MercadoLibre Q4 Revenue Tops by $150M, Margin Compression Sparks 6% After-Hours Slide
MercadoLibre’s Q4 2025 revenue climbed 25% year-over-year to $3.3 billion, beating consensus by about $150 million, while adjusted EPS of $2.15 fell 5% short of forecasts. Operating margin narrowed by 180 basis points to 11.2%, sending shares down 6% in after-hours trading.
1. Q4 Revenue and EPS Performance
MercadoLibre reported Q4 2025 revenue of $3.3 billion, up 25% from a year earlier and exceeding analyst estimates by roughly $150 million. However, adjusted earnings per share came in at $2.15, missing the Street’s $2.27 target by 5%, reflecting higher operating costs.
2. Margin Compression and Market Reaction
The company’s operating margin contracted by 180 basis points to 11.2%, driven by increased fulfillment and marketing expenses. Shares fell about 6% in after-hours trading as investors weighed the revenue beat against margin erosion and its impact on profitability.