Phase Space AI

Financial Model Notes

MercadoLibre [MELI]

MercadoLibre [MELI] — Financial Model Notes

Reconciliation of every figure used, and every place a source was rejected.

Share count — verified

Basic and diluted differ by 116 shares — MELI has essentially no dilutive overhang. SPLITS returns {"data": []}; no corporate action. netIncome / shares ≈ EPS check: $417m / 50.697m = $8.226 against a filed $8.23. Clean. Single class, so the dual-class XBRL aggregation defect does not apply.

TTM revenue — verified

Sum of the four quarters ending 2026-03-31: 8,845 + 8,759 + 7,409 + 6,790 = $31,803m, matching the screen exactly. Q4 is present in the AV normalized series (it is not an EDGAR quarterly tag, per the known structural gap) and the FY2025 sum 5,935 + 6,790 + 7,409 + 8,759 = $28,893m ties to the dollar against the 10-K's stated $28,893m. AV normalized statements verified against EDGAR primary on this name.

Net cash — REBUILT, screen was wrong

From the Q1'26 10-Q net-debt reconciliation (management's own table):

Current loans payable and other financial liabilities      5,316
Non-current loans payable and other financial liabilities  4,611
Current operating lease liabilities                          472
Non-current operating lease liabilities                    1,946
Total debt                                                12,345
Less available cash + short-term + long-term investments  (6,597)
Net debt                                                   5,748

AV shortLongTermDebtTotal = $12,345m — byte-identical to the filing, 0.0% error. Reported explicitly, per the DATA_DEFECTS instruction that a clean result is as much a finding as a dirty one.

Screen carried −$4,277m. Correct is −$5,748m: a $1,471m / 25.6% understatement of net debt. Lease-exclusive equivalent: −$3,330m. EV used in this memo is $98,683m, lease-inclusive, stated.

Operating margin — the screen's label is wrong

AV OVERVIEW.OperatingMarginTTM returns 6.91% — which is Q1'26 alone, confirming the single-quarter-mislabelled-as-TTM defect on a sixth name (previously ATRC, BSX, DXCM, STX).

D&A — taken from the cash-flow statement, per the standing rule

FY2025 $818m; Q1'26 $246m. AV's income-statement D&A was not used and AV's ebitda field was not used anywhere in this memo.

EBIT — filed, not AV's ebit field

AV's ebit field is documented as pretax + interest expense and was not used. Operating income is taken as operatingIncome / totalRevenue from the normalized statements and cross-checked against the 10-Q income statement: Q1'26 income from operations $611m in both. Clean on this name.

Free cash flow — the contested input

See MELI_Research.md §6. Four defensible definitions spanning −9.8% to +37.3% of revenue. Base used: 14.2% (OCF − capex − loan-book growth). The full range is carried through the reverse-DCF surface rather than collapsed to a point.

normalized_fcf.py also crashed on the first invocation — see MELI_analysis.json tool_defects_found.

Segment / revenue-stream reconciliation, FY2025 ($m)

Ties to the consolidated income statement. Argentina is 20.6% of revenue and 65.9% of it is fintech — the highest fintech concentration of any geography, in the only hyperinflationary one.