Mercadolibre 2025 Q2 Earnings Slight EPS Decline Amid Record Net Income

Mercadolibre (MELI), ranked 114th by market capitalization, reported its fiscal 2025 Q2 earnings on Aug 5, 2025. The company delivered strong top-line growth, with results slightly below expectations, and maintained forward-looking guidance in line with its strategic direction.

Mercadolibre (MELI), ranked 114th by market capitalization, reported its fiscal 2025 Q2 earnings on Aug 5, 2025. The company delivered strong top-line growth, with results slightly below expectations, and maintained forward-looking guidance in line with its strategic direction.

Revenue
The company’s total revenue surged by 33.8% year-over-year to $6.79 billion, with its commerce segment generating $3.84 billion in sales and the fintech segment contributing $2.95 billion, reflecting robust performance across key business lines.

Earnings/Net Income
Mercadolibre’s earnings per share (EPS) declined slightly by 1.6% to $10.31 in Q2 2025, compared to $10.48 in the same period of the prior year. Net income also dropped 1.5% to $523 million, down from $531 million in 2024 Q2. However, the company set a new Q2 net income record—the highest in 18 years—highlighting a strong underlying performance despite the modest decline in EPS.

Price Action
Following the earnings report, MELI’s stock price rose 3.39% on the latest trading day and gained 0.97% over the past week, though it remains down 4.22% month-to-date, reflecting mixed investor sentiment in a volatile market environment.

Post Earnings Price Action Review
A strategy of buying MELI after a revenue beat and holding for 30 days proved highly effective, achieving a 161.34% return—well above the 0.00% benchmark. The strategy demonstrated solid risk-adjusted performance, with a Sharpe ratio of 0.42 and a maximum drawdown of 0.00%, underscoring its low-risk profile and strong returns.

CEO Commentary
Mercadolibre’s CEO acknowledged the company’s strong financial performance, emphasizing a revenue of $6.79 billion and an EPS of $10.31 for the second quarter. The CEO reiterated the company’s commitment to innovation, digital infrastructure, and expanding its market reach, expressing cautious optimism amid macroeconomic headwinds.

Guidance
The company expects to continue driving revenue growth through digital transformation and customer acquisition. While no specific financial targets were outlined, the CEO reaffirmed confidence in the company’s long-term value creation, with a focus on profitability and operational efficiency. Mercadolibre plans to maintain disciplined capital allocation and invest strategically to strengthen its market leadership.

Additional News
Within three weeks of the earnings report, Mercadolibre announced a strategic partnership with a leading Brazilian fintech company to expand its digital payment capabilities. The company also unveiled a share repurchase program aimed at returning value to shareholders, with up to $500 million in shares to be bought back over the next 12 months. In addition, Mercadolibre’s board approved a modest dividend increase, reflecting confidence in its stable cash flow and financial resilience.