At a glance
MercadoLibre Inc. is worth $85.20B, about 43 times its fiscal 2025 earnings. Revenue grew 39.1% to $28.89B in fiscal 2025, with 6.9% kept as profit. It pays no dividend; it spent $992.0M buying back its shares over FY2021–FY2025. The stock returned −26.4% over the past year with dividends reinvested and +2.3% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 39.1% in the 2020 crash (S&P 500: 33.7%) and 54.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 2 months and 11 months after the lows.
The business in plain English
MercadoLibre says it runs Latin America's leading online marketplace, measured by gross merchandise volume (GMV, the total value of goods sold). The marketplace operates in 18 countries. Outside merchants supply most goods and pay fees on each sale; the company's own inventory accounts for under 10% of GMV. It also runs Mercado Envios, a delivery network whose fulfillment centers handle more than half of shipments, and Mercado Ads, which lets merchants and brands pay to reach shoppers.
Its second engine is Mercado Pago, a fintech (financial technology) business in 8 countries. It began as the marketplace's payment system and grew to process payments for other merchants, online and in stores through card readers and QR codes. Its digital account offers bill payments, debit and credit cards, insurance, interest-paying balances and access to cryptocurrencies. It lends to merchants and consumers in Argentina, Brazil, Mexico and Chile, using its own credit-scoring models.
In the fiscal year ended December 31, 2025, revenue was about $28.9 billion. Service fees and financial income, from commissions, shipping, advertising, payments and lending, made up 87.5%; the company's own product sales made up 12.5%. Brazil was the biggest market at 52.6% of revenue, followed by Mexico at 22.4%, Argentina at 20.6% and other countries at 4.3%.
Price history
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MELI -26.4% over the year to Oct 27, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Net service revenues and financial income | $25.29B | 87.5% |
| Net product revenues | $3.61B | 12.5% |
By business segment
| Brazil | $15.20B | 52.6% |
| Mexico | $6.47B | 22.4% |
| Argentina | $5.96B | 20.6% |
| Other Countries | $1.25B | 4.3% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $10.17B, up 49.8% from a year earlier, and net income was $466.0M (-10.9%).
- For fiscal 2025, revenue was $28.89B (+39.1% year over year) with a 6.9% net margin.
Financial health check
| Operating margin | 11.1% watch |
|---|---|
| Free cash flow margin | 37.3% good |
| Return on equity (FY2025) | 29.6% good |
| Return on assets (FY2025) | 4.7% watch |
| Net cash (cash minus debt) | $-3.18B watch |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $3.97B | $-1.0M | $935.0M |
| FY2021 | $7.07B | $83.0M | $392.0M |
| FY2022 | $10.78B | $482.0M | $2.49B |
| FY2023 | $15.11B | $987.0M | $4.63B |
| FY2024 | $20.78B | $1.91B | $7.06B |
| FY2025 | $28.89B | $2.00B | $10.77B |
Valuation snapshot
| Market value | $85.20B |
|---|---|
| P/E ratio | 42.7 |
| Dividend yield | 0% |
Rank among 1514 US companies
Market value at each year end
MercadoLibre’s market value went from $6.89B at the end of 2016 to $85.20B on Oct 27, 2026, about 12.4 times as much; since the end of 2025 it is down 17%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 27, 2026 | $85.20B | -16.6% |
| 2025 | $102.12B | +18.5% |
| 2024 | $86.21B | +8.5% |
| 2023 | $79.46B | +86.7% |
| 2022 | $42.56B | -36.2% |
| 2021 | $66.69B | -20.2% |
| 2020 | $83.54B | +193.8% |
| 2019 | $28.43B | +114.8% |
| 2018 | $13.24B | -4.7% |
| 2017 | $13.89B | +101.5% |
| 2016 | $6.89B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| MELI price data to Oct 27, 2026 | -16.6% | -26.4% | +11.9% | +2.3% | +25.8% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -16.6% |
| 2025 | +18.5% |
| 2024 | +8.2% |
| 2023 | +85.7% |
| 2022 | -37.2% |
| 2021 | -19.5% |
| 2020 | +192.9% |
| 2019 | +95.3% |
| 2018 | -6.9% |
| 2017 | +102.0% |
| 2016 | +37.1% |
| 2015 | -10.1% |
| 2014 | +19.2% |
| 2013 | +37.9% |
| 2012 | -0.7% |
| 2011 | +19.9% |
| 2010 | +28.5% |
| 2009 | +216.1% |
| 2008 | -77.8% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 69% over that stretch · deepest drop along the way 89.5%, back to its old high 28.3 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 38.4% over that stretch · deepest drop along the way 39.1%, back to its old high 1.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 38.4% over that stretch · deepest drop along the way 54%, back to its old high 11.2 months after the low |
Insider activity
Form 4 filings from 2025-10-27 to 2026-10-27 (13 read): 4 open-market purchases ($1.3M) and 3 sales ($2.3M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Dec 12, 2025 | Henrique Vasoncelos Dubugras Director | sell | $1.7M |
| May 22, 2026 | Alejandro Nicolas Aguzin Director | buy | $836K |
| Dec 9, 2025 | Stelleo Tolda Director | sell | $504K |
| Jun 11, 2026 | Marcelo Melamud SVP - Chief Accounting Officer | buy | $200K |
| May 22, 2026 | Alejandro Nicolas Aguzin Director | buy | $157K |
Who owns it
Large shareholders (13G filings)
| BAILLIE GIFFORD & CO | 6.4% | Mar 31, 2026 |
| Capital Research Global Investors | 5.4% | Mar 31, 2026 |
ETFs with the most weight in MELI
| ARGT Global X MSCI Argentina ETF | 23.69% |
| FMQQ FMQQ The Next Frontier Internet ETF | 7.93% |
| TXUG Thornburg International Growth Fund ETF | 4.82% |
| EBIZ Global X E-commerce ETF | 4.66% |
| ARKD ARK 21Shares Blockchain and Digital Economy Innovation ETF | 4.64% |
| PJIO PGIM Jennison International Opportunities ETF | 4.57% |
| EMQQ EMQQ The Emerging Markets Internet ETF | 4.43% |
| BUYZ Franklin Disruptive Commerce ETF | 4.43% |
What could go wrong
- Currency swings and exchange controls. MercadoLibre earns revenue in Latin American currencies. If they lose value or governments restrict exchanges, results shrink when converted to US dollars, and moving cash between countries can become harder.
- Loan losses if borrowers stop paying. Mercado Pago lends to merchants and consumers, many of whom banks have overlooked. If more borrowers default, especially in a recession, credit losses could cut into profits.
- Political and economic turmoil in Latin America. Governments in the region have heavy influence over their economies. Crises, civil unrest, expropriation or abrupt policy shifts in Brazil, Mexico or Argentina, which together supply most revenue, could hurt demand and profits.
- Higher interest rates and funding costs. Mercado Pago relies on banks and investment funds that acquire its receivables (payments it is owed) to fund transactions. Rising interest rates can raise those costs and reduce payment volume, squeezing fintech margins.
- Delivery network breakdowns or rising costs. Fast shipping is central to the marketplace. Problems at its fulfillment centers or with partner carriers, which own most delivery vans, could slow deliveries, raise costs and drive shoppers and merchants away.
- Heavy regulation of payments, lending and crypto. Each country closely regulates financial services. New rules or compliance failures could force product changes, fines or limits on Mercado Pago, its lending or its digital-asset features in a key market.
Recent events
- Other company announcement
- Major agreement signed; Investor presentation or announcement
- Quarterly results released
- Shareholder vote results
- Quarterly results released
- Executive or board change
- Quarterly results released
- Other company announcement
- Major agreement signed; Investor presentation or announcement
- Quarterly results released
For income and retirement investors
MercadoLibre pays no dividend; its yield was 0% as of October 27, 2026. For an income investor, that means no cash payouts to live on, so any return depends on the share price. Buybacks (a company repurchasing its own shares) totaled about $992 million from FY2021 to FY2025, but only about $1 million in each of FY2024 and FY2025. The share count still rose 2.5% between November 3, 2021 and August 5, 2026.
The shares have fallen hard in downturns: 89.5% in the 2008 financial crisis, taking about 28 months from the low to recover; 39.1% in the 2020 COVID crash, recovered by May 6, 2020; and 54% in the 2022 bear market, recovered by May 22, 2023. As of October 27, 2026, they were down 26.4% over the prior year. A single stock like MercadoLibre carries more risk than a diversified fund spread across many companies.
Questions investors ask
How does MercadoLibre make money?
Mostly from fees and financial income. In the fiscal year ended December 31, 2025, those made up 87.5% of its roughly $28.9 billion in revenue. They include commissions from merchants on the marketplace, shipping through Mercado Envios, advertising through Mercado Ads, and payments, cards and loans through Mercado Pago. The other 12.5% came from the company's own product sales. Brazil supplied 52.6% of revenue, Mexico 22.4% and Argentina 20.6%.
Does MercadoLibre pay a dividend?
No. MercadoLibre paid no dividends from FY2021 through FY2025, and its dividend yield was 0% as of October 27, 2026. It returned some cash through buybacks (repurchases of its own shares), about $992 million over those five years, though only about $1 million in each of FY2024 and FY2025. The share count still rose 2.5% between November 3, 2021 and August 5, 2026. Investors who rely on portfolio income would get no cash payouts from this stock.
Is MercadoLibre profitable?
Yes. In the fiscal year ended December 31, 2025, MercadoLibre earned about $2.0 billion of net income on $28.9 billion of revenue, a net margin of 6.9%, or about 6.9 cents of profit per dollar of sales. Profit grew far more slowly than sales: revenue rose 39.1%, while net income rose 4.5%. That pattern continued in the quarter ended June 30, 2026, when revenue grew 49.8% from a year earlier but net income fell 10.9%, to $466 million.
What is MercadoLibre's P/E ratio?
About 42.7 as of October 27, 2026, based on fiscal 2025 earnings. The price-to-earnings (P/E) ratio shows how many dollars investors pay for each dollar of yearly profit. A high figure usually reflects expectations of fast growth. MercadoLibre's market value was about $85.2 billion on that date, and diluted earnings per share were $39.40 for fiscal 2025. If growth slows, a high P/E can shrink and pull the share price down.
How has MercadoLibre stock performed over time?
It has gained a lot over the long run, but with deep drops. As of October 27, 2026, the share price had risen 895% over 10 years, about 25.8% a year. Shorter periods were weaker: about 2.3% a year over five years, and a 26.4% loss over one year. The stock fell 89.5% in the 2008 financial crisis and 54% in the 2022 bear market. Because it pays no dividend, the share price is the whole return.