Sea Limited Reports Second Quarter 2026 Results

SINGAPORE--(BUSINESS WIRE)--Sea Limited (NYSE: SE) (“Sea” or the “Company”) today announced its financial results for the second quarter ended June 30, 2026. In the second quarter of 2026, Sea’s GAAP revenue was US$7.8 billion, up 48.1% year-on-year. The Company also achieved gross profit of US$3.5 billion, up 47.3% year-on-year, and net income of US$458.1 million, up 10.6% year-on-year. Adjusted EBITDA1 increased by 10.6% year-on-year to reach US$917.2 million. “Our strong momentum from the first quarter has continued into the second. Our investments have enabled Shopee and Monee to continue to strengthen our market leadership while improving our user penetration. We will continue to invest prudently in serving more users and serving them better, broadening our foundation for profitable growth into the future,” said Forrest Li, Sea’s Chairman and Chief Executive Officer. On Shopee, he said, “Shopee has delivered a strong first half of 2026. We again achieved new highs in GMV, gross order volume and revenue in the second quarter. Our improving operational efficiency and growing scale have strengthened our unit economics. With this solid momentum, we are optimistic that Shopee will achieve the milestone of US$1 billion in adjusted EBITDA for the full year.” On Monee, Mr. Li said, “Monee also delivered another great quarter, with broad-based growth across our products and markets. The advances in our risk capabilities are compounding: each improvement helps us serve more users, serve them better, and reach further beyond Shopee. We are still at an early stage of growth. Only a fraction of the users across our ecosystem are using Monee's financial products today, and credit penetration remains low across our markets. This gives us great confidence in Monee's long-term growth and earnings potential.” On Garena, Mr. Li said, “Garena delivered another strong quarter across bookings and profitability. Free Fire anchored this strong performance, continuing to draw in over 100 million average daily active users. We continue to work towards diversifying our portfolio with two recently announced mobile games: Palworld Online and Monster Hunter Outlanders, both built on strong, globally recognized IP. We remain committed to delivering the high-quality experiences our players know us for.” Second Quarter 2026 Business Highlights Shopee Gross orders totaled 4.2 billion for the quarter, increasing by 27.5% year-on-year. GMV was US$38.3 billion for the quarter, increasing by 28.4% year-on-year. GAAP revenue was US$5.6 billion, up 48.2% year-on-year. GAAP revenue included US$4.9 billion of GAAP marketplace revenue, which consists of core marketplace revenue and value-added services revenue and increased by 48.9% year-on-year. Core marketplace revenue, mainly consisting of transaction-based fees and advertising revenues, was up 65.6% year-on-year to US$4.3 billion. Value-added services revenue, mainly consisting of revenues related to logistics services, was down 9.0% year-on-year to US$676.4 million as a result of higher revenue net-off against shipping subsidies. Adjusted EBITDA1 was US$255.4 million, up 12.2% year-on-year. Monee GAAP revenue was US$1.4 billion, up 58.9% year-on-year. Adjusted EBITDA1 was US$288.0 million, up 12.8% year-on-year. Monee revenue and operating income are primarily attributed to the consumer and SME credit business. As of June 30, 2026, consumer and SME loans principal outstanding was US$11.1 billion, up 62.5% year-on-year. This consists of US$10.0 billion on-book and US$1.1 billion off-book loans principal outstanding2. Non-performing loans past due by more than 90 days as a percentage of consumer and SME loans principal outstanding, which includes both on-book and off-book loans principal outstanding2, was 1.0%, stable quarter-on-quarter. Garena Bookings3 were US$763.5 million, up 15.5% year-on-year. GAAP revenue was US$746.6 million, up 33.5% year-on-year. Adjusted EBITDA1 was US$429.8 million, up 16.7% year-on-year. Adjusted EBITDA represented 56.3% of bookings for the second quarter of 2026, as compared to 55.7% for the second quarter of 2025. Quarterly active users were 666.3 million, as compared to 664.8 million for the second quarter of 2025. Quarterly paying users were 68.1 million, up 10.2% year-on-year. Paying user ratio was 10.2%, as compared to 9.3% for the second quarter of 2025. Average bookings per user were US$1.15, as compared to US$0.99 for the second quarter of 2025. We currently include the net effect of changes in deferred revenue and its related cost in Adjusted EBITDA. Beginning with our earnings release for the third quarter of 2026, we will exclude this effect from Adjusted EBITDA but continue to disclose it as supplemental information. Share Repurchase Program During the second quarter of 2026, pursuant to our US$1.0 billion share repurchase program, we have repurchased 4.7 million shares for an aggregate amount of US$416.8 million. (1) For a discussion of the use of non-GAAP financial measures, see “Non-GAAP Financial Measures.” (2) Off-book loans principal outstanding mainly refers to channeling arrangements, which is lending by other financial institutions on our platform. (3) GAAP revenue for Garena plus change in Garena’s deferred revenue. This operating metric is used as an approximation of cash spent by our users in the applicable period that is attributable to Garena. Unaudited Summary of Financial Results (Amounts are expressed in thousands of US dollars “$” except for per share data) For the Three Months ended June 30, 2025 2026 YOY% $ $ Revenue Service revenue 4,798,913 7,130,053 48.6 % Sales of goods 460,564 657,726 42.8 % 5,259,477 7,787,779 48.1 % Cost of revenue Cost of service (2,417,660 ) (3,614,938 ) 49.5 % Cost of goods sold (432,007 ) (622,955 ) 44.2 % (2,849,667 ) (4,237,893 ) 48.7 % Gross profit 2,409,810 3,549,886 47.3 % Other operating income 31,903 24,261 (24.0 %) Sales and marketing expenses (1,009,495 ) (1,660,118 ) 64.5 % General and administrative expenses (323,342 ) (394,385 ) 22.0 % Provision for credit losses (323,729 ) (555,155 ) 71.5 % Research and development expenses (297,428 ) (314,160 ) 5.6 % Total operating expenses (1,922,091 ) (2,899,557 ) 50.9 % Operating income 487,719 650,329 33.3 % Non-operating income, net 83,299 65,537 (21.3 %) Income tax expense (144,056 ) (250,604 ) 74.0 % Share of results of equity investees (12,758 ) (7,146 ) (44.0 %) Net income 414,204 458,116 10.6 % Earnings per share attributable to Sea Limited’s ordinary shareholders: Basic 0.68 0.72 5.9 % Diluted 0.65 0.70 7.7 % Change in deferred revenue of Garena 102,159 16,919 (83.4 %) Adjusted EBITDA for Shopee (1) 227,694 255,419 12.2 % Adjusted EBITDA for Monee (1) 255,263 287,985 12.8 % Adjusted EBITDA for Garena (1) 368,190 429,756 16.7 % Adjusted EBITDA for Other Services (1) (13,766 ) (46,225 ) 235.8 % Unallocated expenses (2) (8,137 ) (9,747 ) 19.8 % Total adjusted EBITDA (1) 829,244 917,188 10.6 % (1) For a discussion of the use of non-GAAP financial measures, see “Non-GAAP Financial Measures.” (2) Unallocated expenses within total adjusted EBITDA are mainly related to general and corporate administrative costs such as professional fees and other miscellaneous items that are not allocated to segments. These expenses are excluded from segment results as they are not reviewed by the Chief Operating Decision Maker (“CODM”) as part of segment performance. Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025 Revenue Our total GAAP revenue increased by 48.1% to US$7.8 billion in the second quarter of 2026 from US$5.3 billion in the second quarter of 2025. The table below sets forth our revenue breakdown. Amounts are expressed in thousands of US dollars (“$”). For the Three Months ended June 30, 2025 2026 YOY% $ $ Service revenue Shopee 3,312,155 4,931,861 48.9% Monee 882,808 1,402,830 58.9% Garena 559,118 746,603 33.5% Other Services(1) 44,832 48,759 8.8% Sales of goods 460,564 657,726 42.8% Total revenue 5,259,477 7,787,779 48.1% (1) Other services are a combination of multiple business activities that do not meet the quantitative threshold to qualify as reportable segments. Shopee: GAAP revenue increased by 48.9% to US$4.9 billion in the second quarter of 2026 from US$3.3 billion in the second quarter of 2025, primarily driven by the growth of GMV and improved monetization. Monee: GAAP revenue increased by 58.9% to US$1.4 billion in the second quarter of 2026 from US$882.8 million in the second quarter of 2025, primarily driven by the growth of our credit business as our lending activities increased. Garena: GAAP revenue increased by 33.5% to US$746.6 million in the second quarter of 2026 from US$559.1 million in the second quarter of 2025. This increase was primarily due to the increase in our active user base as well as the deepened paying user penetration. Sales of goods: GAAP revenue increased by 42.8% to US$657.7 million in the second quarter of 2026 from US$460.6 million in the second quarter of 2025. Cost of Revenue Our total cost of revenue increased by 48.7% to US$4.2 billion in the second quarter of 2026 from US$2.8 billion in the second quarter of 2025. The table below sets forth our cost of revenue breakdown. Amounts are expressed in thousands of US dollars (“$”). For the Three Months ended June 30, 2025 2026 YOY% $ $ Cost of service Shopee 2,120,088 3,220,931 51.9 % Monee 115,899 158,125 36.4 % Garena 171,922 210,319 22.3 % Other Services(1) 9,751 25,563 162.2 % Cost of goods sold 432,007 622,955 44.2 % Total cost of revenue 2,849,667 4,237,893 48.7 % (1) Other services are a combination of multiple business activities that do not meet the quantitative threshold to qualify as reportable segments. Shopee: Cost of revenue increased by 51.9% to US$3.2 billion in the second quarter of 2026 from US$2.1 billion in the second quarter of 2025, primarily driven by an increase in logistics costs as orders volume grew, as well as investment in our logistics capabilities for better user experience. Monee: Cost of revenue increased by 36.4% to US$158.1 million in the second quarter of 2026 from US$115.9 million in the second quarter of 2025, primarily driven by costs associated with our credit business, which include funding costs, collection expenses and bank transaction fees, as well as server and hosting expenses. Garena: Cost of revenue increased by 22.3% to US$210.3 million in the second quarter of 2026 from US$171.9 million in the second quarter of 2025, primarily from third-party payment channel costs, which was largely in line with the increase in Garena revenue, as well as an increase in royalty payments to game developers. Cost of goods sold: Cost of goods sold increased by 44.2% to US$623.0 million in the second quarter of 2026 from US$432.0 million in the second quarter of 2025. Other Operating Income Our other operating income was US$24.3 million and US$31.9 million in the second quarter of 2026 and 2025, respectively. Other operating income mainly consists of rebates from our logistics services providers. Sales and Marketing Expenses Our total sales and marketing expenses increased by 64.5% to US$1.7 billion in the second quarter of 2026 from US$1.0 billion in the second quarter of 2025. The table below sets forth breakdown of the sales and marketing expenses of our major reporting segments. Amounts are expressed in thousands of US dollars (“$”). For the Three Months ended June 30, 2025 2026 YOY% Sales and Marketing Expenses $ $ Shopee 803,431 1,258,084 56.6% Monee 122,554 293,851 139.8% Garena 43,103 56,253 30.5% General and Administrative Expenses Our general and administrative expenses increased by 22.0% to US$394.4 million in the second quarter of 2026 from US$323.3 million in the second quarter of 2025. Provision for Credit Losses Our provision for credit losses increased by 71.5% to US$555.2 million in the second quarter of 2026 from US$323.7 million in the second quarter of 2025. Research and Development Expenses Our research and development expenses increased by 5.6% to US$314.2 million in the second quarter of 2026 from US$297.4 million in the second quarter of 2025. Non-operating Income or Losses, Net Non-operating income or losses mainly consist of interest income, interest expense, investment gain (loss), foreign exchange gain (loss) and gain (loss) on debt extinguishment. We recorded a net non-operating income of US$65.5 million in the second quarter of 2026, as compared to a net non-operating income of US$83.3 million in the second quarter of 2025. The non-operating income in the second quarter of 2026 was primarily due to interest income of US$68.6 million. Income Tax Expense We had a net income tax expense of US$250.6 million and US$144.1 million in the second quarter of 2026 and 2025, respectively. Net Income or Loss As a result of the foregoing, our net income increased by 10.6% to US$458.1 million in the second quarter of 2026 from US$414.2 million in the second quarter of 2025. Basic and Diluted Earnings or Loss Per Share Attributable to Sea Limited’s Ordinary Shareholders Basic earnings per share attributable to Sea Limited’s ordinary shareholders was US$0.72 in the second quarter of 2026, compared to basic earnings per share attributable to Sea Limited’s ordinary shareholders of US$0.68 in the second quarter of 2025. Diluted earnings per share attributable to Sea Limited’s ordinary shareholders was US$0.70 in the second quarter of 2026, compared to diluted earnings per share attributable to Sea Limited’s ordinary shareholders of US$0.65 in the second quarter of 2025. Webcast and Conference Call Information The Company’s management will host a conference call today to review Sea’s business and financial performance. Details of the conference call and webcast are as follows: Date and time: 7:30 AM U.S. Eastern Time on August 11, 2026 7:30 PM Singapore / Hong Kong Time on August 11, 2026 Webcast link: https://events.q4inc.com/attendee/265654308 A replay of the conference call will be available at the Company’s investor relations website (www.sea.com/investor/home). An archived webcast will be available at the same link above. About Sea Limited Sea Limited (NYSE: SE) is a global technology company founded in Singapore in 2009. Its mission is to better the lives of consumers and small businesses with technology. Sea operates three core businesses across e-commerce, digital financial services, and digital entertainment, known as Shopee, Monee, and Garena respectively. Shopee is the largest e-commerce platform in Southeast Asia and Taiwan and is a leading e-commerce platform in Brazil. Monee is a leading digital financial services provider in Southeast Asia with a growing presence in Latin America. Garena is a leading global online games developer and publisher. Forward-Looking StatementsRead the full story here

Sea Limited Reports Second Quarter 2026 Results

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