P/E is not anomalous given growth, but the bull case requires margins to mean-revert toward 8-10% — if they stay at 4.7%, forward NI annualizes to roughly $1.7B and the multiple swells to ~48x. The synthesis verdict of "dramatically undervalued" requires you to ignore the most important quarterly data point in the file.
A careful contrarian argues: revenue growth is real and durable (LatAm e-commerce penetration is genuinely 10-15%), but you're paying a 41x multiple on earnings that are actively compressing, with a fintech credit book of unknown size sitting on a balance sheet whose debt and equity lines are blank in this file. Insider activity is net selling (1,136 shares sold vs 57 bought in 2026, ignoring awards/J-other). The 39% drawdown from highs is not necessarily a mispricing — it's the market correctly demanding to see whether Q1'26's 4.7% net margin is a trough or a new normal. I dissent from the synthesis. Fair value is not "dramatically higher" — it's range-bound near current levels until margin direction clarifies. If net margin recovers to 8% on $36B 2026 revenue, that's $2.9B NI and a 28x forward multiple at current price — defensible but not cheap. If it stays at 5%, that's $1.8B NI and 45x forward — expensive. The asymmetry is roughly balanced, not skewed to the upside. I'd want to see the Q2'26 print and explicit disclosure of the credit book size and NPL ratios before underwriting the bull case. Starter position at $1,400 (10% lower, ~36x trailing) makes more sense than chasing here.
GPT Critique
In reviewing MercadoLibre's data independently, I focus on the robust revenue growth trajectory juxtaposed with the concerning margin compression. The company has demonstrated a remarkable 75% revenue growth over seven quarters, indicating strong market penetration and expansion. However, the net margin decline from 10.5% to 4.7% over the same period suggests underlying cost pressures or strategic investments impacting profitability. The deceleration in net income growth, with the latest quarter's $417M falling below the year-ago figure of $494M, despite a 49% increase in revenue, is particularly alarming. This suggests that while top-line growth is impressive, the bottom line is not keeping pace, raising questions about operational efficiency and cost management.
Opus highlights the margin compression as a critical risk factor, noting that net margin has walked down significantly. I concur with this assessment, as the decoupling of revenue and net income growth rates is a red flag. Furthermore, I agree with Opus's skepticism of the reported free cash flow (FCF) figures. The $10.77B in FCF, representing a 37% margin, seems inflated when juxtaposed with a net income of only $2.00B. This discrepancy likely stems from the operational cash flow being bolstered by non-operational sources such as fintech float, which masks the underlying earnings quality.
However, I diverge from Opus on the valuation stance. While Opus suggests a hold with a fair value range of $1,400-$1,700, pending margin recovery, I see the growth potential in the LatAm market as a more compelling factor. The current P/E ratio of 42.5x reflects high expectations, yet the 39% revenue CAGR and 52.5% FCF CAGR imply a company still in a growth phase. The market may indeed be over-penalizing potential risks, especially if the fintech operations stabilize and margins rebound. Thus, I view the current price as closer to fair, albeit with a need for caution regarding the fintech segment's risk exposure.
A skeptic would argue that MercadoLibre's reliance on fintech for cash flow and lack of transparent debt figures are significant red flags. The absence of total debt and equity data complicates a clear assessment of leverage and financial health. Additionally, insider sales outpacing purchases may indicate lack of confidence from those closest to the company, reinforcing the cautious approach suggested by Opus.