Mercado Libre boosts revenue 49% by investing in growth, sacrificing short-term profits.

Mercado Libre reported a 49% year-over-year increase in net revenue and financial income for Q1 2026, reaching $8.8 billion, driven by investments in free shipping, a Mercado Pago credit card, first-party selection, and cross-border trade. Despite this revenue growth, net income fell 16% to $417 million as the company prioritized long-term growth over short-term profits. Key strategies like lowering the free shipping threshold in Brazil significantly improved customer metrics, and the company plans to continue bold investments to sustain growth, especially in its largest market, Brazil.