MercadoLibre stock declined 6.6% following the release of Q4 2025 earnings on February 24, 2026. The company reported earnings per share of $8.32, missing the consensus estimate of $9.30 by 10.5%. Revenue totaled $26.2 billion for the quarter. Operating margins fell from 10.5% to 9.8% despite 37% revenue growth in 2025. The company lowered its free shipping threshold in Brazil from 79 reais to 19 reais, which boosted transaction volumes but raised concerns about long-term profitability. The company has absorbed higher logistics costs and increased promotions in response to competitive pressure from rivals like Shopee and Temu. These factors combined to create a notable earnings shortfall versus analyst expectations, contributing to the stock's decline.
Read full analysisMercadoLibre stock declined 6.6% following the release of Q4 2025 earnings on February 24, 2026. The company reported earnings per share of $8.32, missing the consensus estimate of $9.30 by 10.5%. Revenue totaled $26.2 billion for the quarter. Operating margins fell from 10.5% to 9.8% despite 37% revenue growth in 2025. The company lowered its free shipping threshold in Brazil from 79 reais to 19 reais, which boosted transaction volumes but raised concerns about long-term profitability. The company has absorbed higher logistics costs and increased promotions in response to competitive pressure from rivals like Shopee and Temu. These factors combined to create a notable earnings shortfall versus analyst expectations, contributing to the stock's decline.
MercadoLibre is the dominant e-commerce and fintech platform in Latin America, operating online marketplaces and the Mercado Pago digital payments ecosystem across Brazil, Mexico, Argentina, and other regional markets. The company achieved 37% revenue growth in 2025 but saw operating margins contract from 10.5% to 9.8%, reflecting the cost of defending market share against Shopee and Temu through aggressive free-shipping thresholds and promotional subsidies. Today's continued selloff following a 10.5% Q4 earnings miss sharpens the debate over whether MELI's growth is translating into profitability at the pace investors require.