How does MercadoLibre (MELI) make money?

MercadoLibre (MELI) generates revenue primarily from Service, which accounted for 87% of total revenue in TTM through Q1 2026. The company reported $31.8B in revenue and converted 6% of it into net profit, equivalent to roughly $1.92B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of MercadoLibre (MELI)?

MercadoLibre (MELI) reported a gross profit margin of 43.9% in TTM through Q1 2026, equivalent to $13.9B in gross profit on $31.8B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of MercadoLibre (MELI)?

MercadoLibre (MELI) reported an operating profit margin of 9.6% in TTM through Q1 2026, equivalent to $3.05B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of MercadoLibre (MELI)?

MercadoLibre (MELI) reported a net profit margin of 6% in TTM through Q1 2026, equivalent to $1.92B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is MercadoLibre (MELI) profitable?

Yes. MercadoLibre (MELI) reported $1.92B in net income for TTM through Q1 2026, with a net profit margin of 6%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does MercadoLibre (MELI) invest in research and development?

MercadoLibre (MELI) invested $2.42B in research and development during TTM through Q1 2026, roughly 7.6% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does MercadoLibre (MELI) spend on capital expenditures?

MercadoLibre (MELI) spent $1.24B on capital expenditures (CapEx) during TTM through Q1 2026, roughly 3.9% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does MercadoLibre (MELI) generate?

MercadoLibre (MELI) generated $10.7B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 33.7%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of MercadoLibre (MELI)?

MercadoLibre (MELI) had an effective tax rate of 15.7% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of MercadoLibre (MELI)?

MercadoLibre (MELI) reports revenue across 2 reportable product segments, led by Service at 87% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

Where does MercadoLibre (MELI) generate most of its revenue?

Brazil Segment is the largest geographic market for MercadoLibre (MELI), accounting for 53.1% of revenue in the most recent annual filing. The complete regional split — including international markets and any Rest-of-World rollup — is shown in the revenue-by-geography table on this page.

How MercadoLibre Makes Money: 2026 Visual Revenue Map

MercadoLibre (MELI) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported May 8, 2026).

MercadoLibre (MELI) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for MercadoLibre (MELI), TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Service	$27.7B	87%
Product	$4.12B	13%
Total	$31.8B	100%

Service$27.7B
Product$4.12B
Total$31.8B

MercadoLibre (MELI) Revenue by Geography — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported regions changed mid-year.

Revenue contribution by geographic region for MercadoLibre (MELI), TTM through Q1 2026
Region	Revenue (USD)	% of total
Brazil Segment	$16.9B	53.1%
Mexico Segment	$7.23B	22.7%
Argentina Segment	$6.28B	19.7%
Other Countries Segment	$1.4B	4.4%
Total	$31.8B	100%

Brazil Segment
Mexico Segment
Argentina Segment
Other Countries Segment
Total

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, MercadoLibre (MELI) reports revenue across 2 reportable product segments; the largest segment was Service at 87%, followed by Product (13%). Geographically, Brazil Segment accounted for 53.1% of revenue, followed by Mexico Segment (22.7%) and Argentina Segment (19.7%).

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