MERCADOLIBRE INCMELI
MERCADOLIBRE INC Segments Disclosure
SEGMENTS
The Company manages the business country-by-country to understand and focus on the specific needs and opportunities in those markets. The Company’s chief executive officer is responsible for allocating resources and assessing performance and is therefore its chief operating decision maker (“CODM”). The Company’s segments include Brazil, Mexico, Argentina and other countries (which includes Bermuda, Chile, China, Colombia, Costa Rica, Ecuador, Peru, Uruguay and the U.S.).
The CODM evaluates the performance of the Company’s operating segments based on their direct contribution. The CODM uses the direct contribution by segment to help with decision-making since it considers all business lines within a country as a whole, taking into account the synergies between the different lines in each of the countries’ integrated digital ecosystems.
Direct contribution consists of net revenues and financial income from external customers less segment costs, which include expenses, such as shipping operation costs (including warehousing costs), carrier and other operating costs, provision for doubtful accounts, cost of goods sold, collection fees, funding cost, salaries and wages, marketing expenses and hosting expenses. All corporate related costs have been excluded from the segment’s direct contribution.
The following tables summarize the financial performance of the Company’s reporting segments:
| Year Ended December 31, 2025 | |||||||||||||||||||||||||||||
| Brazil | Mexico | Argentina | Other Countries | Total | |||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||
| Net service revenues and financial income | $ | 12,846 | $ | 5,699 | $ | 5,646 | $ | 1,095 | $ | 25,286 | |||||||||||||||||||
| Net product revenues | 2,355 | 776 | 316 | 160 | 3,607 | ||||||||||||||||||||||||
| Net revenues and financial income | 15,201 | 6,475 | 5,962 | 1,255 | 28,893 | ||||||||||||||||||||||||
| Local operating expenses | (12,740) | (5,054) | (3,398) | (1,032) | (22,224) | ||||||||||||||||||||||||
Depreciation and amortization | (386) | (250) | (83) | (47) | (766) | ||||||||||||||||||||||||
| Total segment costs | (13,126) | (5,304) | (3,481) | (1,079) | (22,990) | ||||||||||||||||||||||||
| Direct contribution | 2,075 | 1,171 | 2,481 | 176 | 5,903 | ||||||||||||||||||||||||
| Operating expenses and indirect costs of net revenues and financial expenses | (2,702) | ||||||||||||||||||||||||||||
| Income from operations | 3,201 | ||||||||||||||||||||||||||||
| Other income (expenses): | |||||||||||||||||||||||||||||
| Interest income and other financial gains, net | 138 | ||||||||||||||||||||||||||||
| Interest expense and other financial losses | (160) | ||||||||||||||||||||||||||||
| Foreign currency losses, net | (337) | ||||||||||||||||||||||||||||
| Net income before income tax expense and equity in earnings of unconsolidated entity | $ | 2,842 | |||||||||||||||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||||
| Brazil | Mexico | Argentina | Other Countries | Total | |||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||
| Net service revenues and financial income | $ | 10,033 | $ | 4,183 | $ | 3,614 | $ | 808 | $ | 18,638 | |||||||||||||||||||
| Net product revenues | 1,373 | 481 | 204 | 81 | 2,139 | ||||||||||||||||||||||||
| Net revenues and financial income | 11,406 | 4,664 | 3,818 | 889 | 20,777 | ||||||||||||||||||||||||
| Local operating expenses | (8,828) | (3,650) | (2,069) | (730) | (15,277) | ||||||||||||||||||||||||
Depreciation and amortization | (292) | (160) | (74) | (42) | (568) | ||||||||||||||||||||||||
| Total segment costs | (9,120) | (3,810) | (2,143) | (772) | (15,845) | ||||||||||||||||||||||||
| Direct contribution | 2,286 | 854 | 1,675 | 117 | 4,932 | ||||||||||||||||||||||||
| Operating expenses and indirect costs of net revenues and financial expenses | (2,301) | ||||||||||||||||||||||||||||
| Income from operations | 2,631 | ||||||||||||||||||||||||||||
| Other income (expenses): | |||||||||||||||||||||||||||||
| Interest income and other financial gains, net | 148 | ||||||||||||||||||||||||||||
| Interest expense and other financial losses | (165) | ||||||||||||||||||||||||||||
| Foreign currency losses, net | (182) | ||||||||||||||||||||||||||||
| Net income before income tax expense and equity in earnings of unconsolidated entity | $ | 2,432 | |||||||||||||||||||||||||||
Year Ended December 31, 2023 (1) | |||||||||||||||||||||||||||||
| Brazil | Mexico | Argentina | Other Countries | Total | |||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||
| Net service revenues and financial income | $ | 6,946 | $ | 2,734 | $ | 3,322 | $ | 615 | $ | 13,617 | |||||||||||||||||||
| Net product revenues | 875 | 337 | 228 | 50 | 1,490 | ||||||||||||||||||||||||
| Net revenues and financial income | 7,821 | 3,071 | 3,550 | 665 | 15,107 | ||||||||||||||||||||||||
| Local operating expenses | (5,698) | (2,238) | (1,812) | (577) | (10,325) | ||||||||||||||||||||||||
Depreciation and amortization | (262) | (133) | (58) | (38) | (491) | ||||||||||||||||||||||||
| Total segment costs | (5,960) | (2,371) | (1,870) | (615) | (10,816) | ||||||||||||||||||||||||
| Direct contribution | 1,861 | 700 | 1,680 | 50 | 4,291 | ||||||||||||||||||||||||
| Operating expenses and indirect costs of net revenues and financial expenses | (2,084) | ||||||||||||||||||||||||||||
| Income from operations | 2,207 | ||||||||||||||||||||||||||||
| Other income (expenses): | |||||||||||||||||||||||||||||
| Interest income and other financial gains, net | 135 | ||||||||||||||||||||||||||||
| Interest expense and other financial losses | (174) | ||||||||||||||||||||||||||||
| Foreign currency losses, net | (615) | ||||||||||||||||||||||||||||
| Net income before income tax expense and equity in earnings of unconsolidated entity | $ | 1,553 | |||||||||||||||||||||||||||
(1) Recast for consistency with the current presentation due to the change in the presentation of certain financial results. Please refer to Note 2 – Summary of significant accounting policies - Change in the presentation of certain financial results and reclassification of 2023 results to our audited consolidated financial statements for further details.
The following tables summarize net revenues and financial income per reporting segment, which have been disaggregated by similar products and services for the years ended December 31, 2025, 2024 and 2023:
| Year Ended December 31, 2025 | |||||||||||||||||||||||||||||
Brazil | Mexico | Argentina | Other Countries (7) | Total | |||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||
Commerce services (1) | $ | 6,859 | $ | 3,432 | $ | 1,722 | $ | 737 | $ | 12,750 | |||||||||||||||||||
Commerce products sales (2) | 2,325 | 753 | 312 | 154 | 3,544 | ||||||||||||||||||||||||
Total commerce revenues | 9,184 | 4,185 | 2,034 | 891 | 16,294 | ||||||||||||||||||||||||
Financial services and income (3) | 2,829 | 897 | 2,609 | 343 | 6,678 | ||||||||||||||||||||||||
Credit revenues (4) | 3,158 | 1,370 | 1,315 | 15 | 5,858 | ||||||||||||||||||||||||
Fintech products sales (5) | 30 | 23 | 4 | 6 | 63 | ||||||||||||||||||||||||
Total fintech revenues | 6,017 | 2,290 | 3,928 | 364 | 12,599 | ||||||||||||||||||||||||
Total net revenues and financial income | $ | 15,201 | $ | 6,475 | $ | 5,962 | $ | 1,255 | $ | 28,893 | |||||||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||||
| Brazil | Mexico | Argentina | Other Countries (7) | Total | |||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||
Commerce services (1) | $ | 5,695 | $ | 2,608 | $ | 1,207 | $ | 566 | $ | 10,076 | |||||||||||||||||||
Commerce products sales (2) | 1,343 | 464 | 200 | 76 | 2,083 | ||||||||||||||||||||||||
| Total commerce revenues | 7,038 | 3,072 | 1,407 | 642 | 12,159 | ||||||||||||||||||||||||
Financial services and income (3) | 2,416 | 566 | 1,748 | 232 | 4,962 | ||||||||||||||||||||||||
Credit revenues (4) | 1,922 | 1,009 | 659 | 10 | 3,600 | ||||||||||||||||||||||||
Fintech products sales (5) | 30 | 17 | 4 | 5 | 56 | ||||||||||||||||||||||||
| Total fintech revenues | 4,368 | 1,592 | 2,411 | 247 | 8,618 | ||||||||||||||||||||||||
Total net revenues and financial income | $ | 11,406 | $ | 4,664 | $ | 3,818 | $ | 889 | $ | 20,777 | |||||||||||||||||||
Year Ended December 31, 2023 (6) | |||||||||||||||||||||||||||||
Brazil | Mexico | Argentina | Other Countries (7) | Total | |||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||
Commerce services (1) | $ | 3,655 | $ | 1,653 | $ | 1,036 | $ | 410 | $ | 6,754 | |||||||||||||||||||
Commerce products sales (2) | 857 | 326 | 225 | 39 | 1,447 | ||||||||||||||||||||||||
| Total commerce revenues | 4,512 | 1,979 | 1,261 | 449 | 8,201 | ||||||||||||||||||||||||
Financial services and income (3) | 2,136 | 382 | 1,602 | 197 | 4,317 | ||||||||||||||||||||||||
Credit revenues (4) | 1,155 | 699 | 684 | 8 | 2,546 | ||||||||||||||||||||||||
Fintech products sales (5) | 18 | 11 | 3 | 11 | 43 | ||||||||||||||||||||||||
| Total fintech revenues | 3,309 | 1,092 | 2,289 | 216 | 6,906 | ||||||||||||||||||||||||
Total net revenues and financial income | $ | 7,821 | $ | 3,071 | $ | 3,550 | $ | 665 | $ | 15,107 | |||||||||||||||||||
(1) Includes final value fees and flat fees paid by sellers derived from intermediation services and related shipping and storage fees, classified fees derived from classified advertising services, ad sales and membership subscription fees.
(2) Includes revenues from inventory sales and related shipping fees.
(3) Includes revenues from commissions the Company charges for transactions off-platform derived from use of the Company’s payment solution and asset management product, revenues as a result of offering installments for the payment to its Mercado Pago users, either when the Company finances the transactions directly or when the Company sells the corresponding financial assets, interest earned on cash and investments as part of Mercado Pago activities, including those required due to fintech regulations, net of interest gains pass through our Brazilian users in connection with our asset management product, Mercado Pago debit card commissions and insurtech fees.
(4) Includes interest earned on loans and advances granted to merchants and consumers, and interest and commissions earned on Mercado Pago credit card transactions.
(5) Includes sales of mobile point of sales devices.
(6) Recast for consistency with the current presentation due to the change in the presentation of certain financial results. Please refer to Note 2 – Summary of significant accounting policies - Change in the presentation of certain financial results and reclassification of 2023 results to our audited consolidated financial statements for further details.
(7) Revenues from external customers in the U.S. amounted to $51 million and $35 million for the years ended December 31, 2025 and 2024. There were no revenues from external customers in the U.S. for the year ended December 31, 2023.
The following tables summarize the allocation of the property and equipment based on geography:
| December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Brazil | Mexico | Argentina | U.S. | Other countries | Total | ||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||
| Property and equipment | $ | 1,583 | $ | 1,341 | $ | 552 | $ | 10 | $ | 241 | $ | 3,727 | |||||||||||||||||||||||
| Accumulated depreciation | (644) | (403) | (250) | (8) | (119) | (1,424) | |||||||||||||||||||||||||||||
| Total property and equipment, net | $ | 939 | $ | 938 | $ | 302 | $ | 2 | $ | 122 | $ | 2,303 | |||||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||||||||
| Brazil | Mexico | Argentina | U.S. | Other countries | Total | ||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||
| Property and equipment | $ | 1,078 | $ | 713 | $ | 434 | $ | 10 | $ | 178 | $ | 2,413 | |||||||||||||||||||||||
| Accumulated depreciation | (497) | (239) | (199) | (6) | (92) | (1,033) | |||||||||||||||||||||||||||||
| Total property and equipment, net | $ | 581 | $ | 474 | $ | 235 | $ | 4 | $ | 86 | $ | 1,380 | |||||||||||||||||||||||
The following tables summarize the allocation of the operating lease right-of-use assets based on geography:
| December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Brazil | Mexico | Argentina | U.S. | Other countries | Total | ||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||
| Right of use asset | $ | 1,140 | $ | 1,347 | $ | 153 | $ | 4 | $ | 159 | $ | 2,803 | |||||||||||||||||||||||
Accumulated amortization | (262) | (243) | (44) | (1) | (52) | (602) | |||||||||||||||||||||||||||||
| Total right of use asset, net | $ | 878 | $ | 1,104 | $ | 109 | $ | 3 | $ | 107 | $ | 2,201 | |||||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||||||||
| Brazil | Mexico | Argentina | U.S. | Other countries | Total | ||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||
| Right of use asset | $ | 618 | $ | 616 | $ | 76 | $ | 4 | $ | 115 | $ | 1,429 | |||||||||||||||||||||||
Accumulated amortization | (139) | (116) | (36) | (1) | (39) | (331) | |||||||||||||||||||||||||||||
| Total right of use asset, net | $ | 479 | $ | 500 | $ | 40 | $ | 3 | $ | 76 | $ | 1,098 | |||||||||||||||||||||||
The following tables summarize the allocation of the goodwill and intangible assets based on geography:
| December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Brazil | Mexico | Argentina | U.S. | Other countries | Total | ||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||
| Goodwill and intangible assets | $ | 101 | $ | 49 | $ | 23 | $ | — | $ | 74 | $ | 247 | |||||||||||||||||||||||
Accumulated amortization | (12) | (5) | (8) | — | (26) | (51) | |||||||||||||||||||||||||||||
| Total goodwill and intangible assets, net | $ | 89 | $ | 44 | $ | 15 | $ | — | $ | 48 | $ | 196 | |||||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||||||||
| Brazil | Mexico | Argentina | U.S. | Other countries | Total | ||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||
| Intangible assets at fair value | $ | — | $ | — | $ | — | $ | 49 | $ | — | $ | 49 | |||||||||||||||||||||||
| Goodwill and intangible assets | 64 | 43 | 23 | — | 71 | 201 | |||||||||||||||||||||||||||||
Accumulated amortization | (6) | (4) | (7) | — | (23) | (40) | |||||||||||||||||||||||||||||
| Total goodwill and intangible assets, net | $ | 58 | $ | 39 | $ | 16 | $ | 49 | $ | 48 | $ | 210 | |||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Feb 14, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 26, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.