MercadoLibre posts 50% revenue growth to $10.2B, invests in growth despite margin dip

MercadoLibre reported a 50% year-over-year revenue increase to $10.2 billion, with GAAP earnings per share of $9.19. The company intentionally reduced margins by 550 basis points as part of a strategic reinvestment into growth areas such as free shipping, first-party inventory, and card issuance. Advertising revenue grew 73% year-over-year, supporting user expansion and entry into lower-end markets. Improvements in Mercado Pago's asset quality, including a recovery in NIMAL to 20.7% and historically low non-performing loan ratios, suggest strong potential for long-term profitability.