10 unchanged sentences
■ a description of our key performance indicators;
−Removed: 39 | MercadoLibre, Inc.
■ a description of our non-GAAP financial measures.
3 unchanged sentences
Business Overview
−Removed: We are the largest online commerce and fintech ecosystem in Latin America based on unique visitors and orders processed, and our fintech platform is the leader in MAUs amongst fintech companies in Argentina, Chile and Mexico, and the second largest in Brazil.
+Added: Our e-commerce platform is the leader in the Latin America region based on GMV, and our fintech platform is the leader in MAUs amongst fintech companies in Argentina, Chile and Mexico, and the second largest in Brazil.
Mercado Libre's e-commerce platform is present in 18 countries (Argentina, Brazil, Mexico, Chile, Colombia, Peru, Uruguay, Venezuela, Bolivia, Costa Rica, Dominican Republic, Ecuador, Guatemala, Honduras, Nicaragua, Panama, Paraguay and El Salvador) and our fintech platform, Mercado Pago, is present in 8 countries (Argentina, Brazil, Mexico, Chile, Colombia, Peru, Uruguay and Ecuador).
2 unchanged sentences
the Mercado Libre Marketplace, the Mercado Pago fintech platform, the Mercado Envios logistics service, the Mercado Ads solution and the Mercado Libre Classifieds service.
−Removed: Our e-commerce platform provides buyers and sellers with a robust and safe environment that fosters the development of a large e-commerce community in Latin America, a region with a population of over 650 million people where penetration of e-commerce over total retail significantly lags benchmarks such as the United States of America ("U.S."), the U.K.
+Added: Our e-commerce platform provides buyers and sellers with a robust and safe environment that fosters the development of a large e-commerce community in Latin America, a region with a population of over 650 million people where penetration of e-commerce over total retail significantly lags benchmarks such as the United States of America (“U.S.”), the United Kingdom (“U.K.”) and China.
We believe that we offer world-class technological and commercial solutions that address the distinctive cultural and geographic challenges of operating a digital commerce platform in Latin America.
13 unchanged sentences
Our transportation network includes dedicated aircraft, trucks and thousands of last-mile delivery vans, the vast majority of which are owned and operated by our third-party carriers.
+Added: 39 | MercadoLibre, Inc.
+Added: T able of Contents
Our advertising platform, Mercado Ads, is another value-added service that we offer to sellers on our platform and brands both on- and off-platform.
−Removed: The platform enables sellers and brands to access the millions of consumers that browse and purchase on our Marketplace, as well as the first-party data that all of these engagements generate.
+Added: The platform enables sellers and brands to access the millions of consumers who browse and purchase on our Marketplace, as well as the first-party data that all of these engagements generate.
This enables advertisers to target highly granular audiences.
3 unchanged sentences
In January 2025, we announced the migration of Mercado Shops to “Mi Página,” which offers similar functionalities but is fully embedded within our Marketplace (without an external storefront).
−Removed: Mercado Shops will be discontinued as of December 31, 2025.
+Added: Mercado Shops was discontinued as of December 31, 2025.
Mercado Pago was initially designed to facilitate transactions on Mercado Libre’s Marketplace by providing a mechanism that allowed our users to securely, easily and promptly send and receive payments.
4 unchanged sentences
Our lending solution is available in Argentina, Brazil, Mexico and Chile.
−Removed: We offer credits mostly to merchants and consumers that already form part of our user base, many of whom have historically been underserved or overlooked by financial institutions and therefore suffer from a lack of access to credit.
+Added: We offer loans mostly to merchants and consumers that already form part of our user base, many of whom have historically been underserved or overlooked by financial institutions and therefore suffer from a lack of access to credit.
Facilitating credit is a key service overlay that enables us to further strengthen the engagement and lock-in rate of our users, while also generating additional touchpoints and incentives to use Mercado Pago as an end-to-end financial solution.
−Removed: 40 | MercadoLibre, Inc.
Our asset management product, which is available in Argentina, Brazil, Mexico and Chile, is a critical pillar of our financial services offering that enables us to compete with large banks.
4 unchanged sentences
This feature is available for all users through their Mercado Pago account.
−Removed: In 2024, in Brazil and Mexico we launched "Meli Dólar", a stablecoin that is pegged to the US dollar.
+Added: In 2024 and 2025 we launched “Meli Dólar,” a stablecoin that is pegged to the US dollar, in Brazil, Mexico and Chile.
Members of our loyalty program receive their cashback in Meli Dólar and all Mercado Pago users can buy, hold and sell the stablecoin without any fees.
1 unchanged sentence
Our segment reporting is based on geography, which is the criterion our Management currently uses to evaluate our segment performance.
−Removed: Our geographic segments are Brazil, Mexico, Argentina and Other Countries (including Chile, Colombia, Costa Rica, Ecuador, Peru, Uruguay and the U.S.).
+Added: Our geographic segments are Brazil, Mexico, Argentina and Other Countries (including Bermuda, Chile, China, Colombia, Costa Rica, Ecuador, Peru, Uruguay and the U.S.).
Although we discuss long-term trends in our business, it is our policy not to provide earnings guidance in the traditional sense.
8 unchanged sentences
2025 2024 2023 (1)
−Removed: Brazil 54.9 % 51.8 % 53.8 %
−Removed: Mexico 22.4 20.3 17.6
−Removed: Argentina 18.4 23.5 23.9
−Removed: Other countries 4.3 4.4 4.7
−Removed: (1) Recast for consistency with the current presentation due to the change in the presentation of certain financial results.
−Removed: Please refer to Note 2 – Summary of significant accounting policies - Change in the presentation of certain financial results and reclassification of prior years results to our audited consolidated financial statements for further details.
−Removed: The following table summarizes the changes in our net revenues and financial income by segment for the years ended December 31, 2024, 2023 and 2022:
−Removed: Year Ended December 31, Change from 2023 to 2024 Year Ended December 31, Change from 2022 to 2023
52.6 % 54.9 % 51.8 %
−Removed: in Dollars in % 2023 (1)
−Removed: in Dollars in %
−Removed: (In millions, except percentages) (In millions, except percentages)
−Removed: Brazil $ 11,406 $ 7,821 $ 3,585 45.8 % $ 7,821 $ 5,798 $ 2,023 34.9 %
−Removed: Mexico 4,664 3,071 1,593 51.9 3,071 1,893 1,178 62.2
−Removed: Argentina (2)
22.4 22.4 20.3
−Removed: Other countries 889 665 224 33.7 665 514 151 29.4
−Removed: Total net revenues and financial income
20.6 18.4 23.5
+Added: Other countries
(1) Recast for consistency with the current presentation due to the change in the presentation of certain financial results.
−Removed: Please refer to Note 2 – Summary of significant accounting policies - Change in the presentation of certain financial results and reclassification of prior years results to our audited consolidated financial statements for further details.
−Removed: (2) For the year ended December 31, 2024, the main driver of Argentina’s net revenues and financial income deceleration growth is partially explained by the average inter-annual increase of Argentina’s official exchange rate against U.S.
−Removed: dollar during the first half of 2024 of 308.4% partially offset by an average inter-annual inflation rate in our Argentine segment of 275.9%, for the same period.
+Added: Please refer to Note 2 – Summary of significant accounting policies - Change in the presentation of certain financial results and reclassification of 2023 results to our audited consolidated financial statements for further details.
+Added: Net revenues and financial income for the year ended December 31, 2025 as compared to the year ended December 31, 2024 are described in “Item 7 — Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of operations— Net revenues and financial income.
40 | MercadoLibre, Inc.
+Added: T able of Contents
Critical Accounting Policies and Estimates
16 unchanged sentences
Each marginal monthly probability of default represents a different possible scenario of default.
−Removed: However, for new products with limited historical information such as asset-backed loans, we use a work-out approach for the estimation of the PD.
+Added: However, for new products with limited historical information such as asset backed loans, we estimate PDs using roll rates/transition, until sufficient history is available to migrate to fully empirical approaches.
The exposure at default is equal to the receivables’ expected outstanding principal, interest and other allowable balances.
We estimate the exposure at default that the portfolio of loans would have in each possible moment of default, meaning for each possible scenario mentioned above.
−Removed: For credit cards loans we estimate an amortization scheme based on historical information.
+Added: For credit cards loans we estimate an amortization pattern based on historical information.
Also, for Brazil credit cards loans, we use, as applicable, a one month credit conversion factor (“CCF”) estimated according to terms and conditions, considering the increase in the volume of credit cards portfolio.
4 unchanged sentences
The measurement of the CECL is based on probability-weighted scenarios (probability of default for each month), in view of past events, current conditions and adjustments to reflect the reasonable and supportable forecast of future economic conditions.
+Added: When Management considers that it is needed, we use an expert credit judgment overlay to reflect factors not captured in the results produced by the CECL model.
Considering a hypothetical increase in the probability of default of 10%, we would have recognized an increase in our allowance for doubtful accounts for loans receivable and off-balance sheet unused agreed loan commitment on credit cards portfolio of approximately $99 million.
−Removed: We believe that the accounting estimate related to allowance for doubtful accounts on loans receivable a critical accounting estimate because it requires Management to make complex assumptions and scenarios to estimate the CECL.
−Removed: Legal contingencies
+Added: We believe that the accounting estimate related to allowance for doubtful accounts on loans receivable is a critical accounting estimate because it requires Management to make complex assumptions and scenarios to estimate the CECL.
+Added: Contingencies
In connection with certain pending litigation and other claims, we have estimated the range of probable loss and provided for such losses through charges to our consolidated statements of income.
1 unchanged sentence
From time to time, we are involved in disputes that arise in the ordinary course of business.
−Removed: We are currently involved in certain legal proceedings as discussed in “Item 3—Legal Proceedings,” and in Note 16 – Commitments and Contingencies to our audited consolidated financial statements.
+Added: We are currently involved in certain proceedings as discussed in “Item 3—Legal Proceedings,” and in Note 14 – Commitments and Contingencies to our audited consolidated financial statements.
We believe that we have meritorious defenses to the claims against us, and we will defend ourselves accordingly.
3 unchanged sentences
41 | MercadoLibre, Inc.
+Added: T able of Contents
We are required to recognize a provision for income taxes based upon taxable income and temporary differences between the book and tax bases of our assets and liabilities for each of the tax jurisdictions in which we operate.
7 unchanged sentences
Principal trends in results of operations
−Removed: The information include in this section sets forth, for the years presented, certain data from our consolidated statements of income.
+Added: The information included in this section sets forth, for the years presented, certain data from our consolidated statements of income.
This information should be read in conjunction with our audited consolidated financial statements and the notes to those statements included elsewhere in this report.
7 unchanged sentences
■ first party sales, which are generated when control of the good is transferred, upon delivery to our customers;
−Removed: ■ shipping fees, which are generated when a buyer elects to receive an item through our shipping service, net of the third-party carrier costs (when we act as an agent).
−Removed: When the Company acts as principal, revenues derived from shipping services are recognized upon delivery of the good to the customer, and presented on a gross basis.
+Added: ■ shipping fees, which are generated when an item is delivered through our shipping service.
+Added: When we act as an agent, revenues derived from the shipping services are recognized at the time the transaction is successfully concluded for third-party sales, and presented net of the transportation costs charged by third-party carriers.
+Added: When we act as principal, revenues derived from shipping services are recognized upon delivery of the good to the customer, and presented on a gross basis.
In addition, the Company generates storage fees, which are charged to the seller for the utilization of the Company’s fulfillment facilities;
−Removed: ■ ad sales fees due to advertising services provided to sellers, vendors, brands and others, through performance products (product ads and brand ads) and display formats, which are recognized based on the number of clicks and impressions, respectively;
+Added: ■ ad sales fees due to advertising services provided to sellers, vendors, brands and others, through product searches (product ads and brand ads) and display formats (including video ads and display programmatic), which are recognized based on the number of clicks and impressions, respectively;
■ classifieds fees due to offerings in vehicles, real estate and services, which are charged to sellers who opt to give their listings greater exposure throughout our websites;
+Added: ■ subscription fees associated with MELI+ memberships and third party digital content subscriptions;
■ fees from other ancillary businesses.
−Removed: Fintech revenues are attributable to:
+Added: Fintech revenues and financial income are attributable to:
■ commissions representing a percentage of the payment volume processed that are charged to sellers in connection with off-Marketplace platform transactions;
■ commissions from additional fees we charge when a buyer elects to pay in installments through our Mercado Pago platform, for transactions that occur either on or off our Marketplace platform;
−Removed: ■ interest, cash advances and fees from credit cards, merchant and consumer loans granted under our lending solution;
+Added: ■ interest, cash advances and fees from credit cards, merchant, consumer and asset-backed loans granted under our lending solution;
■ revenues from our asset management product;
5 unchanged sentences
■ fees from other ancillary services.
−Removed: Although we also process payments on the Marketplace, we do not charge sellers an added commission for this service, as it is already included in the Marketplace final value fee that we charge.
42 | MercadoLibre, Inc.
−Removed: Our Mercado Libre Marketplace is available in 18 countries (Argentina, Brazil, Mexico, Chile, Colombia, Peru, Uruguay, Venezuela, Bolivia, Costa Rica, Dominican Republic, Ecuador, Guatemala, Honduras, Nicaragua, Panama, Paraguay and El Salvador) and our fintech platform, Mercado Pago, is present in 8 countries (Argentina, Brazil, Mexico, Chile, Colombia, Peru, Uruguay and Ecuador).
+Added: T able of Contents
+Added: Although we also process payments on the Marketplace, we do not charge sellers an added commission for this service, as it is already included in the Marketplace final value fee that we charge.
The functional currency for each country’s operations is the country’s local currency, except for Argentina, where the functional currency is the U.S.
5 unchanged sentences
For the years ended December 31, 2025, 2024 and 2023, no single customer accounted for more than 5.0% of our net revenues and financial income.
−Removed: Our net revenues and financial income grew during the year 2024, boosted by an increase in the share of shipping services where we act as principal, as opposed to agent, the growth of our gross merchandise volume, our lending solution originations and our total payment volume.
+Added: Our net revenues and financial income grew during the year 2025, boosted by the growth of credit originations from our lending solution, an increase in total payment volume and fees due to payment in installments in our Mercado Pago platform, and the growth in gross merchandise volume.
The following table summarizes our consolidated net revenues and financial income for the years ended December 31, 2025, 2024 and 2023:
Year Ended December 31, Change from 2024 to 2025 Year Ended December 31, Change from 2023 to 2024
−Removed: 2024 2023 (1)
2025 2024 in Dollars in % 2024 2023 (1)
3 unchanged sentences
(1) Recast for consistency with the current presentation due to the change in the presentation of certain financial results.
−Removed: Please refer to Note 2 – Summary of significant accounting policies - Change in the presentation of certain financial results and reclassification of prior years results to our audited consolidated financial statements for further details.
+Added: Please refer to Note 2 – Summary of significant accounting policies - Change in the presentation of certain financial results and reclassification of 2023 results to our audited consolidated financial statements for further details.
The following table summarizes our consolidated net revenues and financial income by revenue stream and geographic segment for the years ended December 31, 2025, 2024 and 2023:
Consolidated net revenues and financial income Year Ended December 31, Change from 2024 to 2025 Year Ended December 31, Change from 2023 to 2024
−Removed: 2024 2023 (1)
2025 2024 in Dollars in % 2024 2023 (1)
18 unchanged sentences
(1) Recast for consistency with the current presentation due to the change in the presentation of certain financial results.
−Removed: Please refer to Note 2 – Summary of significant accounting policies - Change in the presentation of certain financial results and reclassification of prior years results to our audited consolidated financial statements for further details.
+Added: Please refer to Note 2 – Summary of significant accounting policies - Change in the presentation of certain financial results and reclassification of 2023 results to our audited consolidated financial statements for further details.
43 | MercadoLibre, Inc.
+Added: T able of Contents
See Note 8 – Segments of our audited consolidated financial statements for further information regarding our net revenues and financial income disaggregated by similar products and services for the years ended December 31, 2025, 2024 and 2023.
1 unchanged sentence
This increase in Commerce revenues was primarily attributable to:
−Removed: ■ (i) an increase of $3,322 million in Commerce services revenues mainly related to a 15.0% increase in gross merchandise volume and (ii) higher flat fee contributions for low gross merchandise volume transactions.
−Removed: Shipping carrier costs, which are netted against revenues, decreased $1,441 million, from $2,462 million for the year ended December 31, 2023 to $1,021 million for the year ended December 31, 2024, mainly due to an increase in the share of shipping services where we act as principal, as opposed to agent;
−Removed: ■ an increase of $636 million in our revenues from Commerce products sales, mainly in Brazil and Mexico.
+Added: ■ an increase of $2,674 million in Commerce services revenues mainly related to a 26.4% increase in gross merchandise volume and higher flat fee contributions for low gross merchandise volume transactions.
+Added: Shipping carrier costs, which are netted against revenues, decreased $42 million, from $1,021 million for the year ended December 31, 2024 to $979 million for the year ended December 31, 2025, mainly due to an increase in the share of shipping services where we act as principal, as opposed to agent during the first quarter of 2025;
+Added: ■ an increase of $1,461 million in our revenues from Commerce products sales, mainly in Brazil, Mexico and Argentina.
Our Fintech revenues grew 46.2%, from $8,618 million for the year ended December 31, 2024, to $12,599 million for the year ended December 31, 2025.
This increase is mainly generated by:
−Removed: ■ an increase of $645 million in our revenues from Financial services and income, mainly related to a 34.0% increase in our total payment volume, partially offset by a decrease of financial income as a result of lower interest rates mainly in Argentina;
■ an increase of $2,258 million in our Credits revenues, mainly as a consequence of higher originations.
+Added: ■ an increase of $1,716 million in our revenues from Financial services and income, mainly related to our off-platform transactional fees and financing transactions, as a result of a 41.3% increase in our total payment volume.
Commerce revenues in Brazil increased 30.5% in the year ended December 31, 2025 as compared to 2024.
−Removed: This increase was generated by an increase of $2,040 million in our Commerce services revenues mainly due to an increase in the share of shipping services where we act as principal, as opposed to agent, and an increase of $486 million in our revenues from Commerce products sales.
+Added: This increase was generated by an increase of $1,164 million in our Commerce services revenues and an increase of $982 million in our revenues from Commerce products sales.
Fintech revenues grew by 37.8%, a $1,649 million increase, during the year ended December 31, 2025 as compared to 2024, mainly driven by an increase of $1,236 million in our Credits revenues and an increase of $413 million in our revenues from Financial services and income.
−Removed: Net revenues growth during the year ended December 31, 2024, as compared to 2023, was offset by the average increase of Brazil’s exchange rate against U.S.
−Removed: dollar of 7.9%.
Commerce revenues in Mexico increased 36.2% in the year ended December 31, 2025 as compared to 2024.
−Removed: This increase was generated by an increase of $955 million in our Commerce services revenues mainly due to an increase in the share of shipping services where we act as principal, as opposed to agent, and an increase of $138 million in our revenues from Commerce products sales.
+Added: This increase was generated by an increase of $824 million in our Commerce services revenues and an increase of $289 million in our revenues from Commerce products sales.
Fintech revenues grew 43.8%, a $698 million increase, during the year ended December 31, 2025 as compared to 2024, mainly driven by an increase of $361 million in our Credits revenues and an increase of $331 million in our revenues from Financial services and income.
−Removed: The main driver of Argentina’s net revenues and financial income deceleration growth is partially explained by the average inter-annual increase of Argentina’s official exchange rate against U.S.
−Removed: dollar during the first half of 2024 of 308.4% partially offset by an average inter-annual inflation rate in our Argentine segment of 275.9% for the same period.
−Removed: During the second half of 2024, the effect is partially offset as the average inter-annual inflation rate in our Argentine segment was 197.7% and the increase of Argentina’s official exchange rate against U.S.
−Removed: dollar was 172.7%.
Commerce revenues in Argentina increased 44.6% in the year ended December 31, 2025, as compared to 2024.
−Removed: This increase was generated by an increase of $171 million in our Commerce services revenues, partially offset by a decrease of $25 million in our revenues from Commerce products sales.
−Removed: Fintech revenues grew 5.3%, a $122 million increase, during the year ended December 31, 2024 as compared to 2023, mainly driven by an increase of $146 million in our revenues from Financial services and income, partially offset by a decrease of $25 million in our Credits revenues.
−Removed: 45 | MercadoLibre, Inc.
+Added: This increase was generated by an increase of $515 million in our Commerce services revenues and an increase of $112 million in our revenues from Commerce products sales.
+Added: Fintech revenues grew 62.9%, a $1,517 million increase, during the year ended December 31, 2025 as compared to 2024, mainly driven by an increase of $861 million in our revenues from Financial services and income and an increase of $656 million in our Credits revenues.
The following table sets forth our total net revenues and financial income and the sequential quarterly growth of these net revenues and financial income for the periods described below:
9 unchanged sentences
(1) Recast for consistency with the current presentation due to the change in the presentation of certain financial results.
−Removed: Please refer to Note 2 – Summary of significant accounting policies - Change in the presentation of certain financial results and reclassification of prior years results to our audited consolidated financial statements for further details.
+Added: Please refer to Note 2 – Summary of significant accounting policies - Change in the presentation of certain financial results and reclassification of 2023 results to our audited consolidated financial statements for further details.
+Added: 44 | MercadoLibre, Inc.
+Added: T able of Contents
The following table sets forth the growth in net revenues and financial income in local currencies, for the years ended December 31, 2025 and 2024 as compared to the same periods in 2024 and 2023, respectively:
10 unchanged sentences
See also the “Non-GAAP Measures of Financial Performance” section for details on FX neutral measures.
−Removed: (3) For the year ended December 31, 2024, 2023 and 2022, the average inter-annual inflation rate in our Argentine segment was 236.8%, 127.9% and 70.7%, respectively.
+Added: (3) For the year ended December 31, 2025 and 2023, the average inter-annual inflation rate in our Argentine segment of 44.5% and 127.9%, respectively, was higher than the average inter-annual increase of Argentina’s official exchange rate against U.S.
+Added: dollar of 35.4% and 120.0%, respectively, while for the year ended December 31, 2024, the average inter-annual inflation rate in our Argentine segment of 236.8%, was lower than the average inter-annual increase of Argentina’s official exchange rate against U.S.
+Added: dollar of 240.5%.
See also "Item 1A.
Risk Factors - Risks related to doing business in Latin America - Local currencies used in the conduct of our business are subject to depreciation, volatility and exchange controls."
−Removed: 46 | MercadoLibre, Inc.
Cost of net revenues and financial expenses
−Removed: Cost of net revenues and financial expenses primarily includes shipping operation costs (including warehousing costs), carrier and other operating costs, cost of goods sold, collection fees, sales taxes, funding costs related to our lending solution and Mercado Pago business, fraud prevention expenses, hosting and site operation fees, certain tax withholding related to export duties, compensation for customer support personnel and depreciation and amortization.
+Added: Cost of net revenues and financial expenses primarily includes shipping operation costs (including warehousing costs), carrier and other operating costs, cost of goods sold, collection fees, sales taxes, funding costs related to our fintech business, fraud prevention expenses, hosting and site operation fees, certain tax withholding related to export duties, compensation for customer support personnel and depreciation and amortization.
The following table presents cost of net revenues and financial expenses for the years indicated:
Year Ended December 31, Change from 2024 to 2025 Year Ended December 31, Change from 2023 to 2024
−Removed: 2024 2023 (1)
2025 2024 in Dollars in % 2024 2023 (1)
5 unchanged sentences
(1) Recast for consistency with the current presentation due to the change in the presentation of certain financial results.
−Removed: Please refer to Note 2 – Summary of significant accounting policies - Change in the presentation of certain financial results and reclassification of prior years results to our audited consolidated financial statements for further details.
+Added: Please refer to Note 2 – Summary of significant accounting policies - Change in the presentation of certain financial results and reclassification of 2023 results to our audited consolidated financial statements for further details.
For the year ended December 31, 2025 as compared to the year ended December 31, 2024, the increase in cost of net revenues and financial expenses was primarily attributable to a:
−Removed: i) $2,542 million increase in shipping operating and carrier costs mainly due to an increase in the share of shipping services where we act as principal, as opposed to agent;
−Removed: ii) $474 million increase in cost of sales of goods mainly in Brazil and Mexico, partially offset by a decrease in Argentina;
−Removed: iii) $341 million increase in collection fees, which was mainly attributable to our Brazilian and Mexican operations as a result of growth of total payment volume of Mercado Pago in those countries;
−Removed: iv) $202 million increase in sales taxes;
−Removed: and v) $109 million increase in hosting and site operation fees.
+Added: i) $1,912 million increase in shipping operating and carrier costs;
+Added: ii) $1,166 million increase in cost of sales of goods mainly in Brazil, Mexico and Argentina;
+Added: iii) $533 million increase in collection fees, across all of our main segments, as a result of the higher total payment volume of Mercado Pago in those countries;
+Added: iv) $523 million increase in other fintech costs mainly related to higher funding costs of Mercado Pago;
+Added: v) $418 million increase in sales taxes;
+Added: and vi) $210 million increase in hosting and site operation fees.
Our subsidiaries in Brazil, Argentina and Colombia are subject to certain taxes on revenues, which are classified as a cost of net revenues and financial expenses.
4 unchanged sentences
For the years ended December 31, 2025 and 2024, our gross profit margins were 44.5% and 46.1%, respectively.
−Removed: The decrease in our gross profit margin resulted primarily from an increase in our shipping operating and carrier costs, as a percentage of net revenues and financial income mainly due to an increase in the share of shipping services where we act as principal, as opposed to agent, partially offset by a decrease of our other fintech costs, sales taxes and collection fees, as a percentage of net revenues and financial income.
−Removed: In the future, our gross profit margin could continue declining if we maintain the growth of our sales of goods business, which has a lower pure product margin, building up our logistics network and if we fail to maintain an appropriate relationship between our cost of revenue structure and our net revenues and financial income trend.
+Added: The decrease in our gross profit margin resulted mainly due to the reduction of our free shipping threshold in Brazil, together with an increase in our cost of sales of goods and funding costs related to our fintech business, as a percentage of net revenues and financial income, partially offset by a decrease of our collection fees and sales taxes, as a percentage of net revenues and financial income.
+Added: 45 | MercadoLibre, Inc.
+Added: T able of Contents
+Added: In the future, our gross profit margin could continue declining if we maintain the growth of our sales of goods business, which has a lower pure product margin, due to marketing initiatives or building up our logistics network and if we fail to maintain an appropriate relationship between our cost of revenue structure and our net revenues and financial income trend.
Product and technology development expenses
7 unchanged sentences
7.9% 9.3% 9.3% 12.1%
−Removed: 47 | MercadoLibre, Inc.
−Removed: For the year ended December 31, 2024, the increase in product and technology development expenses as compared to the year ended December 31, 2023, was primarily attributable to a:
−Removed: i) $181 million increase in salaries and wages mainly related to the increase of 17% in our product and technology development headcount and increases in amounts accrued under the LTRPs as a consequence of the increase in our common stock price;
−Removed: and ii) $37 million increase in depreciation and amortization expenses mainly related to capitalized information and technology assets.
−Removed: This increase was partially offset by a $148 million decrease in other product and technology development expenses mainly related to a one-off charge recorded during the year ended December 31, 2023, due to the risk of losing the case became probable in certain disputed amounts regarding withholding income tax contingencies in Brazil, partially offset by higher tax withholding in connection with intercompany export services billing duties.
+Added: For the year ended December 31, 2025, the increase in product and technology development expenses as compared to the year ended December 31, 2024, was primarily attributable to:
+Added: i) a $182 million increase in salaries and wages mainly related to the increase of 11% in our product and technology development headcount and increases in amounts accrued under the LTRPs;
+Added: ii) a $113 million increase in technology maintenance expenses;
+Added: and iii) a $52 million increase in other product and technology development expenses mainly related to higher tax withholding in connection with intercompany export services billing duties.
We believe that product and technology development is one of our key competitive advantages and we intend to continue to invest in hiring engineers to meet the increasingly sophisticated product expectations of our customer base.
12 unchanged sentences
For the year ended December 31, 2025, the increase in sales and marketing expenses as compared to the year ended December 31, 2024 was primarily attributable to a:
−Removed: i) $266 million increase in online and offline marketing expenses mainly in Brazil and Mexico;
−Removed: ii) $57 million increase in chargebacks;
−Removed: iii) $55 million increase in our buyer protection program expense;
−Removed: and iv) $38 million increase in salaries and wages mainly related to the increase of 15% in our sales and marketing headcount and increases in amounts accrued under the LTRPs as a consequence of the increase in our common stock price.
+Added: i) $637 million increase in online and offline marketing expenses across all of our main segments;
+Added: ii) $147 million increase in our buyer protection program expenses;
+Added: and iii) $131 million increase in salaries and wages mainly related to the increase of 55% in our sales and marketing headcount and increases in amounts accrued under the LTRPs.
+Added: 46 | MercadoLibre, Inc.
+Added: T able of Contents
Provision for doubtful accounts
7 unchanged sentences
10.7% 8.9% 8.9% 7.0%
−Removed: For the year ended December 31, 2024, as compared to the year ended December 31, 2023, the provision for doubtful accounts increased by $808 million mainly due to the increase in originations growth at 75% (mainly related to the credit card), resulting in an increase in the average balance of the loans receivable portfolio of 62.8%.
−Removed: 48 | MercadoLibre, Inc.
+Added: For the year ended December 31, 2025, as compared to the year ended December 31, 2024, the provision for doubtful accounts increased by $1,233 million mainly due to the increase in originations growth at 61% (mainly related to the credit card, consumer and merchant products).
General and administrative expenses
−Removed: Our general and administrative expenses consist primarily of salaries for management and administrative staff, compensation of non-employee directors, long term retention program compensation, expenses for legal, audit and other professional services, contingencies, insurance expenses, office space rental expenses, changes in the fair value (for the years ended December 31, 2024 and 2023) and impairment (for the year ended December 31, 2022) of digital assets, travel and business expenses, as well as depreciation and amortization expenses.
+Added: Our general and administrative expenses consist primarily of salaries for management and administrative staff, compensation of non-employee directors, long term retention program compensation, expenses for legal, audit and other professional services, contingencies, insurance expenses, office space rental expenses, changes in the fair value of digital assets, travel and business expenses, as well as depreciation and amortization expenses.
Our general and administrative expenses include the costs of the following areas:
7 unchanged sentences
3.7% 4.6% 4.6% 5.1%
−Removed: For the year ended December 31, 2024, the increase in general and administrative expenses as compared to the year ended December 31, 2023 was primarily attributable to a:
−Removed: i) $72 million increase in contingencies;
−Removed: ii) $61 million increase in salaries and wages, mainly related to the increase of 17% in general and administrative headcount and increases in amounts accrued under the LTRPs as a consequence of the increase in our common stock price;
−Removed: and iii) $33 million increase in other general and administrative expenses mainly related to higher tax withholding in connection with intercompany export services billing duties.
+Added: For the year ended December 31, 2025, the increase in general and administrative expenses as compared to the year ended December 31, 2024 was primarily attributable to:
+Added: i) a $75 million increase in salaries and wages, mainly related to the increase of 12% in general and administrative headcount and increases in amounts accrued under the LTRPs;
+Added: and ii) a $32 million increase in other general and administrative expenses mainly related to higher tax withholding in connection with intercompany export services billing duties.
Operating income margins
1 unchanged sentence
Our operating income margin is affected by our operating expenses structure, which mainly consists of our employees’ salaries, our sales and marketing expenses related to those activities we incurred to promote our services, provision for doubtful accounts mainly related to our loans receivable portfolio and product and technology development expenses, among other operating expenses.
−Removed: As we continue to grow and focus on expanding our leadership in the region, we will continue to invest in product and technology development, sales and marketing and human resources in order to promote our services and capture long-term business opportunities.
+Added: As we continue to grow and focus on expanding our leadership in the region, we will continue to invest in product and technology development, and sales and marketing in order to promote our services and capture long-term business opportunities.
As a result, we may experience decreases in our operating income margins.
For the year ended December 31, 2025, as compared to the year ended December 31, 2024, our operating margin decreased from a margin of 12.7% to a margin of 11.1%.
−Removed: This decrease was mainly explained by an increase in cost of net revenues and financial expenses as a percentage of net revenues and financial income, mainly due to an increase in the share of shipping services where we act as principal as opposed to agent, and provision of doubtful accounts, as a percentage of net revenues and financial income.
−Removed: This was partially offset by a decrease in product and technology development expenses as a percentage of net revenues and financial income, mainly related to the one-off charge recorded in 2023, because the risk of losing the case became probable in certain disputed amounts regarding withholding income tax contingencies in Brazil.
+Added: This decrease is mainly explained by the reduction of our free shipping threshold in Brazil, together with an increase in provision of doubtful accounts, driven by the expansion of our credit card portfolio, and cost of net revenues and financial expenses, as a percentage of net revenues and financial income, partially offset by a decrease in product and technology development and general and administrative expenses, as a percentage of net revenues and financial income.
+Added: 47 | MercadoLibre, Inc.
+Added: T able of Contents
Other income (expenses), net
−Removed: Other income (expenses), net consists primarily of interest income derived from our investments and cash equivalents and, interest expense and other financial charges related to financial liabilities not related to Mercado Pago’s operations, and foreign currency gains or losses.
+Added: Other income (expenses), net consists primarily of interest income derived from our investments and cash equivalents, interest expense and other financial charges related to financial liabilities not related to Mercado Pago’s operations, and foreign currency gains or losses.
The following table presents Other income (expenses), net for the years indicated:
Year Ended December 31, Change from 2024 to 2025 Year Ended December 31, Change from 2023 to 2024
−Removed: 2024 2023 (1)
2025 2024 in Dollars in % 2024 2023 (1)
5 unchanged sentences
(1) Recast for consistency with the current presentation due to the change in the presentation of certain financial results.
−Removed: Please refer to Note 2 – Summary of significant accounting policies - Change in the presentation of certain financial results and reclassification of prior years results to our audited consolidated financial statements for further details.
−Removed: 49 | MercadoLibre, Inc.
−Removed: For the year ended December 31, 2024, the decrease in other income (expense), net as compared to the year ended December 31, 2023 was primarily attributable to lower foreign exchange losses of $334 million due to acquisitions of financial instruments in the Argentine market at a price that reflects an additional cost of accessing U.S.
−Removed: dollars through an indirect mechanism due to restrictions imposed by the Argentine government for buying U.S.
−Removed: dollars at the official exchange rate, and due to lower foreign exchange losses from our Argentine subsidiaries.
−Removed: This was partially offset by higher foreign exchange losses from our Brazilian and Mexican subsidiaries.
+Added: Please refer to Note 2 – Summary of significant accounting policies - Change in the presentation of certain financial results and reclassification of 2023 results to our audited consolidated financial statements for further details.
+Added: For the year ended December 31, 2025, the increase in other expenses, net as compared to the year ended December 31, 2024 was primarily attributable to $155 million of higher foreign exchange losses mainly due to our Argentine (higher foreign exchange losses of $254 million), Uruguayan and Spanish subsidiaries, partially offset by foreign exchange gains from our Brazilian and Mexican subsidiaries.
We are subject to federal and state income tax in the United States, as well as foreign taxes in the multiple jurisdictions where we operate.
5 unchanged sentences
Year Ended December 31,
+Added: 2025 2024 2023
(In millions)
2 unchanged sentences
1,314 764 853
+Added: (540) (260) (320)
+Added: (469) (243) (284)
Income tax expense $ 845 $ 521 $ 569
6 unchanged sentences
2.9 % 2.5% 2.5% 3.8%
−Removed: During the year ended December 31, 2024 as compared to the year ended December 31, 2023, income tax expense decreased mainly as a result of lower taxable income in Argentina during 2024 primarily driven by lower non-deductible expenses.
−Removed: This decrease was partially offset by i) higher income tax expense in Mexico in 2024 mainly driven by the income tax gains recognized in Mexico during 2023 as a result of the reversal of the valuation allowance in one of our Mexican subsidiaries (please see Note 15 – Income taxes of our audited consolidated financial statements for further information regarding this valuation allowance reversal) and ii) higher income tax expense due to withholding tax on intercompany dividends.
+Added: During the year ended December 31, 2025 as compared to the year ended December 31, 2024, income tax expense increased mainly as a result of higher income tax expense in Argentina due to higher taxable income and lower deductions related to tax inflation adjustments and higher income tax expense in Mexico related to higher taxable income.
+Added: This increase was partially offset by income tax gains in Brazil in 2025 mainly driven by the increase in deferred tax assets in that segment.
+Added: 48 | MercadoLibre, Inc.
+Added: T able of Contents
Our effective tax rate is defined as income tax expense as a percentage of net income before income tax expense.
3 unchanged sentences
Effective tax rate 29.7 % 21.4 % 36.6 %
−Removed: 50 | MercadoLibre, Inc.
−Removed: Our effective tax rate for the year ended December 31, 2024 as compared to 2023, decreased largely as a result of i) no foreign exchange losses recognition during the year related to the acquisition of our own common stock in the Argentine market, which was considered as a non-deductible expense (please see Note 24 – Share repurchase program for further information);
−Removed: and (ii) lower taxable foreign exchange gains accounted for in Argentina for local tax purposes that are not recorded for accounting purposes since, under U.S.
−Removed: GAAP, the Argentine operations’ functional currency is the U.S.
−Removed: dollar due to the highly inflationary status of the country.
−Removed: This decrease was partially offset by lower reversal of the valuation allowance in the year 2024 as compared to 2023 (please see Note 15 – Income taxes of our audited consolidated financial statements for further information regarding this valuation allowances reversal).
+Added: Our effective tax rate for the year ended December 31, 2025 as compared to 2024, increased largely as a result of lower deductions related to tax inflation adjustments in Argentina.
Deferred Income Tax
3 unchanged sentences
(In millions, except percentages) (In millions, except percentages)
−Removed: $ 472 32.7 % $ 386 34.6 %
−Removed: 56 3.9 36 3.2
−Removed: 314 21.8 335 30.0
+Added: Brazil $ 1,012 42.4 % $ 472 32.7 %
718 30.1 545 37.8
+Added: Mexico 468 19.6 314 21.8
+Added: Argentina 107 4.5 56 3.9
Other countries 80 3.4 56 3.8
−Removed: 56 3.8 50 4.6
Total $ 2,385 100.0 % $ 1,443 100.0 %
−Removed: As of December 31, 2024 and 2023 our deferred tax assets, were comprised mainly of i) U.S.
+Added: As of December 31, 2025 and 2024 our deferred tax assets, were comprised mainly of i) allowance for doubtful accounts representing 33.1% and 25.7% of our total deferred tax assets, respectively;
foreign tax credits representing 29.3% and 36.6% of our total deferred tax assets, respectively;
−Removed: ii) allowance for doubtful accounts representing 25.7% and 21.0% of our total deferred tax assets, respectively;
and (iii) provisions representing 19.9% and 21.4% of our total deferred tax assets, respectively.
3 unchanged sentences
(In millions, except percentages) (In millions, except percentages)
−Removed: $ 35 54.7 % $ 123 69.5 %
−Removed: 9 14.1 31 17.5
+Added: Brazil $ 149 81.0 % $ 9 14.1 %
+Added: Argentina 11 6.0 4 6.3
+Added: Mexico — — 35 54.7
Other countries 24 13.0 16 24.9
−Removed: 16 24.9 13 7.4
Total $ 184 100.0 % $ 64 100.0 %
2 unchanged sentences
As of December 31, 2025 and 2024, our valuation allowance amounted to $764 million and $584 million, respectively.
+Added: 49 | MercadoLibre, Inc.
+Added: T able of Contents
The following table summarizes the composition of our valuation allowance as of December 31, 2025 and 2024:
3 unchanged sentences
$ 711 93.1 % $ 544 93.2 %
−Removed: 19 3.3 53 14.2
+Added: Mexico 22 2.9 19 3.3
+Added: Argentina 9 1.1 7 1.2
Other countries 22 2.9 14 2.3
−Removed: 14 2.3 10 2.6
Total $ 764 100.0 % $ 584 100.0 %
−Removed: 51 | MercadoLibre, Inc.
Our valuation allowance is based on our assessment that it is more likely than not that the deferred tax asset will not be realized.
5 unchanged sentences
While the framework for the GLoBE Rules is global, the rules would be implemented through legislation enacted in jurisdictions that adopt the rules.
−Removed: The GloBE Rules have been passed by legislatures in Spain and Brazil in December 2024 effective for fiscal years starting on or after December 31, 2023 in Spain and effective from January 1, 2025 in Brazil.
−Removed: Spain is the only jurisdiction where we have incorporated entities that have adopted the GLoBE Rules for the 2024 fiscal year.
−Removed: According to our estimate there is no tax charge to be accrued in connection with the GloBE Rules for the year ended December 31, 2024.
+Added: The GloBE Rules have been passed by legislatures in Spain, Uruguay and Brazil effective for fiscal years starting on or after December 31, 2023 in Spain and effective for fiscal years starting on or after December 31, 2024 in Brazil and Uruguay.
+Added: For the year ended December 31, 2025, there is no tax charge accrued in connection with the GloBE Rules.
+Added: In January 2026, the OECD/G20 Inclusive Framework approved the Side-by-Side (SbS) package, applicable for fiscal years starting on or after January 1, 2026.
+Added: This package is expected to exclude U.S.
+Added: parented groups from the application of the IIR (“Income Inclusion Rule”) and UTPR (“Undertaxed Profits Rule”), but not from the QDMTT (“Qualified Domestic Minimum Top-Up Tax”).
+Added: While these measures have not yet been enacted into domestic legislation, their adoption by relevant jurisdictions is expected during the next months.
Segment information
3 unchanged sentences
(In millions, except for percentages)
−Removed: Net service revenues and financial income $ 10,033 $ 4,183 $ 3,614 $ 808 $ 18,638
−Removed: Net product revenues 1,373 481 204 81 2,139
Net revenues and financial income $ 15,201 $ 6,475 $ 5,962 $ 1,255 $ 28,893
−Removed: Local operating expenses (8,828) (3,650) (2,069) (730) (15,277)
−Removed: Depreciation and amortization (292) (160) (74) (42) (568)
Total segment costs (13,126) (5,304) (3,481) (1,079) (22,990)
3 unchanged sentences
50 | MercadoLibre, Inc.
+Added: T able of Contents
Year Ended December 31, 2024
1 unchanged sentence
(In millions, except for percentages)
−Removed: Net service revenues and financial income $ 6,946 $ 2,734 $ 3,322 $ 615 $ 13,617
−Removed: Net product revenues 875 337 228 50 1,490
Net revenues and financial income $ 11,406 $ 4,664 $ 3,818 $ 889 $ 20,777
−Removed: Local operating expenses (5,698) (2,238) (1,812) (577) (10,325)
−Removed: Depreciation and amortization (262) (133) (58) (38) (491)
Total segment costs (9,120) (3,810) (2,143) (772) (15,845)
2 unchanged sentences
20.0 % 18.3 % 43.9 % 13.2 % 23.7 %
−Removed: (1) Recast for consistency with the current presentation due to the change in the presentation of certain financial results.
−Removed: Please refer to Note 2 – Summary of significant accounting policies - Change in the presentation of certain financial results and reclassification of prior years results to our audited consolidated financial statements for further details.
Change from the Year Ended December 31, 2024 to December 31, 2025
Brazil Mexico Argentina Other Countries Total
−Removed: Net service revenues and financial income
−Removed: Dollars $ 3,087 $ 1,449 $ 292 $ 193 $ 5,021
−Removed: in % 44.4% 53.0% 8.8% 31.4% 36.9%
−Removed: Net product revenues
−Removed: Dollars $ 498 $ 144 $ (24) $ 31 $ 649
−Removed: in % 56.9% 42.7% (10.5)% 62.0% 43.6%
Net revenues and financial income
1 unchanged sentence
in % 33.3% 38.8% 56.2% 41.2% 39.1%
−Removed: Local operating expenses
−Removed: Dollars $ (3,130) $ (1,412) $ (257) $ (153) $ (4,952)
−Removed: in % 54.9% 63.1% 14.2% 26.5% 48.0%
−Removed: Depreciation and amortization
−Removed: Dollars $ (30) $ (27) $ (16) $ (4) $ (77)
−Removed: in % 11.5% 20.3% 27.6% 10.5% 15.7%
Total segment costs
4 unchanged sentences
in % (9.2%) 37.1% 48.1% 50.4% 19.7%
−Removed: 53 | MercadoLibre, Inc.
Year Ended December 31, 2024
1 unchanged sentence
(In millions, except for percentages)
−Removed: Net service revenues and financial income $ 6,946 $ 2,734 $ 3,322 $ 615 $ 13,617
−Removed: Net product revenues 875 337 228 50 1,490
Net revenues and financial income $ 11,406 $ 4,664 $ 3,818 $ 889 $ 20,777
−Removed: Local operating expenses (5,698) (2,238) (1,812) (577) (10,325)
−Removed: Depreciation and amortization (262) (133) (58) (38) (491)
Total segment costs (9,120) (3,810) (2,143) (772) (15,845)
2 unchanged sentences
20.0 % 18.3 % 43.9 % 13.2 % 23.7 %
−Removed: (1) Recast for consistency with the current presentation due to the change in the presentation of certain financial results.
−Removed: Please refer to Note 2 – Summary of significant accounting policies - Change in the presentation of certain financial results and reclassification of prior years results to our audited consolidated financial statements for further details.
Year Ended December 31, 2023 (1)
1 unchanged sentence
(In millions, except for percentages)
−Removed: Net service revenues and financial income $ 5,283 $ 1,638 $ 2,299 $ 465 $ 9,685
−Removed: Net product revenues 515 255 276 49 1,095
Net revenues and financial income 7,821 3,071 3,550 665 15,107
−Removed: Local operating expenses (4,692) (1,481) (1,466) (453) (8,092)
−Removed: Depreciation and amortization (206) (98) (46) (31) (381)
Total segment costs (5,960) (2,371) (1,870) (615) (10,816)
2 unchanged sentences
(1) Recast for consistency with the current presentation due to the change in the presentation of certain financial results.
−Removed: Please refer to Note 2 – Summary of significant accounting policies - Change in the presentation of certain financial results and reclassification of prior years results to our audited consolidated financial statements for further details.
+Added: Please refer to Note 2 – Summary of significant accounting policies - Change in the presentation of certain financial results and reclassification of 2023 results to our audited consolidated financial statements for further details.
51 | MercadoLibre, Inc.
+Added: T able of Contents
Change from the Year Ended December 31, 2023 to December 31, 2024
Brazil Mexico Argentina Other Countries Total
−Removed: Net service revenues and financial income
−Removed: Dollars $ 1,663 $ 1,096 $ 1,023 $ 150 $ 3,932
−Removed: in % 31.5% 66.9% 44.5% 32.3% 40.6%
−Removed: Net product revenues
−Removed: Dollars $ 360 $ 82 $ (48) $ 1 $ 395
−Removed: in % 69.9% 32.2% (17.4)% 2.0% 36.1%
Net revenues and financial income
1 unchanged sentence
in % 45.8% 51.9% 7.5% 33.7% 37.5%
−Removed: Local operating expenses
−Removed: Dollars $ (1,006) $ (757) $ (346) $ (124) $ (2,233)
−Removed: in % 21.4% 51.1% 23.6% 27.4% 27.6%
−Removed: Depreciation and amortization
−Removed: Dollars $ (56) $ (35) $ (12) $ (7) $ (110)
−Removed: in % 27.2% 35.7% 26.1% 22.6% 28.9%
Total segment costs
8 unchanged sentences
For the year ended December 31, 2025, as compared to 2024, segment costs increased mainly driven by a:
−Removed: i) $2,270 million increase in cost of net revenues and financial expenses, mainly attributable to an increase in shipping operating and carrier costs mostly due to an increase in the share of shipping services where we act as principal, as opposed to agent, cost of goods sold as a consequence of an increase in first-party sales, collection fees as a consequence of the higher transactions volume of our Mercado Pago business, sales taxes and hosting and site operation fees;
−Removed: ii) $588 million increase in provision for doubtful accounts mainly related to our credit card credits business growth;
−Removed: and iii) $223 million increase in sales and marketing expenses mainly due to an increase in online and offline marketing expenses and buyer protection program expenses.
+Added: i) $2,535 million increase in cost of net revenues and financial expenses, mainly attributable to an increase in shipping operating and carrier costs, cost of goods sold as a consequence of an increase in first-party sales, other fintech costs mainly related to higher funding costs of Mercado Pago, sales taxes, collection fees as a consequence of the higher transactions volume of our Mercado Pago business and hosting and site operation fees;
+Added: ii) $873 million increase in provision for doubtful accounts mainly related to our credit card, consumer and merchant credits product growth;
+Added: and iii) $577 million increase in sales and marketing expenses mainly due to an increase in online and offline marketing expenses and buyer protection program expenses, salaries and wages and chargebacks.
For the year ended December 31, 2025, as compared to 2024, segment costs increased mainly driven by a:
−Removed: i) $1,068 million increase in cost of net revenues and financial expenses, mainly attributable to increases in shipping operating and carrier costs mostly due to an increase in the share of shipping services where we act as principal, as opposed to agent, cost of goods sold as a consequence of an increase in first-party sales, collection fees due to higher Mercado Pago penetration, hosting and site operation fees and other payments costs mainly related to higher funding cost related to our lending business;
−Removed: ii) $219 million increase in provision for doubtful accounts mainly related to our credit card business growth;
−Removed: and iii) $102 million increase in sales and marketing expenses mainly due to an increase in online and offline marketing expenses, chargebacks and buyer protection program expenses.
+Added: i) $1,104 million increase in cost of net revenues and financial expenses, mainly attributable to increases in shipping operating and carrier costs, cost of goods sold as a consequence of an increase in first-party sales, collection fees due to higher Mercado Pago penetration, other fintech costs mainly related to higher funding costs in connection with the growth of our lending business and hosting and site operation fees;
+Added: ii) $183 million increase in sales and marketing expenses mainly due to an increase in online and offline marketing expenses, buyer protection program expenses and salaries and wages;
+Added: and iii) $179 million increase in provision for doubtful accounts mainly related to our credit card and consumer product business growth.
For the year ended December 31, 2025, as compared to 2024, segment costs increased mainly driven by a:
−Removed: i) $182 million increase in cost in net revenues and financial expenses driven by an increase in shipping operating and carrier costs mainly due to an increase in the share of shipping services where we act as principal, as opposed to agent, hosting and site operation fees and collection fees, partially offset by a decrease in other payments costs mainly related to lower funding cost related to our lending business;
−Removed: and ii) $61 million increase in sales and marketing expenses mainly due to an increase in online and offline marketing expenses and chargebacks.
−Removed: 55 | MercadoLibre, Inc.
+Added: i) $940 million increase in cost of net revenues and financial expenses driven by an increase in shipping operating and carrier costs, collection fees due to higher Mercado Pago penetration, other fintech costs mostly related to higher funding cost due to the growth of our lending business, sales taxes and cost of goods sold as a consequence of an increase in first-party sales;
+Added: ii) $182 million increase in provision for doubtful accounts mainly related to our consumer product growth;
+Added: and iii) $132 million increase in sales and marketing expenses mainly due to an increase in online and offline marketing expenses, buyer protection program expenses, chargebacks and salaries and wages.
Liquidity and Capital Resources
2 unchanged sentences
We have funded Mercado Pago mainly by selling credit card receivables and through credit lines.
−Removed: Additionally, we have financed our Mercado Pago and lending businesses through the securitization of credit card receivables and certain loans through SPEs created in Brazil, Mexico, Chile and Argentina.
−Removed: Finally, we obtained funding through our financial institution in Brazil through deposit certificates, financial bills and loans from banks.
+Added: Additionally, we have financed our Mercado Pago and lending businesses through the securitization of credit card receivables and certain loans through SPEs created in Brazil, Mexico, Chile and Argentina and sales of loans receivable in Mexico and Argentina.
+Added: Moreover, we obtained funding in Brazil through deposit certificates, financial bills, commercial notes and loans from banks, in Argentina mainly through secured lines of credit and issuing debt securities, and in Mexico, Chile and Uruguay through loans from banks and secured lines of credit.
+Added: Finally, we entered into a revolving credit agreement which provides a $800 million credit commitment.
Refer to Note 16 – Loans payable and other financial liabilities and Note 19 – Securitization transactions of our audited consolidated financial statements for further detail.
−Removed: We committed to purchase cloud platform and other technology services for a total minimum aggregate purchase commitment of $3,215 million.
−Removed: As of December 31, 2024, the remaining purchase commitment is $3,102 million.
−Removed: On September 27, 2024, we entered into a $400 million amended and restated revolving credit agreement (the “Amended and Restated Credit Agreement”).
−Removed: The interest rates under the Amended and Restated Credit Agreement are based on Term SOFR (“Secured Overnight Funding Rate”) plus an interest margin of 1.00% per annum, which may be decreased to 0.90% per annum or increased to 1.15% per annum depending on our debt rating, as further provided under the Amended and Restated Credit Agreement.
−Removed: We are also obligated to pay a commitment fee on the unused amounts of the facility at a rate per annum equal to 25% of the then Applicable Margin, depending on our debt rating, as further provided under the Amended and Restated Credit Agreement.
−Removed: As of December 31, 2024, no amounts had been borrowed under the facility.
−Removed: See Note 18 – Loans payable and other financial liabilities of our audited consolidated financial statements for further detail.
−Removed: On April 8, 2022, we signed a 10-year agreement with Gol Linhas Aereas S.A.
−Removed: under which we committed to contract a minimum amount of air logistics services for a total cost of $284 million (portion allocated to the services component of the agreement).
−Removed: As of December 31, 2024, the remaining purchase commitment is $233 million.
−Removed: Since October 2023, we signed 3-year agreements with certain shipping companies in Brazil, under which we committed to contract a minimum amount of logistics services for a total cost of $49 million.
−Removed: As of December 31, 2024, the remaining purchase commitment is $39 million.
−Removed: On January 10, 2024, we signed a 5-year agreement for the naming rights of the Complexo Pacaembu (municipal stadium of the city of São Paulo), for a total amount of $44 million, which has not commenced as of December 31, 2024.
−Removed: The agreement has the option to extend the term for 5 additional independent periods of 5 years each, for the same amount indexed by the Brazilian inflation rate index IPCA.
−Removed: Additionally, we have several committed leases, mainly related to our fulfillment and service centers, which are one of the most important investments for our Mercado Envios business.
−Removed: In this sense, as of December 31, 2024, we have committed rental expenditures with our lessors for $1,598 million and $141 million for operating leases and finance leases, respectively.
−Removed: See Note 22 – Leases of our audited consolidated financial statements for further detail on leases.
−Removed: Additionally, we have lease agreements for new warehouses in Brazil, Mexico and Argentina for a total amount of $1,451 million that have not yet commenced.
−Removed: Lease terms under the agreements are between 3 to 15 years.
−Removed: We have unconditional purchase obligations related to capital expenditures for a total amount of $34 million.
−Removed: As of December 31, 2024, the remaining purchase commitment is $16 million.
−Removed: We and certain financial institutions participate in a supplier finance program (“SFP”) that enables certain of our suppliers, at their own election, to request the payment of their invoices to the financial institutions earlier than the terms stated in our payment policies.
−Removed: Suppliers’ voluntary inclusion of invoices in the SFP does not change our payment terms, the amounts paid or liquidity.
−Removed: The supplier invoices that have been confirmed as valid under the program require payment in full according to the terms established in our payment policies (between 60 and 90 days).
−Removed: There are no assets pledged as security or other forms of guarantees provided for the committed payment to the financial institution.
−Removed: We have no economic interest in a supplier’s decision to participate in the SFP and have no financial impact in connection with the SFP.
−Removed: As of December 31, 2024, the obligations outstanding that the Company has confirmed as valid to the financial institutions amounted to $425 million, and are included in the consolidated balance sheets within the accounts payable and accrued expenses line.
+Added: We have committed to contract minimum amounts of certain services such as cloud platform and other technology services, logistics services and leases.
+Added: In addition, we have unconditional purchase obligations related to capital expenditures.
+Added: Please refer to Note 14 – Commitments and Contingencies of our audited consolidated financial statements for further detail on purchase commitments.
+Added: 52 | MercadoLibre, Inc.
+Added: T able of Contents
+Added: We and certain financial institutions participate in a supplier finance program (“SFP”) that enables certain of our suppliers, at their own election, to request the payment of their invoices to the financial institutions earlier than the terms stated in our payment policy.
+Added: Refer to Note 4 – Balance sheet components - Supplier finance programs of our audited consolidated financial statements for further detail.
As of December 31, 2025, our main source of liquidity was $5,284 million of cash and cash equivalents and short-term investments, which excludes $1,015 million investments mainly related to the Central Bank of Brazil Mandatory Guarantee, and consists of cash generated from operations and proceeds from loans.
3 unchanged sentences
dollar-denominated cash and investments are located primarily in Brazil, Mexico and Argentina.
−Removed: 56 | MercadoLibre, Inc.
The following table presents our cash flows from operating activities, investing activities and financing activities for the years ended December 31, 2025, 2024 and 2023:
7 unchanged sentences
Effect of exchange rates on cash and cash equivalents, restricted cash and cash equivalents (3) (739) (938)
−Removed: Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents $ 851 $ 485 $ (285)
+Added: Net increase in cash, cash equivalents, restricted cash and cash equivalents $ 8,838 $ 851 $ 485
Net cash provided by operating activities
5 unchanged sentences
Operating activities $ 12,116 $ 7,918 $ 4,198 53.0 %
−Removed: Net cash provided by operating activities during the year ended December 31, 2024, resulted primarily from our net income of $1,911 million, adjustments to net income related to non-cash items of $2,587 million, a $3,605 million increase in funds payable to customers, an increase of $1,595 million in payables and accrued expenses and an increase of $1,213 million in amounts payable due to credit and debit card transactions, which were partially offset by a $2,530 million increase in credit card receivables and other means of payments.
−Removed: The $2,778 million increase in the net cash provided by operating activities in the year ended December 31, 2024, as compared to 2023, is mainly explained by the $924 million increase in net income together with a $2,103 million increase in funds payable to customers, an increase of $520 million in amounts payable due to credit and debit card transactions and $370 million in payables and accrued expenses, partially offset by a decrease in credit card receivables and other means of payments, net of $1,209 million.
+Added: Net cash provided by operating activities during the year ended December 31, 2025, resulted primarily from adjustments to net income related to non-cash items of $3,612 million, our net income of $1,997 million, an increase of $5,341 million in funds payable to customers, a $1,592 million increase in amounts payable due to credit and debit card transactions and an increase of $1,487 million in payables and accrued expenses which were partially offset by a $1,508 million increase in receivables and an increase of $491 million in other assets.
+Added: The $4,198 million increase in the net cash provided by operating activities in the year ended December 31, 2025, as compared to 2024, is mainly explained by the $1,736 million higher increase in funds payable to customers, the $1,179 million lower increase in receivables and the $1,025 million increase in the adjustments to net income related to non-cash items.
+Added: 53 | MercadoLibre, Inc.
+Added: T able of Contents
Net cash used in investing activities
4 unchanged sentences
Investing activities $ (6,179) $ (8,287) $ 2,108 (25.4 %)
−Removed: Net cash used in investing activities in the year ended December 31, 2024 resulted mainly from the use of $4,688 million related to changes on loans receivable due to loans granted to merchants and consumers and Mercado Pago credit card utilization under our lending solution net of collections, $2,748 million related to the net purchases of investments and $860 million in the investment of property and equipment (mainly related to our shipping network and information technology assets in Argentina, Brazil and Mexico) and intangible assets.
−Removed: The $4,837 million increase in net cash used in investing activities in year ended December 31, 2024, as compared to 2023, is mainly explained by the $2,641 million increase in our loans receivables due to loans granted to merchants and consumers, and Mercado Pago credit card utilization under our lending solution net of collections and the $1,912 million increase in our net purchase of investments.
−Removed: 57 | MercadoLibre, Inc.
−Removed: Net cash provided (used in) by financing activities
+Added: Net cash used in investing activities in the year ended December 31, 2025 resulted mainly from the use of $6,659 million related to changes in loans receivable due to loans granted under our lending solution net of collections and $1,343 million in the investment of property and equipment (mainly related to our shipping network and information technology assets), intangibles assets and intangibles assets at fair value, partially offset by a cash inflow of $1,836 million related to the net sale and maturity of investments.
+Added: The $2,108 million decrease in net cash used in investing activities in year ended December 31, 2025, as compared to 2024, is mainly explained by $4,584 million variation in cash flows from investments ($1,836 million of cash inflows from net sales or maturity of investments for the year ended December 31, 2025, compared to $2,748 million of cash outflows from net purchases in the same period in 2024), partially offset by the $1,971 million increase in our loans receivables due to loans granted under our lending solution net of collections and the $483 million increase in the investment of property and equipment (mainly related to our shipping network and information technology assets), intangibles assets and intangibles assets at fair value.
+Added: Net cash provided by financing activities
Year Ended December 31, Change from 2024 to 2025
1 unchanged sentence
(In millions, except percentages)
−Removed: Net Cash provided (used in) by:
+Added: Net Cash provided by:
Financing activities $ 2,904 $ 1,959 $ 945 48.2 %
−Removed: For the year ended December 31, 2024, our net cash provided by in financing activities was primarily derived from the $2,011 million related to net loans payables and other financing liabilities.
−Removed: The $2,226 million increase in net cash provided by (used in) financing activities in year ended December 31, 2024, as compared to 2023, is mainly explained by the $1,889 million increase in net loans payables and other financing liabilities.
−Removed: In the event that we decide to pursue strategic acquisitions in the future, we may fund them with available cash, third-party debt financing, or by raising equity capital, as market conditions allow.
+Added: For the year ended December 31, 2025, our net cash provided by financing activities was primarily derived from the $2,962 million provided by net loans payables and other financing liabilities, partially offset by a $57 million used for the payments of finance lease obligations.
+Added: The $945 million increase in net cash provided by financing activities in year ended December 31, 2025, as compared to 2024, is mainly explained by the $951 million increase in net loans payables and other financing liabilities.
Debt Securities Guaranteed by Subsidiaries
−Removed: On January 14, 2021, we issued $400 million aggregate principal amount of 2.375% Sustainability Notes due 2026 (the “2026 Sustainability Notes”) and $700 million aggregate principal amount of 3.125% Notes due 2031 (the “2031 Notes” and collectively, the “Notes”).
−Removed: The payment of principal, premium, if any, interest, and all other amounts in respect of each of the Notes, is fully and unconditionally guaranteed (the “Subsidiary Guarantees”), jointly and severally, on an unsecured basis, by certain of our subsidiaries (the “Subsidiary Guarantors”).
+Added: On January 14, 2021, we issued $400 million aggregate principal amount of 2.375% Sustainability Notes due 2026 (the “2026 Sustainability Notes”) and $700 million aggregate principal amount of 3.125% Notes due 2031 (the “2031 Notes”).
+Added: The payment of principal, premium, if any, interest, and all other amounts in respect of each of the 2026 Sustainability Notes and the 2031 Notes, is fully and unconditionally guaranteed (the “Subsidiary Guarantees”), jointly and severally, on an unsecured basis, by certain of our subsidiaries (the “Subsidiary Guarantors”).
The initial Subsidiary Guarantors were MercadoLibre S.R.L., Ibazar.com Atividades de Internet Ltda., eBazar.com.br Ltda., Mercado Envios Servicos de Logistica Ltda., Mercado Pago Instituição de Pagamento Ltda.
4 unchanged sentences
On October 27, 2021, MercadoLibre, S.A.
−Removed: de C.V., Institución de Fondos de Pago Electrónico became an excluded subsidiary pursuant to the terms of the Notes and it was released from its Subsidiary Guaranty.
+Added: de C.V., Institución de Fondos de Pago Electrónico became an excluded subsidiary pursuant to the terms of the 2026 Sustainability Notes and the 2031 Notes and it was released from its Subsidiary Guaranty.
On October 27, 2021, MP Agregador, S.
−Removed: became a Subsidiary Guarantor under the Notes.
+Added: became a Subsidiary Guarantor under the 2026 Sustainability Notes and the 2031 Notes.
On July 1 and October 1, 2022, Ibazar.com Atividades de Internet Ltda.
1 unchanged sentence
were merged into eBazar.com.br Ltda, respectively.
−Removed: We pay interest on the Notes on January 14 and July 14 of each year, beginning on July 14, 2021.
−Removed: The 2026 Sustainability Notes will mature on January 14, 2026, and the 2031 Notes will mature on January 14, 2031.
+Added: On May 2, 2025, as a result of the spin-off of DeRemate.com de México, S.
+Added: completed in January 2025 (the “DeRemate Spinoff”), MPFS, S.
+Added: became a Subsidiary Guarantor under the 2026 Sustainability Notes and the 2031 Notes.
+Added: Additionally, on December 9, 2025, we issued $750 million aggregate principal amount of 4.900% Notes due 2033 (the “2033 Notes” and together with the 2031 Notes, the "Notes”), the payment of principal, interest, and all other amounts in respect of the 2033 Notes, is fully and unconditionally guaranteed, jointly and severally, on an unsecured basis, by the Subsidiary Guarantors mentioned above.
+Added: We pay interest on the 2026 Sustainability Notes and the 2031 Notes on January 14 and July 14 of each year, beginning on July 14, 2021.
+Added: The 2026 Sustainability Notes matured on January 14, 2026, and the 2031 Notes will mature on January 14, 2031.
+Added: We pay interest on the 2033 Notes semi-annually interest in arrears on January 15 and July 15 of each year, commencing on July 15, 2026.
The Notes rank equally in right of payment with all of the Company’s other existing and future senior unsecured debt obligations.
Each Subsidiary Guarantee will rank equally in right of payment with all of the Subsidiary Guarantor’s other existing and future senior unsecured debt obligations, except for statutory priorities under applicable local law.
+Added: 54 | MercadoLibre, Inc.
+Added: T able of Contents
Each Subsidiary Guarantee will be limited to the maximum amount that would not render the Subsidiary Guarantor’s obligations subject to avoidance under applicable fraudulent conveyance provisions of applicable law.
2 unchanged sentences
(i) the sale, exchange, disposition or other transfer (including by way of consolidation or merger) of the Subsidiary Guarantor or the sale or disposition of all or substantially all the assets of the Subsidiary Guarantor (other than to the Company or a Subsidiary) otherwise permitted by the indenture, (ii) satisfaction of the requirements for legal or covenant defeasance or discharge of the Notes, (iii) the release or discharge of the guarantee by such Subsidiary Guarantor of the Triggering Indebtedness (as defined in the applicable indenture) or the repayment of the Triggering Indebtedness, in each case, that resulted in the obligation of such Subsidiary to become a Subsidiary Guarantor, provided that in no event shall the Subsidiary Guarantee of an Initial Subsidiary Guarantor terminate pursuant to this provision, or (iv) such Subsidiary Guarantor becoming an Excluded Subsidiary (as defined in the applicable indenture) or ceasing to be a Subsidiary.
−Removed: We may, at our option, redeem the 2026 Sustainability Notes, in whole or in part, at any time prior to December 14, 2025 (the date that is one month prior to the maturity of the 2026 Sustainability Notes) and the 2031 Notes, in whole or in part, at any time prior to October 14, 2030 (the date that is three months prior to the maturity of the 2031 Notes), in each case by paying 100% of the principal amount of such Notes so redeemed plus the applicable “make-whole” amount and accrued and unpaid interest and additional amounts, if any.
−Removed: We may, at our option, redeem the 2026 Sustainability Notes, in whole or in part, on December 14, 2025 or at any time thereafter and the 2031 Notes on October 14, 2030 or at any time thereafter, in each case at the redemption price of 100% of the principal amount of such Notes so redeemed plus accrued and unpaid interest and additional amounts, if any.
+Added: We may, at our option, redeem or purchase the 2031 Notes, in whole or in part, at any time prior to October 14, 2030 (the date that is three months prior to the maturity of the 2031 Notes) and for the 2033 Notes, in whole or in part at any time or from time to time prior to November 15, 2032 (two months prior to their maturity date of the 2033 Notes), in each case, by paying 100% of the principal amount of such Notes so redeemed plus the applicable “make-whole” amount and accrued and unpaid interest and additional amounts, if any.
+Added: We may, at our option, redeem the 2031 Notes on October 14, 2030 or at any time thereafter and the 2033 Notes on November 15, 2032 or at any time thereafter, in each case at the redemption price of 100% of the principal amount of such Notes so redeemed plus accrued and unpaid interest and additional amounts, if any.
If we experience certain change of control triggering events, we may be required to offer to purchase the Notes at 101% of their principal amount plus any accrued and unpaid interest thereon through the purchase date.
−Removed: During 2023, we repurchased $9 million and $70 million principal amount of the outstanding 2026 Sustainability Notes and 2031 Notes, respectively.
−Removed: The total amount paid during 2023 for those repurchases amounted to $66 million.
+Added: During 2025, we repurchased $13 million in principal amount of the outstanding 2031 Notes.
+Added: The total amount paid amounted to $12 million.
During 2024, we repurchased $27 million and $81 million in principal amount of the outstanding 2026 Sustainability Notes and 2031 Notes, respectively.
The total amount paid during 2024 for those repurchases amounted to $98 million.
+Added: In January 2026, we repaid the total outstanding amount of principal and interest of the 2026 Sustainability Notes equaling $367 million.
See Note 16 – Loans payable and other financial liabilities of our audited consolidated financial statements for additional detail.
−Removed: 58 | MercadoLibre, Inc.
We are presenting the following summarized financial information for the issuer and the Subsidiary Guarantors (together, the “Obligor Group”) pursuant to Rule 13-01 of Regulation S-X, Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.
8 unchanged sentences
Current Liabilities (4)
+Added: 23,971 14,935
Non-current Liabilities 4,076 2,449
(1) Includes restricted cash and cash equivalents of $8,259 million and $940 million and foreign government debt securities (Central Bank of Brazil mandatory guarantee) of $860 million and $3,417 million as of December 31, 2025 and 2024, respectively.
−Removed: (2) Includes Current assets from non-guarantor subsidiaries of $2,520 million and $1,405 million as of December 31, 2024 and 2023, respectively.
−Removed: (3) Includes Non-current assets from non-guarantor subsidiaries of $152 million and $309 million as of December 31, 2024 and 2023, respectively.
−Removed: (4) Includes Current liabilities to non-guarantor subsidiaries of $2,749 million and $1,808 million as of December 31, 2024 and 2023, respectively.
+Added: (2) Includes Current assets with non-guarantor subsidiaries of $1,439 million and $2,520 million as of December 31, 2025 and 2024, respectively.
+Added: (3) Includes Non-current assets with non-guarantor subsidiaries of $289 million and $152 million as of December 31, 2025 and 2024, respectively.
+Added: (4) Includes Current liabilities with non-guarantor subsidiaries of $2,417 million and $2,749 million as of December 31, 2025 and 2024, respectively.
+Added: 55 | MercadoLibre, Inc.
+Added: T able of Contents
Summarized statement of income information for the Obligor Group for the year ended December 31, 2025 is provided in the table below:
13 unchanged sentences
Our capital expenditures comprised of our investments in property and equipment (such as certain assets used in our fulfillment centers) and intangible assets (excluding digital assets) for the years ended December 31, 2025 and 2024 amounted to $1,327 million and $860 million, respectively.
−Removed: During the year ended December 31, 2024, we invested $316 million in information and technology assets in Brazil, Argentina and Mexico, and $484 million in our Argentine, Brazilian and Mexican shipping premises and offices.
+Added: During the year ended December 31, 2025, we invested $411 million in information and technology assets in Brazil, Argentina and Mexico, and $778 million in our Brazilian and Mexican shipping premises and offices.
We are continually increasing our level of investment in hardware and software licenses necessary to improve and update our platform’s technology and computer software developed internally.
We anticipate continued investments in capital expenditures related to information technology and logistics network capacity in the future as we strive to maintain our position in the Latin American e-commerce and fintech market.
−Removed: 59 | MercadoLibre, Inc.
We believe that our existing cash and cash equivalents, including the sale of credit card receivables, short-term investments and cash generated from operations, will be sufficient to fund our operating activities, property and equipment expenditures and to pay or repay obligations in the foreseeable future.
+Added: 56 | MercadoLibre, Inc.
+Added: T able of Contents
The following table includes eight key performance indicators, which are calculated as defined in the footnotes to the table.
24 unchanged sentences
As of December 31, 2024, we no longer disclose the key performance indicator "Number of items shipped." Management believes that "Number of items shipped," as a complementary disclosure to "items sold," no longer provides useful information to investors to better understand our business.
−Removed: Following years of investment, our logistics network now ships 95% of items sold.
+Added: Following years of investment, our logistics network currently ships almost all items sold.
As such, the two performance metrics, "Number of items sold" and "Number of items shipped," have converged so we no longer see a benefit for investors in disclosing both.
6 unchanged sentences
Unique active buyers is defined as users that have performed at least one purchase on the Mercado Libre Marketplace during the reported period.
+Added: From the second quarter of 2025 onwards, we have included food delivery transactions in the current indicator.
(4) Total U.S.
dollar sum of all transactions completed through the Mercado Libre Marketplace, excluding Classifieds transactions.
+Added: From the second quarter of 2025 onwards, we have included food delivery transactions in the current indicator.
(5) Number of items that were sold/purchased through the Mercado Libre Marketplace, excluding Classifieds items.
+Added: From the second quarter of 2025 onwards, we have included food delivery transactions in the current indicator.
(6) Total U.S.
1 unchanged sentence
As of January 1, 2024, we no longer include peer-to-peer transactions in our TPV in accordance with the metrics and underlying criteria used by our Mercado Pago team, which Management then employs to make strategic decisions.
−Removed: Consequently, total payment volume for the years ended December 31, 2023 and 2022, have been recast to exclude peer-to-peer transactions.
+Added: Consequently, total payment volume for the year ended December 31, 2023, has been recast to exclude peer-to-peer transactions.
(7) As of January 1, 2024, we have replaced “Total volume of payment on marketplace” with “Acquiring total payment volume.” Total volume of payment on marketplace was limited to the total U.S.
6 unchanged sentences
As of January 1, 2024 we no longer include peer-to-peer transactions in our total payment transactions in accordance with the metric and understanding criteria used by our Mercado Pago team, which Management then employs to make strategic decisions.
−Removed: Consequently, total payment volume for the years ended December 31, 2023 and 2022, have been recast to exclude peer-to-per transactions.
+Added: Consequently, total payment volume for the year ended December 31, 2023, has been recast to exclude peer-to-per transactions.
(9) Net interest margins after losses (“NIMAL”) represents the annualized ratio between the total credits revenues (excluding the results of sale of loans receivables) less funding costs and provision for doubtful accounts for the year (excluding the results of sale of loans receivables) and total average gross loans receivable for the year.
2 unchanged sentences
57 | MercadoLibre, Inc.
+Added: T able of Contents
Non-GAAP Measures of Financial Performance
To supplement our audited consolidated financial statements presented in accordance with U.S.
−Removed: GAAP, we present earnings before interest income and other financial gains, interest expense and other financial losses, foreign currency losses, net, income tax expense, depreciation and amortization and equity in earnings of unconsolidated entity (“Adjusted EBITDA”), net debt, foreign exchange (“FX”) neutral measures and Adjusted free cash flow and Net increase (decrease) in available cash and investments as non-GAAP measures.
+Added: GAAP, we present earnings before interest income and other financial gains, net, interest expense and other financial losses, foreign currency losses, net, income tax expense, depreciation and amortization and equity in earnings of unconsolidated entity (“Adjusted EBITDA”), net debt, foreign exchange (“FX”) neutral measures and Adjusted free cash flow and Net increase (decrease) in available cash, investments and digital assets as non-GAAP measures.
Reconciliation of these non-GAAP financial measures to the most comparable U.S.
18 unchanged sentences
Depreciation and amortization 818 617 524
−Removed: Interest income and other financial gains (148) (135) (44)
+Added: Interest income and other financial gains, net (138) (148) (135)
Interest expense and other financial losses 160 165 174
4 unchanged sentences
58 | MercadoLibre, Inc.
−Removed: We define net debt as total debt which includes current and non-current loans payable and other financial liabilities and current and non-current operating lease liabilities, less cash and cash equivalents, short-term investments and long-term investments, excluding time deposits and foreign government debt securities restricted and held in guarantee, securitization transactions and equity securities held at cost.
+Added: T able of Contents
+Added: We define net debt as total debt which includes current and non-current loans payable and other financial liabilities and current and non-current operating lease liabilities, less cash and cash equivalents (excluding cash and cash equivalents restricted due to management restriction policies) and digital assets, short-term investments and long-term investments, excluding time deposits, foreign debt securities and foreign government debt securities restricted and held in guarantee, securitization transactions and equity securities held at cost.
We have included this non-GAAP financial measure because it is used by our Management to analyze our current leverage ratios and set targets to be met, which will also impact other components of the Company’s balance sheet, cash flows and income statement.
7 unchanged sentences
Total debt 11,392 6,850
−Removed: Cash and cash equivalents 2,635 2,556
+Added: Cash and cash equivalents and digital assets (1)
Short-term investments (2)
1 unchanged sentence
Net debt $ 4,682 $ 2,247
−Removed: (1) Excludes time deposits and foreign government debt securities restricted and held in guarantee.
+Added: (1) Includes cash and cash equivalents (excluding cash and cash equivalents restricted due to management restriction policies) and digital assets.
+Added: Figures as of December 31, 2024 were recast for consistency with the current presentation due to the changes explained in "Adjusted free cash flow".
+Added: (2) Excludes time deposits, foreign debt securities and foreign government debt securities restricted and held in guarantee.
(3) Excludes foreign government debt securities restricted, investments held in VIEs as a consequence of securitization transactions and equity securities held at cost.
59 | MercadoLibre, Inc.
+Added: T able of Contents
We believe that FX neutral measures provide useful information to both Management and investors by excluding the foreign currency exchange rate impact that may not be indicative of our core operating results and business outlook.
The FX neutral measures were calculated by using the average monthly exchange rates for each month during 2024 and applying them to the corresponding months in 2025, so as to calculate what our results would have been had exchange rates remained stable from one year to the next.
−Removed: The comparative FX neutral measures were calculated by using the average monthly exchange rates for each month during 2022 and applying them to the corresponding months in 2023.The table below excludes intercompany allocation FX effects.
+Added: The comparative FX neutral measures were calculated by using the average monthly exchange rates for each month during 2023 and applying them to the corresponding months in 2024.
+Added: The table below excludes intercompany allocation FX effects.
Finally, these measures do not include any other macroeconomic effect such as local currency inflation effects, the impact on impairment calculations or any price adjustment to compensate local currency inflation or devaluations.
1 unchanged sentence
Year Ended December 31,
−Removed: As reported As recast (1)
−Removed: Percentage Change FX Neutral Measures As recast (1)
+Added: As reported Percentage Change FX Neutral Measures As reported
Percentage Change
7 unchanged sentences
Year Ended December 31,
−Removed: As recast (1)
+Added: As reported As recast (1)
Percentage Change FX Neutral Measures As recast (1)
8 unchanged sentences
(1) Recast for consistency with the current presentation due to the change in the presentation of certain financial results.
−Removed: Please refer to Note 2 – Summary of significant accounting policies - Change in the presentation of certain financial results and reclassification of prior year results - to our audited consolidated financial statements for further details.
+Added: Please refer to Note 2 – Summary of significant accounting policies - Change in the presentation of certain financial results and reclassification of 2023 results - to our audited consolidated financial statements for further details.
See Note 2 – Summary of significant accounting policies – Foreign currency translation – Argentine currency status and macroeconomic outlook and Argentine exchange regulations of our audited consolidated financial statements for further detail on the currency status and the exchange regulations of our Argentine segment.
−Removed: Adjusted free cash flow and Net increase (decrease) in available cash and investments
+Added: 60 | MercadoLibre, Inc.
+Added: T able of Contents
+Added: Adjusted free cash flow and Net increase (decrease) in available cash, investments and digital assets
Adjusted free cash flow
Adjusted free cash flow represents cash from operating activities less the increase (decrease) in cash and cash equivalents and investments related to customer funds due to regulatory requirements and other restrictions and equity securities held at cost, investments in property and equipment and intangible assets, changes in loans receivable, net and net proceeds from/payments on loans payable and other financial liabilities related to our Fintech solutions, since we consider those liabilities as the working capital of the Fintech activities.
+Added: From the second quarter of 2025 onwards, we have also included increase (decrease) in cash and cash equivalents and investments restricted due to management restriction policies and digital assets as an adjustment in the calculation of our adjusted free cash flow.
We consider adjusted free cash flow to be a measure of liquidity generation that provides useful information to management and investors since it shows how much cash the Company generates with its core activities that can be used for discretionary purposes and to repay its corporate and/or commerce debt.
−Removed: A limitation of the utility of adjusted free cash flow as a measure of liquidity generation is that it is a partial representation of the total increase or
−Removed: 63 | MercadoLibre, Inc.
−Removed: decrease in our available cash and investments balance for the period.
+Added: A limitation of the utility of adjusted free cash flow as a measure of liquidity generation is that it is a partial representation of the total increase or decrease in our available cash, investments and digital assets balance for the year.
Therefore, we believe it is important to view the adjusted free cash flow measure only as a complement to our entire consolidated statements of cash flows.
−Removed: Net increase (decrease) in available cash and investments
−Removed: Net increase (decrease) in available cash and investments represents adjusted free cash flow less net proceeds from/payments on loans payable and other financial liabilities, related to our Commerce and corporate activities, payments of finance lease obligations, other investing and/or financing activities not considered above and the effect of exchange rates changes on available cash and investments.
−Removed: We consider Net increase (decrease) in available cash and investments to be a measure of liquidity availability that provides useful information to management and investors after netting out all other debt and corporate payments and activities from the adjusted free cash flow.
−Removed: The following table shows a reconciliation of Net cash provided by operating activities to Adjusted free cash flow and Net increase in available cash and investments:
+Added: Net increase (decrease) in available cash, investments and digital assets
+Added: Net increase (decrease) in available cash, investments and digital assets (from the second quarter of 2025 onwards, our available funds include digital asset holdings) represents adjusted free cash flow less net proceeds from/payments on loans payable and other financial liabilities, related to our Commerce and corporate activities, payments of finance lease obligations, other investing and/or financing activities not considered above and the effect of exchange rates changes on available cash and investments.
+Added: We consider Net increase (decrease) in available cash, investments and digital assets to be a measure of liquidity availability that provides useful information to management and investors after netting out all other debt and corporate payments and activities from the adjusted free cash flow.
+Added: The following table shows a reconciliation of Net cash provided by operating activities to Adjusted free cash flow and Net increase in available cash, investments and digital assets:
Year Ended December 31,
3 unchanged sentences
Adjustments to reconcile CFO to Adjusted free cash flow (1)
−Removed: Increase in cash and cash equivalents and investments related to customer funds due to regulatory requirements and other restrictions and equity securities held at cost (2,947) (1,499) (1,186)
+Added: Increase in cash and cash equivalents and investments related to customer funds due to regulatory requirements and other restrictions (including management restriction policies) and equity securities held at cost (4,986) (3,072) (1,463)
Investments in property and equipment and intangible assets (1,327) (860) (509)
5 unchanged sentences
Effect of exchange rate changes on available cash and investments 162 (542) (7)
−Removed: Net increase in available cash and investments $ 982 $ 553 $ 459
−Removed: Available cash and investments (2) , at the beginning of the year
+Added: Net increase in available cash, investments and digital assets $ 2,107 $ 935 $ 859
+Added: Available cash, investments and digital assets (2) , at the beginning of the year
$ 4,603 $ 3,668 $ 2,809
−Removed: Available cash and investments (2) , at the end of the year
+Added: Available cash, investments and digital assets (2) , at the end of the year
$ 6,710 $ 4,603 $ 3,668
1 unchanged sentence
Net cash provided by (used in) financing activities $ 2,904 $ 1,959 $ (267)
−Removed: (1) Includes accrued interest and financial income net of interest received from available and restricted investments.
−Removed: (2) Includes cash and cash equivalents, short-term investments (excluding time deposits and foreign government debt securities restricted and held in guarantee) and long-term investments (excluding foreign government debt securities restricted, investments held in VIEs as a consequence of securitization transactions and equity securities held at cost).
+Added: (1) Includes accrued interest and financial income net of interest received from available and restricted investments, and results on digital assets.
+Added: (2) Includes cash and cash equivalents (excluding cash and cash equivalents restricted due to management restriction policies), short-term investments (excluding time deposits, foreign debt securities and foreign government debt securities restricted and held in guarantee) and long-term investments (excluding foreign government debt securities restricted, investments held in VIEs as a consequence of securitization transactions and equity securities held at cost) and digital assets.
+Added: (3) Recast for consistency with the current presentation due to the changes explained above.
61 | MercadoLibre, Inc.
+Added: T able of Contents
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.