MercadoLibre reported second-quarter revenue of roughly US$6.8 billion, a 34% year-on-year increase that topped analyst expectations of about US$6.6 billion. Total payment volume jumped 39% to US$64.6 billion, while gross merchandise volume reached US$15.3 billion, underscoring continued expansion across the company’s e-commerce and fintech platforms. Profitability lagged the pace of sales growth. Net income fell 1.5% from a year earlier to US$523 million, missing Wall Street’s consensus of around US$600 million. Operating income came in at US$825 million for a 12.2% margin, down from 14.3% a year ago, and adjusted earnings per share of about US$10.3 were well below estimates near US$11.9. The results sent the Nasdaq-listed shares down 3-6% in after-hours trading. Chief Financial Officer Martín de los Santos attributed the margin compression to heavier spending on free-shipping promotions and marketing in Brazil, the company’s largest market, as well as growth in first-party sales. "We do not want to forgo the growth opportunities in front of us, even if that creates short-term pressure on margins," he told investors. MercadoLibre’s fintech arm, MercadoPago, continued to scale, with its credit portfolio rising 91% to roughly US$9.3 billion and monthly active users climbing 30%. Management said investments across both commerce and payments businesses are aimed at defending market share in Brazil and Mexico and positioning the company for long-term earnings growth.