MercadoLibre's 2025 Q2 Earnings Call: Contradictions in Free Shipping's Impact and Credit Card Growth Insights

Revenue Growth and Market Performance:
- MercadoLibre reported revenues growing over 30% year-on-year and record income from operations of $825 million for Q2 2025.
- Growth was driven by strong execution, disciplined investments, and strategic initiatives like lowering free shipping thresholds.

Fintech Expansion and User Growth:
- Mercado Pago's monthly active users reached 68 million, reflecting rapid user growth and increasing engagement across their ecosystem.
- This expansion is due to the strong traction of FinTech services, particularly credit cards and assets under management, which more than doubled year-on-year.

Advertising Revenue Growth:
- MercadoLibre's advertising revenue grew 38% year-on-year, with Argentina experiencing particularly strong growth.
- The growth was attributed to macroeconomic improvements in Argentina, improved seller understanding of advertising value, and increased adoption of advertising tools.

Credit Portfolio and Quality:
- MercadoLibre's credit portfolio surpassed $9.3 billion, growing by 91% year-on-year, with a focus on maintaining strong asset quality.
- The improvement in credit quality is due to enhancements in credit models, allowing for increased card issuance, and lower NPLs, particularly in Brazil and Mexico.