MercadoLibre, Inc. (MELI) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello everyone, good evening, and thank you for joining MercadoLibre's conference call for the quarter-ended June 30th, 2026. I'm Richard Cathcart, Senior Director of Investor Relations, and I'm joined this evening by Ariel Szarfsztejn, our CEO, Martin de los Santos, our CFO, and Osvaldo Gimenez, President of FinTech. Tonight's format will be slightly different. I'll start by handing over to Martin for a few high-level opening remarks, and then we'll head straight into the Q&A. Before we do that, I would like to remind you that management may make or refer to forward-looking statements and non-GAAP measures, so please refer to the disclaimer on screen, which is also available in our earnings materials on our Investor Relations website. Please note that this call is being recorded and a replay will be made available on our Investor Relations website as well. With that, I'll pass the call over to Martin de los Santos, our CFO. Good afternoon and thank you for joining us. MercadoLibre delivered another strong quarter in Q2 2026. Net revenue surpassed $10 billion for the first time, growing 50% year-on-year. Income from operations was $683 million, with a margin of 6.7%, broadly in line with last quarter and the result of a deliberate choice to continue prioritizing investment in long-term engagement, growth, and scale over near-term profitability. Before turning to a few details on this quarter's results, I want to spend a few minutes on what we've learned one year on from the decision we took last year to lower the free shipping threshold in Brazil. In Brazil, items per buyer grew 19% year-on-year in Q2, despite the fact that we've been adding large numbers of new buyers who typically start out purchasing far less than our average user. That's a sign of changed behavio...