Overview
- Revenue rose about 49% year over year in the quarter, while operating margin fell to 6.9%.
- The company said margins tightened because it expanded credit, lowered free‑shipping thresholds, reduced some take rates, and invested in first‑party inventory.
- Fintech kept accelerating as total payment volume grew 50%, monthly active users rose 29%, the credit card portfolio jumped 107%, and 2.7 million new cards were issued.
- Commerce metrics stayed strong with gross merchandise volume up 42%, total unique active members up 26%, and Brazil adding roughly 17 million new customers.
- After recent profit declines pressured the stock, several analysts framed the margin squeeze as a strategic tradeoff and argued these moves could lift profitability over the next two to three years.