$SE

Sea beats top-line and bottom-line estimates; introduces FY26 outlook
Q4 GAAP EPS of $0.63 beats by $0.01.
Revenue of $6.85B (+38.4% Y/Y) beats by $420M.
Adjusted EBITDA1 increased by 33.2% year-on-year to reach US$787.1 million.
"For 2026, we aim to grow Shopee’s annual GMV by around 25% year-on-year, with its full year adjusted EBITDA no lower than that of 2025 in absolute dollar terms. We believe this is the right strategy to optimize Shopee’s long-term profitability.”
Earnings Snapshot: Sea targets 25% GMV growth in 2026 for Shopee after Q4 beat
Sea Limited Q4 growth overshadowed by increased costs, loss provision
Shares of Sea Limited (SE) are limping into Tuesday’s open, down as much as 16%, as double-digit growth in revenue, meaningful gains in Shopee’s gross merchandise value (GMV), and growth in Monee’s credit business failed to compensate for higher cost of revenue for all segments, significant increased provision for credit losses, and decreased revenue in Shopee’s value-added services.
The company reported better-than-expected top- and bottom-line results, with net sales up nearly 40%, gross profit up 36%, and net income more than doubling to $410.9M, or $0.63 per share. Adjusted EBITDA rose 33.2% to $787.1M.
For the year, Shopee served ~400M active buyers and 20M sellers, while Monee gained more than 20M first-time borrowers, and Garena connected with an average of 100M players daily.
But despite solid gains in nearly every category—with the notable exception of Shopee’s value-added revenue—Sea Limited (SE) provided more than $393M for credit losses in the fourth quarter, an increase of 67% from the same quarter last year and 76.7% higher than FY25, tied to uncollected loans in its Monee business.
Additionally, the company’s sales and marketing expenses for Monee more than doubled in 2025, driving up the segment’s cost of revenue by more than 35%, fueled by higher server and hosting expenses, interest expenses, and expenses associated with collections and bank transaction fees. This compares to an increased cost of revenue of 33% for Shopee and +30% for Garena,
Looking ahead to 2026, Sea Limited (SE) expects to grow Shopee’s annual GMV by ~25%, with adjusted EBITDA to be unchanged to up slightly from 2025.
“We were successful in 2025 because we chose the right set of strategies and we executed them well. 2026 will be a continuation of this approach. Our strategies will be consistent, and execution remains key. We will double down on operational excellence and work towards delivering another year of strong growth and healthy profits,” said Sea Limited CEO Forrest Li.