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The Top 5 Analyst Questions From MercadoLibre’s Q2 Earnings Call

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MercadoLibre’s second quarter results showed robust top-line growth, as management pointed to increased user engagement and successful pricing initiatives in Brazil and Mexico as central drivers. The company’s decision to lower its free shipping threshold in Brazil and invest in high-profile marketing campaigns led to accelerated growth in gross merchandise volume (GMV) and unique buyers. CFO Martin de los Santos explained that these investments boosted user acquisition and engagement, especially as more buyers and sellers were attracted to the platform. However, he acknowledged that these strategies contributed to compressed operating margins in the quarter, largely due to elevated sales and marketing expenses.

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MercadoLibre (MELI) Q2 CY2025 Highlights:

  • Revenue: $6.79 billion vs analyst estimates of $6.54 billion (33.8% year-on-year growth, 3.9% beat)
  • Adjusted EPS: $10.31 vs analyst expectations of $11.75 (12.2% miss)
  • Adjusted EBITDA: $1.02 billion vs analyst estimates of $1.06 billion (15.1% margin, 3.2% miss)
  • Operating Margin: 12.2%, down from 14.3% in the same quarter last year
  • Unique Active Buyers: 70.8 million, up 14.2 million year on year
  • Market Capitalization: $119.2 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From MercadoLibre’s Q2 Earnings Call

  • Andrew R. Ruben (Morgan Stanley) asked about the impact of lowering shipping and seller fees in Brazil. CEO Ariel Szarfsztejn explained the change led to more competitive pricing and increased platform selection, with early positive results expected to strengthen over time.

  • Irma Sgarz (Goldman Sachs) questioned the sustainability of elevated marketing spend. CFO Martin de los Santos clarified that a mix of ongoing investments and one-off campaigns drove expenses, with anticipated longer-term benefits to user growth and engagement.

  • Robert Ford (Bank of America) asked about low-priced item selection versus competitors like Shopee. Szarfsztejn stated MercadoLibre now sees strong traction from new sellers and listings in low-ticket categories, aided by the recent shipping changes.

  • Neha Agarwala (HSBC) sought insight on pricing pass-through and credit risk trends. Szarfsztejn noted most fee reductions were passed on to consumers, while management highlighted stable asset quality and improved credit profitability.

  • João Pedro Ribeiro Soares (Citigroup) inquired about infrastructure adaptation for low-priced products. Szarfsztejn described ongoing logistics enhancements and slower delivery methods to improve unit economics over time.

Catalysts in Upcoming Quarters

Looking forward, the StockStory team will monitor (1) the pace of user and GMV growth in Brazil following the shipping policy changes, (2) the trajectory of operating margins as investments in marketing and logistics continue, and (3) further adoption of fintech products and credit services, especially in newer markets like Argentina. Execution on AI initiatives and monetization of advertising will also be key performance indicators.

MercadoLibre currently trades at $2,351, down from $2,408 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).

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