Latin America’s largest e-commerce and fintech firm saw profits decline for two straight quarters amid rapid expansion.
MercadoLibre (NASDAQ: MELI) stock declined 16% in the first half of 2026, contrasting with strong revenue growth. The company reported a 49% year-over-year increase in total revenue for Q1 2026, driven by e-commerce and fintech segments.
E-commerce gross merchandise volume rose 42%, with unique active buyers up 26%. Fintech payment volume surged 50%, while monthly active users reached 83 million. Despite these gains, consecutive quarterly profit declines weighed on investor sentiment.
Brazil, MercadoLibre’s largest market, saw accelerated growth after the company lowered its free shipping threshold from R$79 to R$19. The firm’s credit portfolio and assets under management also expanded sharply, up 87% and 77%, respectively.