MercadoLibre $MELI Q1'26 Results:

↗️$8,845M rev (+49.0% YoY, +1.0% QoQ) beat est by 5.7%

↘️GM (43.7%, -3.0 PPs YoY)🟡

↘️Operating Margin (6.9%, -5.9 PPs YoY)🟡

↗️FCF Margin (20.4%, +7.3 PPs YoY)

↘️Net Margin (4.7%, -3.6 PPs YoY)🟡

↘️EPS $8.23 missed est by -6.4%🔴

Revenue By Segment

Commerce

➡️$4,868M Commerce Revenue (+47.4% YoY, +39.0% FX-Neutral)

➡️$18,951M GMV (+42.2% YoY, +36.4% FX-Neutral)

↘️722M Successful Items Sold (+46.7% YoY, -30)

➡️84.1M Unique Marketplace Buyers ( +26.3% YoY, +0.9)

↗️Commerce Take Rate (25.7%, +0.7 PPs QoQ, +0.9 PPs YoY)🟢

Fintech

↗️$3,977M Fintech Revenue (+51.1% YoY, +54.0% FX-Neutral)

↗️$87,186M TPV (+49.5% YoY, +54.5% FX-Neutral)

➡️$4,640M Total Payment Transactions (+38.8% YoY)

➡️82.9M Fintech Monthly Active Users (+28.9% YoY, +5.0)

↗️Fintech Take Rate (4.6%, +0.0 PPs QoQ, +0.0 PPs YoY)🟢

Credit Portfolio

↗️$14,600M Credit Portfolio (+87.7% YoY)

↗️Credits NPL 15-90 (8.0%, +0.4 PPs QoQ)🟡

↗️Credits NPL >90 (17.6%, +0.8 PPs QoQ)🟡

↗️Credits NPL >15 (25.6%, +1.2 PPs QoQ)🟡

↘️NIMAL 17.8% (-5.5 PPs QoQ)🟢

Regional Breakdown

↗️Brazil $4,774M rev (+54.9% YoY, 54% of Rev)

↘️Argentina $1,698M rev (+22.9% YoY, 19% of Rev)

↗️Mexico $1,976M rev (+61.7% YoY, 22% of Rev)

↗️Other Countries $397M rev (+59.4% YoY, 4% of Rev)

Operating expenses

↗️S&M+Provision for doubtful accounts/Revenue 25.2% (+4.9 PPs YoY)

↘️R&D/Revenue 7.9% (-1.4 PPs YoY)

↘️G&A/Revenue 3.7% (-0.6 PPs YoY)

Dilution

↘️Basic shares down 0.0% YoY, -0.0 PPs QoQ🟢

↗️Diluted shares down 0.0% YoY, +0.0 PPs QoQ🟢

Pros

Revenue rose 49% YoY, beating estimates materially

Commerce GMV grew 42.2% YoY to $18.95B

Fintech revenue increased 51.1% YoY

Credit portfolio expanded 87.7% YoY

Brazil logistics cost per shipment fell 17% YoY

AI search improved conversion and ad returns

Cons

EPS missed estimates by 6.4%

Operating margin fell to 6.9%

Gross margin declined 3.0 p.p. YoY

NPL above 15 days rose to 25.6%

NIMAL dropped 5.5 p.p. QoQ

Credit growth increased provisioning pressure