MercadoLibre, Inc. (MELI)
NASDAQConsumer DiscretionarySpecialty RetailSnapshot 2026-09-04
$1978.36-0.64%
Close 2026-09-04 · 1-day change
NASDAQConsumer DiscretionarySpecialty RetailSnapshot 2026-09-04
QuarterlyIQ Insights · MELI
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within consumer discretionary on a research-validated quality screen. As of 2026-09-04.
The screen ranks MELI against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Consumer Discretionary names rated neutral grew net income 45% of the time over the next year (vs 59% for the rest of the cohort, n=6943).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Continue driving strong revenue growth by expanding user engagement across Commerce and Fintech, leveraging the ecosystem flywheel and MELI+ loyalty program.
Stated as a priority in 2 of last 2 quarters. Revenue grew from $6.79bn in 2025-Q2 to $10.17bn in 2026-Q2, a 50% YoY increase. Ecosystemic users grew 37% YoY in Q2'26, driving deeper engagement across Commerce and Fintech. Management's focus on expanding revenue through ecosystem engagement is delivering strong growth and user traction.
“Net revenue and financial income grew 50% YoY in Q2'26, with ecosystemic users growing 37% YoY.”
“Net revenue and financial income grew 49% YoY in Q1'26, with strong ecosystem engagement and user growth.”
Continue expanding the credit card portfolio as a key fintech lever to increase user engagement and ecosystemic usage.
Stated as a priority in 2 of last 2 quarters. The credit card portfolio grew 75% YoY to $16bn in 2026-Q2, with 2.6 million new cards issued that quarter. This expansion supports deeper ecosystem engagement and user retention. Management is delivering on this priority with strong portfolio growth and issuance.
Maintain the lowered free shipping threshold in Brazil to accelerate GMV growth, increase buyer engagement, and improve unit economics.
Stated as a priority in 2 of last 2 quarters. Brazil GMV grew 39% YoY and sold items grew 56% YoY in 2026-Q2 following the lowered free shipping threshold. Engagement metrics and unit economics improved, supporting sustained growth. Management's investment in this lever is delivering durable results.
Leverage AI to enhance product relevance, seller tools, operational efficiency, and cost structure across Commerce and Fintech.
Stated as a priority in 2 of last 2 quarters. AI-powered initiatives increased code submissions by 110% YoY and enabled the AI assistant to resolve over half of Help Portal requests in 2026-Q2. These technology investments are improving productivity and user experience, matching management's stated focus.
Expand digital advertising revenue by improving technology, increasing seller adoption, and capturing market share in Latin America.
Stated as a priority in 2 of last 2 quarters. Advertising revenue grew 62% YoY in 2026-Q2, surpassing 10% share of the Latin American digital advertising market. Technology improvements and seller adoption are driving this growth, consistent with management's stated objectives.
Over the trailing year it converted 4.61x of net income into operating cash flow. Historically, Consumer Discretionary names rated robust grew net income 58% of the time over the next year (vs 45% for the rest of the cohort, n=3652).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity (low R² over the window).
10 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Consumer Discretionary names rated stable grew net income 47% of the time over the next year (vs 53% for the rest of the cohort, n=1906).
Not investment advice. As of 2026-09-04.
“Credit card portfolio surpassed $16bn in Q2'26, growing 75% YoY with 2.6mn new cards issued.”
“Credit card portfolio grew 104% YoY to $6.6bn in Q1'26, with 2.7mn cards issued.”
“Brazil GMV grew 39% YoY and sold items grew 56% YoY in Q2'26 after lowering free shipping threshold.”
“Brazil GMV growth accelerated to 38% YoY with sold items growth of 56% YoY following threshold change.”
“AI-powered marketplace search deployed with uplifts in conversion and ads click-through rates.”
“AI rolled out in marketplace search, improving product relevance and seller assistant engagement.”
“Advertising net revenue grew 62% YoY in Q2'26, surpassing 10% market share in Latin America.”
“Ads revenue grew 63% YoY on an FX-neutral basis in Q1'26, driven by technology investments.”