MercadoLibre (MELI) Stock: Sinks After Hours Despite 50% Revenue Growth and Fintech Boom

TLDR

• MercadoLibre revenue jumped 50% to a record $10.2 billion during Q2 2026 alone.
• MELI stock fell 4.65% after hours despite strong growth across core divisions.
• Mercado Pago payment volume topped $100 billion as active users rose 30% YoY.
• Commerce GMV reached $22 billion as Brazil and Mexico delivered solid growth.
• Advertising revenue surged 73% as automated tools boosted seller engagement.

MercadoLibre (MELI) shares gained 1.80% to $1,922.57 before dropping 4.65% after hours to $1,833.13. The reversal followed strong second-quarter growth across commerce, payments, advertising, and technology operations. Still, lower operating margins and sustained expansion spending outweighed the record revenue performance.

MercadoLibre, Inc., MELI

Net revenue and financial income reached $10.2 billion, increasing 50% from the previous year. The result marked 30 consecutive quarters with growth above 30% and the fastest pace in four years. The Latin American commerce and fintech group also surpassed $10 billion in quarterly revenue for the first time.

Operating income reached $683 million, while the operating margin stood at 6.7% during the quarter. Net income totaled $466 million and produced a 4.6% margin despite substantial revenue growth. Spending on shipping, credit cards, product selection, cross-border trade, and memberships limited near-term profitability.

Commerce Growth Accelerates Across Major Markets

Commerce revenue increased 50% to $5.8 billion as demand strengthened across major Latin American markets. Gross merchandise volume reached $22 billion, rising 36% on a currency-neutral basis and 44% in dollars. Total items sold climbed 45% to 795 million, supported by broader selection and faster delivery.

Brazil led regional growth as currency-neutral merchandise volume rose 39% and sold items increased 56%. Mexico recorded 26% merchandise volume growth, while item sales advanced 34% despite tax reform pressure. Argentina delivered 38% merchandise volume growth and 22% higher item sales during weak consumer demand.

Unique active commerce buyers grew 26% to 89 million, while purchases per buyer increased 14%. Brazil’s lower free-shipping threshold continued driving higher purchase frequency, broader category use, retention, and conversion. Furthermore, cross-border merchandise volume rose 60%, while China fulfillment activity expanded 170% from the previous quarter.

Mercado Pago and Advertising Support the Wider Ecosystem

Mercado Pago revenue rose 49% to $4.4 billion as payment activity expanded throughout the region. Total payment volume exceeded $100 billion for the first time, reaching $101 billion after 56% growth. Monthly active fintech users increased 30% to 88 million, led by faster growth in Brazil and Mexico.

Assets under management climbed 68% to $23 billion, while average assets per user increased 29%. The credit portfolio expanded 75% beyond $16 billion, including a $7.7 billion credit card portfolio. MercadoLibre issued 2.6 million cards, while portfolio delinquency remained near historical lows at 7.0%.

Advertising revenue increased 73% in dollars as more sellers used automated campaign and budget tools. Ecosystem users grew 37%, strengthening activity across both MercadoLibre’s marketplace and Mercado Pago services. Additionally, the company completed its upgraded search rollout across five markets, improving conversion and click-through rates.

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