MELI 4Q25 First Take: the LatAm e-commerce leader delivered solid results, with growth metrics strong and beating estimates. However, opex rose sharply, compressing margins — revenue up, profits less so.
1) At the consolidated level, total revenue grew nearly 45% YoY, a clear acceleration vs. last quarter, largely on FX tailwinds. At constant FX, revenue rose 47% YoY, implying a modest 200bps deceleration vs. last quarter.
While topline remained strong, heavy investment in logistics infrastructure, user acquisition, and credit provisioning weighed on margins. GPM contracted ~200bps YoY (in line), and total operating expenses jumped 50% YoY, faster than expected, driving OP to approx. 890 mn, only slightly above estimates, with OPM down by over 300bps YoY.
2) E-commerce: GMV rose nearly 37% YoY, a marked acceleration vs. 28% in Q3, again largely supported by favorable FX. Order growth also improved by 400bps vs. last quarter, pointing to strengthening underlying momentum.
3) Fintech: total payment volume increased ~42% YoY; headline growth nudged higher but was slightly softer at constant FX, effectively stable. Credit loans outstanding continued to surge ~90% YoY, and NIMAL improved QoQ to 23.3% (still lower YoY), mainly on seasonal uplift in loan yields.$Mercadolibre(MELI.US)
