Senior Credit Analyst - Emerging Markets, EM Spreads

Leandro Gubler

Senior Credit Analyst - Emerging Markets

EM Spreads

Credit

<ul>
<li>Strong topline growth in 3Q25 was offset by heavier investment intensity across Commerce and Fintech, pressuring margins and reinforcing our view that profitability headwinds will constrain near-term operating performance.</li>
<li>We maintain a Neutral view, with spreads already reflecting MELI’s credit strength and offering limited room for further tightening.</li>
<li>Credit metrics remain broadly healthy, though higher leverage and softer liquidity offset solid cash generation and resilient regional operations.</li>
</ul>


Strong topline growth in 3Q25 was offset by heavier investment intensity across Commerce and Fintech, pressuring margins and reinforcing our view that profitability headwinds will constrain near-term operating performance.
We maintain a Neutral view, with spreads already reflecting MELI’s credit strength and offering limited room for further tightening.
Credit metrics remain broadly healthy, though higher leverage and softer liquidity offset solid cash generation and resilient regional operations.


MercadoLibre 3Q25: Strong Growth but Profitability Under Pressure

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>MercadoLibre reported notable financial results for its third quarter of 2025, showcasing a strong continuation of growth trends across its e-commerce and fintech platforms.</li><li>The company's revenue grew by 39% year-on-year, marking the 27th consecutive quarter of growth above 30%.</li><li>This consistent growth is attributed to the company’s strategic investments in various areas such as logistics, free shipping, and financial services.</li></ul>

MercadoLibre reported notable financial results for its third quarter of 2025, showcasing a strong continuation of growth trends across its e-commerce and fintech platforms.The company's revenue grew by 39% year-on-year, marking the 27th consecutive quarter of growth above 30%.This consistent growth is attributed to the company’s strategic investments in various areas such as logistics, free shipping, and financial services.

MercadoLibre: How Fintech and Credit Expansion Are Enhancing Platform Stickiness!

Podcast by Dom Cooke to explore big businesses, Business Breakdowns

Business Breakdowns

Podcast by Dom Cooke to explore big businesses

Learn how companies work from the people who know them best. We do deep research and interview industry veterans, investment professionals, and corporate executives to explain the inner workings of public stocks and private businesses. For each company, we break down their history, business model, financial statements, secret sauce, and bull/bear case. We believe every business has lessons to teach us and Breakdowns is here to highlight them. Learn more and stay up to date at www.joincolossus.com.

Equity Bottom-Up

<ul><li>Daniel Wu of BristolMoon Capital discusses Mercado Libre, a company that has evolved from being the "eBay of Latam" to a major e-commerce and fintech player in Latin America.</li><li>Mercado Libre is described as an amalgamation of Amazon Retail and Alipay, with a dominant market share in e-commerce in countries like Brazil, Mexico, and Argentina.</li><li>Founded in 1999 in Buenos Aires by Marcos Galperin and co-founders, Mercado Libre differentiated itself by focusing on sustainable growth strategies instead of chasing rapid user acquisition, allowing it to thrive through economic downturns and emerge as a major player in the region.</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.</em></p>

Daniel Wu of BristolMoon Capital discusses Mercado Libre, a company that has evolved from being the "eBay of Latam" to a major e-commerce and fintech player in Latin America.Mercado Libre is described as an amalgamation of Amazon Retail and Alipay, with a dominant market share in e-commerce in countries like Brazil, Mexico, and Argentina.Founded in 1999 in Buenos Aires by Marcos Galperin and co-founders, Mercado Libre differentiated itself by focusing on sustainable growth strategies instead of chasing rapid user acquisition, allowing it to thrive through economic downturns and emerge as a major player in the region.This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Mercado Libre: E-commerce Empire - [Business Breakdowns, EP.227]

<ul><li>MercadoLibre reported solid performance for the second quarter of 2025, marked by a substantial revenue increase of over 30% year-on-year and record income from operations of $825 million.</li><li>The company's strategy to lower the free shipping threshold in Brazil for the third time in five years reflects its goal of increasing online retail by minimizing transaction barriers.</li><li>This initiative reportedly attracted new users and enhanced engagement with existing ones, positively impacting gross merchandise value (GMV) growth, especially in June.</li></ul>

MercadoLibre reported solid performance for the second quarter of 2025, marked by a substantial revenue increase of over 30% year-on-year and record income from operations of $825 million.The company's strategy to lower the free shipping threshold in Brazil for the third time in five years reflects its goal of increasing online retail by minimizing transaction barriers.This initiative reportedly attracted new users and enhanced engagement with existing ones, positively impacting gross merchandise value (GMV) growth, especially in June.

MercadoLibre Inc.: E-commerce Expansion & Free Shipping Strategy to Enhance Overall Value Proposition!

<ul>
<li>S&amp;P revised MELI’s credit rating outlook to positive from stable and affirmed its BB+ issuer credit rating.</li>
<li>MELI's credit metrics are considerably stronger than its peers in the high-yield rating category</li>
<li>MELI’s bonds have arguably already been trading at the investment grade level, supported by the company’s solid credit metrics for the rating category.</li>
</ul>


S&amp;P revised MELI’s credit rating outlook to positive from stable and affirmed its BB+ issuer credit rating.
MELI's credit metrics are considerably stronger than its peers in the high-yield rating category
MELI’s bonds have arguably already been trading at the investment grade level, supported by the company’s solid credit metrics for the rating category.


MercadoLibre: Analyzing the Market Reaction to S&P’s Outlook Change

Brazil

MercadoLibre, Inc. operates an online trading site for the Latin American markets. The Company's website allows businesses and individuals to list items, conduct sales, and purchases online in either a fixed-price and auction format. MercadoLibre offers classified advertisements for motor vehicles, vessels, aircraft, and real estate, as well as online payment services.

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MercadoLibre (MELI US)

MercadoLibre 3Q25: Strong Growth but Profitability Under Pressure

3Q25 saw strong growth for MELI, but heavy investments in Commerce and Fintech are pressuring margins. Profitability challenges will limit near...

Leandro Gubler

MercadoLibre: How Fintech and Credit Expansion Are Enhancing Platform Stickiness!

MercadoLibre reported notable financial results for its third quarter of 2025, showcasing a strong continuation of growth trends across its...

Baptista Research

Mercado Libre: E-commerce Empire - [Business Breakdowns, EP.227]

Mercado Libre, founded in 1999 in Buenos Aires, has become the largest e-commerce platform in Latin America, offering services like Mercado Pago...

Business Breakdowns

MercadoLibre Inc.: E-commerce Expansion & Free Shipping Strategy to Enhance Overall Value Proposition!

MercadoLibre reported solid performance for the second quarter of 2025, marked by a substantial revenue increase of over 30% year-on-year and...

Baptista Research

MercadoLibre: Analyzing the Market Reaction to S&P’s Outlook Change

S&P upgrades MELI's credit rating outlook to positive, citing strong credit metrics and potential investment grade status for bonds.

Leandro Gubler

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MercadoLibre 3Q25: Strong Growth but Profitability Under Pressure

​3Q25 saw strong growth for MELI, but heavy investments in Commerce and Fintech are pressuring margins. Profitability challenges will limit near...

Leandro Gubler

MercadoLibre: How Fintech and Credit Expansion Are Enhancing Platform Stickiness!

MercadoLibre reported notable financial results for its third quarter of 2025, showcasing a strong continuation of growth trends across its...

Baptista Research

Mercado Libre: E-commerce Empire - [Business Breakdowns, EP.227]

Mercado Libre, founded in 1999 in Buenos Aires, has become the largest e-commerce platform in Latin America, offering services like Mercado Pago...

Business Breakdowns

MercadoLibre Inc.: E-commerce Expansion & Free Shipping Strategy to Enhance Overall Value Proposition!

MercadoLibre reported solid performance for the second quarter of 2025, marked by a substantial revenue increase of over 30% year-on-year and...

Baptista Research

MercadoLibre: Analyzing the Market Reaction to S&P’s Outlook Change

​S&P upgrades MELI's credit rating outlook to positive, citing strong credit metrics and potential investment grade status for bonds.

Leandro Gubler

3Q25 saw strong growth for MELI, but heavy investments in Commerce and Fintech are pressuring margins. Profitability challenges will limit near...

S&P upgrades MELI's credit rating outlook to positive, citing strong credit metrics and potential investment grade status for bonds.