Core Insights - MercadoLibre (MELI) reported Q2 2025 earnings of $10.31 per share, missing estimates by 14.15% and down 1.6% year-over-year. Revenues increased by 33.8% year-over-year to $6.8 billion, surpassing estimates by 4.10% [1][10]. Revenue Breakdown - Total revenues were driven by commerce and fintech, growing 29.3% to $3.8 billion and 40.3% to $3 billion, respectively. Brazil and Mexico showed strong growth, with revenues up 29% and 32% year-over-year [2][10]. - Brazil generated $3.47 billion (51.1% of total revenues), up 24.7% year-over-year. Argentina's revenues soared 76.9% to $1.53 billion (22.5% of total revenues), while Mexico's revenues grew 25.4% to $1.51 billion (22.2% of total revenues) [5][10]. User Engagement and Growth Metrics - 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. Assets Under Management increased by 108.6% year-over-year to $13.8 billion [3][10]. - Total payment transactions increased by 34.8% year-over-year to 3.61 billion [8]. Financial Performance - Gross margin contracted by 105 basis points to 46% year-over-year. Operating expenses rose 38.4% to approximately $2.3 billion, expanding as a percentage of revenues to 33.4% [11]. - Operating margin contracted by 210 basis points to 12.2% year-over-year [11]. Market Performance - MELI's shares appreciated 33.9% year-to-date, outperforming the Internet-Commerce industry's return of 5% [4].
MercadoLibre Q2 Earnings Miss Estimates, Revenues Rise Y/Y