Financial Analysis

COMMITMENTS AND CONTINGENCIES Litigation and Other Legal Matters The Company is subject to certain contingent liabilities with respect to existing or potential claims, lawsuits and other proceedings. The Company accrues liabilities when it considers that future costs will probably be incurred and such costs can be reasonably estimated. Proceeding-related liabilities are based on developments to date and historical information related to actions filed against the Company. As of December 31, 2025, the Company had accounted for estimated liabilities involving proceeding-related contingencies and other estimated contingencies of $129 million (net of judicial deposits) within non current other liabilities to cover legal actions against the Company for which its Management has assessed the likelihood of a final adverse outcome as probable. Expected legal costs related to litigations are accrued when the legal service is actually provided. In addition, as of December 31, 2025, the Company and its subsidiaries are subject to certain legal actions considered by the Company's Management and its legal counsels to be reasonably possible of resulting in a loss for an aggregate amount up to $449 million. No loss amounts have been accrued for such reasonably possible legal actions, the most significant of which are described below. The following table summarizes the contingencies activity during the years ended December 31, 2025, 2024 and 2023: Year Ended December 31, 2025 2024 2023 Conting …

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LOANS PAYABLE AND OTHER FINANCIAL LIABILITIES The following tables summarize the Companys loans payable and other financial liabilities as of December 31, 2025 and 2024: December 31, 2025 2024 (In millions) Loans from banks $ 909 $ 946 Bank overdrafts 16 26 Secured lines of credit 239 110 Financial Bills and Deposit Certificates 1,700 1,075 Commercial Notes 143 5 Finance lease liabilities 48 41 Collateralized debt 1,039 610 2026 Sustainability Notes 367 4 2031 Notes 8 8 2033 Notes 2 Promissory Notes 127 Other lines of credit 25 3 Current loans payable and other financial liabilities $ 4,623 $ 2,828 Loans from banks $ 627 $ 217 Secured lines of credit 1 6 Financial Bills and Deposit Certificates 582 273 Commercial Notes 198 170 Finance lease liabilities 82 81 Collateralized debt 1,813 1,232 2026 Sustainability Notes 362 2031 Notes 533 546 2033 Notes 733 Other lines of credit 1 Non-Current loans payable and other financial liabilities $ 4,570 $ 2,887 See Note 19 Securitization transactions and Note 20 Leases of these audited consolidated financial statements for details regarding the Companys collateralized debt securitization transactions and finance lease liabilities, respectively. Type of instrument Currency Interest Weighted Average Interest Rate Maturity December 31, 2025 2024 (In millions) Loans from banks: Chilean Subsidiaries Chilean Pesos Fixed 5.72% January - September 2026 $ 246 $ 134 Brazilian Subsidiary Brazilian Reais Variable CDI + 0.25% - 0.39% June 2026 - Janua …

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EQUITY COMPENSATION PLAN On June 10, 2019, at the Annual Shareholders Meeting, the Companys shareholders approved the adoption of the Amended and Restated 2009 Equity Compensation Plan (the Amended and Restated 2009 Plan), which contains terms substantially similar to the terms of the 2009 Equity Compensation Plan (the 2009 Plan) that expired in 2019. As of December 31, 2025, there are 988,833 shares of common stock available for granting under the Amended and Restated 2009 Plan. Equity compensation awards granted under the Amended and Restated 2009 Plan are at the discretion of the Companys board of directors and may be in the form of either incentive or non-qualified stock options, restricted stock, or other forms of equity awards, including RSUs. As of December 31, 2025, there were 2,750 shares of unvested restricted stock and 192 RSUs outstanding under such plan. …

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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 Companys assets and liabilities measured at fair value on a recurring basis as of December 31, 2025 and 2024: 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) Balances as of December 31, 2024 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 $ 856 $ 856 $ $ $ 572 $ 572 $ $ U.S. government debt securities (1) 46 46 Foreign government debt securities (1) 16 16 4 4 Restricted cash and cash equivalents: Money market (2) 259 259 297 297 Foreign government debt securities (1) 14 14 469 469 Investments: U.S. government debt securities (1) 1,982 1,982 1,087 1,087 Foreign government debt securities (1) (3) 1,661 1,661 4,114 4,114 Corporate debt securities 399 399 262 262 Equity securities at fair value 59 59 Other assets: Derivative instruments 41 41 58 58 USDC 3 3 Intangible assets at fair value 49 49 Total assets $ 5,336 $ 5,295 $ 41 $ $ 6,912 $ 6,854 $ 58 $ Salaries and social security payable: Long-term retention program $ 176 $ $ 176 $ $ 163 $ $ 163 $ Other Liabilities: Contingent considerations 4 4 4 4 Derivative Instruments 83 83 31 31 Meli Dolar liability …

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GOODWILL AND INTANGIBLE ASSETS Goodwill and intangible assets The composition of goodwill and intangible assets is as follows: December 31, 2025 2024 (In millions) Goodwill $ 163 $ 149 Intangible assets with indefinite lives Trademarks 4 4 Amortizable intangible assets Naming rights 29 Licenses and others 18 18 Non-compete agreements 3 3 Customer lists 15 14 Trademarks 7 7 Hubs network 4 3 Others 4 3 Total intangible assets 84 52 Accumulated amortization (51) (40) Total intangible assets, net $ 33 $ 12 Goodwill The changes in the carrying amount of goodwill for the years ended December 31, 2025 and 2024 are as follows: Year Ended December 31, 2025 Brazil Mexico Argentina Chile Colombia Other countries Total (In millions) Balance, beginning of the year $ 56 $ 39 $ 14 $ 33 $ 5 $ 2 $ 149 Currency translation adjustments 6 5 2 1 14 Balance, end of the year $ 62 $ 44 $ 14 $ 35 $ 6 $ 2 $ 163 Year Ended December 31, 2024 Brazil Mexico Argentina Chile Colombia Other countries Total (In millions) Balance, beginning of the year $ 64 $ 44 $ 10 $ 37 $ 6 $ 2 $ 163 Business acquisitions 6 2 4 12 Currency translation adjustments (14) (7) (4) (1) (26) Balance, end of the year $ 56 $ 39 $ 14 $ 33 $ 5 $ 2 $ 149 Intangible assets with finite useful life Intangible assets with finite useful life are comprised of naming rights, customer lists, non-compete and non-solicitation agreements, hubs network, acquired software licenses and other acquired intangible assets including developed technologies …

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INCOME TAXES The components of income tax for the years ended December 31, 2025, 2024 and 2023 are as follows: Year Ended December 31, 2025 2024 2023 (In millions) Income Tax: Current: U.S. $ 35 $ 64 $ 41 Non-U.S. 1,279 700 812 1,314 764 853 Deferred: U.S. 71 17 36 Non-U.S. (540) (260) (320) (469) (243) (284) Income tax expense $ 845 $ 521 $ 569 The components of net income before tax expense and equity in earnings of unconsolidated entity for the years ended December 31, 2025, 2024 and 2023 are as follows: Year Ended December 31, 2025 2024 2023 (In millions) U.S. $ (7) $ 94 $ (362) Non-U.S. 2,849 2,338 1,915 $ 2,842 $ 2,432 $ 1,553 The components of income tax cash paid for the years ended December 31, 2025, 2024 and 2023 are as follows: Year Ended December 31, 2025 2024 2023 (In millions) U.S. $ 33 $ 63 $ 39 Brazil 404 289 191 Argentina 237 339 305 Mexico 208 188 40 Uruguay 57 50 43 Spain 12 78 Other 62 45 33 Income tax cash paid $ 1,013 $ 1,052 $ 651 The following is a reconciliation of the difference between the actual charge for income tax and the expected income tax expense computed by applying the statutory income tax rate for the years ended December 31, 2025, 2024 and 2023 to net income before income tax: Year Ended December 31, 2025 2024 2023 (In millions) US federal statutory rate $ 597 21 % $ 511 21 % $ 326 21 % Foreign Tax effects Argentina Statutory tax rate difference between Argentina and United States 256 9 % 91 4 % 159 10 % Non - taxable income (52) (2) % (5 …

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Recently Adopted Accounting Standards On December 14, 2023, the FASB issued the Accounting Standard Update (ASU) 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this update provide more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information, requiring consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. The other amendments in this update improve the effectiveness and comparability of disclosures by adding disclosures of pretax income (or loss) and income tax expense (or benefit) and removing disclosures that no longer are considered cost beneficial or relevant. The amendments are effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The guidance should be applied on a prospective basis while retrospective application is permitted. The Company adopted this guidance, applying the retrospective approach in the fourth quarter of 2025. Please refer to Note 13 Income taxes of these audited consolidated financial statements for additional information. Accounting Pronouncements Not Yet Adopted On November 4, 2024, the FASB issued the ASU 2024-03 Income StatementReporting Comprehensive IncomeExpense Disaggregat …

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RELATED PARTY TRANSACTIONS Indemnification agreements The Company has entered into indemnification agreements with each of the directors and executive officers of its local subsidiaries. These agreements require the Company to indemnify such individuals, to the fullest extent permitted by the laws of the jurisdiction where these subsidiaries operate, for certain liabilities to which they may become subject by reason of the fact that such individuals are or were directors or executive officers of the local subsidiaries of the Company. Advisory Agreement and Shares granted On April 8, 2022, the Company entered into an Advisory Services Agreement with Mr. Stelleo Tolda (former MercadoLibres Executive officer) whereby he provided to the Company with certain consulting and advisory services as an independent contractor for a three-year period for a fee of $10,000 per month. This advisory services agreement was terminated in its entirety effective September 13, 2024 due to Mr. Toldas appointment as a Class I director of the Company, with a term of service of September 12, 2024 through until the Companys 2025 Annual Meeting of Stockholders when he was elected to serve until the Company's 2026 Annual Meeting of Stockholders. The Company also entered into a restricted stock award agreement with Mr. Tolda on April 8, 2022, whereby the Company awarded Mr. Tolda a grant of 5,051 shares of restricted stock under the Amended and Restated 2009 Equity Compensation Plan. One-fifth of the rest …

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SEGMENTS The Company manages the business country-by-country to understand and focus on the specific needs and opportunities in those markets. The Companys chief executive officer is responsible for allocating resources and assessing performance and is therefore its chief operating decision maker (CODM). The Companys segments include Brazil, Mexico, Argentina and other countries (which includes Bermuda, Chile, China, Colombia, Costa Rica, Ecuador, Peru, Uruguay and the U.S.). The CODM evaluates the performance of the Companys operating segments based on their direct contribution. The CODM uses the direct contribution by segment to help with decision-making since it considers all business lines within a country as a whole, taking into account the synergies between the different lines in each of the countries integrated digital ecosystems. Direct contribution consists of net revenues and financial income from external customers less segment costs, which include expenses, such as shipping operation costs (including warehousing costs), carrier and other operating costs, provision for doubtful accounts, cost of goods sold, collection fees, funding cost, salaries and wages, marketing expenses and hosting expenses. All corporate related costs have been excluded from the segments direct contribution. The following tables summarize the financial performance of the Companys reporting segments: Year Ended December 31, 2025 Brazil Mexico Argentina Other Countries Total (In millions) Net …

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"SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of consolidation The accompanying audited consolidated financial statements are prepared in conformity with accounting principles generally accepted in the U.S. (U.S. GAAP) and include the accounts of the Company, its wholly-owned subsidiaries and consolidated Variable Interest Entities (VIE). Investments in entities where the Company holds joint control, but not control, over the investee are accounted for using the equity method of accounting. As of December 31, 2025 and 2024, the Company had no investments where it has the ability to exercise joint control. These audited consolidated financial statements are stated in U.S. dollars, except for where otherwise indicated. Intercompany transactions and balances have been eliminated for consolidation purposes. Substantially all net revenues and financial income, cost of net revenues and financial expenses and operating expenses, are generated in the Companys foreign operatio ns. Long-lived assets, intangible assets and goodwill and operating lease right-of-use assets located in the foreign jurisdictions totaled $4,695 million and $2,632 million as of December 31, 2025 and 2024, respectively. The presentation of certain prior year figures has been modified to conform to the current year presentation. See below section ""Change in the presentation of certain financial results and reclassification of 2023 results"" for information regarding the change in the presentation of th …

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