Sea Ltd (SE) Q1 2026 Earnings Call Transcript
Sea Limited, through its subsidiaries, operates as a consumer internet company in Southeast Asia, Latin America, the rest of Asia, and internationally. The company operates through E-commerce, Digital financial services, and Digital entertainment segments. It offers Garena, a digital entertainment platform for users to access mobile and PC online games, as well as promotes eSports operations and develops games. The company also operates the Shopee e-commerce platform, a mobile-centric marketplace that provides integrated payments, logistics infrastructure, and seller services. In addition, it offers SeaMoney digital financial services comprising consumer, and small and medium-sized enterprises (SME) credit, mobile wallets, payment processing, banking, and insurtech services under the SPayLater tradename; and acts as an underwriter for various life and non-life insurance products under the SeaInsure tradename, as well as insurance agency services. It serves buyers, such as individuals and households; and sellers, including small and medium businesses, brands, and large retailers. The company was formerly known as Garena Interactive Holding Limited and changed its name to Sea Limited in April 2017. Sea Limited was incorporated in 2009 and is headquartered in Singapore.
Sea delivered 2025 revenue of $23B, net income $1.6B, and adjusted EBITDA $3.4B, with broad-based growth across Shopee, Monee, and Garena and a 2026 plan targeting ~25% GMV growth and flat-to-higher EBITDA.
⭐ Key Highlights
✔Positive Signals
- Record 2025 revenue of $23B and net income of $1.6B
- Shopee GMV up 27% with full-year adj. EBITDA of $881M
- Monee revenue up 60% to $3.8B and EBITDA up 43% to $1.0B
- Garena bookings up 37% to $2.9B and EBITDA up 38% to $1.7B
- VIP membership surpassing 7 million subscribers with strong per-user spend lift
✖Negative Signals
- Full-year 2025 tax expense of $651M, impacting net income quality
- Near-term investment cycle implies ongoing margin pressure before returns materialize
- NPLs stable at 1.1% but credit expansion remains sensitive to macro and underwriting risk
- Some markets still in early profitability phase, requiring continued capital for growth
- Guidance for 2027 not provided, creating some forward-looking ambiguity
📊Financial Results
- Q4 2025 GAAP revenue $6.9B, full-year 2025 GAAP revenue $22.9B (up 36% YoY)
- Q4 2025 adjusted EBITDA $787M, full-year 2025 adjusted EBITDA $3.4B (up 75% YoY)
- Shopee full-year adjusted EBITDA $881M (up 33% YoY); Q4 EBITDA $202M
- Monee full-year revenue $3.8B (up 60% YoY); full-year adjusted EBITDA $1.0B (up 43% YoY)
- Garena 2025 bookings $2.9B (up 37% YoY); full-year revenue $2.4B (up 26% YoY); EBITDA $1.7B (up 38% YoY)
🔮Future Guidance
- Shopee 2026 target: GMV up around 25% YoY with full-year adjusted EBITDA not lower than 2025 in absolute dollars
- Overall EBITDA margin trajectory: 2%–3% long-term EBITDA margin for e-commerce remains a stated target amidst growth investments
- AI and partnerships (e.g., Google) to deepen AI-powered solutions for Shopee; product-ready updates to be shared when available
- Garena outlook: double-digit growth expected again in 2026 with ongoing IP collaborations and football-related promotions during FIFA World Cup
- Brazil fulfillment expansion and VIP program expansion to drive higher basket and deeper market penetration
💡Interesting Insights
- Naruto IP collaboration and Guinness World Records-backed esports milestone highlight Sea's unique content-driven growth flywheel
- AI-driven risk models and multimodal search are being deployed to boost both user experience and seller efficiency
Detailed Analysis
AI-generated summary of Sea Ltd earnings call transcript.
Get Real-Time Earnings Call Alerts for Sea Ltd
Create a free MarketAlerts account to add SE to your watchlist and receive instant AI-powered alerts when new earnings call transcripts, insider trades, and technical signals are detected.
