MercadoLibre, Inc.
MELI Consumer Cyclical Internet Retail
MercadoLibre, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $28.9 billion, up 39.1% from fiscal 2024. In the quarter to June 2026, revenue grew 49.8%, EPS fell 10.9%, free cash flow grew 22.5% and total debt rose 45.5%, each against the same quarter a year earlier. Member of the Nasdaq 100; revenue growth for ten consecutive years, operating cash flow growth for three; insiders bought in the last twelve months.
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MercadoLibre, Inc. (MELI) Altman Z-score
MercadoLibre, Inc.'s Altman Z-score for fiscal 2025 is 2.96, in the grey zone (1.81–2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 2.96 | (1.07) |
| FY2024 | 4.03 | (0.85) |
| FY2023 | 4.89 | 1.40 |
| FY2022 | 3.49 | (2.39) |
| FY2021 | 5.88 | (5.43) |
| FY2020 | 11.31 | 4.36 |
| FY2019 | 6.95 | 1.80 |
| FY2018 | 5.15 | (2.55) |
| FY2017 | 7.70 | 1.42 |
| FY2016 | 6.28 | (0.27) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.12 | — | 0.14 | |
| Retained earnings / total assets | 0.14 | — | 0.19 | |
| EBIT / total assets | 0.08 | — | 0.25 | |
| Market value of equity / total liabilities | 2.84 | — | 1.71 | |
| Sales / total assets | 0.68 | — | 0.68 | |
| Altman Z-score | Grey zone | 2.96 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Grey zone | 1.90 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| DASH DoorDash, Inc. compare | 6.7× |
| EBAY eBay Inc. compare | 6.1× |
| PDD PDD Holdings Inc. Sponsored ADR compare | 5.5× |
| SE Sea Limited Sponsored ADR compare | 3.8× |
| CPNG Coupang, Inc. compare | 3.7× |
| MELI MercadoLibre, Inc. | 3.0× |
| W Wayfair Inc. compare | 2.9× |
| BABA Alibaba Group Holding Limited compare | 2.8× |
| JD JD.com, Inc. compare | 2.6× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets