MercadoLibre Q2 Earnings Miss Estimates, Revenues Rise Y/Y

MercadoLibre MELI reported second-quarter 2025 earnings of $10.31 per share, which missed the Zacks Consensus Estimate by 14.15% and decreased 1.6% year over year. Revenues rose 33.8% on a year-over-year basis (53% on an FX-neutral basis) to $6.8 billion. The top line surpassed the Zacks Consensus Estimate by 4.10%.Total revenues were driven by accelerating commerce and fintech revenues, which grew 29.3% and 40.3% year over year to $3.8 billion and $3 billion, respectively. In the commerce segment, strong momentum across Brazil (up 29% year over year) and Mexico (up 32% year over year) significantly contributed to the reported results. Trends in Argentina are exceptional. Items sold grew 46% and unique buyer growth exceeded 30% year over year in the second quarter.Fintech Monthly Active Users rose 30% year over year to 67.6 million, marking the seventh consecutive quarter of growth at or above this rate. Engagement with Mercado Pago continues to rise, driven by a strengthening value proposition. Assets Under Management grew 108.6% year over year to $13.8 billion.Revenues from MELI’s advertising services rose 38% year over year on a reported basis and 59% on a foreign exchange (FX)-neutral basis.MercadoLibre, Inc. Price, Consensus and EPS Surprise MercadoLibre, Inc. price-consensus-eps-surprise-chart | MercadoLibre, Inc. QuoteMELI’s shares have appreciated 33.9% on a year-to-date basis compared with the Internet-Commerce industry’s return of 5%.MELI’s Q2 in DetailBrazil: Net revenues in the second quarter came in at $3.47 billion (51.1% of the total revenues), up 24.7% year over year.Argentina: The market generated revenues of $1.53 billion (22.5% of the total revenues), which soared 76.9% year over year.Mexico: Net revenues in the reported quarter were $1.51 billion (22.2% of the total revenues), which grew 25.4% year over year.Other countries: The markets generated revenues of $284 million (4.2% of the total revenues), reflecting an increase of 27.4% on a year-over-year basis.Key Metrics for MELIGMV of $15.3 billion jumped 21% year over year and 37% on an FX-neutral basis year over year. The figure beat the consensus mark by 2.43%.The number of successful items sold was 550 million, up 30.6% year over year.TPV rose 39% year over year and 61% on an FX-neutral basis to $64.6 billion. The figure beat the Zacks Consensus Estimate by 0.93%. Acquiring TPV, which includes payments processed outside the marketplace, also saw solid growth, rising 31% to $44.4 billion.Total payment transactions increased 34.8% year over year to $3.61 billion.MercadoLibre’s Operating DetailsFor the second quarter, the gross margin contracted 105 basis points (bps) to 46% on a year-over-year basis.Operating expenses were approximately $2.3 billion, which increased 38.4% year over year. As a percentage of revenues, the figure expanded 110 bps year over year to 33.4% in the reported quarter.The operating margin contracted 210 bps from the year-ago period to 12.2%.Balance Sheet of MELIAs of June 30, 2025, cash and cash equivalents were $3.01 billion, up from $2.98 billion as of March 31, 2025.Short-term investments were $965 million as of June 30, 2025. Net debt was $3.83 billion at the end of the quarter.MELI’s Zacks Rank & Stocks to ConsiderCurrently, MercadoLibre carries a Zacks Rank #5 (Strong Sell).Some better-ranked stocks in the broader Zacks Retail-Wholesale sector are Groupon, Inc. GRPN, Coupang CPNG and Performance Food Group PFGC.While Groupon sports a Zacks Rank #1 (Strong Buy) at present, Coupang and Performance Food Group carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.Shares of Groupon have skyrocketed 154.9% year to date. It is slated to report second-quarter 2025 results on Aug. 6.Shares of Coupang have gained 35.1% year to date. It is set to report second-quarter 2025 results on Aug. 5.Shares of PFGC have appreciated 18.1% year to date. It is set to report fourth-quarter fiscal 2025 results on Aug. 13.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity.Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Groupon, Inc. (GRPN): Free Stock Analysis Report MercadoLibre, Inc. (MELI): Free Stock Analysis Report Performance Food Group Company (PFGC): Free Stock Analysis Report Coupang, Inc. 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