NASDAQ Shariah screener · October 2026
Is MercadoLibre, Inc. (MELI) Halal?
MercadoLibre, Inc. · NASDAQ: MELI · Consumer Discretionary
The short answer
No — MercadoLibre, Inc. (MELI) does not pass this Shariah stock screen. Its Mercado Pago fintech arm runs a material interest-based lending operation (a $16.4B credit portfolio at June 30, 2026, up 75% year over year), which is a prohibited line at this scale — and credit revenues of $4,007M in the first nine months of 2025 were about 19.9% of revenue ($20,134M), far above the 5% non-compliant income ceiling. The debt gate passes: ~$10.6B of total debt at June 30, 2026 is about 12.2% of its $86.78B market cap (Finnhub, October 1–2, 2026). Musaffa classifies MELI as NOT HALAL (October 2026, AAOIFI methodology); Zoya covers it with a dedicated page (current rating badge not verifiable from the page). This is a factual screen, not a religious ruling — consult a qualified scholar for personal guidance.
Gate 1 — Business activity: FAIL
MercadoLibre, Inc. (NASDAQ: MELI) is Latin America's largest e-commerce and fintech group: the Mercado Libre Marketplace, Mercado Pago (payments, digital banking, asset management), Mercado Envios (logistics) and Mercado Ads (advertising), with Brazil, Mexico and Argentina the largest markets. The fintech arm runs a large interest-based lending operation: a $16.4B credit portfolio at June 30, 2026, up 75% year over year, a $7.7B credit-card portfolio, and 88M fintech monthly active users (Q2 2026). The filings' 'credit revenues' line captures interest on merchant and consumer loans plus credit-card interest and fees — $4,007M in the first nine months of 2025 alone (Q3 2025 10-Q). Interest-based lending (conventional credit/riba) is a prohibited line, and at this scale it is a material core activity, not an incidental one. Gate 1 fails. Facts only.
Gate 2 — Debt and cash: PASS
At March 31, 2026 the Q1 2026 10-Q reported loans payable and other financial liabilities of $9,927M ($5,316M current + $4,611M noncurrent); the September 2026 S-3 shelf prospectus puts total debt at ~$10.6B as of June 30, 2026. Against a market capitalization of $86.78B (Finnhub, $1,685.12 per share, October 1–2, 2026), debt ÷ market cap is about 12.2%, below the ~33% ceiling. Cash and equivalents of ~$3.65B at Q2 2026 are about 4.2% of market cap. (Amounts payable to customers — $14B+ — are customer funds, not company debt, and are not counted.) Gate 2 passes. Facts only.
Gate 3 — Non-compliant income: FAIL
The Q3 2025 10-Q breaks out credit revenues of $4,007M for the nine months ended September 30, 2025 — the filings' revenue line for the lending business (interest on merchant and consumer loans plus credit-card interest and fees) — against $20,134M of net revenues and financial income: about 19.9% of revenue, far above the 5% non-compliant income ceiling. Note: the disclosed 'interest income and other financial gains, net' line was only $138M (0.48%) for FY2025 — but the material interest income sits inside revenue as credit revenues (Zoya's own page notes some companies report additional interest income as part of revenue). This figure is conservative: it excludes interest on cash and investments bundled into the 'financial services and income' line. Gate 3 fails. Facts only.
Key figures used
- Business: Latin America's largest e-commerce and fintech group — Mercado Libre Marketplace, Mercado Pago (payments, digital bank, lending), logistics (Mercado Envios) and advertising; Brazil, Mexico and Argentina are the largest markets
- Lending is material: credit portfolio of $16.4B at June 30, 2026, up 75% year over year (Q2 2026); credit-card portfolio $7.7B; 88M fintech monthly active users
- Credit revenues — interest on merchant and consumer loans plus credit-card interest and fees — were $4,007M in the first nine months of 2025, about 19.9% of $20,134M of net revenues and financial income (Q3 2025 10-Q)
- Interest-bearing debt: loans payable and other financial liabilities of $9,927M at March 31, 2026 (Q1 2026 10-Q); ~$10.6B of total debt at June 30, 2026 per the filed September 2026 S-3 prospectus — about 12.2% of the $86.78B market cap, under the ~33% ceiling
- Disclosed interest income line: $138M FY2025 ('interest income and other financial gains, net') — 0.48% of $28,893M revenue; cash ~$3.65B at Q2 2026, about 4.2% of market cap
- Coverage: Musaffa rates MELI NOT HALAL (October 2026, AAOIFI methodology); Zoya covers MELI with a dedicated AAOIFI-methodology page (current badge not verifiable from page fetch); no ShariaPortfolio stock-level coverage found
Frequently asked questions
What does MercadoLibre do?
MercadoLibre, Inc. (NASDAQ: MELI) is Latin America's largest e-commerce and fintech group. It runs the Mercado Libre online marketplace, the Mercado Pago fintech platform (payments, digital banking and asset management — $101B of total payment volume in Q2 2026, 88M monthly active users, $23B of assets under management), a logistics network (Mercado Envios) and an advertising business (Mercado Ads). Its largest markets are Brazil, Mexico and Argentina. Critically for this screen, Mercado Pago also runs a large lending business — merchant and consumer loans plus credit cards — with a credit portfolio of $16.4B at June 30, 2026, up 75% year over year.
Why does MercadoLibre fail this Shariah stock screen?
Two gates fail. First, the business gate: interest-based lending (conventional credit/riba) is a prohibited line, and MercadoLibre's lending — a $16.4B credit portfolio and a $7.7B credit-card book at June 30, 2026 — is a material core activity, not an incidental one. Second, the income gate: credit revenues (interest on loans plus credit-card interest and fees) of $4,007M in the first nine months of 2025 were about 19.9% of $20,134M of revenue, far above the 5% non-compliant income ceiling. The debt gate passes (~$10.6B total debt is about 12.2% of the $86.78B market cap). Musaffa independently classifies MELI as not halal (October 2026, AAOIFI methodology). This is a factual screen, not a religious ruling — consult a qualified scholar for personal guidance.
What is MercadoLibre's interest-bearing debt ratio?
About 12.2%, under the ~33% ceiling, so this gate passes. The Q1 2026 10-Q reported loans payable and other financial liabilities of $9,927M at March 31, 2026 ($5,316M current plus $4,611M noncurrent), and the September 2026 S-3 shelf prospectus reports about $10.6B of total debt as of June 30, 2026. Against a market capitalization of $86.78B (Finnhub, $1,685.12 per share, October 1–2, 2026), that is about 12.2%. Cash and equivalents of about $3.65B at Q2 2026 are about 4.2% of market cap. Amounts payable to customers ($14B+) are customer funds, not company debt, and are not counted.
What is MercadoLibre's non-compliant income ratio?
About 19.9%, over the 5% ceiling, so this gate fails. The Q3 2025 10-Q reports credit revenues — the filings' revenue line for the lending business, i.e. interest on merchant and consumer loans plus credit-card interest and fees — of $4,007M for the nine months ended September 30, 2025, against $20,134M of net revenues and financial income. The separately disclosed 'interest income and other financial gains, net' line was only $138M for full-year 2025 (0.48% of $28,893M revenue); the material interest income sits inside revenue as credit revenues.
Do Zoya, Musaffa, or ShariaPortfolio cover MercadoLibre?
Zoya and Musaffa cover it; ShariaPortfolio does not. Musaffa classifies MercadoLibre (MELI) as NOT HALAL as of October 2026 under its AAOIFI methodology. Zoya maintains a dedicated MELI page under the same AAOIFI methodology, which cites FY2025 revenue of $28,893M and interest income of $138M (0.48%) — though its current compliant/non-compliant badge did not render legibly in the page fetch, so its current rating is reported as not verified. No ShariaPortfolio stock-level rating or screener page for MELI was found — honestly reported as absent, not invented.
Sources
- MercadoLibre — Q3 2025 10-Q (stocktitan): revenue breakdown — credit revenues $4,007M, net revenues and financial income $20,134M, nine months ended Sept 30, 2025
- MercadoLibre — Q1 2026 10-Q balance sheet: loans payable and other financial liabilities $5,316M current + $4,611M noncurrent at Mar 31, 2026 (vs $4,623M + $4,570M at Dec 31, 2025)
- MercadoLibre — MELI SEC filings (stocktitan): S-3 shelf prospectus summary — ~$10.6B total debt and $43.5B total liabilities as of Jun 30, 2026; H1 2026 net revenues $19,014M; net debt $6,425M
- MercadoLibre — Q4 2025 8-K (stocktitan): FY2025 income statement — net revenues and financial income $28,893M; interest income and other financial gains, net $138M
- Finnhub — MELI market data: market cap $86.78B, $1,685.12 per share (Oct 1–2, 2026)
- Musaffa — MercadoLibre (MELI) classified NOT HALAL as of October 2026 (AAOIFI methodology)
- Zoya — MercadoLibre (MELI) stock page (AAOIFI methodology): FY2025 revenue $28,893M, interest income $138M = 0.48%
- MercadoLibre — Q2 2026 press release (Morningstar/Business Wire): net revenue $10.2B; credit portfolio over $16B; TPV $100B+; fintech MAU 88M; AUM $23B
- MercadoLibre — Q2 2026 earnings call highlights (GuruFocus): credit portfolio $16.4B (+75% YoY); credit-card portfolio $7.7B; NPL 7.0%
- Firmsworld — MercadoLibre business overview: credit revenues generated from lending activities — interest on loans and advances to merchants and consumers; credit-card interest and commissions
Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.
Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).