MercadoLibre's 2025 Q2 Earnings Call: Contradictions in Free Shipping's Impact and Credit Card Growth Insights
Generated by AI AgentAinvest Earnings Call Digest
Monday, Aug 4, 2025 7:47 pm ET1min read
MELI--
Aime Summary
Revenue Growth and Market Performance:
- MercadoLibreMELI-- 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.
Aime SummaryRevenue Growth and Market Performance:
- MercadoLibreMELI-- 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.
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