Mercado Libre Kicks Off 2026 with Fastest Revenue Growth in Almost Four Years as Strategic Investments Drive Market Share Gains

About this update from Mercadolibre, Inc.

MONTEVIDEO, Uruguay, May 07, 2026--(BUSINESS WIRE)--Mercado Libre (NASDAQ: MELI): Q1 2026 Mercado Libre (NASDAQ: MELI), Latin America's leading e-commerce and fintech platform, today announced first quarter 2026 financial results, with net revenue and financial income growing 49% YoY to $8.8 billion - the fastest pace of growth since the second quarter of 2022. Income from operations reached $611 million, with a 6.9% margin, and net income of $417 million with a 4.7% margin. Strategic investments in free shipping, the Mercado Pago credit card, first-party selection, and cross-border trade are driving exceptional growth and strengthening competitive positioning across the region. The lower free shipping threshold in Brazil, one of our most important strategic decisions of 2025, continued to deliver results at a pace that exceeded the company’s own expectations. Unique buyer growth in Brazil accelerated 32% YoY, the fastest pace in five years. GMV growth accelerated to 38% YoY on an FX-neutral basis in Q1’26, with sold items rising 56% YoY, up from 26% in Q2'25, the quarter in which Mercado Libre lowered the free shipping threshold. Conversion, frequency, retention, and NPS all reached record highs, engagement is deepening as daily active users grow faster than monthly active users, and new buyer cohorts are purchasing more items across a broader range of categories with higher retention than older cohorts. Unit shipping costs in Brazil fell 17% YoY in local currency, accelerating from an 11% reduction in Q4'25, as Mercado Libre's technology enabled its logistics network to absorb significant volume growth efficiently. Across the rest of the region, Mexico delivered FX-neutral GMV growth of 28% YoY with sold items up 34%, while Argentina delivered 41% FX-neutral GMV growth and 35% growth in sold items. Chile maintained strong momentum with FX-neutral GMV growth of 40% YoY, supported by record levels of free shipping penetration and same- and next-day delivery. Mercado Libre's fulfillment network continues to be a key competitive advantage as the fastest network in the region, delivering 76% of fast shipments within 48 hours. In Advertising, Mercado Libre has been the fastest growing player in the region - 4x the market in 2025 - and this strong momentum continued in Q1'26 with ads revenue growth of 73% YoY in US dollars. Ongoing inve...

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