Sea Ltd (NYSE:SE) reported fiscal fourth-quarter 2025 results that paired robust top-line growth with an earnings miss.
Quarterly revenue rose 38.4% year-on-year to $6.85 billion, ahead of analyst expectations of $6.45 billion. The company posted earnings per share of 63 cents, missing the consensus forecast of 66 cents.
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Segment Performance
Sea generates revenue through three segments: Garena, Shopee and Monee.
Garena monetizes through in-game purchases and advertising; Shopee earns fees from transactions, seller services and ads; while Monee earns through transaction charges and financial products, including loans and insurance.
Shopee
Shopee’s quarterly revenue increased 35.8% to $4.3 billion, driven primarily by GMV growth.
Gross orders totaled 4 billion for the quarter, increasing by 30.5% year-over-year.
GMV was $36.7 billion for the quarter, increasing by 28.6% Y/Y.
Adjusted EBITDA was $202.5 million, up 33.0% Y/Y.
Monee
Monee’s quarterly revenue rose 54.3% to $1.1 billion, driven by growth in its credit business as lending activity increased.
Adjusted EBITDA was $263.1 million, up 24.7% Y/Y.
Garena
Garena’s quarterly revenue climbed 35.1% to $701 million, primarily driven by an increase in its active user base and deeper paying user penetration.
Bookings were $672.4 million, up 23.8% Y/Y.
Adjusted EBITDA was $363.8 million, up 25.6% Y/Y.
Quarterly active users were 633.3 million, up 2.5% Y/Y.
Quarterly paying users were 58.0 million, up 15.0% Y/Y.
Average bookings per user were $1.06, as compared to 88 cents Y/Y.
Sea generated $1.48 billion in operating cash flow during the quarter and ended Dec. 31, 2025, with $6.42 billion in cash and equivalents.
Chair and CEO Forrest Li said Sea delivered broad-based, sustainable growth supported by its expanding user base.
In 2025, Shopee served around 400 million active buyers and 20 million sellers, Monee added more than 20 million unique first-time borrowers, and Garena connected with over 100 million players on average each day throughout the year.
He said the company expects Shopee’s strong growth momentum and profitability to carry into 2026.
Sea aims to increase Shopee’s annual GMV by about 25% Y/Y in 2026, while keeping full-year adjusted EBITDA at least at 2025 levels in absolute dollar terms, as it works to optimize Shopee’s long-term profitability.
SE Price Action: Sea Ltd stock was trading 19.06% lower at $85.10 at publication on Tuesday.
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