Mercadolibre (MELI) risk factors, FY2025 10-K

Mercadolibre's FY2025 10-K, filed Feb 25, 2026, lists 26 risk factors in 5 groups. Against the prior year's 27: 2 new, 3 dropped, 14 substantially reworded.

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Risk factors listed
265 groups
New this year
2vs 27 last year
Dropped
3since the prior 10-K
Substantially reworded
14of those kept
Section length
19k wordsItem 1A

What the changes say

  • New platform liabilities and fraud risks for Mercado Pago and Mercado Libre ecosystems were added.
  • Capital raising and stock sale risks were dropped.

What changed since the prior 10-K

New

  • NewRisks related to our business and operations

    We may be liable for or experience reputational damage resulting from user default or the failure of our ecosystem services

    We face potential liability, reputational damage, and rising customer service costs from user defaults and non-delivery issues in our ecosystem services.

  • NewRisks related to our business and operations

    In addition, failure to handle customer complaints effectively and negative publicity generated as a result of the fraudulent or deceptive conduct of any of our sellers could damage our reputation, diminish the value of our brands and negatively impact our results of operations

    Fraudulent seller activities and operational failures in Mercado Pago financial products can damage our brand, reputation, and operating results.

Dropped

  • DroppedRisks related to our shares

    We may require additional capital in the future, and this additional capital may not be available on acceptable terms or at all

  • DroppedRisks related to our shares

    Shares eligible for future sale may cause the market price of our common stock to drop significantly, even if our business is doing well

  • DroppedRisks related to our shares

    In the future, we may issue securities in connection with investments and acquisitions. The amount of our common stock issued in connection with an investment or acquisition could constitute a material portion of our then outstanding common stock

Reworded

  • 88% rewrittenRisks related to our business and operations

    The markets in which we operate are rapidly evolving and we may not be able to maintain our profitability

    Added risks from Latin American inflation, currency volatility, new global and regional competitors exerting margin pressure, and AI-driven initiatives requiring upfront investments.

  • 84% rewrittenRisks related to our business and operations

    Changes in Mercado Pago’s funding mix and ticket mix could adversely affect Mercado Pago’s results

    Clarified Mercado Pago's funding mix sensitivity, specifically mentioning chargebacks, rewards, and third-party providers instead of unaffiliated entities.

  • 79% rewrittenCybersecurity and Technology Risks

    Furthermore, our security measures may be compromised due to human error, misconduct, system malfunctions, vulnerabilities or other irregularities. Efforts to address undesirable activities on our platform may also increase the risk of retaliatory attacks

    Replaced data privacy context with detailed security breach fallout, noting lack of cyber insurance and potential for customer litigation.

  • 73% rewrittenLegal and Regulatory Risks

    Privacy and Data Protection

    Expanded data protection regulations to specifically list enforcement frameworks in Brazil, Chile, Ecuador, Peru, Colombia, Mexico, and Argentina.

    Was: Privacy and User Data Protection

  • 66% rewrittenRisks related to our business and operations

    We rely on third-party platforms, such as Google Play and Apple app stores, to access our Mercado Libre and Mercado Pago apps

    Refined app store dependencies on Apple and Google, highlighting 15% to 30% commissions and anti-steering rules for digital goods.

  • 35% rewrittenRisks related to our business and operations

    We operate in a highly competitive and evolving environment

    Abbreviated artificial intelligence and machine learning to AI/ML in the discussion of competitive e-commerce and fintech environments.

  • 34% rewrittenRisks related to our business and operations

    There are potential risks related to our cryptocurrency buy, hold and sell feature

    Replaced loyalty program token risks with third-party digital-asset trading, custody, and cryptocurrency services for Mercado Pago users.

    Was: There are potential risks related to our loyalty program and our cryptocurrency buy, hold and sell feature

  • 30% rewrittenRisks related to our business and operations

    We face significant risks related to the ongoing reliability of our logistics network and shipping service

    Slightly reworded how we decide and separate shipping costs paid by customers versus carrier expenses in Mercado Envios.

  • 28% rewrittenRisks related to our business and operations

    We are subject to consumer trends and could lose revenue if certain items become less popular or if we fail to meet customer demand

  • 26% rewrittenRisks related to our business and operations

    Our failure or the failure of our partners to manage Mercado Pago users’ funds properly could harm our business

  • 23% rewrittenRisks related to our business and operations

    A rise in interest rates may negatively affect our Mercado Pago payment volume

  • 22% rewrittenRisks related to doing business in Latin America

    Local currencies used in the conduct of our business are subject to depreciation, volatility and exchange controls

  • 22% rewrittenRisks related to our business and operations

    Our performance depends substantially on the continued services and on the performance of our senior management and other key personnel. Our ability to retain and motivate these and other officers and employees, as well as our ability to successfully transition key roles, is fundamental to our performance

  • 20% rewrittenLegal and Regulatory Risks

    It may be difficult to enforce judgments rendered against us in U.S. courts

All 26 risk factors

Headings as the filing states them, in filing order.

Risks related to our business and operations

  1. 01We operate in a highly competitive and evolving environment35% rewritten
  2. 02We rely on third-party platforms, such as Google Play and Apple app stores, to access our Mercado Libre and Mercado Pago apps66% rewritten
  3. 03The markets in which we operate are rapidly evolving and we may not be able to maintain our profitability88% rewritten
  4. 04We may be liable for or experience reputational damage resulting from user default or the failure of our ecosystem servicesNew
  5. 05In addition, failure to handle customer complaints effectively and negative publicity generated as a result of the fraudulent or deceptive conduct of any of our sellers could damage our reputation, diminish the value of our brands and negatively impact our results of operationsNew
  6. 06We are subject to consumer trends and could lose revenue if certain items become less popular or if we fail to meet customer demand28% rewritten
  7. 07Our failure or the failure of our partners to manage Mercado Pago users’ funds properly could harm our business26% rewritten
  8. 08A rise in interest rates may negatively affect our Mercado Pago payment volume23% rewritten
  9. 09Changes in Mercado Pago’s funding mix and ticket mix could adversely affect Mercado Pago’s results84% rewritten
  10. 10Our lending solution exposes us to the credit risk of our merchants and consumers, among other risks
  11. 11We face significant risks related to the ongoing reliability of our logistics network and shipping service30% rewritten
  12. 12Failure to successfully operate our fulfillment network may also negatively affect our business
  13. 13Problems that affect our service providers could potentially adversely affect us as well
  14. 14Our performance depends substantially on the continued services and on the performance of our senior management and other key personnel. Our ability to retain and motivate these and other officers and employees, as well as our ability to successfully transition key roles, is fundamental to our performance22% rewritten
  15. 15We have used a portion of our cash reserve to purchase financial assets or other alternative reserve assets that are exposed to the value of digital assets and we may continue acquiring and holding them from time to time in the future
  16. 16There are potential risks related to our cryptocurrency buy, hold and sell feature34% rewritten

Legal and Regulatory Risks

  1. 17Internet Services Regulation
  2. 18Privacy and Data Protection73% rewritten
  3. 19Banking, Money Transmission and Domestic or Cross-Border Electronic Funds Transfer
  4. 20Sale, Storage and/or Transportation of Goods and Services
  5. 21It may be difficult to enforce judgments rendered against us in U.S. courts20% rewritten

Cybersecurity and Technology Risks

  1. 22Furthermore, our security measures may be compromised due to human error, misconduct, system malfunctions, vulnerabilities or other irregularities. Efforts to address undesirable activities on our platform may also increase the risk of retaliatory attacks79% rewritten
  2. 23We may not be able to secure licenses for technologies on which we rely

Risks related to doing business in Latin America

  1. 24Although economic and political conditions may differ from one country to another, we cannot assure you that events in one country alone will not adversely affect our business, financial condition or the market value of our common stock
  2. 25Local currencies used in the conduct of our business are subject to depreciation, volatility and exchange controls22% rewritten
  3. 26Our transactions in Latin America may be impacted by the weaknesses of secure payment methods

Other Mercadolibre 10-Ks

  • FY2024 10-K risk factors
    27 risks

    MercadoLibre faces heavy regulatory and economic exposure across Latin American markets for fintech, logistics, and digital assets. Reliance on third-party app stores, shipping providers, and credit models creates operational vulnerabilities. Currency volatility, local government intervention, and data privacy compliance heavily impact earnings.

    Filed Feb 21, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.