MELI · MercadoLibre, Inc.

MercadoLibre delivered exceptional Q1 2026 growth with net revenues and financial income surging 49% YoY to $8,845 million, the fastest pace in nearly four years, driven by strong performance in commerce and fintech across major markets, especially Brazil. Total Payment Volume reached $87.2 billion, up 50% YoY and 55% FX-neutral, while Gross Merchandise Volume hit $19.0 billion, up 42% YoY and 36% FX-neutral. In Brazil, GMV growth accelerated to 38% FX-neutral YoY, fueled by 56% YoY items sold growth and 32% unique buyer growth following the lower free shipping threshold, with record highs in conversion, frequency, retention, and NPS. Management emphasized prioritizing long-term growth investments over short-term profitability, leading to a 20% YoY decline in income from operations to $611 million (6.9% margin) and net income of $417 million (4.7% margin). Key investments include the Mercado Pago credit card, which grew the portfolio 104% YoY to $6.6 billion with 2.7 million cards issued, improving asset quality; first-party selection generating nearly $5 billion GMV over the past 12 months, up 69% FX-neutral; cross-border trade with 68% FX-neutral GMV growth; and fulfillment network expansion handling 55% of shipments, up 39% YoY. These initiatives are deepening engagement, expanding market share, and positioning the company to capture Latin America's digital economy opportunities, with confidence in future margin expansion as investments mature.