Core Insights - MercadoLibre is recognized as a leading e-commerce and fintech platform in Latin America, often compared to Amazon, with significant growth potential [1][2] Group 1: Growth Performance - In Q3 2025, MercadoLibre's net revenue increased by 39% year over year, reaching $7.4 billion, driven by nearly 35% growth in gross merchandise value (GMV) on a foreign-exchange-neutral basis [4] - The platform serves 77 million unique buyers quarterly, marking a 26% increase from the previous year [4] - Mercado Pago's credit portfolio grew by 83% year over year to $11.0 billion, with a 90-day non-performing loan (NPL) rate improving from 7.8% to 6.8% [5] - Monthly active users of Mercado Pago reached 72 million, with increased usage for everyday payments, savings, and credit [5] - The integration of marketplace, logistics, and payments enhances user engagement and raises switching costs for buyers and sellers [6] Group 2: Profitability Challenges - MercadoLibre's operating margin peaked at 13.5% in Q4 2024 but declined to 9.8% in Q3 2025 [7] - The decline in margins is primarily attributed to increased shipping costs, as the company reduced its free-shipping threshold from 79 reais to 19 reais to boost volumes amid rising competition [8] - Sustained elevated shipping subsidies may be necessary to maintain market position as competitors aggressively compete on price and delivery speed [10]