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SEGMENTS
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
SEGMENTS 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 Chile, Colombia, Costa Rica, Ecuador, Peru, Uruguay and the U.S.).
The CODM makes decisions considering all business lines within a country as whole, taking into account the synergies between the different lines in each of the countries’ integrated digital ecosystems.
The CODM evaluates the performance of the Company’s operating segments based on their direct contribution.
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:
Six Months Ended June 30, 2025
BrazilMexicoArgentinaOther CountriesTotal
(In millions)
Net service revenues and financial income$5,632 $2,418 $2,759 $475 $11,284 
Net product revenues923 310 150 58 1,441 
Net revenues and financial income6,555 2,728 2,909 533 12,725 
Local operating expenses (5,291)(2,138)(1,561)(438)(9,428)
Depreciation and amortization(181)(105)(39)(22)(347)
Total segment costs(5,472)(2,243)(1,600)(460)(9,775)
Direct contribution 1,083 485 1,309 73 2,950 
Operating expenses and indirect costs of net revenues and financial expenses(1,362)
Income from operations1,588 
Other income (expenses):
Interest income and other financial gains81 
Interest expense and other financial losses(75)
Foreign currency losses, net(172)
Net income before income tax expense$1,422 
Six Months Ended June 30, 2024
BrazilMexicoArgentinaOther CountriesTotal
(In millions)
Net service revenues and financial income$4,805 $1,970 $1,406 $366 $8,547 
Net product revenues552 202 72 33 859 
Net revenues and financial income5,357 2,172 1,478 399 9,406 
Local operating expenses (3,976)(1,667)(838)(332)(6,813)
Depreciation and amortization(144)(87)(35)(20)(286)
Total segment costs(4,120)(1,754)(873)(352)(7,099)
Direct contribution 1,237 418 605 47 2,307 
Operating expenses and indirect costs of net revenues and financial expenses(1,053)
Income from operations1,254 
Other income (expenses):
Interest income and other financial gains64 
Interest expense and other financial losses(77)
Foreign currency losses, net(92)
Net income before income tax expense$1,149 
Three Months Ended June 30, 2025
BrazilMexicoArgentinaOther CountriesTotal
(In millions)
Net service revenues and financial income$2,959 $1,311 $1,446 $248 $5,964 
Net product revenues514 195 81 36 826 
Net revenues and financial income3,473 1,506 1,527 284 6,790 
Local operating expenses (2,834)(1,178)(847)(245)(5,104)
Depreciation and amortization(98)(60)(19)(11)(188)
Total segment costs(2,932)(1,238)(866)(256)(5,292)
Direct contribution 541 268 661 28 1,498 
Operating expenses and indirect costs of net revenues and financial expenses(673)
Income from operations825 
Other income (expenses):
Interest income and other financial gains44 
Interest expense and other financial losses(36)
Foreign currency losses, net(117)
Net income before income tax expense$716 

Three Months Ended June 30, 2024
BrazilMexicoArgentinaOther CountriesTotal
(In millions)
Net service revenues and financial income$2,489 $1,084 $816 $203 $4,592 
Net product revenues297 117 47 20 481 
Net revenues and financial income2,786 1,201 863 223 5,073 
Local operating expenses (2,039)(964)(464)(187)(3,654)
Depreciation and amortization(71)(43)(18)(10)(142)
Total segment costs(2,110)(1,007)(482)(197)(3,796)
Direct contribution 676 194 381 26 1,277 
Operating expenses and indirect costs of net revenues and financial expenses(551)
Income from operations726 
Other income (expenses):
Interest income and other financial gains39 
Interest expense and other financial losses(39)
Foreign currency losses, net(58)
Net income before income tax expense$668 
The following table summarizes net revenues and financial income per reporting segment, which have been disaggregated by similar products and services for the six and three-month periods ended June 30, 2025 and 2024:
Six Months Ended June 30,
BrazilMexicoArgentina
Other Countries (6)
Total
2025202420252024202520242025202420252024
(In millions)
Commerce services (1)
$3,087 $2,724 $1,470 $1,217 $846 $437 $326 $252 $5,729 $4,630 
Commerce product sales (2)
909 540 300 195 148 70 56 31 1,413 836 
Total commerce revenues3,996 3,264 1,770 1,412 994 507 382 283 7,142 5,466 
Financial services and income (3)
1,251 1,196 366 261 1,322 707 144 108 3,083 2,272 
Credit revenues (4)
1,294 885 582 492 591 262 5 6 2,472 1,645 
Fintech product sales (5)
14 12 10 7 2 2 2 2 28 23 
Total fintech revenues2,559 2,093 958 760 1,915 971 151 116 5,583 3,940 
Total net revenues and financial income$6,555 $5,357 $2,728 $2,172 $2,909 $1,478 $533 $399 $12,725 $9,406 
Three Months Ended June 30,
BrazilMexicoArgentina
Other Countries (6)
Total
2025202420252024202520242025202420252024
(In millions)
Commerce services (1)
$1,616 $1,411 $803 $686 $440 $261 $169 $144 $3,028 $2,502 
Commerce product sales (2)
507 290 189 113 80 46 35 19 811 468 
Total commerce revenues2,123 1,701 992 799 520 307 204 163 3,839 2,970 
Financial services and income (3)
645 609 200 138 688 412 77 56 1,610 1,215 
Credit revenues (4)
698 469 308 260 318 143 2 3 1,326 875 
Fintech product sales (5)
7 7 6 4 1 1 1 1 15 13 
Total fintech revenues1,350 1,085 514 402 1,007 556 80 60 2,951 2,103 
Total net revenues and financial income$3,473 $2,786 $1,506 $1,201 $1,527 $863 $284 $223 $6,790 $5,073 
(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 and ad sales.
(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 merchants and consumers, 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 $20 million and $10 million for the six and three-month periods ended June 30, 2025, respectively, and $13 million and $10 million for the six and three-month periods ended June 30, 2024, respectively.
The following table summarizes the allocation of property and equipment, net based on geography:
June 30, 2025
BrazilMexicoArgentinaU.S.
Other Countries
Total
(In millions)
Property and equipment$1,309 $985 $487 $10 $209 $3,000 
Accumulated depreciation(552)(315)(223)(7)(104)(1,201)
Total property and equipment, net$757 $670 $264 $3 $105 $1,799 
December 31, 2024
BrazilMexicoArgentinaU.S.
Other Countries
Total
(In millions)
Property and equipment$1,078 $713 $434 $10 $178 $2,413 
Accumulated depreciation(497)(239)(199)(6)(92)(1,033)
Total property and equipment, net$581 $474 $235 $4 $86 $1,380 
The following table summarizes the allocation of the operating lease right-of-use assets based on geography:
June 30, 2025
BrazilMexicoArgentinaU.S.
Other Countries
Total
(In millions)
Right of use asset$1,002 $941 $77 $4 $117 $2,141 
Accumulated amortization
(220)(175)(40)(1)(41)(477)
Total right of use asset, net$782 $766 $37 $3 $76 $1,664 
December 31, 2024
BrazilMexicoArgentinaU.S.
Other Countries
Total
(In millions)
Right of use asset$618 $616 $76 $4 $115 $1,429 
Accumulated amortization
(139)(116)(36)(1)(39)(331)
Total right of use asset, net$479 $500 $40 $3 $76 $1,098 
The following table summarizes the allocation of the goodwill and intangible assets based on geography:
June 30, 2025
BrazilMexicoArgentinaU.S.
Other Countries
Total
(In millions)
Intangible assets at fair value$— $— $— $69 $— $69 
Goodwill and intangible assets102 47 23 — 73 245 
Accumulated amortization
(9)(5)(8)— (24)(46)
Total goodwill and intangible assets, net$93 $42 $15 $69 $49 $268 
December 31, 2024
BrazilMexicoArgentinaU.S.
Other Countries
Total
(In millions)
Intangible assets at fair value$— $— $— $49 $— $49 
Goodwill and intangible assets64 43 23 — 71 201 
Accumulated amortization
(6)(4)(7)— (23)(40)
Total goodwill and intangible assets, net$58 $39 $16 $49 $48 $210