Shares slipped in Thursday premarket as the Latin American e-commerce and fintech group's record revenue and earnings beat were overshadowed by a third straight quarterly drop in net income and narrower margins.
MercadoLibre reported record second-quarter revenue of $10.2 billion, its first quarter above $10 billion, as adjusted earnings of $9.19 a share and net income of $466 million both topped analyst estimates. Shares were down 2.73% at $1,870 in Thursday premarket trading, with investors focusing on an 11% year-over-year drop in net income, the third straight quarterly decline, as heavier spending on free shipping in Brazil, credit-card expansion and other growth initiatives compressed margins. Operating income was $683 million and operating margin narrowed 550 basis points to 6.7%, even as net interest margin improved to 21% from 18% in the first quarter of 2026 and adjusted free cash flow reached $214 million. Commerce gross merchandise volume (GMV) rose 36% on a foreign exchange-neutral basis to $22 billion, total payment volume topped $100 billion for the first time, assets under management reached $23 billion and the credit portfolio expanded 75% to more than $16 billion, with credit-card non-performing loans (NPLs) at 4.6% and total portfolio NPLs at 7.0%. Advertising revenue climbed 73%, while AI tools continued to support seller adoption, search conversion and internal engineering productivity.