Senior Credit Analyst - Emerging Markets, EM Spreads

Leandro Gubler

EM Spreads is an independent credit research service specializing in Emerging Markets, primarily focusing on Latin American issuers.

Senior Credit Analyst - Emerging Markets

MercadoLibre: A Credit Look into the Latin American Rising Star

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