v3.26.1
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES
Assets and liabilities measured and recorded at fair value on a recurring basis
The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2026 and December 31, 2025:
Balances as of
June 30, 2026		Quoted Prices in
active markets for
identical Assets
(Level 1)		Significant other
observable inputs
(Level 2)		Unobservable
inputs
(Level 3)		Balances as of
December 31, 2025		Quoted Prices in
active markets for
identical Assets
(Level 1)		Significant other
observable inputs
(Level 2)		Unobservable
inputs
(Level 3)
(In millions)
Cash and Cash Equivalents:
Money Market$1,159 $1,159 $— $— $856 $856 $— $— 
U.S. government debt securities (1)
— — — — 46 46 — — 
Foreign government debt securities (1)
— — — — 16 16 — — 
Restricted Cash and Cash Equivalents:
Money Market (2)
224 224 — — 259 259 — — 
Foreign government debt securities (1)
4 4 — — 14 14 — — 
Investments:
U.S. government debt securities (1)
1,968 1,968 — — 1,982 1,982 — — 
Foreign government debt securities (1) (3)
880 880 — — 1,661 1,661 — — 
Corporate debt securities501 501 — — 399 399 — — 
Equity securities at fair value49 49 — — 59 59 — — 
Other Assets:
Derivative Instruments47 — 47 — 41 — 41 — 
USDC— — — — 3 3 — — 
Total Assets$4,832 $4,785 $47 $— $5,336 $5,295 $41 $— 
Salaries and social security payable:
Long-term retention program$75 $— $75 $— $176 $— $176 $— 
Other Liabilities:
Meli Dólar liability (1)
63 — 63 — 61 — 61 — 
Derivative Instruments174 — 174 — 83 — 83 — 
Contingent consideration4 — — 4 4 — — 4 
Total Liabilities$316 $— $312 $4 $324 $— $320 $4 
(1) Measured at fair value with impact on the statement of income for the application of the fair value option. (See Note 2 – Summary of significant accounting policies – Fair value option applied to certain financial instruments).
(2) As of June 30, 2026 and December 31, 2025, includes $157 million and $206 million, respectively, of money market funds from securitization transactions. (See Note 3 – Cash, cash equivalents, restricted cash and cash equivalents and investments).
(3) As of December 31, 2025, includes $8 million of investments from securitization transactions. (See Note 3 – Cash, cash equivalents, restricted cash and cash equivalents and investments).
The Company’s assets and liabilities measured and recorded at fair value on a recurring basis were valued using i) Level 1 inputs: unadjusted quoted prices in active markets (Level 1 instrument valuations are obtained from observable inputs that reflect quoted prices (unadjusted) for identical assets in active markets); ii) Level 2 inputs: obtained from readily-available pricing sources for comparable instruments as well as instruments with inactive markets at the measurement date; and iii) Level 3 inputs: valuations based on unobservable inputs reflecting Company’s assumptions. The unobservable inputs of the fair value of contingent considerations classified as Level 3 refer to the amounts to be paid according to the agreement of an acquisition, the likelihood of achievement of the targets included in that arrangement (expected to be 100%), and the Company’s historical experience with similar arrangements. Reasonable variation on those unobservable inputs would not significantly change the fair value of those instruments. As of June 30, 2026 and December 31, 2025, the Company had not changed the methodology nor the assumptions used to estimate the fair value of the financial instruments.
There were no transfers to and from Levels 1, 2 and 3 during the six-month period ended June 30, 2026, nor during the year ended December 31, 2025.
The Company’s election of the fair value option applies to: i) foreign government debt securities, ii) U.S. government debt securities and iii) Meli Dólar liability. The Company recognized fair value changes of foreign and U.S. government debt securities, which include the related interest income of those instruments, in net service revenues and financial income if it is related to Mercado Pago’s operations or in interest income and other financial gains, net if not. Such fair value changes and interest income amount to gains of $75 million and $36 million, and $261 million and $136 million in net service revenues and financial income for the six and three-month periods ended June 30, 2026 and 2025, respectively, and $22 million and $12 million, and $42 million and $22 million in interest income and other financial gains, net for the six and three-month periods ended June 30, 2026 and 2025, respectively. The Meli Dólar liability has not presented changes in its fair value for the six-month periods ended June 30, 2026 and 2025.
As of June 30, 2026 and December 31, 2025, the amortized cost of the Company’s investment in corporate debt securities classified as available for sale amounted to $501 million and $392 million, respectively, and the estimated fair value amounted to $501 million and $399 million, respectively. The cost of these securities is determined under a specific identification basis. As of June 30, 2026 and December 31, 2025, the gross unrealized gains accumulated amounted to $3 million and $7 million, respectively, and as of June 30, 2026 the gross unrealized loss accumulated amounted to $3 million. For the six and three-month periods ended June 30, 2026 and 2025, the proceeds from sales of corporate debt securities amounted to $37 million and $25 million, and $37 million and $14 million, respectively.
The following table summarizes the net carrying amount of the corporate debt securities classified as available for sale, classified by its contractual maturities:
June 30, 2026December 31, 2025
(In millions)
One year or less$76 $54 
One year to two years137 73 
Two years to three years164 145 
Three years to four years90 99 
Four years to five years34 28 
Total available for sale investments$501 $399 
The following table summarizes the net carrying amount of the debt securities not classified as available for sale (U.S. and foreign government debt securities), classified by its contractual maturities or Management’s expectation to convert the investments into cash:
June 30, 2026December 31, 2025
(In millions)
One year or less$1,668 $2,412 
One year to two years210 174 
Two years to three years87 168 
Three years to four years302 385 
Four years to five years485 248 
More than five years100 332 
Total debt securities not classified as available for sale
$2,852 $3,719 
Financial assets and liabilities not measured and recorded at fair value
The following table summarizes the estimated fair value of the financial assets and liabilities of the Company not measured at fair value as of June 30, 2026 and December 31, 2025:
Balances as of
June 30, 2026		Estimated fair value as of June 30, 2026Balances as of
December 31, 2025		Estimated fair value as of December 31, 2025
(In millions)
Cash and cash equivalents$2,490 $2,490 $2,752 $2,752 
Restricted cash and cash equivalents12,886 12,886 9,594 9,594 
Investments341 341 239 239 
Accounts receivables, net418 418 369 369 
Credit card receivables and other means of payment, net8,519 8,519 7,046 7,046 
Loans receivable, net11,996 11,709 9,365 9,166 
Other assets167 167 300 300 
Total Assets$36,817 $36,530 $29,665 $29,466 
Accounts payable and accrued expenses$5,739 $5,739 $4,502 $4,502 
Funds payable to customers16,035 16,035 13,029 13,029 
Amounts payable due to credit and debit card transactions5,184 5,184 3,771 3,771 
Salaries and social security payable755 755 740 740 
Loans payable and other financial liabilities10,511 10,465 9,063 9,014 
Other liabilities480 480 340 340 
Total Liabilities$38,704 $38,658 $31,445 $31,396 
As of June 30, 2026 and December 31, 2025, the carrying value of the Company’s investment in foreign debt securities held to maturity amounted to $164 million and $146 million, respectively, and its contractual maturity is less than a year.
As of June 30, 2026 and December 31, 2025, the carrying value of the Company’s financial assets with determinable fair value (except for loans receivable) not measured at fair value approximated their fair value mainly because of their short-term maturity. If these financial assets were measured at fair value in the financial statements, cash and cash equivalents and restricted cash and cash equivalents would be classified as Level 1 (where cost and fair value are aligned), foreign debt securities held to maturity would be classified as Level 3 and the remaining financial assets would be classified as Level 2. The estimated fair value of the loans receivable would be classified as Level 3 based on the Company’s assumptions.
As of June 30, 2026 and December 31, 2025, the carrying value of the Company’s financial liabilities (except for the 3.125% Notes due 2031 (the “2031 Notes”) and the 4.900% Notes due 2033 (the "2033 Notes")) not measured at fair value approximated their fair value mainly because of their short-term maturity or because the effective interest rates are not materially different from market interest rates. If these financial liabilities were measured at fair value in the financial statements, these would be classified as Level 2. As of June 30, 2026 and December 31, 2025, the estimated fair value of the 2031 Notes would have been $499 million and $501 million, respectively. As of June 30, 2026 and December 31, 2025, the estimated fair value of the 2033 Notes would have been $751 million and $726 million, respectively, which is based on Level 2 inputs.