MercadoLibre's aggressive investments in logistics and credit expansion are compressing its net profit margin from 9.2% to 6%, even as its e-commerce and fintech ecosystems add around 84 million active buyers and 82 million fintech users. The company reported first-quarter 2026 revenue of US$8,845 million and net income of US$417 million, highlighting the tension between growth spending and near-term profitability. While the long-term narrative projects $67.0 billion in revenue and $4.7 billion in earnings by 2029, requiring 28.2% annual revenue growth, rising credit exposure and competition pose risks to those targets. Some analysts had forecast US$52.3 billion in revenue and US$5.9 billion in earnings by 2028, but those assumptions may shift as credit risks intensify.
MercadoLibre Inc.Heavy logistics and fintech spending compress net profit margin from 9.2% to 6%, and rising credit exposure risks future earnings targets.