Mercado Libre MELI Form 10-Q filing Q1 FY2026

ITEM 1 — UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1

Interim Condensed Consolidated Balance Sheets as ofMarch31, 2026and December 31, 2025 1

Interim Condensed Consolidated Statements of Incomefor thethree-month periods endedMarch31, 2026and 2025 2

Interim Condensed Consolidated Statements of Comprehensive Income for thethree-month periods endedMarch31, 2026and 2025 3

Interim Condensed Consolidated Statements of Equity for thethree-month periods endedMarch#i84f3433ca70e43aba43b2c42eb8a2df8_2531, 2026and 2025 4

Interim Condensed Consolidated Statements of Cash Flows for thethree-month periods endedMarch31, 2026and 2025 5

Notes to Interim Condensed Consolidated Financial Statements (unaudited) 7

ITEM 2 — MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 36

ITEM 3 — QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 54

ITEM 4 — CONTROLS AND PROCEDURES 57

PART II. OTHER INFORMATION 57

ITEM 1 — LEGAL PROCEEDINGS 57

ITEM 1A — RISK FACTORS 57

ITEM 2 — UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 58

ITEM 5 — OTHER INFORMATION 58

ITEM 6 — EXHIBITS 58

INDEX TO EXHIBITS 59

SIGNATURES 60

MercadoLibre, Inc. - Interim Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025

(In millions of U.S. dollars, except par value) (Unaudited)

Line item March 31,2026 December 31,2025

| Assets | | | | Current assets: | | |

Cash and cash equivalents $3,677 $3,670 Restricted cash and cash equivalents 11,464 9,867 Short-term investments 1,973 2,629 Accounts receivable, net 370 369 Credit card receivables and other means of payments, net 7,971 6,893 Loans receivable, net of allowances of $3,708 and $3,057 10,169 8,855 Inventories 677 570 Other assets 822 720 Total current assets 37,123 33,573 | Non-current assets: | | | Long-term investments 1,696 1,764 Credit card receivables and other means of payments, net 163 153 Loans receivable, net of allowances of $112 and $86 566 510 Property and equipment, net 2,413 2,303 Operating lease right-of-use assets 2,402 2,201 Goodwill 165 163 Intangible assets, net 33 33 Deferred tax assets 1,890 1,541 Other assets 483 426 Total non-current assets 9,811 9,094 Total assets $46,934 $42,667 | Liabilities | | | | Current liabilities: | | | Accounts payable and accrued expenses $5,037 $4,502 Funds payable to customers 14,145 13,029 Amounts payable due to credit and debit card transactions 4,305 3,584 Salaries and social security payable 878 916 Taxes payable 1,298 1,140 Loans payable and other financial liabilities 5,316 4,623 Operating lease liabilities 472 430 Other liabilities 518 409 Total current liabilities 31,969 28,633 | Non-current liabilities: | | | Amounts payable due to credit and debit card transactions 190 187 Loans payable and other financial liabilities 4,611 4,570 Operating lease liabilities 1,946 1,769 Deferred tax liabilities 386 372 Other liabilities 551 388 Total non-current liabilities 7,684 7,286 Total liabilities $39,653 $35,919 | Commitments and contingencies (Note 8) | | | | Equity | | | Common stock, $0.001 par value, 110,000,000 shares authorized, 50,697,182 shares issued and outstanding — — Additional paid-in capital 1,771 1,771 Treasury stock, 225,931 shares (312) (312) Retained earnings 6,226 5,809 Accumulated other comprehensive loss (404) (520) Total equity 7,281 6,748 Total liabilities and equity $46,934 $42,667

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

1 | MercadoLibre, Inc.

MercadoLibre, Inc.

Interim Condensed Consolidated Statements of Income

For the three-month periods ended March 31, 2026 and 2025

(In millions of U.S. dollars, except for share data)

(Unaudited)

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

2 | MercadoLibre, Inc.

MercadoLibre, Inc.

Interim Condensed Consolidated Statements of Comprehensive Income

For the three-month periods ended March 31, 2026 and 2025

(In millions of U.S. dollars)

(Unaudited)

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

3 | MercadoLibre, Inc.

MercadoLibre, Inc.

Interim Condensed Consolidated Statements of Equity

For the three-month periods ended March 31, 2026 and 2025

(In millions of U.S. dollars and share data)

(Unaudited)

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

4 | MercadoLibre, Inc.

MercadoLibre, Inc. - Interim Condensed Consolidated Statements of Cash Flows

For the three-month periods ended March 31, 2026 and 2025

(In millions of U.S. dollars)

(Unaudited)

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

5 | MercadoLibre, Inc.

MercadoLibre, Inc. - Interim Condensed Consolidated Statements of Cash Flows

For the three-month periods ended March 31, 2026 and 2025

(In millions of U.S. dollars)

(Unaudited)

6 | MercadoLibre, Inc.

MercadoLibre, Inc.

Notes to unaudited interim condensed consolidated financial statements

NOTE 1. NATURE OF BUSINESS

MercadoLibre, Inc. (“MercadoLibre,” and together with its consolidated entities, the “Company”) was incorporated in the state of Delaware, in the United States of America (“U.S.”), in October 1999. MercadoLibre is the leading online commerce and fintech ecosystem in Latin America. The Company’s ecosystem provides consumers and merchants with a complete portfolio of services to enable buying and selling online and processing payments online and offline, as well as a wide array of simple day-to-day financial services.

The Company enables commerce through its marketplace platform, which allows users to buy and sell in most of Latin America. Through Mercado Pago, the fintech platform, MercadoLibre offers a comprehensive set of financial technology services to users of its e-commerce platform, and to users outside of its e-commerce platform. These services include loans and credit cards, yield on funds deposited into accounts, payments, savings, investments, insurtech, crypto buy, hold & sell and processing services for online, in-store and QR payments. Through Mercado Envios, MercadoLibre facilitates the shipping of goods from the Company and sellers to buyers. Mercado Ads facilitates advertising services for sellers and brands to promote their products and services within and outside the Company’s ecosystem.

As of March 31, 2026, MercadoLibre, through its wholly-owned subsidiaries, operated online e-commerce platforms directed towards Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Peru, Mexico, Panama, Honduras, Nicaragua, El Salvador, Uruguay, Bolivia, Guatemala, Paraguay and Venezuela. Additionally, MercadoLibre’s fintech platform, Mercado Pago, is present in Argentina, Brazil, Mexico, Colombia, Chile, Peru, Uruguay and Ecuador.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The accompanying unaudited interim condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the U.S. (“U.S. GAAP”) and include the accounts of the Company, its wholly-owned subsidiaries and consolidated Variable Interest Entities (“VIEs”). These unaudited interim condensed consolidated financial statements are stated in U.S. dollars, except for where otherwise indicated. Intercompany transactions and balances have been eliminated for consolidation purposes.

These unaudited interim condensed consolidated financial statements reflect the Company’s consolidated financial position as of March 31, 2026 and December 31, 2025. These unaudited interim condensed consolidated financial statements include the Company’s consolidated statements of income, comprehensive income, equity and cash flows for the three-month periods ended March 31, 2026 and 2025. These unaudited interim condensed consolidated financial statements include all normal recurring adjustments that Management believes are necessary to fairly state the Company’s financial position, operating results and cash flows.

Because all of the disclosures required by U.S. GAAP for annual consolidated financial statements are not included herein, these unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto for the year ended December 31, 2025, contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission (“SEC”) (the “Company’s 2025 10-K”). The Company has evaluated all subsequent events through the date these unaudited interim condensed consolidated financial statements were issued. The interim condensed consolidated statements of income, comprehensive income, equity and cash flows for the periods presented herein are not necessarily indicative of results expected for any future period. For a more detailed discussion of the Company’s significant accounting policies, see Note 2 to the financial statements in the Company’s 2025 10-K. During the three-month period ended March 31, 2026, there were no material updates made to the Company’s significant accounting policies.

Use of estimates

The preparation of these unaudited interim condensed consolidated financial statements in conformity with U.S. GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used for, but not limited to, accounting and disclosures for allowance for doubtful accounts and chargeback provisions, inventories valuation reserves, recoverability of goodwill, intangible assets with indefinite useful lives and deferred tax assets, impairment of cash and cash equivalents, short-term and long-term investments, impairment of long-lived assets, separation of lease and non lease components for aircraft leases, asset retirement obligation, compensation costs relating to the Company’s long term retention program, fair value of certain loans payable and other financial liabilities, fair value of loans receivable, fair value of derivative instruments, income taxes, contingencies and determination of the incremental borrowing rate at commencement date of lease operating agreements. Actual results could differ from those estimates.

Supplier finance programs

The Company and certain financial institutions participate in a supplier finance program that enables certain of the Company’s suppliers, at their own election, to request the payment of their invoices to the financial institutions earlier than the terms stated in the Company’s payment policies. As of March 31, 2026 and December 31, 2025, the obligations outstanding that the Company has confirmed as valid to the financial institutions amounted to $616 million and $616 million, respectively.

For further information related to Supplier Finance Programs please refer to Note 4 to the consolidated financial statements in the Company’s 2025 10-K.

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MercadoLibre, Inc.

Notes to unaudited interim condensed consolidated financial statements

Revenue recognition

Revenue recognition criteria for the services provided and goods sold by the Company are described in Note 2 to the consolidated financial statements in the Company’s 2025 10-K.

The gain arising from sales of credit card receivables, net of the costs recognized on sale of such credit card receivables, is $367 million and $255 million, for the three-month periods ended March 31, 2026 and 2025, respectively. See Note 4 – Loans receivable, net of these interim condensed consolidated financial statements for further details on the sales of loans receivables.

Revenues recognized under ASC 606, Revenue from contracts with customers, amounted to $6,065 million and $4,191 million for the three-month periods ended March 31, 2026 and 2025, respectively. Revenues not recognized under ASC 606 amounted to $2,780 million and $1,744 million for the three-month periods ended March 31, 2026 and 2025, respectively.

Contract balances

Timing of revenue recognition may differ from the timing of invoicing to customers. Receivables represent amounts invoiced and revenue recognized prior to invoicing when the Company has satisfied the performance obligation and has the unconditional right to payment. Accounts receivable and credit card receivables and other means of payments are presented net of allowance for doubtful accounts and chargebacks of $82 million and $63 million as of March 31, 2026 and December 31, 2025, respectively. See Note 4 – Loans receivable, net of these unaudited interim condensed consolidated financial statements for information related to the allowance for doubtful accounts with respect to the Company’s loans receivable.

Contract liabilities from contracts with customers consist of fees received related to unsatisfied performance obligations at the end of the period in accordance with ASC 606. Due to the generally short-term duration of contracts, the majority of the performance obligations are satisfied in the following months. Contract liabilities from contracts with customers as of December 31, 2025 was $133 million, of which $127 million was recognized as revenue during the three-month period ended March 31, 2026.

As of March 31, 2026, total contract liabilities from contracts with customers recognized within current other liabilities was $151 million, mainly due to fees related to classified advertising services billed, subscriptions and loyalty programs, shipping services and inventory sales that are expected to be recognized as revenue in the coming months.

As of March 31, 2026 and December 31, 2025, the assets under management of the Company related to mutual funds amount to $4,719 million and $4,536 million, respectively.

Foreign currency translation

All of the Company’s foreign operations have determined the local currency to be their functional currency, except for Argentina, which has used the U.S. dollar as its functional currency since July 1, 2018. Accordingly, the foreign subsidiaries with local currency as functional currency translate assets and liabilities from their local currencies into U.S. dollars by using period-end exchange rates while income and expense accounts are translated at the average monthly rates in effect during the period, unless exchange rates fluctuate significantly during the period, in which case the exchange rates at the date of the transaction are used. The resulting translation adjustment is recorded as a component of other comprehensive income (loss). Gains and losses resulting from transactions denominated in non-functional currencies are recognized in earnings. Net foreign currency transaction results are included in the interim condensed consolidated statements of income under the caption “Foreign currency gains (losses), net.”

Argentine currency status and macroeconomic outlook

As of July 1, 2018, the Company transitioned its Argentine operations to highly inflationary status in accordance with U.S. GAAP, and changed the functional currency for Argentine subsidiaries from Argentine Pesos to U.S. dollars, which is the functional currency of their immediate parent company. Argentina’s inflation rate for the three-month periods ended March 31, 2026 and 2025 was 9.4% and 8.6%, respectively. Additionally, Argentina’s average inter-annual inflation rate for the three-month periods ended March 31, 2026 was 32.7%.

The Company uses Argentina’s official exchange rate to account for transactions in the Argentine segment, which as of March 31, 2026 and December 31, 2025 was 1,382.00 and 1,455.00 Argentine Pesos, respectively, against the U.S. dollar. During the three-month periods ended March 31, 2026 and 2025, Argentina’s official exchange rate against the U.S. dollar decreased by 5.0% and increased by 4.1%, respectively. The average exchange rate for the three-month periods ended March 31, 2026 and 2025 was 1,417.76 and 1,057.00, respectively, resulting in an increase of 34.1%.

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MercadoLibre, Inc.

Notes to unaudited interim condensed consolidated financial statements

Argentine exchange regulations

In the second half of 2019, the Argentine government instituted exchange controls restricting the ability of companies and individuals to exchange Argentine Pesos for foreign currencies and their ability to remit foreign currency out of Argentina. An entity’s authorization request to the Central Bank of Argentina (“CBA”) to access the official exchange market to make foreign currency payments may be denied depending on the circumstances. As a result of these exchange controls, markets in Argentina developed trading mechanisms, in which an entity or individual buys U.S. dollar denominated securities in Argentina (i.e. shares, sovereign debt) using Argentine Pesos, and subsequently sells the securities for U.S. dollars, in Argentina, to access U.S. dollars locally, or outside Argentina, by transferring the securities abroad, prior to being sold (the latter commonly known as “Blue Chip Swap Rate”).

On April 11, 2025, the Argentine government announced a series of measures aimed at easing regulations related to access to the foreign exchange market. Among other modifications, these measures included the establishment of floating bands (which started between $1,000 and $1,400 Argentine Pesos, a range that was updated at a rate of 1% per month until December 2025) within which the dollar exchange rate in the foreign exchange market may fluctuate, the elimination of foreign exchange restrictions applicable to individuals, the ability of companies to transfer dividends abroad to non-resident shareholders related to fiscal years beginning on or after January 1, 2025 and provide greater flexibility to make payments abroad for imports of goods and services. Effective January 1, 2026, the floating bands were updated monthly in accordance with the most recently published monthly inflation rate.

On September 26, 2025, the CBA imposed a restriction that prohibits purchasing securities on the Argentina Stock Market that are to be settled in foreign currency for a period of 90 days following the purchase of foreign currency in the official exchange market. As of March 31, 2026 and December 31, 2025, the spread between the official exchange rate and the Blue Chip Swap Rate was 7.5% and 4.6%, respectively.

Income taxes

The Company's accounting policy for income taxes is described in Note 2 to the consolidated financial statements in the Company’s 2025 10-K.

The Company’s consolidated estimated effective tax rate for the three-month period ended March 31, 2026, as compared to the same period in 2025, decreased from 30.0% to 27.9%, mainly as a result of higher income tax gains in Brazil related to the increase in deferred tax assets due to the income tax reform passed in December 2025 which will incrementally raise the tax rate beginning in April 2026.

A valuation allowance is recorded when, based on the available evidence, it is more likely than not that all or a portion of the Company’s deferred tax assets will not be realized. In accordance with ASC 740, Management periodically assesses the need to either establish or reverse a valuation allowance for deferred tax assets considering positive and negative objective evidence related to the realization of the deferred tax assets. In its assessment, Management considers, among other factors, the nature, frequency and magnitude of current and cumulative losses on an individual subsidiary basis, projections of future taxable income, the duration of statutory carryforward periods, as well as feasible tax planning strategies, which would be employed by the Company to prevent tax loss carry-forwards from expiring unutilized.

Knowledge-based economy promotional regime in Argentina

The Company recorded an income tax benefit related to the Knowledge-based economy promotional regime in Argentina (the “Regime”) of $13 million and $18 million, during the three-month periods ended March 31, 2026 and 2025, respectively. The aggregate per share effect of the income tax benefit amounted to $0.25 and $0.36 for the three-month periods ended March 31, 2026 and 2025, respectively. The Regime is effective until December 31, 2029.

Fair value option applied to certain financial instruments

Under ASC 825, U.S. GAAP provides an option to elect fair value with impact on the statement of income as an alternative measurement for certain financial instruments and other items on the balance sheet.

The Company has elected to measure certain financial assets at fair value with impact on the statement of income for several reasons including to avoid the mismatch generated by the recognition of certain linked instruments / transactions, separately, in the interim condensed consolidated statements of income and interim condensed consolidated statements of comprehensive income and to better reflect the financial model applied for selected instruments. The Company’s election of the fair value option applies to: i) foreign government debt securities and ii) U.S. government debt securities.

Additionally, the Company has elected to measure the liability related to the Meli Dólar program, which corresponds to the holding by third-parties of the Company’s stablecoin, at fair value.

Earnings per share

For the three-month period ended March 31, 2026, the weighted average of outstanding common shares for the diluted earnings per share includes the effect of 116 incremental shares of the Company's common stock issuable upon vesting of restricted stock units granted to non-employee directors.

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MercadoLibre, Inc.

Notes to unaudited interim condensed consolidated financial statements

Recently Adopted Accounting Standards

On July 30, 2025, the FASB issued the ASU 2025-05 “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets.” The amendments in this update provide entities with a practical expedient when estimating expected credit losses on current accounts receivable and/or current contract assets arising from transactions under Topic 606, including those assets acquired in a transaction accounted for under Topic 805, Business Combinations. In developing reasonable and supportable forecasts as part of estimating expected credit losses, all entities may elect a practical expedient that assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset. The amendments are effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption was permitted in both interim and annual reporting periods in which financial statements had not yet been issued or made available for issuance. The practical expedient is applied prospectively. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

Recently issued accounting pronouncements not yet adopted

On November 4, 2024, the FASB issued the ASU 2024-03 “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” The amendments in this update improve financial reporting by requiring disclosure of additional information about certain costs and expenses in the notes to financial statements at interim and annual reporting, such as the amounts of purchases of inventory, employee compensation, depreciation and intangible asset amortization included in each relevant expense caption; a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively; the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027 (as clarified by ASU 2025-01). Early adoption is permitted. The amendments should be applied either prospectively to financial statements issued for reporting periods after the effective date of this update or retrospectively to any or all prior periods presented in the financial statements. The Company is assessing the effects that the adoption of this accounting pronouncement may have on its consolidated financial statements.

On September 18, 2025, the FASB issued the ASU 2025-06 “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software.” The amendments in this update remove all references to software development methods (prescriptive and sequential software development stages (referred to as “project stages”)) throughout Subtopic 350-40. Therefore, an entity is required to start capitalizing software costs when management has authorized and committed to funding the software project, and it is probable that the project will be completed and the software will be used to perform the function intended. The amendment specifies that the property, plant and equipment disclosure requirements under ASC 360-10 apply to all capitalized software costs accounted for under ASC 350-40, regardless of how the costs are presented in the financial statements. The amendments are effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. The amendments can be applied on a prospective transition approach, a modified transition approach (based on the status of the project and whether software costs were capitalized before the date of adoption), or a retrospective transition approach. The Company is assessing the effects that the adoption of this accounting pronouncement may have on its consolidated financial statements.

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MercadoLibre, Inc.

Notes to unaudited interim condensed consolidated financial statements

NOTE 3. CASH, CASH EQUIVALENTS, RESTRICTED CASH AND CASH EQUIVALENTS AND INVESTMENTS

The composition of cash, cash equivalents and restricted cash and cash equivalents is as follows:

(1) Includes investments held by a consolidated VIE, in which the Company has determined that it has both the power to direct the activities that most significantly impact the VIE’s performance and the obligation to absorb losses or the right to receive benefits. As of March 31, 2026, includes $56 million of time deposits.

(2) Cash, cash equivalents and investments from securitization transactions are restricted to the payment of amounts due to third-party investors.

(3) Cash, cash equivalents, restricted cash and cash equivalents as reported in the interim condensed consolidated statements of cash flows.

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MercadoLibre, Inc.

Notes to unaudited interim condensed consolidated financial statements

The composition of short-term and long-term investments is as follows:

(1) As of March 31, 2026 and December 31, 2025, includes $194 million and $786 million, respectively, foreign government debt securities that are considered restricted due to the Central Bank of Brazil's mandatory guarantee. Also, as of March 31, 2026 and December 31, 2025, includes $6 million and $9 million, respectively, foreign government debt securities that are considered restricted due to the Central Bank of Uruguay’s mandatory guarantee.

(2) Corresponds to debt securities denominated in Brazilian Reais issued by the Instituto de Crédito Oficial of Spain and guaranteed by the Spanish government, considered restricted, which guarantee a line of credit.

(3) As of March 31, 2026 and December 31, 2025, includes $77 million and $74 million, respectively, of collateral as part of credit card scheme arrangement rules in Brazil, and which is considered restricted.

(4) Includes investments held by a consolidated VIE, in which the Company has determined that it has both the power to direct the activities that most significantly impact the VIE’s performance and the obligation to absorb losses or the right to receive benefits. As of March 31, 2026 and December 31, 2025, includes $313 million and $473 million of foreign government debt securities, respectively.

(5) As of March 31, 2026 and December 31, 2025, includes $10 million and $8 million, respectively, of foreign government debt securities considered restricted due to the Brazilian stock market's mandatory guarantee to operate with futures contracts. As of March 31, 2026 and December 31, 2025, includes $10 million and $9 million, respectively, of foreign government debt securities considered restricted, which guarantee lines of credit. Also, as of March 31, 2026, includes $12 million of loan collateral that is considered restricted.

(6) Investments from securitization transactions are restricted to the payment of amounts due to third-party investors. Corresponds to foreign government debt securities.

12 | MercadoLibre, Inc.

MercadoLibre, Inc.

Notes to unaudited interim condensed consolidated financial statements

NOTE 4. LOANS RECEIVABLE, NET

The Company classifies loans receivable as “Merchant,” “Consumer,” “Credit cards” and “Asset-backed.” As of March 31, 2026 and December 31, 2025, the components of current and non-current Loans receivable, net were as follows:

The allowance for doubtful accounts with respect to the Company’s loans receivable amounts to $3,865 million and $3,179 million as of March 31, 2026 and December 31, 2025, respectively, which includes $45 million and $36 million related to unused agreed loan commitment on credit cards portfolio presented in Other liabilities of the interim condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025, respectively.

As of March 31, 2026 and December 31, 2025, the Company is exposed to off-balance sheet unused agreed loan commitment on credit cards portfolio which exposes the Company to credit risks for $11,892 million and $9,001 million, respectively. For the three-month periods ended March 31, 2026 and 2025, the Company recognized in Provision for doubtful accounts a loss of $7 million and a gain of $13 million as expected credit losses, respectively.

From time to time, the Company sells loans receivable related to its lending solution. In this regard, during 2024, the Company signed a contract with a third party to sell an amount up to $100 million of its loans receivable, as part of its funding strategy. These loans were originated by its Mexican subsidiary and provided to its local users. This transaction is accounted for as a true sale and the Company has a continuing involvement related to a servicing fee charged to the purchaser for collection services and regarding a beneficial interest retained by the Company over the transferred assets. Such involvements did not preclude the fact that this operation qualified as a true sale because the purchaser had full control over the transferred assets. For the three months ended March 31, 2025, the Company sold $31 million of loans receivable and recorded a gain of $1 million related to the aforementioned contract. During 2025, the Company completed the sale of the total aforementioned amount.

Additionally, during the fourth quarter of 2025, the Company signed a contract to sell loans receivable related to its lending solution in Argentina with certain local financial institution for an amount up to $100 million, as part of its funding strategy. This transaction is accounted for as a true sale and the Company does not retain any continuing involvement. As of March 31, 2026, the Company sold $55 million of loans receivable and recorded a gain of $6 million regarding this sale.

13 | MercadoLibre, Inc.

MercadoLibre, Inc.

Notes to unaudited interim condensed consolidated financial statements

The following tables summarize the allowance for doubtful accounts activity during the three-month periods ended March 31, 2026 and 2025:

(1) The Company writes off loans when customer balance becomes 360 days past due.

The Company closely monitors credit quality for all loans receivable on a recurring basis to assess and manage its exposure to credit risk. To assess merchants and consumers seeking a loan under the lending solution, the Company uses, among other indicators, risk models internally developed, as a credit quality indicator to help predict the merchant’s and consumer’s ability to repay the principal balance and interest related to the credit. The risk model uses multiple variables as predictors of the merchant’s and consumer’s ability to repay the credit, including external and internal indicators. Internal indicators consider user behavior related to credit/payment history, and with lower weight in the risk models, the Company uses number of transactions in the Company’s ecosystem and merchant’s annual sales volume, among other indicators. In addition, the Company considers external bureau information to enhance the model and the decision making process.

The amortized cost of the loans receivable classified by the Company’s credit quality internal indicator was as follows:

14 | MercadoLibre, Inc.

MercadoLibre, Inc.

Notes to unaudited interim condensed consolidated financial statements

As of March 31, 2026 and December 31, 2025, renegotiations represented 1.4% and 1.6% of the loans receivable portfolio, respectively.

NOTE 5. GOODWILL AND INTANGIBLE ASSETS

Goodwill and intangible assets

The composition of goodwill and intangible assets is as follows:

Goodwill

The changes in the carrying amount of goodwill for the three-month period ended March 31, 2026 and the year ended December 31, 2025 are as follows:

Intangible assets with finite useful life

Intangible assets with finite useful life are comprised of naming rights, customer lists, non-compete and non-solicitation agreements, hubs network, acquired software licenses and other acquired intangible assets including developed technologies and trademarks. Aggregate amortization expense for intangible assets for the three-month periods ended March 31, 2026 and 2025 amounted to $2 million for each period.

15 | MercadoLibre, Inc.

MercadoLibre, Inc.

Notes to unaudited interim condensed consolidated financial statements

The following table summarizes the remaining amortization of intangible assets (in millions) with finite useful life as of March 31, 2026:

NOTE 6. 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:

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MercadoLibre, Inc.

Notes to unaudited interim condensed consolidated financial statements

The following table summarizes net revenues and financial income per reporting segment, which have been disaggregated by similar products and services for the three-month periods ended March 31, 2026 and 2025:

(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 users, and interest and commissions earned on Mercado Pago credit card transactions.

(5) Includes sales of mobile point of sales devices.

(6) Revenues from external customers in the U.S. amounted to $16 million and $10 million for the three-month periods ended March 31, 2026 and 2025, respectively.

17 | MercadoLibre, Inc.

MercadoLibre, Inc.

Notes to unaudited interim condensed consolidated financial statements

The following table summarizes the allocation of property and equipment, net based on geography:

The following table summarizes the allocation of the operating lease right-of-use assets based on geography:

The following table summarizes the allocation of the goodwill and intangible assets based on geography:

18 | MercadoLibre, Inc.

MercadoLibre, Inc.

Notes to unaudited interim condensed consolidated financial statements

19 | MercadoLibre, Inc.

MercadoLibre, Inc.

Notes to unaudited interim condensed consolidated financial statements

NOTE 7. FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES

Assets and liabilities measured and recorded at fair value on a recurring basis

The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2026 and December 31, 2025:

(1) Measured at fair value with impact on the statement of income for the application of the fair value option. (See Note 2 – Summary of significant accounting policies – Fair value option applied to certain financial instruments).

(2) As of March 31, 2026 and December 31, 2025, includes $266 million and $206 million, respectively, of money market funds from securitization transactions. (See Note 3 – Cash, cash equivalents, restricted cash and cash equivalents and investments).

(3) As of March 31, 2026 and December 31, 2025, includes $9 million and $8 million, respectively, of investments from securitization transactions. (See Note 3 – Cash, cash equivalents, restricted cash and cash equivalents and investments).

20 | MercadoLibre, Inc.

MercadoLibre, Inc.

Notes to unaudited interim condensed consolidated financial statements

The Company’s assets and liabilities measured and recorded at fair value on a recurring basis were valued using i) Level 1 inputs: unadjusted quoted prices in active markets (Level 1 instrument valuations are obtained from observable inputs that reflect quoted prices (unadjusted) for identical assets in active markets); ii) Level 2 inputs: obtained from readily-available pricing sources for comparable instruments as well as instruments with inactive markets at the measurement date; and iii) Level 3 inputs: valuations based on unobservable inputs reflecting Company’s assumptions. The unobservable inputs of the fair value of contingent considerations classified as Level 3 refer to the amounts to be paid according to the agreement of an acquisition, the likelihood of achievement of the targets included in that arrangement (expected to be 100%), and the Company’s historical experience with similar arrangements. Reasonable variation on those unobservable inputs would not significantly change the fair value of those instruments. As of March 31, 2026 and December 31, 2025, the Company had not changed the methodology nor the assumptions used to estimate the fair value of the financial instruments.

There were no transfers to and from Levels 1, 2 and 3 during the three-month period ended March 31, 2026, nor during the year ended December 31, 2025.

The Company’s election of the fair value option applies to: i) foreign government debt securities, ii) U.S. government debt securities and iii) Meli Dólar liability. The Company recognized fair value changes of foreign and U.S. government debt securities, which include the related interest income of those instruments, in net service revenues and financial income if it is related to Mercado Pago’s operations or in interest income and other financial gains, net if not. Such fair value changes and interest income amount to gains of $39 million and $125 million in net service revenues and financial income for the three-month periods ended March 31, 2026 and 2025, respectively, and $10 million and $20 million in interest income and other financial gains, net for the three-month periods ended March 31, 2026 and 2025, respectively. The Meli Dólar liability has not presented changes in its fair value for the three-month periods ended March 31, 2026 and 2025.

As of March 31, 2026 and December 31, 2025, the amortized cost of the Company’s investment in corporate debt securities classified as available for sale amounted to $497 million and $392 million, respectively, and the estimated fair value amounted to $498 million and $399 million, respectively. The cost of these securities is determined under a specific identification basis. As of March 31, 2026 and December 31, 2025, the gross unrealized gains accumulated amounted to $3 million and $7 million, respectively, and as of March 31, 2026 the gross unrealized loss accumulated amounted to $2 million. For the three-month periods ended March 31, 2026 and 2025, the proceeds from sales of corporate debt securities amounted to $12 million and $24 million, respectively.

The following table summarizes the net carrying amount of the corporate debt securities classified as available for sale, classified by its contractual maturities:

The following table summarizes the net carrying amount of the debt securities not classified as available for sale (U.S. and foreign government debt securities), classified by its contractual maturities or Management’s expectation to convert the investments into cash:

21 | MercadoLibre, Inc.

MercadoLibre, Inc.

Notes to unaudited interim condensed consolidated financial statements

Financial assets and liabilities not measured and recorded at fair value

The following table summarizes the estimated fair value of the financial assets and liabilities of the Company not measured at fair value as of March 31, 2026 and December 31, 2025:

As of March 31, 2026 and December 31, 2025, the carrying value of the Company’s investment in foreign debt securities held to maturity amounted to $159 million and $146 million, respectively, and its contractual maturity is less than a year.

As of March 31, 2026 and December 31, 2025, the carrying value of the Company’s financial assets with determinable fair value (except for loans receivable) not measured at fair value approximated their fair value mainly because of their short-term maturity. If these financial assets were measured at fair value in the financial statements, cash and cash equivalents and restricted cash and cash equivalents would be classified as Level 1 (where cost and fair value are aligned), foreign debt securities held to maturity would be classified as Level 3 and the remaining financial assets would be classified as Level 2. The estimated fair value of the loans receivable would be classified as Level 3 based on the Company’s assumptions.

As of March 31, 2026 and December 31, 2025, the carrying value of the Company’s financial liabilities (except for the 3.125% Notes due 2031 (the “2031 Notes”) and the 4.900% Notes due 2033 (the "2033 Notes")) not measured at fair value approximated their fair value mainly because of their short-term maturity or because the effective interest rates are not materially different from market interest rates. If these financial liabilities were measured at fair value in the financial statements, these would be classified as Level 2. As of March 31, 2026 and December 31, 2025, the estimated fair value of the 2031 Notes would have been $492 million and $501 million, respectively. As of March 31, 2026 and December 31, 2025, the estimated fair value of the 2033 Notes would have been $737 million and $726 million, respectively, which is based on Level 2 inputs.

NOTE 8. COMMITMENTS AND CONTINGENCIES

Litigation and Other Legal Matters

The Company is subject to certain contingent liabilities with respect to existing or potential claims, lawsuits and other proceedings. The Company accrues liabilities when it considers that future costs will probably be incurred and such costs can be reasonably estimated. Proceeding-related liabilities are based on developments to date and historical information related to actions filed against the Company. As of March 31, 2026, the Company had accounted for estimated liabilities involving proceeding-related contingencies and other estimated contingencies of $148 million (net of judicial deposits) within non current other liabilities to cover legal actions against the Company for which Management has assessed the likelihood of a final adverse outcome as probable. Expected legal costs related to litigations are accrued when the legal service is actually provided.

22 | MercadoLibre, Inc.

MercadoLibre, Inc.

Notes to unaudited interim condensed consolidated financial statements

In addition, as of March 31, 2026, the Company and its subsidiaries are subject to certain legal actions considered by the Company’s Management and its legal counsels to be reasonably possible of resulting in a loss for an estimated aggregate amount up to $513 million. No loss amounts have been accrued for such reasonably possible legal actions.

For further information related to contingent liabilities please refer to Note 14 to the consolidated financial statements in the Company’s 2025 10-K.

Tax Claims

Withholding Tax in the Brazil-Argentina Double Taxation Convention

The tax claims related to the withholding income tax (“IRRF”) over payments remitted by certain Brazilian subsidiaries to MercadoLibre S.R.L. for the provision of intercompany management and IT services are described in Note 14 to the consolidated financial statements in the Company’s 2025 10-K.

In February 2026, the first-instance judge denied the writ of mandamus filed by the subsidiary Mercado Crédito Sociedade de Crédito, Financiamento e Investimento S.A. and therefore an appeal was filed, which is currently pending before the Federal Regional Court of the Third Region. The Company continues to make judicial deposits of the amounts under dispute.

Management’s opinion, based on the opinion of external legal counsel, is that the risk of losing the cases is probable based on the technical merits of the Company’s tax position and the existence of adverse decisions issued by the Superior Court of Justice. For that reason, the Company has recorded a provision for the disputed amounts, which was $592 million as of March 31, 2026, and which was recorded in non-current other liabilities in the consolidated balance sheets, net of the corresponding judicial deposits for $571 million (which includes $127 million of interest income).

Exclusion of ICMS tax benefits from federal taxes base

The tax claims related to the exclusion of ICMS tax benefits from the tax base of the Corporate Income Tax (“IRPJ”) and of the Social Contribution on Net Profits (“CSLL”) and the federal contributions PIS and COFINS are described in Note 14 to the consolidated financial statements in the Company’s 2025 10-K.

Regarding the writ of mandamus filed to set aside the federal contributions IRPJ and CSLL under Law 14,789 (from January 2024 onwards), on March 16, 2026, the Brazilian Superior Court of Justice (“STJ”) selected three Special Appeals for adjudication under the binding precedent’s rule, establishing Repetitive Theme No. 1416 which will determine whether ICMS presumed credits should be excluded from the IRPJ and CSLL tax bases, both before and after the enactment of Federal Law no. 14,789/2023. STJ’s final ruling may affect the outcome of the Company’s writ of mandamus. Management’s opinion, based on the opinion of external legal counsel, is that the risk of losing the case remains not more likely than not based on the technical merits of the Company’s tax position. Accordingly, the Company has not recorded any expense or liability for the disputed amounts. As of March 31, 2026, the total disputed amount was $131 million.

Buyer protection program

The buyer protection program (“BPP”) is designed to protect buyers in the Marketplace from losses due primarily to fraud or counterparty non-performance for all transactions completed through the Company’s online payment solution Mercado Pago (except for certain excluded categories). The Company’s BPP provides protection to consumers by reimbursing them for the total value of a purchased item and the value of any shipping service paid if it does not arrive, arrives incomplete or damaged, does not match the seller’s description or if the buyer regrets the purchase. The Company is entitled to recover from the third-party carrier companies performing the shipping service certain amounts paid under the BPP. Furthermore, in some specific circumstances, the Company enters into insurance contracts with third-party insurance companies in order to cover contingencies that may arise from the BPP.

The maximum potential exposure under this program is estimated to be the volume of payments on the Marketplace, for which claims may be made under the terms and conditions of the Company’s BPP. Based on historical losses to date, the Company does not believe that the maximum potential exposure is representative of the actual potential exposure. The Company records a liability with respect to losses under this program when they are probable and the amount can be reasonably estimated.

As of March 31, 2026 and December 31, 2025, Management’s estimate of the maximum potential exposure related to the Company’s buyer protection program is $8,100 million and $7,953 million, respectively, for which the Company recorded a provision of $20 million and $19 million, respectively.

Commitments

The Company has signed two and five-year agreements with certain providers, pursuant to which the Company committed to purchase cloud platform and other technology services (including artificial intelligence capabilities) for a total minimum aggregate purchase commitment of $3,459 million. As of March 31, 2026, the remaining purchase commitment is $2,359 million.

23 | MercadoLibre, Inc.

MercadoLibre, Inc.

Notes to unaudited interim condensed consolidated financial statements

The Company has signed a ten-year agreement with Gol Linhas Aereas S.A. under which the Company committed to contract a minimum amount of air logistics services for a total cost of $378 million (portion allocated to the services component of the agreement). As of March 31, 2026, the remaining purchase commitment is $282 million.

Since October 2023, the Company has signed three-year agreements with certain shipping companies in Brazil, under which the Company committed to contract a minimum amount of logistics services for a total cost of $60 million. As of March 31, 2026, the remaining purchase commitment amounted to $23 million.

As of March 31, 2026, the Company has lease agreements for new warehouses in Brazil, Mexico, Argentina and Chile, for a total amount of $2,122 million, that have not yet commenced. Lease terms under the agreements are between 5 to 16 years.

The Company has unconditional purchase obligations related to capital expenditures for a total amount of $34 million. As of March 31, 2026, the remaining purchase commitment is $6 million.

NOTE 9. LONG TERM RETENTION PROGRAM

The following table summarizes the long term retention program accrued compensation expense for the three-month periods ended March 31, 2026 and 2025, which are payable in cash according to the decisions made by the Board of Directors (the “Board”):

24 | MercadoLibre, Inc.

MercadoLibre, Inc.

Notes to unaudited interim condensed consolidated financial statements

NOTE 10. LOANS PAYABLE AND OTHER FINANCIAL LIABILITIES

The following tables summarize the Company’s Loans payable and other financial liabilities as of March 31, 2026 and December 31, 2025:

25 | MercadoLibre, Inc.

MercadoLibre, Inc.

Notes to unaudited interim condensed consolidated financial statements

(1) The carrying amount includes the effect of the derivative instruments that qualified for fair value hedge accounting. See Note 13 – Derivative instruments for further detail.

(2) As of March 31, 2026, includes $24 million secured by a compensating balance agreement signed by MercadoLibre S.R.L.

26 | MercadoLibre, Inc.

MercadoLibre, Inc.

Notes to unaudited interim condensed consolidated financial statements

See Note 11 – Securitization transactions and Note 12 – Leases to these unaudited interim condensed consolidated financial statements for details regarding the Company’s collateralized debt securitization transactions and finance lease obligations, respectively.

Senior Notes

On January 14, 2021, the Company issued $400 million aggregate principal amount of 2.375% Sustainability Notes due 2026 (the “2026 Sustainability Notes”) and $700 million aggregate principal amount of 3.125% Notes due 2031 (the “2031 Notes”). On December 9, 2025, the Company issued $750 million aggregate principal amount of 4.900% Notes due 2033 (the “2033 Notes” and, together with the 2031 Notes, the "Notes"). The 2026 Sustainability Notes matured on January 14, 2026; the total outstanding principal and interest, totaling $367 million, was fully repaid that month.

Certain of the Company’s subsidiaries (the “Subsidiary Guarantors”) fully and unconditionally guarantee the payment of principal, premium, if any, interest, and all other amounts in respect of the 2031 Notes and the 2033 Notes (the “Subsidiary Guarantees”). The initial Subsidiary Guarantors were MercadoLibre S.R.L., Ibazar.com Atividades de Internet Ltda., eBazar.com.br Ltda., Mercado Envios Servicos de Logistica Ltda., Mercado Pago Instituição de Pagamento Ltda (formerly known as “MercadoPago.com Representações Ltda.”), MercadoLibre Chile Ltda., MercadoLibre, S.A. de C.V., Institución de Fondos de Pago Electrónico (formerly known as “MercadoLibre, S. de R.L. de C.V.”), DeRemate.com de México, S. de R.L. de C.V. and MercadoLibre Colombia Ltda. On October 27, 2021, MercadoLibre, S.A. de C.V., Institución de Fondos de Pago Electrónico became an excluded subsidiary pursuant to the terms of the Notes and it was released from its Subsidiary Guaranty. On October 27, 2021, MP Agregador, S. de R.L. de C.V. became a Subsidiary Guarantor under the Notes. On July 1, 2022 and October 1, 2022, Ibazar.com Atividades de Internet Ltda. and Mercado Envios Servicos de Logistica Ltda. were merged into eBazar.com.br Ltda, respectively. On May 2, 2025, as a result of the spin-off of DeRemate.com de México, S. de R.L. de C.V. completed in January 2025 (the “DeRemate Spinoff”), MPFS, S. de R.L. de C.V. became a Subsidiary Guarantor under the Notes. On April 28, 2026, Mercado Pago Instituição de Pagamento Ltda. was released from its Subsidiary Guaranty pursuant to the terms of the indenture governing the Notes.

During the three-month periods ended March 31, 2026 and 2025, the Company did not repurchase any Notes or any 2026 Sustainability Notes.

For additional information regarding the Notes please refer to Note 16 to the audited consolidated financial statements for the year ended December 31, 2025, contained in the Company’s 2025 10-K.

Revolving Credit Agreement

On September 27, 2024, the Company entered into a $400 million amended and restated revolving credit agreement (the “Amended and Restated Revolving Credit Agreement”) with the lenders party thereto, Citibank, N.A., as administrative agent, and the Company’s subsidiaries MercadoLibre S.R.L., eBazar.com.br Ltda., Mercado Pago Instituição de Pagamento Ltda., DeRemate.com de Mexico S. de R.L. de C.V., MP Agregador, S. de R.L. de C.V., MercadoLibre Chile Ltda., and MercadoLibre Colombia Ltda. as initial guarantors. The Company’s obligations under the Amended and Restated Credit Agreement are guaranteed by certain subsidiaries of the Company. On July 23, 2025, as a result of the DeRemate Spinoff, MPFS, S. de R.L. de C.V. became a guarantor under the Amended and Restated Credit Agreement in accordance with its terms. On April 28, 2026, Mercado Pago Instituição de Pagamento Ltda. was released from its guarantee pursuant to the terms of the Amended and Restated Credit Agreement.

On September 12, 2025, the Company entered into Amendment No. 1 (the “First Amendment”) to the Amended and Restated Revolving Credit Agreement with the administrative agent and the guarantors. The First Amendment permits the Company to request, at one or more times, that existing and/or new lenders provide, at their election, up to $400 million of additional commitments, for an aggregate principal amount of credit commitments of up to $800 million.

On April 28, 2026, the Company entered into Amendment No. 2 (the “Second Amendment”) to the Amended and Restated Revolving Credit Agreement (as amended by the First Amendment and the Second Amendment, the “Amended Credit Agreement”) with the administrative agent and the guarantors. The Second Amendment requires that the aggregate revenues of guarantors that guarantee loans drawn from the facility represent at least 60% of the revenues of the Company, down from 75%.

The interest rates under the Amended Credit Agreement are based on Term SOFR (“Secured Overnight Funding Rate”) plus an interest margin of 1.00% per annum, which may be decreased to 0.90% per annum or increased to 1.15% per annum depending on the Company’s debt rating, as further provided under the Amended Credit Agreement. Any loans drawn from the Amended Credit Agreement must be repaid on or prior to September 27, 2028, which will be automatically extended to September 27, 2029 upon satisfaction, on or prior to August 28, 2027, of the Maturity Extension Conditions (as defined in the Amended Credit Agreement), as further provided in the Amended Credit Agreement. The Company is also obligated to pay a commitment fee on the unused amounts of the facility at a rate per annum equal to 25% of the then Applicable Margin, depending on the Company’s debt rating, as further provided under the Amended Credit Agreement.

As of March 31, 2026, no amounts have been borrowed under the facility.

27 | MercadoLibre, Inc.

MercadoLibre, Inc.

Notes to unaudited interim condensed consolidated financial statements

NOTE 11. SECURITIZATION TRANSACTIONS

The process of securitization consists of the issuance of securities collateralized by a pool of assets through a special purpose entity (“SPEs”), often under a VIE.

The Company securitizes financial assets associated with its credit card receivables and loans receivable portfolio. The Company’s securitization transactions typically involve the legal transfer of financial assets to bankruptcy remote SPEs. The Company generally retains economic interests in the collateralized securitization transactions, which are retained in the form of subordinated interests. For accounting purposes, the Company is generally precluded from recording the transfers of assets in securitization transactions as sales and is required to consolidate the SPE.

Additionally, the Company securitizes certain credit card receivables related to users’ purchases through Brazilian SPEs. Under the SPE contracts, the Company has determined that it has the obligation to absorb losses or the right to receive benefits of the SPEs that could be significant because it retains subordinated interest in the SPEs. As the Company controls the vehicles, the assets, liabilities and related results are consolidated in its financial statements.

The Company securitizes certain loans receivable through Brazilian, Argentine, Mexican and Chilean SPEs, formed to securitize loans receivable provided by the Company to its users or purchased from financial institutions that grant loans to the Company’s users through Mercado Pago. According to the SPE contracts, the Company has determined that it has both the power to direct the activities of the entity that most significantly impact the entity’s performance and the obligation to absorb losses or the right to receive benefits of the entity that could be significant because it retains the equity certificates of participation and would therefore also be consolidated.

When the Company controls the vehicle, it accounts for the securitization transactions as if they were secured financing and therefore the assets, liabilities and related results are consolidated in its financial statements. The secured debt is issued by the SPEs and includes collateralized securities used to fund the Company’s fintech business. The third-party investors in the securitization transactions have legal recourse only to the assets securing the debt and do not have recourse to the Company. Additionally, the cash flows generated by the SPEs are restricted to the payment of amounts due to third-party investors, but the Company retains the right to residual cash flows.

The following table summarizes the Company’s collateralized debt under securitization transactions, as of March 31, 2026:

28 | MercadoLibre, Inc.

MercadoLibre, Inc.

Notes to unaudited interim condensed consolidated financial statements

(1) Minimum and maximum maturity depending on the applicable interest rate within the range.

(2) As of March 31, 2026, Loans payables owned by this trust were obtained through private placements. Mercado Crédito XLVII trust made a public bond offering in the Argentine stock market on April 9, 2026.

29 | MercadoLibre, Inc.

MercadoLibre, Inc.

Notes to unaudited interim condensed consolidated financial statements

In June 2025, the Company renegotiated key terms of several collateralized debt structures in Brazil to reduce funding costs and increase flexibility in asset eligibility. As a result, the Company achieved interest rate reductions across three SPEs in Brazil: Mercado Crédito I Brasil Fundo de Investimento Em Direitos Creditórios Não Padronizados reduced its interest rate spread from 2.50% to 2.25%, Mercado Crédito Fundo de Investimento Em Direitos Creditórios Não Padronizado from 3.50% to 3.00% (and extended its maturity from August 2025 to April 2028), and Mercado Crédito II Brasil Fundo De Investimento Em Direitos Creditórios Nao Padronizado from 2.35% to 1.75% (while also extending its maturity from January 2030 to October 2031).

During the first quarter of 2026, the Company achieved interest rate reductions across one SPE in Brazil: Mercado Crédito Fundo de Investimento Em Direitos Creditórios Não Padronizado reduced its interest rate spread from 3.00% to 2.50% (and extended its maturity from April 2028 to March 2029) and one SPE in Mexico: Fideicomiso Irrevocable de Administración y Fuente de Pago 6189 reduced its interest rate spread from 2.80% to 2.55%.

The assets and liabilities of the SPEs through which the Company securitizes financial assets as of March 31, 2026 and December 31, 2025 are as follows:

(1) Restricted cash and cash equivalents from the SPEs include balances maintained in digital wallets that are eliminated for consolidation purposes.

30 | MercadoLibre, Inc.

MercadoLibre, Inc.

Notes to unaudited interim condensed consolidated financial statements

NOTE 12. LEASES

The Company leases certain fulfillment, cross-docking and service centers, office space, aircraft, aircraft hangars, machines, and vehicles in the various countries in which it operates. The lease agreements do not contain any residual value guarantees or material restrictive covenants.

Supplemental balance sheet information related to leases was as follows:

The following table summarizes the weighted average remaining lease term and the weighted average incremental borrowing rate for operating leases and the weighted average discount rate for finance leases as of March 31, 2026 and December 31, 2025:

(1) Includes discount rates of leases in local currency and U.S. dollar.

The components of lease expense were as follows:

31 | MercadoLibre, Inc.

MercadoLibre, Inc.

Notes to unaudited interim condensed consolidated financial statements

The following table summarizes the fixed, future minimum rental payments, excluding variable costs, which are discounted by the Company’s incremental borrowing rates and internal rates of return to calculate the lease liabilities for the operating and finance leases, respectively:

NOTE 13. DERIVATIVE INSTRUMENTS

Cash flow hedges

The Company uses foreign currency exchange contracts to hedge the foreign currency effects related to the forecasted purchase of MPOS devices in U.S. dollars, hosting, licenses, fraud prevention, LTRP expenses, air logistics services and lease payments, which are payable in U.S. dollars (or in local currency linked to the U.S. dollar exchange rate) owed by Brazilian and Mexican subsidiaries, whose functional currencies are the Brazilian Real and the Mexican Peso, respectively. The Company designated the foreign currency exchange contracts as cash flow hedges, the derivatives’ gain or loss is initially reported as a component of accumulated other comprehensive loss and subsequently reclassified into the consolidated statements of income in the “Cost of net revenues and financial expenses,” “Product and technology development,” “Sales and marketing," “General and administrative expenses" and “Foreign currency gains (losses), net” line items, in the same period the forecasted transaction affects earnings. As of March 31, 2026, the Company estimated that the whole amount of net derivative gains or losses related to its cash flow hedges included in accumulated other comprehensive loss will be reclassified into the consolidated statements of income within the next 12 months.

The Company has also entered into a currency swap contract to hedge the foreign currency exchange effects related to a foreign currency financial debt issued by one of its Brazilian subsidiaries. The Company designated the currency swap contract as cash flow hedge, the derivative’s gain or loss is initially reported as a component of accumulated other comprehensive loss and subsequently reclassified into the consolidated statements of income in the “Cost of net revenues and financial expenses” and “Foreign currency gains (losses), net” line items in the same period the forecasted transaction affects earnings. The derivative’s gain or loss is initially reported as a component of accumulated other comprehensive loss and subsequently reclassified into earnings within the next 12 months.

Fair value hedges

The Company has entered into swap contracts to hedge the interest rate and the foreign currency exposure of its fixed-rate, foreign currency financial debt held by its Brazilian subsidiaries. The Company designated the swap contracts as fair value hedges. The derivatives’ gain or loss is reported in the consolidated statements of income in the same line items as the change in the value of the financial debt due to the hedged risks. Since the terms of the interest rate swaps match the terms of the hedged debts, changes in the fair value of the interest rate swaps are offset by changes in the fair value of the hedged debts attributable to changes in interest rates. Accordingly, the net impact in current earnings is that the interest expense associated with the hedged debts is recorded at the floating rates.

The Company also uses future contracts to hedge the interest rate exposure of its asset-backed loan portfolio originated in Brazil. In these cases, where the assets included in the portfolio share the same risk exposure, the Company designated the future contracts as fair value hedges under the portfolio layer method. The derivatives’ gain or loss is reported in the consolidated statements of income in the same line item as the change in the value of the financial assets due to the hedged risk. Accordingly, the Company unlocks its portfolio’s fixed-rate to mitigate the effect of interest rate fluctuations.

Derivative instruments not designated as hedging instruments

The Company entered into certain foreign currency exchange contracts to hedge the foreign currency fluctuations related to certain transactions and balances denominated in U.S. dollars of certain of its Brazilian and Mexican subsidiaries, whose functional currencies are the Brazilian Real and the Mexican Peso, respectively. These transactions were not designated as hedges for accounting purposes.

32 | MercadoLibre, Inc.

MercadoLibre, Inc.

Notes to unaudited interim condensed consolidated financial statements

The Company entered into certain foreign currency exchange contracts to hedge the foreign currency fluctuations related to commercial notes denominated in U.S. dollars issued by a certain Argentine subsidiary. As explained through Note 2. Summary of significant accounting policies, the Company changed the functional currency for Argentine subsidiaries from Argentine Pesos to U.S. dollars under US GAAP, as a consequence of hyperinflation status, so these transactions were not designated as hedges for accounting purposes, as no foreign exchange risk exists under U.S. GAAP related to U.S. dollar denominated commercial notes in Argentina.

Finally, as of March 31, 2026, the Company entered into swap contracts to hedge the interest rate fluctuation of a certain portion of its financial debt in one of its Brazilian subsidiaries. These transactions were not designated as hedges for accounting purposes.

The following table presents the notional amounts of the Company’s outstanding derivative instruments:

Derivative instrument contracts

The fair values of the Company’s outstanding derivative instruments as of March 31, 2026 and December 31, 2025 were as follows:

33 | MercadoLibre, Inc.

MercadoLibre, Inc.

Notes to unaudited interim condensed consolidated financial statements

The effects of derivative contracts on the interim condensed consolidated statement of comprehensive income for the three-month periods ended March 31, 2026 and 2025 were as follows:

The effect of the Company’s fair value hedge relationships over its fixed-rate financial debt on the interim condensed consolidated statements of income for the three-month periods ended March 31, 2026 and 2025 were as follows:

The carrying amount of the hedged items for fair value hedges over its fixed-rate financial debt included in the “Loans payable and other financial liabilities” line items of the interim condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025 was $478 million and $486 million, respectively.

The effects of the Company’s fair value hedge relationships over its fixed-rate financial debt on the interim condensed consolidated balance sheets related to cumulative basis adjustments for fair value hedges as of March 31, 2026 and December 31, 2025 are $2 million and less than $1 million, respectively, reducing the carrying value of the hedged debt as of March 31, 2026 and December 31, 2025.

34 | MercadoLibre, Inc.

MercadoLibre, Inc.

Notes to unaudited interim condensed consolidated financial statements

The effects of derivative contracts not designated as hedging instruments on the interim condensed consolidated statements of income for the three-month periods ended March 31, 2026 and 2025 were as follows:

35 | MercadoLibre, Inc.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Other Information

MercadoLibre, Inc. (together with its subsidiaries “us,” “we,” “our” or the “Company”) routinely posts important information for investors on our investor relations website, investor.mercadolibre.com. We use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under SEC Regulation FD (Fair Disclosure). Accordingly, investors should monitor our investor relations website, in addition to following our press releases, SEC filings, public conference calls and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this report.

36 | MercadoLibre, Inc.

Business Overview

We are the leading online commerce and fintech ecosystem in Latin America. Our e-commerce platform is the leader in the region based on gross merchandise volume (“GMV”), and our fintech platform is the leader in monthly active users (“MAUs”) among fintech companies in Argentina, Chile and Mexico, and the second largest in Brazil. Mercado Libre's e-commerce platform is present in 18 countries (Argentina, Brazil, Mexico, Chile, Colombia, Peru, Uruguay, Venezuela (deconsolidated since December 2017), Bolivia, Costa Rica, Dominican Republic, Ecuador, Guatemala, Honduras, Nicaragua, Panama, Paraguay and El Salvador) and our fintech platform, Mercado Pago, is present in eight countries (Argentina, Brazil, Mexico, Chile, Colombia, Peru, Uruguay and Ecuador). Our ecosystem provides consumers and merchants with a complete portfolio of services to enable buying and selling online, and the processing of payments online and offline, as well as offering a wide array of simple day-to-day financial services.

We offer our users an ecosystem of integrated e-commerce and digital financial services, which includes: the Mercado Libre Marketplace, the Mercado Pago fintech platform, the Mercado Envios logistics service, the Mercado Ads solution and the Mercado Libre Classifieds service.

Our e-commerce platform provides buyers and sellers with a robust and safe environment that fosters the development of a large e-commerce community in Latin America, a region with a population of over 650 million people where penetration of e-commerce over total retail significantly lags benchmarks such as the United States of America (“U.S.”), the United Kingdom (“U.K.”) and China. We believe that we offer world-class technological and commercial solutions that address the distinctive cultural and geographic challenges of operating a digital commerce platform in Latin America.

The Mercado Libre Marketplace is a user-friendly online commerce platform that can be accessed through our mobile app or website. Third-party sellers (“3P”) account for most of the GMV transacted on the Marketplace. We complement this by selling directly to consumers on a first-party basis (“1P”) in selected categories where we can enhance price competitiveness and assortment; this accounts for less than 10% of GMV. The Marketplace has an extensive assortment of products, with a wide range of categories including consumer electronics, apparel and beauty, home goods, automotive accessories, toys, books and entertainment and consumer packaged goods. We also have a selection of international products available, primarily from sellers in China and the U.S., through our cross-border trade (“CBT”) operations. Our users can also list vehicles, properties and services they are looking to sell via Mercado Libre Classifieds. These listings differ from our Marketplace listings because we charge placing fees only, not final value fees.

Mercado Envios is a logistics solution that is one of the value-added services that we offer to our sellers and buyers on our platform. The logistics services we offer are an integral and crucial part of our value proposition as they reduce friction between buyers and sellers, allow us to have greater control over the full user experience and enable faster deliveries at a more competitive cost than would otherwise be available with third-party carriers. Sellers that use Mercado Envios are eligible to access shipping subsidies that enable free or discounted shipping for consumers that buy sellers’ goods on our Marketplace. Our logistics network is built around fulfillment centers (which account for more than half of shipments), where sellers place their inventory in our warehouses, and cross-docking, where we collect items sold from sellers directly or via a network of thousands of partner stores (“MELI Places”) where sellers drop off sold items that need to be fed into our logistics network. MELI Places are also enabled for pick up of items purchased and processing of returns. Our transportation network includes dedicated aircraft, trucks and thousands of last-mile delivery vans, the vast majority of which are owned and operated by our third-party carriers.

Our advertising platform, Mercado Ads, is another value-added service that we offer to sellers on our platform and brands both on- and off-platform. The platform enables sellers and brands to access the millions of consumers who browse and purchase on our Marketplace, as well as the first-party data that all of these engagements generate. This enables advertisers to target highly granular audiences. The products we offer are Product Ads (sponsored listings), Brands Ads (product carrousels), Display Ads (banners) and Video Ads, the last two of which we are able to offer inventory off-platform as well as on our own Marketplace and fintech platform.

Mercado Pago was initially designed to facilitate transactions on Mercado Libre’s Marketplace by providing a mechanism that allowed our users to securely, easily and promptly send and receive payments. This brought trust to the merchant-consumer relationship. In the countries in which Mercado Pago operates, it processes and settles all transactions on our Marketplace.

Beyond facilitating Marketplace transactions, over the years we have expanded our array of Mercado Pago services to third parties outside Mercado Libre’s Marketplace. We began first by satisfying the growing demand for online-based payment solutions by providing merchants the necessary digital payment infrastructure for e-commerce to flourish in Latin America.

Our lending solution is available in Argentina, Brazil, Mexico and Chile. We offer loans mostly to merchants and consumers that already form part of our user base, many of whom have historically been underserved or overlooked by financial institutions and therefore suffer from a lack of access to credit. Facilitating credit is a key service overlay that enables us to further strengthen the engagement and lock-in rate of our users, while also generating additional touchpoints and incentives to use Mercado Pago as an end-to-end financial solution.

Our asset management product, which is available in Argentina, Brazil, Mexico and Chile, is a critical pillar of our financial services offering that enables us to compete with large banks. This product offers remuneration on balances held in the Mercado Pago digital account that is greater than traditional checking and savings accounts. This enables our users to earn a return with funds remaining available for withdrawal or to make payments without their funds being tied up in a time deposit.

As an extension of our asset management and savings solutions for users, we launched a digital assets feature as part of the Mercado Pago account in Brazil, Mexico and Chile, in 2021, 2022 and 2023, respectively. This service allows our millions of users to purchase, hold and sell selected digital assets through our interface without leaving the Mercado Pago application, while a partner acts as the custodian and offers the blockchain infrastructure platform. This feature is available for all users through their Mercado Pago account. In 2024 and 2025 we launched “Meli Dólar,” a stablecoin that is pegged to the US dollar, in Brazil, Mexico and Chile. Members of our loyalty program receive their cashback in Meli Dólar and all Mercado Pago users can buy, hold and sell the stablecoin without charging any fees.

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Reporting Segments and Geographic Information

Our segment reporting is based on geography, which is the criterion our Management currently uses to evaluate our segment performance. Our geographic segments are Brazil, Mexico, Argentina and Other Countries (including Bermuda, Chile, China, Colombia, Costa Rica, Ecuador, Peru, Uruguay and the U.S.). Although we discuss long-term trends in our business, it is our policy not to provide earnings guidance in the traditional sense. We believe that uncertain conditions make the forecasting of near-term results difficult. Further, we seek to make decisions focused primarily on the long-term welfare of our Company and believe focusing on short-term earnings does not best serve the interests of our stockholders. We believe that execution of key strategic initiatives as well as our expectations for long-term growth in our markets will best create stockholder value. A long-term focus may make it more difficult for industry analysts and the market to evaluate the value of our Company, which could reduce the value of our common stock or permit competitors with short-term tactics to grow more rapidly than us. We, therefore, encourage potential investors to consider this strategy before making an investment in our common stock.

The following table sets forth the percentage of our consolidated net revenues and financial income by segment for the three-month periods ended March 31, 2026 and 2025:

Net revenues and financial income for the three-month period ended March 31, 2026 as compared to the same period in 2025 are described in “Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations—Principal trends in results of operations— Net revenues and financial income.

Critical Accounting Policies and Estimates

There have been no significant changes in our critical accounting policies, Management estimates or accounting policies since the year ended December 31, 2025 and disclosed in the Company’s 2025 10-K under the heading “Critical Accounting Policies and Estimates.”

Results of operations for the three-month period ended March 31, 2026 compared to the three-month period ended March 31, 2025

The selected financial data for the three-month periods ended March 31, 2026 and 2025 discussed herein is derived from our unaudited interim condensed consolidated financial statements included in Item 1 of Part I of this report. The results of operations for the three-month period ended March 31, 2026, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2026 or for any other period.

Principal trends in results of operations

Net revenues and financial income

We disaggregate revenues into four geographical reporting segments. Within each of our segments, the services we provide and the products we sell generally fall into two distinct revenue streams: “Commerce” and “Fintech.”

Commerce revenues are mainly generated from:

• marketplace fees that include final value fees and flat fees. Final value fees represent a percentage of the sale value that is charged to the seller once an item is successfully sold and flat fees represent a fixed charge for certain specific transactions, in case they fall below a certain merchandise value;
• first party sales, which are generated when control of the good is transferred, upon delivery to our customers;
• shipping fees, which are generated when an item is delivered through our shipping service. When we act as an agent, revenues derived from the shipping services are recognized at the time the transaction is successfully concluded for third-party sales, and presented net of the transportation costs charged by third-party carriers. When we act as principal, revenues derived from shipping services are recognized upon delivery of the good to the customer, and presented on a gross basis. In addition, the Company generates storage fees, which are charged to the seller for the utilization of the Company’s fulfillment facilities;
• ad sales fees due to advertising services provided to sellers, vendors, brands and others, through product searches (product ads and brand ads) and display formats (including video ads and display programmatic), which are recognized based on the number of clicks and impressions, respectively;
• classifieds fees due to offerings in vehicles, real estate and services, which are charged to sellers who opt to give their listings greater exposure throughout our websites;

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• subscription fees associated with MELI+ memberships and third party digital content subscriptions; and
• fees from other ancillary businesses.

Fintech revenues and financial income are attributable to:

• commissions representing a percentage of the payment volume processed that are charged to sellers in connection with off-Marketplace platform transactions;
• commissions from additional fees we charge when a buyer elects to pay in installments through our Mercado Pago platform, for transactions that occur either on or off our Marketplace platform;
• interest, cash advances and fees from credit cards, merchant, consumer and asset-backed loans granted under our lending solution;
• revenues from our asset management product;
• interest earned on investments as part of Mercado Pago activities, including those required due to fintech regulations, net of interest gains passed through to our Brazilian users in connection with our asset management product;
• commissions that we charge from transactions carried out with Mercado Pago debit cards;
• revenues from the sale of mobile points of sale products;
• revenues from insurtech fees;
• commissions from additional fees we charge when our sellers elect to withdraw cash; and
• fees from other ancillary services.

Although we also process payments on the Marketplace, we do not charge sellers an added commission for this service, as it is already included in the Marketplace final value fee that we charge.

We have a highly fragmented customer revenue base given the large numbers of sellers and buyers who use our platforms. For the three-month periods ended March 31, 2026 and 2025, no single customer accounted for more than 5.0% of our net revenues and financial income.

Our net revenues and financial income are generated in multiple foreign currencies and then translated into U.S. dollars at the average monthly exchange rate. The functional currency for each country’s operations is the country’s local currency, except for Argentina, where the functional currency is the U.S. dollar due to Argentina’s status as a highly inflationary economy. Please refer to Note 2 – Summary of significant accounting policies to our unaudited interim condensed consolidated financial statements for further detail on foreign currency translation.

Our net revenues and financial income grew during the three-month period ended March 31, 2026, compared to the same period in 2025, boosted by growth in credit originations from our lending business and our first-party business, and higher total payment volume and gross merchandise volume.

The following table summarizes our consolidated net revenues and financial income for the three-month periods ended March 31, 2026 and 2025:

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The following table summarizes our consolidated net revenues and financial income by revenue stream and geographic segment for the three-month periods ended March 31, 2026 and 2025:

See Note 6 – Segments of our unaudited interim condensed consolidated financial statements for further information regarding our net revenues and financial income disaggregated by similar products and services for the three-month periods ended March 31, 2026 and 2025.

Our Commerce revenues grew $1,565 million, or 47.4%, for the three-month period ended March 31, 2026, as compared to the same period in 2025. This increase in Commerce revenues was primarily attributable to:

• an increase of $1,055 million in our Commerce services revenues for the three-month period ended March 31, 2026, mainly related to a 42% increase in gross merchandise volume, and higher flat fee contributions for low gross merchandise volume transactions. Shipping carrier costs netted against revenues increased $48 million, from $211 million for the three-month period ended March 31, 2025, to $259 million for the three-month period ended March 31, 2026; and
• an increase of $510 million in our revenues from Commerce product sales for the three-month period ended March 31, 2026, as compared to the same period in 2025, mainly in Brazil and Mexico.

Our Fintech revenues grew 51.1%, from $2,632 million for the three-month period ended March 31, 2025, to $3,977 million for the three-month period ended March 31, 2026. This increase was mainly generated by:

• an increase of $866 million in our Credit revenues for the three-month period ended March 31, 2026, mainly as a consequence of higher originations; and
• an increase of $474 million in our revenues from Financial services and income for the three-month period ended March 31, 2026, mainly related to our off-platform transactional fees and financing transactions, as a result of a 50% increase in our total payment volume.

Brazil

Commerce revenues in Brazil increased 50.9% in the three-month period ended March 31, 2026 as compared to the same period in 2025. This increase was generated by an increase of $576 million in our Commerce services revenues and an increase of $377 million in our revenues from Commerce product sales. Fintech revenues grew by 61.1%, a $739 million increase during the three-month period ended March 31, 2026 as compared to the same period in 2025, mainly driven by an increase of $528 million in our Credit revenues and an increase of $210 million in our revenues from Financial services and income.

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Net revenues growth during the three-month period ended March 31, 2026, as compared to the same period in 2025, was boosted by the average decrease of Brazil’s exchange rate against U.S. dollar of 10.1%.

Mexico

Commerce revenues in Mexico increased 53.7% in the three-month period ended March 31, 2026 as compared to the same period in 2025. This increase was driven by an increase of $333 million in our Commerce services revenues and an increase of $84 million in our revenues from Commerce product sales. Fintech revenues grew 75.7%, a $337 million increase, during the three-month period ended March 31, 2026 as compared to the same period in 2025, mainly driven by an increase of $197 million in our Credit revenues and an increase of $137 million in our revenues from Financial services and income.

Net revenues growth during the three-month period ended March 31, 2026, as compared to the same period in 2025, was boosted by the average decrease of Mexico's exchange rate against U.S. dollar of 14.1%.

Argentina

Commerce revenues in Argentina increased 21.0% in the three-month period ended March 31, 2026 as compared to the same period in 2025. This increase was driven by an increase of $77 million in our Commerce services revenues and an increase of $22 million in our revenues from Commerce product sales. Fintech revenues increased 24.0%, a $217 million increase, during the three-month period ended March 31, 2026 as compared to the same period in 2025, mainly driven by an increase of $136 million in our Credit revenues and an increase of $81 million in our revenues from Financial services and income.

Net revenues growth during the three-month period ended March 31, 2026, as compared to the same period in 2025, was offset by the average increase of Argentina’s exchange rate against U.S. dollar of 34.1%.

The following table sets forth our total net revenues and financial income and the sequential quarterly variation of these net revenues and financial income for the periods described below:

The following table sets forth the growth in net revenues and financial income in local currencies, for the three-month periods ended March 31, 2026 as compared to the same periods in 2025:

(1) The local currency revenue growth was calculated by using the average monthly exchange rates for each month during 2025 and applying them to the corresponding months in 2026, so as to calculate what our financial results would have been if exchange rates had remained stable from one year to the next. See also “Non-GAAP Financial Measures” section below for details on FX neutral measures.

(2) For the three-month period ended March 31, 2026, the average inter-annual inflation rate in our Argentine segment of 32.7% was lower than the average inter-annual increase of Argentina’s official exchange rate against U.S. dollar of 34.1%.

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Cost of net revenues and financial expenses

Cost of net revenues and financial expenses primarily includes shipping operation costs (including warehousing costs), carrier and other operating costs, cost of goods sold, collection fees, sales taxes, funding costs related to our fintech business, fraud prevention expenses, hosting and site operation fees, artificial intelligence (“AI”) capabilities expenses, certain tax withholding related to export duties, compensation for customer support personnel and depreciation and amortization. The following table presents cost of net revenues and financial expenses for the periods indicated:

For the three-month period ended March 31, 2026 as compared to the same period in 2025, the increase in cost of net revenues and financial expenses was primarily attributable to a: i) $787 million increase in shipping operating and carrier costs; ii) $400 million increase in cost of sales of goods mainly in Brazil and Mexico; iii) $185 million increase in collection fees across all of our main segments, as a result of the higher total payment volume of Mercado Pago in those countries; iv) $142 million increase in other fintech costs mainly related to higher funding costs in connection with the increase in the lending business portfolio; v) $134 million increase in sales taxes; and vi) $105 million increase in hosting and site operation fees.

Our subsidiaries in Brazil, Argentina and Colombia are subject to certain taxes on revenues and financial income, which are classified as a cost of net revenues and financial expenses. These taxes represented 6.0% of net revenues and financial income for the three-month period ended March 31, 2026, and 6.7% for the same period in 2025.

Gross profit margins

Our gross profit margin is defined as total net revenues and financial income minus total cost of net revenues and financial expenses, as a percentage of net revenues and financial income.

Our cost structure is directly affected by the level of operations of our services, and our strategic plan on gross profit is built on factors such as an ample liquidity to fund expenses and investments and a cost-effective capital structure.

For the three-month periods ended March 31, 2026 and 2025, our gross profit margins were 43.7% and 46.7%, respectively. The decrease in our gross profit margin was primarily attributable to the reduction of our free shipping threshold in Brazil together with an increase in our shipping operating costs and our cost of sales of goods as a percentage of net revenues and financial income, partially offset by a decrease in sales taxes and collection fees, as a percentage of net revenues and financial income.

In the future, our gross profit margin could continue declining if we maintain the growth of our sales of goods business, which has a lower pure product margin due to marketing initiatives, or the building up our logistics network. Our gross profit margin could also decline if we fail to maintain an appropriate relationship between our cost of revenue structure and our net revenues and financial income trend.

Product and technology development expenses

Our product and technology development related expenses consist primarily of compensation for our engineering and web-development staff (including long term retention program compensation), depreciation and amortization expenses related to product and technology development, AI capabilities expenses for internal usage, certain tax withholding related to export duties, telecommunications costs and payments to third-party suppliers who provide technology maintenance services to us. The following table presents product and technology development expenses for the periods indicated:

For the three-month period ended March 31, 2026, the increase in product and technology development expenses as compared to the same period in 2025 was primarily attributable to a: i) $72 million increase in salaries and wages mainly related to the increase of 8% in our product and technology development headcount; ii) $41 million increase in technology maintenance and AI expenses; and iii) $23 million increase in other product and technology development expenses mainly related to higher tax withholding in connection with intercompany export services billing duties.

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We believe that product and technology development and AI capabilities are two of our key competitive advantages and we intend to continue to invest in technology to meet the increasingly sophisticated product expectations of our customer base.

Sales and marketing expenses

Our sales and marketing expenses consist primarily of costs related to marketing our platforms through online and offline advertising and agreements with portals, search engines and other sales expenses related to strategic marketing initiatives, charges related to our buyer protection program, the salaries of employees involved in these activities (including long term retention program compensation), chargebacks related to our Mercado Pago operations, branding initiatives, marketing activities for our users and depreciation and amortization expenses.

We enter into agreements with portals, search engines, social networks, ad networks and other sites in order to attract Internet users to the Mercado Libre Marketplace and convert them into registered users and active traders on our platform.

We also work intensively on attracting, developing and growing our seller community through our customer support efforts. We have dedicated professionals in most of our operations that work with sellers through trade show participation, seminars and meetings to provide them with important tools and skills to become effective sellers on our platform.

The following table presents sales and marketing expenses for the periods indicated:

For the three-month period ended March 31, 2026, the increase in sales and marketing expenses as compared to the same period in 2025 was primarily attributable to a: i) $250 million increase in online and offline marketing expenses across all of our main segments; ii) $75 million increase in our buyer protection program expenses; and iii) $43 million increase in salaries and wages mainly related to the increase of 43% in our sales and marketing headcount.

Provision for doubtful accounts

Provision for doubtful accounts consists of the current expected credit losses on our financial assets, mainly loans receivable. The following table presents provision for doubtful accounts expenses for the periods indicated:

For the three-month period ended March 31, 2026, as compared to the same period in 2025, the provision for doubtful accounts increased $641 million, mainly due to the increase in originations growing at 81% (mostly related to the credit cards and consumer products). In addition, the increase in average duration of our consumers portfolio generated an increase in provisions.

General and administrative expenses

Our general and administrative expenses consist primarily of salaries for management and administrative staff, compensation of non-employee directors, long term retention program compensation, expenses for legal, audit and other professional services, contingencies, insurance expenses, office space rental expenses, changes in the fair value of digital assets, travel and business expenses, as well as depreciation and amortization expenses. Our general and administrative expenses include the costs of the following areas: general management, finance, treasury, internal audit, administration, accounting, tax, legal and human resources. The following table presents general and administrative expenses for the periods indicated:

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For the three-month period ended March 31, 2026, the increase in general and administrative expenses as compared to the same period in 2025 was primarily attributable to a: i) $48 million increase in salaries and wages, mainly related to the increase of 13% in general and administrative headcount; and ii) $28 million increase in legal, tax and other fees due to higher consulting fees and contingencies. This was partially offset by $12 million lower losses related to the fair value of digital assets held during the three-month period ended March 31, 2025.

Operating income margins

Our operating income margin is defined as income from operations as a percentage of net revenues and financial income.

Our operating income margin is affected by our operating expenses structure, which mainly consists of our employees’ salaries, our sales and marketing expenses related to those activities we incurred to promote our services, provision for doubtful accounts mainly related to our loans receivable portfolio and product and technology development expenses, among other operating expenses. As we continue to grow and focus on expanding our leadership in the region, we will continue to invest in product and technology development, and sales and marketing in order to promote our services and capture long-term business opportunities. As a result, we may experience decreases in our operating income margins.

For the three-month period ended March 31, 2026, as compared to the same period in 2025, our operating income margin decreased from 12.9% to 6.9%.

This decrease is mainly explained by the reduction of our free shipping threshold in Brazil, together with an increase in our shipping operating costs, our provision of doubtful accounts, driven by the expansion of our credit card portfolio, and cost of net revenues and financial expenses, as a percentage of net revenues and financial income, partially offset by a decrease in product and technology development and marketing and sales expenses, as a percentage of net revenues and financial income.

Other income (expenses), net

Other income (expenses), net consists primarily of interest income derived from our investments and cash equivalents, interest expense and other financial charges related to financial liabilities not related to Mercado Pago’s operations, and foreign currency gains or losses. The following table presents Other income (expenses), net for the periods indicated:

For the three-month period ended March 31, 2026, the decrease in other expense, net as compared to the same period in 2025 was primarily attributable to $61 million lower foreign exchange losses mainly from our Argentine subsidiaries. This was partially offset by an increase of $26 million in interest expense and other financial losses, mainly attributable to higher levels of indebtedness (mainly in Argentina and Brazil) and higher rates (mainly in Brazil).

Income tax

We are subject to federal and state income tax in the U.S., as well as foreign taxes in the multiple jurisdictions where we operate. Our tax obligations consist of current and deferred income taxes incurred in these jurisdictions. We account for income taxes following the liability method of accounting. A valuation allowance is recorded when, based on the available evidence, it is more likely than not that all or a portion of our deferred tax assets will not be realized. Therefore, our income tax expense consists of taxes currently payable, if any, plus the change in our deferred tax assets and liabilities as a result of the estimated effective tax rate, adjusted for discrete items that are accounted for in the relevant period.

The following table presents our income tax expense for the three-month periods ended March 31, 2026 and 2025:

During the three-month period ended March 31, 2026 as compared to the same period in 2025, income tax expense decreased mainly as a result of higher income tax gains in Brazil in 2026 driven by the increase in deferred tax assets in that segment.

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The following table summarizes our estimated effective tax rates for the three-month periods ended March 31, 2026 and 2025:

(1) Percentages have been calculated using whole-dollar amounts rather than the rounded amounts that appear in the table.

Our estimated effective tax rate for the three-month period ended March 31, 2026 decreased as compared to the same period in 2025, mainly as a result of higher income tax gains in Brazil related to the increase in deferred tax assets due to the income tax reform passed in December 2025 which will incrementally raise the tax rate beginning in April 2026.

Segment information

Refer to Note 6 – Segments of our unaudited interim condensed consolidated financial statements for further information regarding the financial performance of the Company’s reporting segments for the three-month periods ended March 31, 2026 and 2025.

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Net revenues and financial income

Net revenues and financial income for the three-month period ended March 31, 2026 as compared to the same period in 2025 are described above in “Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations—Principal trends in results of operations— Net revenues and financial income."

Segment costs

Brazil

For the three-month period ended March 31, 2026, as compared to the same period in 2025, segment costs increased mainly driven by a: i) $1,093 million increase in cost of net revenues and financial expenses, mostly attributable to an increase in shipping operating and carrier costs, cost of goods sold as a consequence of an increase in first-party sales, sales taxes, other fintech costs mainly related to higher funding costs in connection with the growth of our lending business, collection fees as a consequence of the higher transactions volume of our Mercado Pago business and hosting and site operation fees; ii) $439 million increase in provision for doubtful accounts mainly related to our credit cards, consumer and merchant credits product growth; and iii) $248 million increase in sales and marketing expenses mainly due to an increase in online and offline marketing expenses, buyer protection program expenses and salaries and wages.

Mexico

For the three-month period ended March 31, 2026, as compared to the same period in 2025, segment costs increased mainly driven by a: i) $404 million increase in cost of net revenues and financial expenses, mostly attributable to increases in shipping operating and carrier costs, cost of goods sold as a consequence of an increase in first-party sales and collection fees due to higher Mercado Pago penetration; ii) $118 million increase in provision for doubtful accounts mainly related to our credit card and consumer product business growth; and iii) $75 million increase in sales and marketing expenses mainly due to an increase in online and offline marketing expenses and buyer protection program expenses.

Argentina

For the three-month period ended March 31, 2026, as compared to the same period in 2025, segment costs increased mainly driven by a: i) $222 million increase in cost of net revenues and financial expenses, mostly attributable to an increase in shipping operating and carrier costs, collection fees due to higher Mercado Pago penetration, sales taxes and other fintech costs mostly related to higher funding cost due to the growth of our lending business; ii) $82 million increase in provision for doubtful accounts mainly related to our consumer product growth; and iii) $29 million increase in sales and marketing expenses mainly due to an increase in online and offline marketing expenses.

Liquidity and capital resources

Our main cash requirement has been working capital to fund Mercado Pago financing operations and our lending business. We also require cash for capital expenditures related to technology infrastructure, software applications including AI licenses, office space, business acquisitions, to build out our logistics capacity and to make interest payments on our loans payable and other financial liabilities.

We have multiple sources to fund Mercado Pago and our lending business, mainly through the sale of credit card receivables, the securitization of credit card receivables and loans receivable through SPEs, the sale of loans receivable to financial institutions, commercial notes, loans from banks, secured lines of credit and the issuance of debt securities. Moreover, we obtain funding in Brazil by issuing deposit certificates and financial bills through our financial institution. Finally, we entered into a revolving credit agreement, which provides an $800 million credit commitment. Refer to Note 10 – Loans payable and other financial liabilities and Note 11 – Securitization transactions of our unaudited interim condensed consolidated financial statements for further detail.

We have committed to contract minimum amounts of certain services such as cloud platform and other technology services (including AI capabilities), logistics services and leases. In addition, we have unconditional purchase obligations related to capital expenditures. Please refer to Note 8 – Commitments and Contingencies of our unaudited interim condensed consolidated financial statements for further detail on purchase commitments.

We and certain financial institutions participate in a supplier finance program (“SFP”) that enables certain of our suppliers, at their own election, to request the payment of their invoices to the financial institutions earlier than the terms stated in our payment policy. See Note 2 – Summary of significant accounting policies - Supplier finance programs of our unaudited interim condensed consolidated financial statements for further detail.

As of March 31, 2026, our main source of liquidity was $5,214 million of cash and cash equivalents and short-term investments, which excludes $436 million of restricted investments mainly related to the Central Bank of Brazil Mandatory Guarantee, and consists of cash generated from operations and proceeds from loans.

As of March 31, 2026, cash and cash equivalents, restricted cash and cash equivalents and investments of our non-U.S. subsidiaries amounted to $17,184 million, or 91.4% of our consolidated cash and cash equivalents, restricted cash and cash equivalents and investments, and our cash and cash equivalents, restricted cash and cash equivalents and investments held outside U.S. amounted to 82.5% of our consolidated cash and cash equivalents, restricted cash and cash equivalents and investments. Our non-U.S. dollar-denominated cash and investments are located primarily in Brazil, Mexico and Argentina.

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The following table presents our cash flows from operating activities, investing activities and financing activities for the three-month periods ended March 31, 2026 and 2025:

Net cash provided by operating activities

Net cash provided by operating activities in the three-month period ended March 31, 2026 resulted mainly from an increase in adjustments to net income related to non-cash items of $1,210 million, an increase of $585 million in funds payable to customers, a $523 million increase in amounts payable due to credit and debit card transactions and our net income of $417 million, partially offset by an increase in receivables of $887 million. The $1,044 million increase in the net cash provided by operating activities in the three-month period ended March 31, 2026, as compared to the same period in 2025, is mainly explained by the higher increase in payable and accrued expenses of $531 million, the higher increase in funds payable to customers of $527 million, the $436 million higher increase in amounts payable due to credit and debit card transactions and the increase of $431 million in the adjustments to net income related to non-cash items, partially offset by the $816 million increase in receivables.

Net cash used in investing activities

Net cash used in investing activities in the three-month period ended March 31, 2026 resulted mainly from the use of $1,949 million related to changes in loans receivable due to loans granted under our lending solution net of collections and $271 million in the investments of property and equipment (mainly related to our shipping network and information technology assets) and intangibles assets, partially offset by an increase of $789 million related to the net sale and maturity of investments. The $371 million decrease in net cash used in investing activities in the three-month period ended March 31, 2026, as compared to the same period in 2025, is mainly explained by the $1,126 million variation in cash flows from investments ($789 million of cash inflows from net sales or maturity of investments in the three-month period ended March 31, 2026, compared to $337 million of cash outflows from net purchases in the same period in 2025), partially offset by the $714 million increase in our loans receivable due to loans granted under our lending solution net of collections.

Net cash provided by financing activities

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For the three-month period ended March 31, 2026, our net cash provided by financing activities resulted from $489 million provided by net loans payables and other financing liabilities, partially offset by $16 million used for the payments of finance lease obligations. The $8 million increase in net cash provided by financing activities in the three-month period ended March 31, 2026, as compared to the same period in 2025, is mainly explained by the increase of $11 million of the cash provided by net loans payables and other financing liabilities.

Debt

Debt Securities Guaranteed by Subsidiaries

On January 14, 2021, we issued $400 million aggregate principal amount of 2.375% Sustainability Notes due 2026 (the “2026 Sustainability Notes”) and $700 million aggregate principal amount of 3.125% Notes due 2031 (the “2031 Notes”). On December 9, 2025, we issued $750 million aggregate principal amount of 4.900% Notes due 2033 (the “2033 Notes” and together with the 2031 Notes, the "Notes”). The 2026 Sustainability Notes matured on January 14, 2026; the total outstanding principal and interest, totaling $367 million, was fully repaid that month. The 2031 Notes mature on January 14, 2031, with interest payments scheduled semi-annually every January 14 and July 14. The 2033 Notes mature on January 15, 2033, with interest payments scheduled semi-annually every January 15 and July 15, commencing July 15, 2026.

The payment of principal, premium, if any, interest, and all other amounts in respect of the Notes, is fully and unconditionally guaranteed (the “Subsidiary Guarantees”), jointly and severally, on an unsecured basis, by MercadoLibre S.R.L., eBazar.com.br Ltda., DeRemate.com de México, S. de R.L. de C.V., MPFS, S. de R.L. de C.V., MP Agregador, S. de R.L. de C.V., MercadoLibre Chile Ltda., and MercadoLibre Colombia Ltda. (collectively, the “Subsidiary Guarantors”).

The Notes rank equally in right of payment with all of the Company’s other existing and future senior unsecured debt obligations. Each Subsidiary Guarantee will rank equally in right of payment with all of the Subsidiary Guarantor’s other existing and future senior unsecured debt obligations, except for statutory priorities under applicable local law.

Under the indenture governing the Notes, the Subsidiary Guarantee of a Subsidiary Guarantor will terminate upon: (i) the sale, exchange, disposition or other transfer (including by way of consolidation or merger) of the Subsidiary Guarantor or the sale or disposition of all or substantially all the assets of the Subsidiary Guarantor (other than to the Company or a Subsidiary) otherwise permitted by the indenture, (ii) satisfaction of the requirements for legal or covenant defeasance or discharge of the Notes, (iii) the release or discharge of the guarantee by such Subsidiary Guarantor of the Triggering Indebtedness (as defined in the applicable indenture) or the repayment of the Triggering Indebtedness, in each case, that resulted in the obligation of such Subsidiary to become a Subsidiary Guarantor, provided that in no event shall the Subsidiary Guarantee of an initial subsidiary guarantor terminate pursuant to this provision, or (iv) such Subsidiary Guarantor becoming an Excluded Subsidiary (as defined in the applicable indenture) or ceasing to be a Subsidiary.

We may, at our option, redeem or purchase the 2031 Notes, in whole or in part, at any time or from time to time prior to October 14, 2030 (the date that is three months prior to the maturity of the 2031 Notes), and the 2033 Notes, in whole or in part, at any time or from time to time prior to November 15, 2032 (two months prior to their maturity date of the 2033 Notes), in each case, by paying 100% of the principal amount of such Notes so redeemed plus the applicable “make-whole” amount and accrued and unpaid interest and additional amounts, if any. We may, at our option, redeem the 2031 Notes on October 14, 2030 or at any time thereafter and the 2033 Notes on November 15, 2032 or at any time thereafter, in each case at the redemption price of 100% of the principal amount of such Notes so redeemed plus accrued and unpaid interest and additional amounts, if any. If we experience certain change of control triggering events, we may be required to offer to purchase the Notes at 101% of their principal amount plus any accrued and unpaid interest thereon through the purchase date.

During the three-month period ended March 31, 2026 and 2025, we did not repurchase any Notes or any 2026 Sustainability Notes.

See Note 10. Loans payable and other financial liabilities our unaudited interim condensed consolidated financial statements for further detail.

We are presenting the following summarized financial information for the issuer, the Subsidiary Guarantors and Mercado Pago Instituição de Pagamento Ltda., which was a guarantor of the Notes as of March 31, 2026 (together, the “Obligor Group”) pursuant to Rule 13-01 of Regulation S-X, Guarantors and Issuers of Guaranteed Securities Registered or Being Registered. For purposes of the following summarized financial information, transactions between the Company and the Subsidiary Guarantors, presented on a combined basis, have been eliminated. Financial information for the non-guarantor subsidiaries, and any investment in a non-guarantor subsidiary by the Company or by any Subsidiary Guarantor, have been excluded. Amounts due from, due to and transactions with the non-guarantor subsidiaries and other related parties, as applicable, have been separately presented in footnotes.

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Summarized balance sheet information for the Obligor Group as of March 31, 2026 and December 31, 2025 is provided in the table below:

(1) Includes restricted cash and cash equivalents of $9,807 million and $8,259 million and guarantees in short-term investments of $271 million and $860 million as of March 31, 2026, and December 31, 2025, respectively.

(2) Includes Current assets with non-guarantor subsidiaries of $1,315 million and $1,439 million as of March 31, 2026, and December 31, 2025, respectively.

(3) Includes Non-current assets with non-guarantor subsidiaries of $616 million and $289 million as of March 31, 2026, and December 31, 2025, respectively.

(4) Includes Current liabilities with non-guarantor subsidiaries of $2,808 million and $2,417 million as of March 31, 2026, and December 31, 2025, respectively.

Summarized statement of income information for the Obligor Group for the three-month period ended March 31, 2026, is provided in the table below:

(1) Includes net revenues and financial income from transactions with non-guarantor subsidiaries of $355 million for the three-month period ended March 31, 2026.

(2) Includes charges from transactions with non-guarantor subsidiaries of $748 million for the three-month period ended March 31, 2026.

(3) In addition to the charges included in Gross profit, Income from operations includes charges from transactions with non-guarantor subsidiaries of $293 million for the three-month period ended March 31, 2026.

(4) Includes other income/(expense), net from transactions with non-guarantor subsidiaries of $17 million gain for the three-month period ended March 31, 2026. Additionally, includes dividends received by the issuer from non-guarantor subsidiaries, that relates to guarantor subsidiaries results.

Capital expenditures

Our capital expenditures comprised of our investments in property and equipment (such as certain assets used in our fulfillment centers and offices) and intangible assets (excluding digital assets) for the three-month periods ended March 31, 2026 and 2025 amounted to $271 million and $256 million, respectively.

During the three-month period ended March 31, 2026, we invested $105 million in information and technology assets in Brazil, Mexico and Argentina, and $146 million in shipping premises, offices and other assets in Brazil, Mexico and Argentina.

We are continually increasing our level of investment in hardware and software licenses necessary to improve and update our platform’s technology and computer software developed internally. We anticipate continued investments in capital expenditures related to information technology and logistics network capacity in the future as we strive to maintain our position in the Latin American e-commerce and fintech market.

We believe that our existing cash and cash equivalents, including the sale of credit card receivables, short-term investments and cash generated from operations, will be sufficient to fund our operating activities, property and equipment expenditures and to pay or repay obligations in the foreseeable future.

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Other data

The following table includes eight key performance indicators, which are calculated as defined in the footnotes to the table. We continuously assess the adequacy of our key performance indicators based on the growth and ever changing nature of our business. Each of these indicators provides a different measure of the level of activity on our ecosystem, which we use to monitor the performance of the business.

(1) Figures have been calculated using rounded amounts. Growth calculations based on this table may not total due to rounding.

(2) Fintech monthly active users is defined as Fintech payers and/or collectors that, during the last month of the reporting period, performed at least one of the following actions during such month: 1) made a debit or credit card payment, 2) made a QR code payment, 3) made an off-platform online payment using our checkout or link of payment solutions while logged in to our Mercado Pago fintech platform, 4) made an investment or employed any of our savings solutions, 5) has an active insurance policy, 6) has an outstanding loan up to date or non performing below 90 days, or 7) received the payment from a sale or transaction either on or off marketplace.

(3) Unique active buyers is defined as users that have performed at least one purchase on the Mercado Libre Marketplace during the reported period. From the second quarter of 2025 onwards, we have included food delivery transactions in the current indicator.

(4) Total U.S. dollar sum of all transactions completed through the Mercado Libre Marketplace, excluding Classifieds transactions. From the second quarter of 2025 onwards, we have included food delivery transactions in the current indicator.

(5) Number of items that were sold/purchased through the Mercado Libre Marketplace, excluding Classifieds items. From the second quarter of 2025 onwards, we have included food delivery transactions in the current indicator.

(6) Total U.S. dollar sum of all transactions paid for using Mercado Pago, including marketplace and non-marketplace transactions, excluding peer-to-peer transactions.

(7) Total U.S. dollar sum of all transactions settled using our Mercado Pago and Mercado Pago's payment processing and settling services in marketplace and non-marketplace transactions and consist of the following transactions volume: 1) point of sale payment volume, 2) commerce payment volume through our Mercado Libre Marketplace, 3) online payment volume through our checkout or link payment solution for merchants, and 4) QR code payment volume.

(8) Number of all transactions paid for using Mercado Pago, excluding peer-to-peer transactions.

(9) Net interest margins after losses (“NIMAL”) represents the annualized ratio between the total credits revenues (excluding the results of sale of loans receivables) less funding costs and provision for doubtful accounts for the period (excluding the results of sale of loans receivables) and total average gross loans receivable for the period. Management uses NIMAL to monitor how effective our pricing is and managing the credit products relative to their risk and setting targets. Accordingly, Management is of the opinion that NIMAL provides useful information to investors and others related to our risk appetite through the different periods and shows how we effectively prices risk.

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Non-GAAP Measures of Financial Performance

To supplement our unaudited interim condensed consolidated financial statements presented in accordance with U.S. GAAP, we present earnings before interest income and other financial gains, net, interest expense and other financial losses, foreign currency gains (losses), net, income tax expense and depreciation and amortization (“Adjusted EBITDA”), net debt, foreign exchange (“FX”) neutral measures, adjusted free cash flow and net (decrease) increase in available cash, investments and digital assets as non-GAAP measures. Reconciliations of these non-GAAP financial measures to the most comparable U.S. GAAP financial measures can be found in the tables below.

These non-GAAP measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with U.S. GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with U.S. GAAP. These non-GAAP financial measures should only be used to evaluate our results of operations in conjunction with the most comparable U.S. GAAP financial measures.

We believe that reconciliation of these non-GAAP measures to the most directly comparable GAAP measure provides investors an overall understanding of our current financial performance and its prospects for the future.

Adjusted EBITDA

Adjusted EBITDA is a non-GAAP financial measure that represents our net income, adjusted to eliminate the effect of depreciation and amortization charges, interest income and other financial gains, net, interest expense and other financial losses, foreign currency gains (losses), net and income tax expense. We have included this non-GAAP financial measure because it is used by our Management to evaluate our operating performance and trends, make strategic decisions and the calculation of leverage ratios. Accordingly, we believe this measure provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our Management. In addition, it provides a useful measure for period-to-period comparisons of our business, as it removes the effect of certain items.

The following table presents a reconciliation of net income to Adjusted EBITDA for the periods indicated:

Net debt

We define net debt as total debt which includes current and non-current loans payable and other financial liabilities and current and non-current operating lease liabilities, less cash and cash equivalents (excluding cash and cash equivalents restricted due to management restriction policies), short-term investments and long-term investments, excluding time deposits, foreign debt securities and foreign government debt securities restricted and held in guarantee, securitization transactions and equity securities held at cost. We have included this non-GAAP financial measure because it is used by our Management to analyze our current leverage ratios and set targets to be met, which will also impact other components of the Company’s balance sheet, cash flows and income statement. Accordingly, we believe this measure provides useful information to investors and other market participants in showing the evolution of the Company’s indebtedness and its capability of repayment as a means to, alongside other measures, monitor our leverage based on widely-used measures.

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The following table presents a reconciliation of net debt for each of the periods indicated:

(1) Includes cash and cash equivalents (excluding cash and cash equivalents restricted due to management restriction policies).

(2) Excludes time deposits, foreign debt securities and foreign government debt securities restricted and held in guarantee.

(3) Excludes foreign government debt securities restricted and held in guarantee, investments held in VIEs as a consequence of securitization transactions and equity securities held at cost.

FX neutral

We believe that FX neutral measures provide useful information to both Management and investors by excluding the foreign currency exchange rate impact that may not be indicative of our core operating results and business outlook.

The FX neutral measures were calculated by using the average monthly exchange rates for each month during 2025 and applying them to the corresponding months in 2026, so as to calculate what our results would have been had exchange rates remained stable from one year to the next. The table below excludes intercompany allocation FX effects. Finally, these measures do not include any other macroeconomic effect such as local currency inflation effects, the impact on impairment calculations or any price adjustment to compensate local currency inflation or devaluations.

The following table sets forth the FX neutral measures related to our reported results of the operations for the three-month period ended March 31, 2026:

See Note 2 – Summary of significant accounting policies - Foreign currency translation - Argentine currency status and macroeconomic outlook and Argentine exchange regulations of our unaudited interim condensed consolidated financial statements for further detail on the currency status and the exchange regulations of our Argentine segment.

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Adjusted free cash flow and Net (decrease) increase in available cash, investments and digital assets

Adjusted free cash flow

Adjusted free cash flow represents cash from operating activities less the increase (decrease) in cash and cash equivalents and investments related to customer funds due to regulatory requirements and other restrictions and equity securities held at cost, investments in property and equipment and intangible assets, changes in loans receivable, net and net proceeds from/payments on loans payable and other financial liabilities related to our Fintech solutions, since we consider those liabilities as the working capital of the Fintech activities. From the second quarter of 2025 onwards, we have also included increase (decrease) in cash and cash equivalents and investments restricted due to management restriction policies and digital assets as an adjustment in the calculation of our adjusted free cash flow. We consider adjusted free cash flow to be a measure of liquidity generation that provides useful information to management and investors since it shows how much cash the Company generates with its core activities that can be used for discretionary purposes and to repay its corporate and/or commerce debt. A limitation of the utility of adjusted free cash flow as a measure of liquidity generation is that it is a partial representation of the total increase or decrease in our available cash, investments and digital assets balance for the period. Therefore, we believe it is important to view the adjusted free cash flow measure only as a complement to our entire consolidated statements of cash flows.

Net (decrease) increase in available cash, investments and digital assets

Net (decrease) increase in available cash, investments and digital assets (from the second quarter of 2025 onwards, our available funds include digital asset holdings) represents adjusted free cash flow less net proceeds from/payments on loans payable and other financial liabilities, related to our Commerce and corporate activities, payments of finance lease obligations, other investing and/or financing activities not considered above and the effect of exchange rates changes on available cash and investments. We consider Net (decrease) increase in available cash, investments and digital assets to be a measure of liquidity availability that provides useful information to management and investors after netting out all other debt and corporate payments and activities from the adjusted free cash flow.

The following table shows a reconciliation of Net cash provided by operating activities to Adjusted free cash flow and Net (decrease) increase in available cash, investments and digital assets:

(1) Includes accrued interest and financial income net of interest received from available and restricted investments, and results on digital assets.

(2) Includes cash and cash equivalents (excluding cash and cash equivalents restricted due to management restriction policies), short-term investments (excluding time deposits, foreign debt securities and foreign government debt securities restricted and held in guarantee) and long-term investments (excluding foreign government debt securities restricted and held in guarantee, investments held in VIEs as a consequence of securitization transactions and equity securities held at cost) and digital assets.

(3) Recast for consistency with the current presentation due to the changes explained above.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to market risks arising from our business operations. These market risks arise mainly from macroeconomic instability and the possibility that changes in interest rates and the U.S. dollar exchange rate with local currencies, particularly the Brazilian Real, Mexican Peso and Argentine Peso due to Brazil’s, Mexico’s and Argentina’s respective share of our revenues, may affect the value of our financial assets and liabilities.

We are also exposed to market risks arising from our LTRPs. These market risks arise from our obligations to pay employees cash payments in amounts that vary based on the market price of our stock.

Foreign currencies

We have significant operations internationally that are denominated in foreign currencies, primarily the Brazilian Real, Mexican Peso, Argentine Peso, Colombian Peso and Chilean Peso, subjecting us to foreign currency risk, which may adversely impact our financial results. We transact business in various foreign currencies and have significant international revenues and costs. In addition, we charge our international subsidiaries for their use of intellectual property and technology and for certain corporate services. Our cash flows, results of operations and certain of our intercompany balances that are exposed to foreign exchange rate fluctuations may differ materially from expectations and we may record significant gains or losses due to foreign currency fluctuations and related hedging activities.

We use foreign currency exchange forward contracts and cross currency swaps to protect our foreign currency exposure from changes in foreign currency exchange rates. These hedging contracts reduce, but do not entirely eliminate, the impact of foreign currency exchange rate movements. We designate these contracts as cash flow and fair value hedges for accounting purposes. The derivatives’ gain or loss for cash flow hedges is initially reported as a component of accumulated other comprehensive loss. Cash flow hedges are subsequently reclassified into the consolidated statements of income in the financial statement line items in which the hedged item is recorded in the same period the forecasted transaction affects earnings. The derivatives’ gain or loss for fair value hedges is reported in our consolidated statements of income in the same line items as the change in the value of the hedged item due to the hedged risks.

As of March 31, 2026, we hold cash and cash equivalents, restricted cash and cash equivalents, short and long-term investments in local currencies in our subsidiaries, and have receivables denominated in local currencies in all of our operations. Our subsidiaries generate revenues and incur most of their expenses in the respective local currencies of the countries in which they operate. As a result, our subsidiaries use their local currency as their functional currency except for our Argentine subsidiaries, whose functional currency is the U.S. dollar due to the inflationary environment. As of March 31, 2026, the total cash and cash equivalents, restricted cash and cash equivalents denominated in foreign currencies totaled $14,049 million, short-term investments denominated in foreign currencies totaled $491 million, long-term investments denominated in foreign currencies totaled $719 million and accounts receivable, credit card receivables and other means of payments and loans receivable in foreign currencies totaled $19,238 million. To manage exchange rate risk, our treasury policy is to transfer most cash and cash equivalents in excess of working capital requirements into U.S. dollar-denominated accounts in the United States and to enter into certain foreign exchange derivatives, such as currency forwards contracts and cross currency swaps, in order to mitigate our exposure to foreign exchange risk. As of March 31, 2026, our U.S. dollar-denominated cash and cash equivalents, restricted cash and cash equivalents and short-term investments totaled $2,574 million and our U.S. dollar-denominated long-term investments totaled $977 million.

For the three-month period ended March 31, 2026, we had a consolidated gain on foreign currency of $6 million. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of operations— Other income (expenses), net” for more information.

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Foreign currency sensitivity analysis

The table below shows the impact on our net revenues and financial income, cost of net revenues and financial expenses, operating expenses, other income (expenses), net, income tax, net income and equity for a positive and a negative 10% fluctuation on all the foreign currencies to which we are exposed to at the moment of translating our financial statements to U.S. dollars for the three-month period ended March 31, 2026:

(1) Appreciation of the subsidiaries’ local currency against U.S. Dollar.

(2) Depreciation of the subsidiaries’ local currency against U.S. Dollar.

(3) Includes cost of net revenues and financial expenses and operating expenses.

The table above shows an increase in our net income when the U.S. dollar weakens against foreign currencies because of the positive impact of the increase in income from operations. On the other hand, the table above shows a decrease in our net income when the U.S. dollar strengthens against foreign currencies because of the negative impact of the decrease in income from operations.

Brazilian segment

Considering a hypothetical increase (depreciation) of 10% of the Brazilian Real exchange rate against the U.S. dollar on March 31, 2026, the reported local currency net assets in our Brazilian subsidiaries would have decreased by approximately $434 million with the related impact in Other Comprehensive Income. Additionally, we would have recorded a foreign currency gain amounting to approximately $9 million in our Brazilian subsidiaries regarding our non-functional currency net asset position, exposed to exchange rate effects.

Mexican segment

Considering a hypothetical increase (depreciation) of 10% of the Mexican Peso exchange rate against the U.S. dollar on March 31, 2026, the reported local currency net assets in our Mexican subsidiaries would have decreased by approximately $317 million with the related impact in Other Comprehensive Income. Additionally, we would have recorded a foreign currency loss amounting to approximately $83 million in our Mexican subsidiaries regarding our non-functional currency net liability position.

Argentine segment

In accordance with U.S. GAAP, we have classified our Argentine operations as highly inflationary since July 1, 2018, using the U.S. dollar as the functional currency for purposes of reporting our financial statements. Therefore, no translation effect has been accounted for in other comprehensive income related to our Argentine operations since July 1, 2018. Argentina’s inflation rate for the three-month periods ended March 31, 2026 and 2025 was 9.4% and 8.6%, respectively.

We use Argentina’s official exchange rate to account for transactions in our Argentine segment, which as of March 31, 2026 and December 31, 2025 was 1,382.00 and 1,455.00 Argentine Pesos, respectively, against the U.S. dollar. During the three-month periods ended March 31, 2026 and 2025 Argentina’s official exchange rate against the U.S. dollar decreased 5.0% and increased 4.1%, respectively. The average exchange rate for the three-month periods ended March 31, 2026 and 2025 was 1,417.8 and 1,057.0, respectively, resulting in an increase of 34.1%.

Considering a hypothetical increase (depreciation) of 10% of the Argentine Peso exchange rate against the U.S. dollar on March 31, 2026, the effect on non-functional currency net asset position in our Argentine subsidiaries would have been a foreign exchange loss amounting to approximately $43 million in our Argentine subsidiaries.

See Note 2 – Summary of significant accounting policies - Foreign currency translation - Argentine currency status and Argentine exchange regulations” of our unaudited interim condensed consolidated financial statements for further detail on the currency status and the exchange regulations of our Argentine segment.

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Interest

Our earnings and cash flows are also affected by changes in interest rates. These changes could have an impact on the interest rates that financial institutions charge us prior to the time we sell our credit card receivables and on the financial debt that we use to fund Mercado Pago and our lending operations as well as expanding our logistic capacity. As of March 31, 2026, Credit card receivables and other means of payments, net totaled $8,134 million. Interest rate fluctuations could also impact interest earned through our lending solution. As of March 31, 2026, loans receivable net of the allowance for doubtful accounts from our lending solution totaled $10,735 million. We use future contracts to hedge the interest rate exposure of our asset-backed loan portfolio originated in Brazil for $406 million of notional amount. Interest rate fluctuations could also negatively affect certain of our fixed rate and floating rate investments comprised primarily of time deposits, money market funds and sovereign debt securities. Investments in both fixed rate and floating rate interest earning products carry a degree of interest rate risk. Fixed rate securities may have their fair value adversely impacted due to a rise in interest rates, while floating rate securities may produce less income than predicted if interest rates fall.

As of March 31, 2026, our short-term investments amounted to $1,973 million and our long-term investments amounted to $1,696 million. Our short-term investments can be readily converted at any time into cash or into securities with a shorter remaining time to maturity. We determine the appropriate classification of our investments at the time of purchase and re-evaluate such designations as of each balance sheet date. See Note 3 – Cash, cash equivalents, restricted cash and cash equivalents and investments of our unaudited interim condensed consolidated financial statements for further detail on our restricted investments.

Fluctuations of the interest rate could also have a negative impact on interest expense related to our Loans payable and other financial liabilities, as a portion of these instruments is subject to variable interest rates. As of March 31, 2026, our Loans payable and other financial liabilities which accrue interest based on variable rates amounted to $7,110 million, while our Loans payable and other financial liabilities, which accrue interest based on fixed rates, amounted to $2,817 million. We have entered into swap contracts to hedge the interest rate fluctuation on part of our Loans payable and other financial liabilities for a total of $593 million notional amount, $471 million of which have been designated as hedging instruments in fair value hedges. See Note 10 – Loans payable and other financial liabilities and Note 11 – Securitization transactions of our unaudited interim condensed consolidated financial statements for further detail. Considering a hypothetical increase of 100 basis points in the interest rates, the reported charge to the interim condensed consolidated statements of income for the three-month period ended March 31, 2026 would have increased by approximately $19 million with an impact of $17 million in Cost of net revenues and financial expenses and $2 million in Interest expense and other financial losses.

See Note 13 – Derivative instruments of our unaudited interim condensed consolidated financial statements for further detail on derivative instruments.

Equity price risk

Our board of directors, upon the recommendation of the compensation committee, approved the 2021, 2022, 2023, 2024, 2025 and 2026 Long Term Retention Programs (the “2021, 2022, 2023, 2024, 2025 and 2026 LTRPs,” respectively), under which certain eligible employees have the opportunity to receive cash payments annually for a period of six years. In order to receive the full target award under the 2021, 2022, 2023, 2024, 2025 and/or 2026 LTRPs, each eligible employee must remain employed as of each applicable payment date. The 2021, 2022, 2023, 2024, 2025 and 2026 LTRP awards are payable as follows:

• the eligible employee will receive 16.66% of half of his or her target 2021, 2022, 2023, 2024, 2025 and/or 2026 LTRP bonus once a year for a period of six years, with the first payment occurring no later than April 30, 2022, 2023, 2024, 2025, 2026 and 2027, respectively (the “2021, 2022, 2023, 2024, 2025 or 2026 Annual Fixed Payment,” respectively); and
• on each date we pay the respective Annual Fixed Payment to an eligible employee, he or she will also receive a payment (the “2021, 2022, 2023, 2024, 2025 or 2026 Variable Payment”) equal to the product of (i) 16.66% of half of the target 2021, 2022, 2023, 2024, 2025 and/or 2026 LTRP bonus and (ii) the quotient of (a) divided by (b), where (a), the numerator, equals the Applicable Year Stock Price (as defined below) and (b), the denominator, equals the average closing price of our common stock on the NASDAQ Global Select Market during the final 60 trading days of 2020, 2021, 2022, 2023, 2024 and 2025 defined as $1,431.26, $1,391.81, $888.69, $1,426.11, $1,944.47 and $2,094.65 for the 2021, 2022, 2023, 2024, 2025 and 2026 LTRPs, respectively. The “Applicable Year Stock Price” shall equal the average closing price of our common stock on the NASDAQ Global Select Market during the final 60 trading days of the year preceding the applicable payment date.

As of March 31, 2026, the total contractual obligation fair value of our outstanding LTRP Variable Payment obligation subject to equity price risk amounted to $664 million. As of March 31, 2026, the accrued liability related to the outstanding Variable Payment of the LTRP included in Salaries and social security payable in our consolidated balance sheet amounted to $39 million. The following table shows a sensitivity analysis of the risk associated with our total contractual obligation fair value related to the outstanding LTRP Variable Award Payment subject to equity price risk if our common stock price per share were to increase or decrease by up to 40%:

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(1) Present value of average closing stock price for the last 60 trading days of the year preceding the applicable payment date.

ITEM 4. CONTROLS AND PROCEDURES

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”) is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to our Management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Evaluation of Disclosure Controls and Procedures

Based on the evaluation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) required by Exchange Act Rules 13a-15(b) or 15d-15(b), our Chief Executive Officer and our Chief Financial Officer have concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting (as such term is defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act) during the three-month period ended March 31, 2026, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

See Item 1 of Part I, “Financial Statements — Note 8 – Commitments and Contingencies — Litigation and Other Legal Matters.”

ITEM 1A. RISK FACTORS

As of March 31, 2026, there have been no material changes in our risk factors from those disclosed in the Company’s 2025 10-K.

57 | MercadoLibre, Inc.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities

During the three-month period ended March 31, 2026, there were no purchases made by or on behalf of the Company or any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Exchange Act) of shares of our common stock.

ITEM 5. OTHER INFORMATION

Rule 10b5-1 Trading Plans

During the three-month period ended March 31, 2026, none of the Company’s directors or officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated any contract, instruction or written plan for the purchase or sale of Company securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act or any “non-Rule 10b5-1 trading arrangement” as defined in Item 408(c) of Regulation S-K.

ITEM 6. EXHIBITS

The information set forth under “Exhibits Index” below is incorporated herein by reference.

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EXHIBIT INDEX

Exhibit Number Exhibit Description Filed (*) or Furnished (**)Herewith Incorporated by Reference / Form Incorporated by Reference / Filing Date

3.1 Registrant’s Amended and Restated Certificate of Incorporation. S-1 May 11, 2007 3.2 Registrant’s Amended and Restated Bylaws. S-1 May 11, 2007 10.1 MercadoLibre, Inc. 2026 Long Term Retention Program. 8-K April 3, 2026 10.2 Amendment No. 2 to the Amended and Restated Revolving Credit Agreement, dated April 28, 2026, among MercadoLibre, Inc., as borrower, the lenders party thereto, Citibank, N.A., as administrative agent, and MercadoLibre S.R.L., Ebazar.com.br Ltda., Mercado Pago Instituição de Pagamento Ltda, DeRemate.com de Mexico S. de R.L. de C.V., MPFS, S. de R.L. de C.V., MP Agregador, S. de R.L. de C.V., MercadoLibre Chile Ltda., and MercadoLibre Colombia Ltda. as guarantors. * 22.1 List of Subsidiary Guarantors for the Registrant’s 3.125% Notes due 2031 and 4.900% Notes due 2033. * 31.1 Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. * 31.2 Certification of Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. * 32.1 Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. * 32.2 Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. * (101) The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, formatted in Inline XBRL: (i) Interim Condensed Consolidated Balance Sheets, (ii) Interim Condensed Consolidated Statements of Income, (iii) Interim Condensed Consolidated Statements of Comprehensive Income, (iv) Interim Condensed Statements of Equity, (v) Interim Condensed Consolidated Statements of Cash Flows, and (vi) Notes to Interim Condensed Consolidated Financial Statements. * (104) The cover page from the Company’s Form 10-Q for the quarterly period ended March 31, 2026, formatted in Inline XBRL and contained in Exhibit 101. *

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