Sea Limited American Depositary Shares, each representing one
SE · NYSE
Next quarter
Expected to report Nov 10, 2026 — estimated from last year’s reporting date.
Consensus is $0.84 EPS for Sep 2026 across 2 estimates, ranging $0.82 to $0.86.
SE Jun 2026
- 10.26%
- $0.78
- $0.70
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Highlights
- Revenue: Second-quarter GAAP revenue rose 48.1% year on year to $7.8 billion, while gross profit increased 47.3% to $3.5 billion.
- Earnings: Diluted EPS was $0.70 versus consensus of $0.78, a 10.26% miss; net income still increased 10.6% year on year to $458.1 million.
- Shopee: GMV grew 28.4% to $38.3 billion and gross orders rose 27.5% to 4.2 billion, while revenue increased 48.2% to $5.6 billion.
- Shopee monetisation: Core marketplace revenue grew 65.6% to $4.3 billion, offsetting a 9.0% decline in value-added services revenue to $676.4 million; adjusted EBITDA rose 12.2% to $255.4 million.
- Monee: Revenue increased 58.9% to $1.4 billion and adjusted EBITDA rose 12.8% to $288.0 million as loans outstanding grew 62.5% year on year to $11.1 billion.
- Credit quality: More-than-90-day non-performing loans were 1.0% of consumer and SME loans, stable from the prior quarter, despite a 71.5% increase in the credit-loss provision to $555.2 million.
- Garena: Bookings increased 15.5% to $763.5 million and adjusted EBITDA grew 16.7% to $429.8 million, with quarterly paying users up 10.2% to 68.1 million.
- Cash deployment: Sea repurchased 4.7 million shares for $416.8 million during the quarter under its $1.0 billion authorization; six-month share repurchases totaled $578 million.
Analysis
Sea’s second quarter was a high-growth operating print with weaker-than-expected per-share earnings. Revenue rose 48.1% year on year to $7.8 billion and net income increased 10.6% to $458.1 million, but diluted EPS of $0.70 fell short of the $0.78 consensus by 10.26%. Compared with the first quarter, inferred from the six-month filing, revenue increased about 9.7% from $7.1 billion and net income rose about 4.5% from $438.2 million.
The quarter was defined by continued scale in Shopee and Monee, alongside stronger Garena profitability. Shopee GMV grew 28.4% to $38.3 billion, but monetisation was the sharper story: core marketplace revenue rose 65.6% to $4.3 billion, lifting segment adjusted EBITDA 12.2% to $255.4 million despite heavier logistics and marketing investment. Monee revenue grew 58.9% to $1.4 billion as loans outstanding reached $11.1 billion, although credit-loss provisions rose 71.5% to $555.2 million. Garena delivered the strongest segment profit growth, with adjusted EBITDA up 16.7% to $429.8 million. Consolidated adjusted EBITDA rose 10.6% to $917.2 million, while Sea continued to return capital through $416.8 million of quarterly buybacks.
Shopee monetisation
- Marketplace scale: GMV reached $38.3 billion, up 28.4% year on year, and gross orders reached 4.2 billion, up 27.5%. GAAP revenue increased 48.2% to $5.6 billion.
- Higher-value revenue: Core marketplace revenue, consisting mainly of transaction fees and advertising, rose 65.6% to $4.3 billion. Value-added services revenue fell 9.0% to $676.4 million because of a higher revenue offset from shipping subsidies.
- Profitability: Adjusted EBITDA increased 12.2% to $255.4 million. Cost of revenue grew 51.9% to $3.2 billion and sales and marketing expense rose 56.6% to $1.3 billion as Sea invested in logistics, user experience and growth.
- Outlook: Management said Shopee remains on track to reach $1 billion of adjusted EBITDA for full-year 2026.
Monee credit expansion
- Growth: Monee revenue rose 58.9% to $1.4 billion and adjusted EBITDA increased 12.8% to $288.0 million, primarily reflecting expansion in consumer and SME lending.
- Loan book: Consumer and SME loans outstanding reached $11.1 billion at June 30, up 62.5% year on year, comprising $10.0 billion of on-book loans and $1.1 billion off book.
- Risk and investment: More-than-90-day non-performing loans were 1.0% of total consumer and SME loans, unchanged sequentially. The provision for credit losses rose 71.5% to $555.2 million, while Monee sales and marketing expense increased 139.8% to $293.9 million as Sea continued investing in user acquisition and product expansion.
Garena profitability
- Bookings and revenue: Bookings rose 15.5% to $763.5 million, while GAAP revenue increased 33.5% to $746.6 million, supported by active users and deeper payer penetration.
- User conversion: Quarterly active users were broadly stable at 666.3 million versus 664.8 million a year earlier, but paying users rose 10.2% to 68.1 million. The paying-user ratio improved to 10.2% from 9.3%, and average bookings per user increased to $1.15 from $0.99.
- Profit: Adjusted EBITDA grew 16.7% to $429.8 million, equal to 56.3% of bookings versus 55.7% a year ago. Beginning in the third quarter, Sea will exclude deferred-revenue changes and related costs from Garena adjusted EBITDA, while continuing to disclose the effect separately.
Consolidated earnings
Revenue growth translated into $3.5 billion of gross profit, up 47.3% year on year, and $650.3 million of operating income, up 33.3%. The benefit was partly absorbed by operating investment: sales and marketing expense rose 64.5% to $1.7 billion, credit-loss provisions rose 71.5% to $555.2 million, and tax expense increased 74.0% to $250.6 million. Adjusted EBITDA increased 10.6% to $917.2 million, with Garena contributing $429.8 million, Monee $288.0 million and Shopee $255.4 million. Net income rose more slowly than revenue at 10.6% to $458.1 million, producing diluted EPS of $0.70 versus $0.65 a year earlier.
Capital deployment
- Buybacks: Sea repurchased 4.7 million shares for $416.8 million in the second quarter under its $1.0 billion program. Six-month repurchases totaled $578 million.
- Liquidity and lending: Cash, cash equivalents and restricted cash stood at $6.0 billion at June 30, down from $6.4 billion at year-end. Six-month investing cash use was $3.5 billion, including a $2.9 billion increase in loans receivable, while operating cash generation was $2.6 billion.
