MercadoLibre, Inc.MELI
NasdaqGS•Consumer Cyclical•Internet Retail
MercadoLibre, Inc. operates online commerce platforms in Brazil, Mexico, Argentina, and internationally. The company operates Mercado Libre Marketplace, an online commerce platform that can be accessed through mobile app or website; and Mercado Pago, a financial technology solution platform, which offers comprehensive set of financial technology services to users and other users of its e-commerce platform. It also provides Mercado Fondo that allows users to invest funds deposited in their Mercado Pago accounts; Mercado Credito, which grants loans and obtains better funding alternatives; and Mercado Mercado Envios that facilitates the shipping of goods from the Company and sellers to buyers. In addition, the company provides Mercado Libre Classifieds, where users can list vehicles, properties, and services; Mercado Ads, an advertising platform, which enables retailers and brands to promote their products and services on the platform. MercadoLibre, Inc. was incorporated in 1999 and is headquartered in Montevideo, Uruguay.
MercadoLibre, Inc. (MELI) reported trailing twelve months revenue of $31.80B as of March 2026, a 42.1% increase year-over-year. Quarterly revenue reached $8.85B, reflecting continued top-line momentum.
MercadoLibre, Inc. generated $1.92B in TTM net income, with quarterly EBITDA of $857.00M. The operating margin contracted from 12.9% to 6.9%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (6.9%) and net margin (4.7%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 8.3% a year ago, reflecting increased costs or interest expense.
MELI trades at a P/E of 42.8x (a premium multiple) and a P/S of 2.6x. The price-to-book ratio of 11.3x indicates a significant premium over book value.
The company generated $1.80B in free cash flow over the trailing twelve months, a 137.7% increase year-over-year, indicating strong cash generation ability. The balance sheet shows $46.93B in total assets with $9.93B in long-term debt against $7.28B in stockholders equity for a debt-to-equity ratio of 1.4. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~11.3% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 35.6% suggests a durable competitive advantage and efficient capital allocation.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (7 of 7 quarters up), with ~82.5% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Operating margins dropped 23.8% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.
FCF covers net income by 4.5x on average — earnings are well-supported by cash generation.
D/E ratio is 1.4 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Share count is stable — no significant dilution or buyback activity.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation