Sea Limited to Report Q3 Earnings: What's in the Cards for the Stock?

Sea Limited SE is set to report third-quarter 2025 results on Nov. 11.

The Zacks Consensus Estimate for SE’s third-quarter earnings is pegged at $1.03 per share, down by 7.2% over the past 30 days. The company reported earnings of 54 cents per share in the year-ago quarter.

The Zacks Consensus Estimate for revenues is pegged at $5.97 billion, suggesting year-over-year growth of 39.90%.

Sea Limited’s earnings missed the Zacks Consensus Estimate in all the trailing four quarters, delivering an average negative surprise of 12.14%.

Sea Limited Sponsored ADR Price and EPS Surprise

Sea Limited Sponsored ADR price-eps-surprise | Sea Limited Sponsored ADR Quote

Let us see how things have shaped up for the upcoming announcement.

Key Factors to Note Ahead of SE’s Q3 Results

Shopee’s sustained momentum is expected to have positively influenced Sea Limited’s performance in the third quarter of 2025. Management noted that Gross Merchandise Value (GMV) grew 25% year over year in the first half, with growth momentum anticipated to continue into the third quarter. The e-commerce arm delivered back-to-back record quarters, underscoring Shopee’s expanding scale and operational strength. In Brazil, Shopee marked its fifth anniversary as the market leader by order volume, achieving fast growth while remaining profitable. These trends are expected to have benefited the company in the quarter under review.

SeaMoney’s rapid loan book expansion and consistent credit quality are expected to have supported Sea Limited’s performance in the to-be-reported quarter. The fintech arm’s loan portfolio reached approximately $6.9 billion, reflecting nearly 90% year-over-year growth, while maintaining a stable 90-day non-performing loan ratio of around 1.0%. This demonstrates disciplined risk management and robust portfolio health. The wider adoption of SPayLater and personal loans across markets further strengthened its revenue diversity and resilience.

Garena’s robust gaming performance is expected to have positively influenced Sea Limited’s results in the third quarter of 2025. The division delivered strong momentum in the first half of the year, driven by multiple titles achieving double-digit growth, including Free Fire, Arena of Valor, EA Sports FC Online and Call of Duty: Mobile. Free Fire remained the cornerstone of Garena’s success, sustaining a massive global player base exceeding 100 million average daily active users and reinforcing its position as an evergreen franchise. Management’s decision to raise full-year bookings guidance to more than 30% year over year further underscores confidence in sustained engagement and monetization strength. Additionally, Garena’s continued push into new genres, markets and AI-driven gaming experiences is likely to have strengthened user acquisition and long-term growth prospects.

Sea Limited’s continued focus on driving expansion across its e-commerce and fintech businesses led to significantly higher operating expenditures. Sales and marketing expenses surged nearly 30% year over year to about $1.0 billion in the previous quarter, reflecting aggressive investments in customer acquisition and market penetration. As a result, Sea Limited’s profitability is expected to have been pressured in the to-be-reported quarter.

What Our Model Says About Sea Limited Stock

Our proven model does not conclusively predict an earnings beat for SE this time around. According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.

Sea Limited currently has an Earnings ESP of -6.5% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat earnings in their upcoming releases:

Exodus Movement, Inc. EXOD currently has an Earnings ESP of +700.00% and sports a Zacks Rank #1. EXOD shares have declined 24.2% in the year-to-date period. EXOD is set to report its third-quarter 2025 results on Nov. 10. You can see the complete list of today’s Zacks #1 Rank stocks here.

CoreWeave Inc. CRWV presently has an Earnings ESP of +15.66% and a Zacks Rank #2.  CRWV shares have soared 186.1% year to date. CRWV is set to report its third-quarter 2025 results on Nov. 10.

NVIDIA NVDA has an Earnings ESP of +2.08% and a Zacks Rank #2 at present. NVDA shares have risen 45.3% year to date. NVDA is set to report its third-quarter fiscal 2026 results on Nov. 19.

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This article originally published on Zacks Investment Research (zacks.com).

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