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Our cash flows, results of operations and certain of our intercompany balances that are exposed to foreign exchange rate fluctuations may differ materially from expectations and we may record significant gains or losses due to foreign currency fluctuations and related hedging activities.
−Removed: We use foreign currency exchange forward contracts and currency swaps to protect our foreign currency exposure and our investment in a foreign subsidiary from adverse changes in foreign currency exchange rates.
−Removed: These hedging contracts reduce, but do not entirely eliminate, the impact of adverse foreign currency exchange rate movements.
+Added: We use foreign currency exchange forward contracts and cross currency swaps to protect our foreign currency exposure and our investment in a foreign subsidiary from changes in foreign currency exchange rates.
+Added: These hedging contracts reduce, but do not entirely eliminate, the impact of foreign currency exchange rate movements.
We designate these contracts as cash flow, net investment and fair value hedges for accounting purposes.
2 unchanged sentences
The derivatives’ gain or loss for fair value hedges is reported in our consolidated statements of income in the same line items as the change in the value of the hedged item due to the hedged risks.
−Removed: As of December 31, 2024, we hold cash and cash equivalents, restricted cash and cash equivalent, short and long-term investments in local currencies in our subsidiaries, and have receivables denominated in local currencies in all of our operations.
+Added: As of December 31, 2025, we hold cash and cash equivalents, restricted cash and cash equivalents, short and long-term investments in local currencies in our subsidiaries, and have receivables denominated in local currencies in all of our operations.
Our subsidiaries generate revenues and incur most of their expenses in the respective local currencies of the countries in which they operate.
1 unchanged sentence
dollar due to the inflationary environment.
−Removed: As of December 31, 2024, the total cash and cash equivalents, restricted cash and cash equivalent denominated in foreign currencies totaled $4,032 million, short-term investments denominated in foreign currencies totaled $3,779 million and accounts receivable, credit card receivables and other means of payments and loans receivable in foreign currencies totaled $10,437 million.
−Removed: As of December 31, 2024, we had $495 million long-term investments denominated in foreign currencies.
+Added: As of December 31, 2025, the total cash and cash equivalents, restricted cash and cash equivalents denominated in foreign currencies totaled $12,217 million, short-term investments denominated in foreign currencies totaled $1,056 million, long-term investments denominated in foreign currencies totaled $844 million and accounts receivable, credit card receivables and other means of payments and loans receivable in foreign currencies totaled $16,779 million.
To manage exchange rate risk, our treasury policy is to transfer most cash and cash equivalents in excess of working capital requirements into U.S.
−Removed: dollar-denominated accounts in the United States and to enter into certain foreign exchange derivatives, such as currency forwards contracts, in order to mitigate our exposure to foreign exchange risk.
+Added: dollar-denominated accounts in the United States and to enter into certain foreign exchange derivatives, such as currency forwards contracts or cross currency swaps, in order to mitigate our exposure to foreign exchange risk.
As of December 31, 2025, our U.S.
1 unchanged sentence
dollar-denominated long-term investments totaled $920 million.
−Removed: For the year ended December 31, 2024, we had a consolidated loss on foreign currency of $182 million mainly related to lower foreign exchange losses 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.
−Removed: 65 | MercadoLibre, Inc.
+Added: For the year ended December 31, 2025, we had a consolidated loss on foreign currency of $337 million mainly related to foreign exchange losses from our Argentine subsidiaries.
+Added: See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of operations— Other income (expenses), net” for more information.
Foreign currency sensitivity analysis
−Removed: The table below shows the impact on our net revenues and financial income, cost of net revenues and financial expenses, operating expenses, other income (expenses), income tax expense, net income and shareholders' equity for a positive and a negative 10% fluctuation on all the foreign currencies to which we are exposed to at the moment of translating our financial statements to U.S.
+Added: The table below shows the impact on our net revenues and financial income, cost of net revenues and financial expenses, operating expenses, other income (expenses), net, income tax expense, net income and shareholders' equity for a positive and a negative 10% fluctuation on all the foreign currencies to which we are exposed to at the moment of translating our financial statements to U.S.
dollars for the year ended December 31, 2025:
4 unchanged sentences
Income from operations 3,677 3,201 2,812
−Removed: Other income (expenses) and income tax expense related to P&L items
+Added: Other income (expenses), net and income tax expense
(1,327) (1,204) (1,103)
−Removed: Foreign Currency impact related to the remeasurement of our Net Asset position (202) (182) (165)
Net Income $ 2,350 $ 1,997 $ 1,709
Total Shareholders’ Equity $ 7,537 $ 6,748 $ 6,103
−Removed: (1) Increase of the subsidiaries local currency against U.S.
−Removed: (2) Decrease of the subsidiaries local currency against U.S.
+Added: (1) Appreciation of the subsidiaries local currency against U.S.
+Added: (2) Depreciation of the subsidiaries local currency against U.S.
(3) Includes cost of net revenues and financial expenses and operating expenses.
+Added: 62 | MercadoLibre, Inc.
+Added: T able of Contents
The table above shows an increase in our net income when the U.S.
3 unchanged sentences
Brazilian segment
−Removed: Considering a hypothetical decrease of 10% of the Brazilian Real against the U.S.
−Removed: dollar on December 31, 2024, the reported net assets in our Brazilian subsidiaries would have decreased by approximately $286 million with the related impact in Other Comprehensive Income.
−Removed: Additionally, we would have recorded a foreign currency loss amounting to approximately $51 million in our Brazilian subsidiaries.
+Added: Considering a hypothetical increase (depreciation) of 10% of the Brazilian Real against the U.S.
+Added: dollar on December 31, 2025, the reported local currency net assets in our Brazilian subsidiaries would have decreased by approximately $407 million with the related impact in Other Comprehensive Income.
+Added: Additionally, we would have recorded a foreign currency loss amounting to approximately $9 million in our Brazilian subsidiaries regarding our non-functional currency net liability position.
Mexican segment
−Removed: Considering a hypothetical decrease of 10% of the Mexican peso against the U.S.
−Removed: dollar on December 31, 2024, the reported net assets in our Mexican subsidiaries would have decreased by approximately $142 million with the related impact in Other Comprehensive Income.
−Removed: Additionally, we would have recorded a foreign currency loss amounting to approximately $10 million in our Mexican subsidiaries.
+Added: Considering a hypothetical increase (depreciation) of 10% of the Mexican peso against the U.S.
+Added: dollar on December 31, 2025, the reported local currency net assets in our Mexican subsidiaries would have decreased by approximately $268 million with the related impact in Other Comprehensive Income.
+Added: Additionally, we would have recorded a foreign currency loss amounting to approximately $77 million in our Mexican subsidiaries regarding our non-functional currency net liability position.
Argentine segment
7 unchanged sentences
dollar increased 41.0%, 27.7% and 356.3%, respectively.
−Removed: Considering a hypothetical decrease of 10% of the Argentine Peso against the U.S.
+Added: Considering a hypothetical increase (depreciation) of 10% of the Argentine Peso against the U.S.
dollar on December 31, 2025, the effect on non-functional currency net asset position in our Argentine subsidiaries would have been a foreign exchange loss amounting to approximately $47 million in our Argentine subsidiaries.
1 unchanged sentence
63 | MercadoLibre, Inc.
+Added: T able of Contents
Our earnings and cash flows are also affected by changes in interest rates.
−Removed: These changes could have an impact on the interest rates that financial institutions charge us prior to the time we sell our Mercado Pago receivables and on the financial debt that we use to fund Mercado Pago and lending’s operations.
−Removed: As of December 31, 2024, Mercado Pago’s receivables totaled $5,288 million.
+Added: These changes could have an impact on the interest rates that financial institutions charge us prior to the time we sell our credit card receivables and on the financial debt that we use to fund Mercado Pago, lending’s operations as well as expanding our logistic capacity.
+Added: As of December 31, 2025, credit card receivables and other means of payments, net totaled $7,046 million .
Interest rate fluctuations could also impact interest earned through our lending solution.
6 unchanged sentences
We determine the appropriate classification of our investments at the time of purchase and re-evaluate such designations as of each balance sheet date.
−Removed: See Note 3 – Fintech Regulations and Note 5 – Cash, cash equivalents, restricted cash and cash equivalents and investments of our audited consolidated financial statements for further detail on our restricted investments.
+Added: See Note 3 – Cash, cash equivalents, restricted cash and cash equivalents and investments of our audited consolidated financial statements for further detail on our restricted investments.
Fluctuations of the interest rate could also have a negative impact on interest expense related to our Loans payable and other financial liabilities, as a portion of these instruments is subject to variable interest rates.
1 unchanged sentence
See Note 16 – Loans payable and other financial liabilities and Note 19 – Securitization transactions of our audited consolidated financial statements for further detail.
−Removed: Considering a hypothetical increase of 100 basis points in the interest rates, the reported charge to the consolidated statements of income for the year ended December 31, 2024 would have increased by approximately $28 million with the impact in Cost of net revenues and financial expenses or in Interest expense and other financial losses.
+Added: Considering a hypothetical increase of 100 basis points in the interest rates, the reported charge to the consolidated statements of income for the year ended December 31, 2025 would have increased by approximately $55 million with an impact of $49 million in Cost of net revenues and financial expenses and $6 million in Interest expense and other financial losses.
We have entered into swap and future contracts to hedge the interest rate fluctuation of $923 million notional amount, $807 million of which have been designated as hedging instruments.
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Equity price risk
−Removed: Our board of directors, upon the recommendation of the compensation committee, approved the 2020, 2021, 2022, 2023 and 2024 Long Term Retention Programs (the “2020, 2021, 2022, 2023 and 2024 LTRPs”), respectively, under which certain eligible employees have the opportunity to receive cash payments annually for a period of six years (with the first payment occurring no later than April 30, 2021, 2022, 2023, 2024 and 2025 for the 2020, 2021, 2022, 2023 and 2024 LTRPs, respectively).
+Added: Our board of directors, upon the recommendation of the compensation committee, approved the 2021, 2022, 2023, 2024 and 2025 Long Term Retention Programs (the “2021, 2022, 2023, 2024 and 2025 LTRPs”, respectively), under which certain eligible employees have the opportunity to receive cash payments annually for a period of six years.
In order to receive the full target award under the 2021, 2022, 2023, 2024 and/or 2025 LTRPs, each eligible employee must remain employed as of each applicable payment date.
The 2021, 2022, 2023, 2024 and 2025 LTRP awards are payable as follows:
−Removed: ■ the eligible employee will receive 16.66% of half of his or her target 2020, 2021, 2022, 2023 and/or 2024 LTRP award once a year for a period of six years, with the first payment occurring no later than April 30, 2021, 2022, 2023, 2024 and 2025, respectively (the “2020, 2021, 2022, 2023 or 2024 Annual Fixed Payment”, respectively);
−Removed: ■ on each date we pay the respective Annual Fixed Payment to an eligible employee, he or she will also receive a payment (the “2020, 2021, 2022, 2023 or 2024 Variable Payment”) equal to the product of (i) 16.66% of half of the target 2020, 2021, 2022, 2023 or 2024 LTRP award and (ii) the quotient of (a) divided by (b), where (a), the numerator, equals the Applicable Year Stock Price (as defined below) and (b), the denominator, equals the average closing price of our common stock on the NASDAQ Global Select Market during the final 60 trading days of 2019, 2020, 2021, 2022 and 2023 defined as $553.45, $1,431.26, $1,391.81, $888.69 and $1,426.11 for the 2020, 2021, 2022, 2023 and 2024 LTRPs, respectively.
+Added: ■ the eligible employee will receive 16.66% of half of his or her target 2021, 2022, 2023, 2024 and/or 2025 LTRP bonus once a year for a period of six years, with the first payment occurring no later than April 30, 2022, 2023, 2024, 2025 and 2026, respectively (the “2021, 2022, 2023, 2024 or 2025 Annual Fixed Payment,” respectively);
+Added: ■ on each date we pay the respective Annual Fixed Payment to an eligible employee, he or she will also receive a payment (the “2021, 2022, 2023, 2024 or 2025 Variable Payment”) equal to the product of (i) 16.66% of half of the target 2021, 2022, 2023, 2024 and/or 2025 LTRP bonus and (ii) the quotient of (a) divided by (b), where (a), the numerator, equals the Applicable Year Stock Price (as defined below) and (b), the denominator, equals the average closing price of our common stock on the NASDAQ Global Select Market during the final 60 trading days of 2020, 2021, 2022, 2023 and 2024 defined as $1,431.26, $1,391.81, $888.69, $1,426.11 and $1,944.47 for the 2021, 2022, 2023, 2024 and 2025 LTRPs, respectively.
The “Applicable Year Stock Price” shall equal the average closing price of our common stock on the NASDAQ Global Select Market during the final 60 trading days of the year preceding the applicable payment date.
3 unchanged sentences
64 | MercadoLibre, Inc.
+Added: T able of Contents
Change in equity price in percentage As of December 31, 2025
11 unchanged sentences
(1) Present value of average closing stock price for the last 60 trading days of the year preceding the applicable payment date.
−Removed: In November 2021, we acquired Kangu Participações S.A.
−Removed: Former Kangu’s shareholders who after the acquisition became the Company’s employees will receive cash payments annually over a three-year period subject to certain performance and stay conditions.
−Removed: The payments will be indexed based on changes in equity price of our Common Stock.
−Removed: As of December 31, 2024, the total contractual obligation fair value of the mentioned payments amounted to $3 million, which was fully paid on January 2, 2025.
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.