Mercado Libre reports robust year-end performance driven by e-commerce and fintech momentum, closing 2025 with accelerating revenue and expanding market share across Latin America.
Mercado Libre , Latin America’s leading e-commerce and financial technology platform, delivered a landmark performance in the fourth quarter and full year 2025, underscoring the strength of its integrated ecosystem and the long-term impact of disciplined strategic investments. The company capped the year with exceptional operational momentum, record customer satisfaction levels, and robust financial growth across both its Commerce and Fintech segments.
Strong Financial Performance Caps a Transformational Year
In the fourth quarter of 2025, Mercado Libre generated net revenue and financial income of $8.8 billion, representing a 45% year-over-year increase in U.S. dollars. This remarkable quarterly performance concluded a year defined by sustained expansion, as full-year revenue reached $28.9 billion, growing 39% year-over-year in USD and more than 52% on a foreign exchange-neutral basis.
Income from operations for Q4 totaled $889 million, reflecting a 10.1% operating margin, while net income reached $559 million, with a 6.4% margin. For the full year, operating income climbed 22% year-over-year to $3.2 billion, and net income rose to $2 billion, representing a 6.9% net margin.
These results demonstrate Mercado Libre’s ability to scale efficiently while continuing to invest aggressively in growth initiatives that strengthen its competitive position throughout Latin America.
Commerce Business: Accelerated Growth and Record Engagement
Mercado Libre’s Commerce division delivered outstanding results during the fourth quarter, fueled by continued investments in free shipping, fulfillment infrastructure, assortment expansion, and user experience improvements.
GMV and Buyer Growth Reach New Milestones
Gross Merchandise Value (GMV) in Q4 reached $19.9 billion, growing 37% year-over-year in USD. Unique buyers across the region climbed to 83 million, marking a 24% year-over-year increase and crossing the 80 million milestone for the first time in company history. Notably, 16 million new users joined the platform compared to the prior year, reflecting the success of initiatives aimed at expanding digital inclusion.
Items sold surged to 752 million units in the quarter, a 43% year-over-year increase. Nearly 75% of fast deliveries were completed within 48 hours, reinforcing the company’s reputation for operating the fastest fulfillment network in the region.
Free Shipping Strategy Driving Higher Engagement
In Brazil, the reduction of the free shipping threshold proved transformative. Items sold increased 45% year-over-year, while FX-neutral GMV grew 35%. New buyer cohorts demonstrated stronger purchasing frequency and broader category adoption than previous cohorts, highlighting the effectiveness of the free shipping initiative in boosting retention and lifetime value.
This commercial momentum culminated in a record-breaking Black Friday in Brazil, where Mercado Libre achieved the highest daily sales volume in its history.
Performance Across Key Markets
Growth was broad-based across major markets:
- Brazil: 45% YoY growth in items sold; 35% FX-neutral GMV growth.
- Mexico: 45% YoY growth in items sold; 35% FX-neutral GMV growth.
- Argentina: 36% YoY growth in items sold; 42% FX-neutral GMV growth.
Advertising revenue also accelerated significantly, increasing 67% year-over-year on an FX-neutral basis, as AI-powered bidding algorithms and automated campaign tools enhanced marketplace demand.
Fulfillment Network as a Competitive Moat
Mercado Libre continued expanding its logistics infrastructure, opening 16 new fulfillment centers in 2025, including its first center in China in December. The fulfillment network absorbed a 41% year-over-year increase in sold items during the year — nearly 500 million additional units — while unit shipping costs declined across Brazil, Mexico, Chile, and Colombia due to improved scale and operational efficiency.
Full-year Commerce highlights included:
- $16.3 billion in net revenue (up 34% YoY)
- $65 billion in GMV (up 26% YoY)
- 2.4 billion items sold
- More than 120 million annual unique buyers
Fintech: Mercado Pago Advances Toward Digital Banking Leadership
Mercado Libre’s Fintech arm, Mercado Pago, delivered equally impressive results, reinforcing its ambition to build the largest digital banking platform in the region.
Explosive Revenue and User Growth
In Q4 2025, Mercado Pago generated $3.8 billion in net revenue, growing 51% year-over-year in USD. Monthly active users reached nearly 78 million, representing a 27% annual increase.
For the full year, Fintech net revenue reached $12.6 billion, up 46% year-over-year, underscoring the platform’s expanding footprint in payments, credit, and asset management.
Payment Volume and Transaction Expansion
Total Payment Volume (TPV) reached $83.7 billion in Q4, up 42% year-over-year. Acquiring TPV — encompassing marketplace transactions as well as off-platform payments via MPOS devices, QR codes, and online gateways — grew 33% to $55.7 billion in the quarter.
For the full year:
- TPV reached $278 billion (up 41%)
- Total payment transactions exceeded 15.5 billion
- Acquiring TPV reached $188 billion (up 32%)
The platform’s improved services, including 1-second processing times, have supported its move upmarket and strengthened merchant relationships.
Credit Portfolio Growth with Improved Risk Metrics
Mercado Pago’s credit portfolio expanded rapidly while maintaining disciplined risk management. In Q4:
- Credit portfolio grew 90% year-over-year to $12.5 billion
- Credit card portfolio reached $5.7 billion, up 114% YoY
- Merchant credit portfolio exceeded $2 billion, growing 67%
Importantly, the 15–90 day non-performing loan (NPL) ratio reached a historic low of 4.4%, demonstrating improved underwriting capabilities.
Nearly 2.8 million credit cards were issued in Q4 alone. Enhanced proprietary risk models, powered by data from marketplace and fintech interactions, have become a structural advantage for the company.
Assets under management (AUM) climbed 78% year-over-year to $18.8 billion, further solidifying Mercado Pago’s financial services ecosystem.
Artificial Intelligence Driving Efficiency and Revenue Growth
AI integration across both Commerce and Fintech played a critical role in driving operational efficiency and revenue expansion.
Within Commerce, AI-powered bidding algorithms boosted Mercado Ads performance, resulting in 67% FX-neutral revenue growth in advertising. Automated campaign tools generated higher demand from sellers and advertisers.
In Fintech, the Mercado Pago AI Assistant, launched in October 2025, handled over 9 million customer conversations during Q4, resolving 87% of interactions without human intervention. This significantly reduced support costs while improving customer experience.
AI tools in Acquiring also enabled better identification of high-value merchants, leading to increased TPV per merchant and shorter payback periods.
Record Net Promoter Scores Reflect Customer Satisfaction
In 2025, Mercado Pago achieved leading Net Promoter Scores (NPS) in Brazil, Mexico, Argentina, and Chile. Commerce NPS also reached record highs in Brazil, Mexico, and Argentina. These metrics reflect strong customer loyalty and satisfaction, validating years of investment in customer experience.
According to CFO Martin de los Santos, the company’s performance reflects the strength of its ecosystem and disciplined investment approach. By balancing bold growth initiatives with operational efficiency, Mercado Libre continues to expand its competitive moats while advancing financial inclusion across the region.
Leadership Transition Marks New Chapter
The period also marked the completion of the company’s CEO transition. Following a May 2025 announcement, former President of Commerce Ariel Szarfsztejn officially assumed the CEO role on January 1, 2026. The transition represents continuity in leadership and strategy, ensuring the company remains focused on scaling its ecosystem and expanding digital access throughout Latin America.
A 26-Year Journey of Innovation
Founded in 1999, MercadoLibre, Inc. has grown into Latin America’s most comprehensive e-commerce and fintech ecosystem, operating in 18 countries. The platform enables individuals and businesses to buy, sell, advertise, obtain credit and insurance, send and receive money, and manage financial assets both online and offline.
By combining marketplace scale, logistics infrastructure, digital payments, credit products, asset management, and AI-driven tools, Mercado Libre continues to transform commerce and financial services in a region characterized by high growth potential and increasing digital adoption.
